Shanghai-listed China Shipbuilding Industry Company Limited (CSICL) said its profit fell 47% year on year (y/y) to CNY385.4 million (USD62.2 million) in the first three months of 2015 as a result of higher raw material and labour costs.
The flagship listed unit of China Shipbuilding Industry Corporation’s revenue also slid 4% y/y to CNY9.0 billion during the period due to falls in orders and prices of completed newbuilds, a stock filing of CSICL said on 30 April.
Its operating costs rose 5% y/y to CNY7.9 billion during the period, resulting in a decline of 8 percentage points in gross profit margin. For the first three months, the gross profit margin of CSICL stood at 11.5%.
In addition, CSICL’s profit decreased 31% y/y to CNY2.3 billion for 2014 due to the depressed newbuilding market on lower profit margin.
The company’s revenue rose 6% y/y to CNY61.0 billion in 2014.
For 2014, CSICL’s new orders for merchant vessels, ship repairs, and ship conversions dropped 42% y/y to CNY15.3 billion. As of the end of 2014, its orderbook of merchant vessels, ship repairs, and ship conversions totalled CNY32.8 billion.
For its offshore sector, the revenue rose 69% y/y to CNY10.2 billion, with the gross profit margin for the sector up 0.84 percentage points to 6.87%.