Ren Yuanlin, the visionary chairman of Yangzijiang Shipbuilding, cutting the celebration cake at a dinner at Mandarin Oriental hotel. Photos courtesy of Yangzijiang.


YZJ has distributed an aggregate of RMB3.3 billion worth of dividends, inclusive of the upcoming FY2011 payout, over the past 5 years. This surpasses its net IPO proceeds of RMB3.1 billion.

YANGZIJIANG SHIPBUILDING has touched its 5th year of being listed on the Singapore Exchange, and celebrated the milestone with a dinner at the Mandarin Oriental last week.

Its chairman, Ren Yuanlin, told guests and staff: "Yangzijiang Shipbuilding made the first leap 5 years ago to introduce corporate restructuring, construction of an addition yard and also the decision to list on the Mainboard of Singapore Stock Exchange.

"It was the peak of the shipbuilding industry and the Group managed to grab hold of the golden opportunity and that catapulted the Group into a stage of unprecedented growth.

"We have produced outstanding results over the past 5 years of listing. Based on the latest FY2011 Annual Report, the Group reported a total revenue of RMB15.7 billion, which is 4x of what we achieved in 2007.

"We also recorded RMB4.0 billion of net profit attributable to shareholders, that is 5x of what we achieved in 2007. The Group has distributed an aggregate of RMB3.3 billion worth of dividend payout, inclusive of what was proposed and approved during our Annual General Meeting this afternoon, over the past 5 years. This amount has surpassed our net IPO proceeds of RMB3.1 billion."

Top row: Ren Yuanlin in jubilant mood. Bottom left: Lawrence Wong, Executive VP and Head of Listings, SGX. Bottom right, L-R: Lawrence Wong, Zheng Chao (Minister Counsellor of Economic & Commercial Office, PRC Embassy), Ren Yuanlin.

Mr Ren: "Today, Yangzijiang Shipbuilding has evolved from a low profile private shipbuilder to an integrated marine group that owns 4 shipyards, 1 offshore yard and a shipbreaking yard.

"At present, the macro environment remains challenging and uncertain. Outlook for marine industry continues to appear grim, the Baltic Dry Index is also hovering around the lower band.

"Yangzijiang Shipbuilding faces a major challenge with the price of newbuilds dipping southwards. However, we have accumulated over 50 years of experience since our establishment in 1956.

"We have been through multiple shipbuilding cycles and economic fluctuations and the reason why we can emerge from these challenges is Yangzijiang Shipbuilding’s ability to pre-empt the market condition and implement appropriate measures. We insist on customer selection during the 2008 industry crisis, we introduced measures to support our customers during the vessel construction process in the financial crisis following."

Liu Hua, CFO of Yangzijiang, with analysts.


Kathy Zhang, MD, Financial PR: "I recall vividly what Mr Ren said to me after we were first introduced by Jenny Yu from Julius Baer. It was in early November 2008, in the middle of the global economic crisis -- YZJ's share price had collapsed to as low as 29 cents. Mr Ren said: 'I'm very confident that YZJ will not have order cancellation and will maintain its high growth momentum during this crisis, as we have formulated and are implementing 8 strategies to protect the interest of our customers. We do not require heavy make-up, we only need you to wipe away any dust you spot on our face!' "


L-R: Teo Kang Heng (MD, Treasury & Markets, DBS); Mei Hu (Analyst, DBS); Rebekah Chay (Senior VP, Treasury & Markets, DBS); Conrad Raj (editor at large, Today); Leong Chan Teik (NextInsight)


L-R: Vincent Lim (CEO, BH Global); Ren Yuanlin; Yu Kebing (Non Executive Director, Yangzijiang); Dion Soh (MD, Oil & Gas Solutions)


L-R: Sun Jianmin (Bank of China); Ren Yuanlin; Wang Lei (Bank of China); Liu Hua


L-R: Romil Singh (Financial PR), Kathy Zhang; Michael See (Group CFO, Otto Marine); Han Yew Kwang (Executive V-P, ST Marine)


L-R: Romil Singh (Snr Manager, Financial PR); Neel Sinha (Head of Research, HSBC); Tarun Bhatanagar (Investment Analyst, HSBC)


L-R: Han Yew Kwang; Teng Li Yeng (Business Development - Greater China, SGX); Seah Moon Ming (Deputy CEO, ST Engineering); Teo Moh Gin (Independent Director, Yangzijiang); Jeanette Li (Beijing Rep Office, SGX); Yu Kebing


Tham Tuck Seng (Partner, PWC)


L-R: Christine Lie (Head of Listings - China, SGX); Glenndle Sim (CEO, Mencast)


L-R: Sophia Ng (Yangzijiang Offshore); Jenny Yu (Julius Baer); Ren Yuanlin, Zhu Minfei (Yangzijiang); Kathy Zhang


YYZ 5montage


L-R: Liu Hua; Teo Moh Gin; Li Chun; Seah Moon Ming; Zheng Chao; Ren Yuanlin; Lawrence Wong; Yu Kebing; Vincent Toe; Ren Jinhua; Teo Yi-dar; Tham Tuck Seng; Zhang Yao; Kathy Zhang


Front L-R: Zhu Minfei, Liu Hua; Sylvia Lee, Kathy Zhang, Romil Singh; Darren Png (Investment Analyst, Stanchart); ; Goh Si Xian (Investment Analyst, Citigroup); Zhang Yao (Yangzijiang)
Back L-R: Zen Cheng (BNP Paribas); Quek Shuwei (Investment Analyst, Macquarie) 


L-R: Ho Pei Hwa (Investment Analyst, DBS Vickers);  Zen Cheng; Liu Hua; Low Horng Han (Investment Analyst, Citigroup); Darren Png

Mr Ren: "We continue to sustain our performance and operations in 2011 despite the sharp reduction in newbuild orders and depressed market. We even achieved a significant corporate milestone – the signing of our first 10,000 TEU containership vessel orders worth US$2.5 billion.

"Back in 2010, we added new complementary businesses like shipbeaking and scrap steel logistics and trading, offshore and mage steel structures to support our core shipbuilding business. We have also successfully rolled out new vessel types that are larger in capacity, environmentally friendly and more fuel efficient.

"The shipbuilding industry will be undergoing through a consolidation phase for the years to come. We remain committed to formulate more stringent risk management policies and introduce robust cost control measures to further enhance shareholders’ value. We will ride on the recovery trend and emerge stronger."

Ren Yuanlin leading a toast to many good years ahead!

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