Yangzijiang Shipbuilding (Holdings)

It seems that capacity squeeze happens due to the number of options signed. Anyone know what is the lifespan of options for ship building? Or it varies?

Chairman Ren admitted the mistake. I value companies with candid chairman/CEO

Well, I don't take it as mistake, if the market rate didn't recover, than those options are assets, rather than liabilities now...

Yangzijiang Shipbuilding set for best year in order win since 2007

China’s third-largest listed shipbuilder Yangzijiang Shipbuilding Holdings is on track this year to win the most new orders since 2007, a feat unlikely to be repeated soon as it has now almost reached full capacity.

Yangzijiang, based in eastern China’s Jiangsu Province, took home new orders worth US$2.1 billion in the first nine months of 2013 and is poised to end the year with US$3 billion worth of new orders, Chairman Ren Yuanlin told reporters.

The strong performance helped build up an outstanding order book worth US$3.9 billion at the end of September, the highest in nearly two years, but that also means the company will have limited capacity for new contracts from now until 2016, Ren said.

Profit margins are also likely to be squeezed as many of these outstanding orders were converted from options booked at prices that were below current market rates by as much as 10%, he added.

"We made a mistake by signing too many options with ship owners in March and April this year," Ren said after the company reported a six% decline in its third-quarter net profit.

"We are asking the ship owners that want early deliveries to pay more, and adjusting our capacity to squeeze in some slots for 2015 and 2016 deliveries, to mitigate the impact."

The company is streamlining its structure, which is a good news.

INTER-GROUP RESTRUCTURING EXERCISE

The Board of Directors (the “Board”) of Yangzijiang Shipbuilding (Holdings) Ltd. (the “Company”, and together with its subsidiaries, the “Group”) is pleased to announce that the Company had completed a series of inter-group restructuring exercise to streamline its structure

Ref: http://infopub.sgx.com/FileOpen/Announce...eID=266383

YZJ's order book win continues...

Shanghai: Scorpio Bulkers announced Tuesday that the company has entered into newbuilding agreements for the purchase of eight dry bulk vessels for an aggregate of US$242m.
Six of the vessels will be built in China, including two kamsarmax bulkers in Shanghai Waigaoqiao Shipbuilding, which are due for delivery during Q2-Q3 2014, and another four kamsarmaxes in Jiangsu Yangzijiang Shipbuilding, which are scheduled for delivery between Q3 2015-Q1 2016.
Scorpio Bulkers has contracted and agreed to purchase 28 Ultramax, 16 Kamsarmax and three Capesize newbuilding dry bulk vessels to be delivered starting from the second quarter of 2014 from shipyards in Japan, China and Romania, according to the company.[04/12/13]
(Source: http://www.sinoshipnews.com/news_content...d=3w3c2119)

Hmm... is 30 mio for a kamsarmax, a variant of panamax good margin??

pre-crisis, think the price was more than 50 million.

1 more order win from Klaveness, 2 more 82000 Kamsarmax bulk.

Taken together with the 4 with Scorpio, and assume 30 mio per shape 180 mio might not trigger mandatory announcement.

What really surprise me is the announcement fromKlavaness
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Klaveness has previously ordered two 82,000 dwt Kamsarmax vessels at YZJ shipyard in China with options. Klaveness has also negotiated a second program for additional Kamsarmax vessels at the same yard.

Klaveness has now ordered the two first vessels from the second program against a novation to a Tufton Oceanic managed entity as a buyer of these vessels. Klaveness will enter into a cooperation with Tufton Oceanic for joint supervision of the vessels.

With this transaction Klaveness has secured additional options as well as a potentially lower delivered cost resulting from a larger program.

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Lower delivered cost resulting from larger programme, I thought YZJ said they have limited berths, and will ask for higher margins. Then why further lower costs?? 82000 bulk isn't really any technical advanced ship that might increase production profile of YZJ...

Hmm.....

More detail disclosed on the international trading company incorporated in Singapore. I am more concern on the trading business than the investment business in China.

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The Board of Directors (the “Board”) of Yangzijiang Shipbuilding (Holdings) Ltd. (“YZJ” or the “Company”) wishes to announce that the Company had through Jiangsu New Yangzi Shipbuilding Co., Ltd, a wholly owned subsidiary of the Company, incorporated a new subsidiary in the Republic of Singapore with an authorised capital of US$99.8 million, named Newyangzi International Trading Co., Ltd. (“NYIT”), thereby making it as the 100% indirect wholly-owned subsidiary of the Company.

Ref: http://infopub.sgx.com/FileOpen/Announce...eID=267033

(05-12-2013, 10:38 AM)Greenrookie Wrote: 1 more order win from Klaveness, 2 more 82000 Kamsarmax bulk.

Taken together with the 4 with Scorpio, and assume 30 mio per shape 180 mio might not trigger mandatory announcement.

What really surprise me is the announcement fromKlavaness
--------
Klaveness has previously ordered two 82,000 dwt Kamsarmax vessels at YZJ shipyard in China with options. Klaveness has also negotiated a second program for additional Kamsarmax vessels at the same yard.

Klaveness has now ordered the two first vessels from the second program against a novation to a Tufton Oceanic managed entity as a buyer of these vessels. Klaveness will enter into a cooperation with Tufton Oceanic for joint supervision of the vessels.

With this transaction Klaveness has secured additional options as well as a potentially lower delivered cost resulting from a larger program.

---------

Lower delivered cost resulting from larger programme, I thought YZJ said they have limited berths, and will ask for higher margins. Then why further lower costs?? 82000 bulk isn't really any technical advanced ship that might increase production profile of YZJ...

Hmm.....

1 more order from great eastern, again its 82000dwt kamasrmax, this time, the deal is thought to be worth 27 mio per ship....
(source:http://www.hellenicshippingnews.com/News.aspx?ElementId=539fcf05-7e57-470c-9292-bfe94582f08a)

delivery in 2016....

Err.... if freedom margin of 50 mio is fat.... then this is....

http://infopub.sgx.com/FileOpen/FORM3-Xi...eID=268153

After Yukebin, XiangJianJun has sold out it stake in Lido Point too? Why?? Who are the buyers? The buyer should have trigger announcement too since its about 10% stake here...

Anyone any comments?

Given that there is no further announcement, Wang Dong Should be the sole shareholder of Lido point now...

The more pertinent question is... Why did XiangJianJun sell to Wang Dong? Xiang Jiang Jun seem like an unwanted child here, used to have a stake in newyard worldwide holding with ren yuanlin with ren holding 70% of holding and xiang 30%
In 2010, Lido point sell shares to newyard for newyard to own 1 billion shares, and ren became the sole holder of newyard and xiang Jian Jun become a shareholder of Lido investment.

Now he is totally out of the picture. Wonder how market will react to this news...

YZJ's HTM investment is base on the trust company model with local banks. The guideline might mean that YZJ needs to find new venture for its RMB 12.5 billion fund.

China draws up new regulations to curb shadow-banking risks

BEIJING — China has published guidelines strengthening the regulation of risky off-balance-sheet lending in a new effort to address growing financial risks from an explosion in debt.

The State Council’s guidelines called for tighter regulation of banks’ off-balance-sheet lending and said trust companies, the biggest non-bank players in what is called “shadow banking”, should return to their original purpose as asset managers and not engage in “credit-type” business.
...
http://www.todayonline.com/business/chin...king-risks