Shanghai: As the gloomy prospect in shipbuilding continues, Yangzijiang Shipbuilding (Holdings) today announced that its wholly owned subsidiary Jiangsu New Yangzi Shipbuilding has entered into an agreement with Jiangsu Huaxi Property Development Co and Jiangsu Huadu Real Estate Co to jointly incorporate a new subsidiary, Jiangsu Huaxi Yangzi Real Estate Co.
The registered capital of the new company is RMB300m. Jiangsu New Yangzi Shipbuilding, Jiangsu Huaxi Property Development and Jiangsu Huadu will invest RMB150m, RMB120m and RMB30m to get 50%, 40% and 10% equity respectively.
Yangzijiang Shipbuilding said the investment is in line with the Group’s strategy to diversify its offerings beyond its core shipbuilding business to supplement the existing Group’s business positively.
In the third quarter of this year, Yangzijiang Shipbuilding has posted a 32% decline year-on-year in profit margin, and a 4% decline year-on-year in revenue contribution from shipbuilding, and shipbuilding still remained as the group’s core revenue driver, contributing about 92% to the group’s revenue in the same period. [07/11/12]