Net profit for the quarter dropped 9% year-on-year to RMB878.18m ($137.91m) due to higher finance costs and negative mark-to-market variations on the US/RMB currency forward contracts and the outstanding shipbuilding orders denominated in EUR.
Operating expenses, including administrative expenses and finance expenses, jumped 99% year-on-year to RMB208.3m during the quarter.
Revenue, however, improved 13% year-on-year to RMB3.9bn due to strong performance in the company's core shipbuilding business.
“Consolidation of the shipbuilding industry is still underway and we do expect the near future to be a challenging one considering the global uncertainties and growing market competitiveness,” said Ren Yuanlin, executive chairman of Yangzijiang.
“We are committed in developing ship breaking and offshore business into the next growth engines for the group, complementing the core shipbuilding business,” he said.
Yangzijiang's outstanding orderbook stood at $3.8bn comprising of 80 vessels as at 30 June 2012.
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