主席致词
Dear Shareholders,
GROWTH AND INNOVATION IN A TRANSFORMING INDUSTRY
FY2024 was yet another excellent year for Yangzijiang Shipbuilding, that showcases our resilience, innovation, and commitment to excellence amidst an evolving global landscape. With continued industry growth and heightened demand for clean energy vessels, we capitalised on our strong execution capabilities, achieving record-breaking new order wins and financial results. Our shipyards operated at full capacity, setting new benchmarks in operational excellence and reinforcing our position as one of the world's leading shipbuilders.
DELIVERING RECORD PERFORMANCE
In FY2024, we secured an unprecedented USD14.6 billion in new orders, driven primarily by robust demand for dual-fuel containerships, oil tankers, and gas carriers, reflecting the shipping industry's increasing commitment to decarbonisation. As a result, our total outstanding orderbook surged to an all-time high of USD24.4 billion, representing a 68% increase from the previous year and offering strong earnings visibility through 2028.
Revenue for the year reached a record RMB26.5 billion, marking a 10.1% year-on-year growth, fuelled by stronger shipbuilding revenue, primarily supported by higher newbuild prices, and stronger shipping revenue, supported by fleet expansion and improved charter rates. Gross profit rose impressively by 40.6% to RMB7.6 billion, with margins improving by 6.3 percentage points to 28.7%, reflecting higher vessel prices, a favorable exchange rate, and lower raw material costs. Our joint venture, Yangzi-Mitsui Shipbuilding Co., Ltd. ("YAMIC"), made significant contributions in FY2024, with earnings more than doubling year-on-year to RMB559.0 million. This growth was underpinned by the successful strategic shift of YAMIC toward building higher-end gas carriers that yield better profitability.
STRENGTHENING OUR MARKET LEADERSHIP AMID INDUSTRY SHIFTS
The global shipbuilding industry witnessed steady growth in 2024, although some shipowners recently exhibited caution amid concerns about oversupply and geopolitical uncertainties, including the US's Section 301 investigation into China's maritime sector. Despite these challenges, the industry's long-term outlook remains strong, supported by regulatory initiatives promoting greener and more efficient vessels. The International Maritime Organization ("IMO") has proposed new greenhouse gas reduction regulations, anticipated for adoption in 2025, aimed at accelerating the industry's transition to cleaner energy solutions.
In response, we have continued to invest in future-ready shipbuilding capabilities. Our capacity expansion initiative, Project Hongyuan, adjacent to Xinfu Yard, has commenced construction following final approvals from local authorities. This new facility, with an expected capital expenditure ("CAPEX") of approximately RMB3 billion, will feature state-of-the-art infrastructure designed for high-value vessels, including dual-fuel ships and high-end gas carriers. Construction is scheduled for completion for late 2026, with the first vessel delivery expected in 2027.
I'm also pleased to update shareholders that our LNG terminal project is progressing well, reinforcing our commitment to sustainable maritime solutions. This project, with an expected capital expenditure of RMB2 billion, aligns with our long-term strategy to integrate into the LNG supply chain and support China's broader energy transition.
NAVIGATING THE SHIPPING MARKET
The shipping industry experienced notable volatility in FY2024, with the Baltic Exchange Dry Index ("BDI") fluctuating significantly due to geopolitical disruptions and shifts in global trade. Despite these challenges, our disciplined approach to chartering and fleet management enabled us to maintain stability and resilience in the segment. Our strategy focuses on securing 6-36 months charter contracts for a portion of our fleet at favourable rates during market upcycles, ensuring a balanced approach to market risks while preserving operational flexibility.
COMMITMENT TO SHAREHOLDER RETURNS
Our strong financial performance has enabled us to enhance returns to our shareholders. For FY2024, we are pleased to propose a total dividend of 12 Singapore cents per share, an 84.6% increase from FY2023. This represents a 38.6%1 payout ratio and a 4.0%2 dividend yield, consistent with our long-standing policy of distributing 30-40% of net profit to shareholders.
APPRECIATION AND OUTLOOK
On behalf of the Board, I extend my deepest gratitude to our employees, customers, business partners, and shareholders for their unwavering support. Our team's dedication, expertise, and adaptability have been instrumental in achieving another record-breaking year.
As we move into FY2025, we remain committed to enhancing our competitive edge, driving innovation in clean energy vessel solutions, and delivering sustainable value for all stakeholders. With a robust orderbook, expanded capacity, and a clear strategic vision, Yangzijiang Shipbuilding is well-positioned for continued success in the evolving maritime landscape
REN LETIAN
Executive Chairman and Chief Executive Officer
Yangzijiang Shipbuilding (Holdings) Ltd.
1 Calculated based on CNY/SGD of 5.3959 as of 21 February 2025.
2 Calculated based on share price of S$2.99 as of 31 December 2024