Shanghai-listed China CSSC Holdings has announced net profits of CNY124 million (USD20 million) for the first quarter of 2015.
This figure, announced 24 April, represents a jump of 349.9% from the previous year and more than the total CNY44.2 million net profit for the whole of 2014.
The company’s revenue for the first quarter stood at CNY6.74 billion, up 13.3%, and its earnings per share also increased by 350% year on year (y/y) from CNY0.2 to CNY0.9.
The massive leap was attributed to an increase in deliveries before the Chinese New Year, according to a company source. China CSSC Holding’s performance remained normal, although the shipbuilding sector is still lagging due to a weak economy and glut in the shipping market, the source added.
The offshore sector is expected to be another growth point of China CSSC, said financial services company Essence Securities in a recent report.
China CSSC’s offshore business posted a gross margin of 8.36% in 2014 — up by 9.35% y/y — and is expected to maintain rapid growth in 2015.
CSSC Group, the company’s largest shareholder, has reduced its shareholding ratio from 59.2% in the third quarter of 2014 to 54.4% in the first quarter of 2015, and the money raised will be invested in the group’s development, according to the company’s filling to Shanghai Stock Exchange.
The company posted a 12% rise in 2014 profits to CNY44.2 million in 2014 from the previous year and recorded revenue of CNY28.3 billion: up 28% y/y.
This year the company hopes to achieve revenues of CNY33.7 billion, CNY18.3 billion of which will come from the ship construction and maintenance sector, CNY5.8 billion from the offshore sector, CNY6.9 billion from power equipment business, and CNY2.3 billion from its electromechanical appliance sector.