Delivery of latest superyacht contributed to Chinese parent company’s strong results
China Zhongwang Holdings Ltd, the Hong Kong-listed and Chinese majority owner of Australian-based superyacht builder, Silver Yachts, reported a strong performance for its first half year up to June 30, 2019. The group, which acquired Silver Yachts in October 2017, made known that the delivery of the latest vessel from the Australian yard made a contribution to its positive first half fiscal result.
Those results included a 38.3% increase in revenue to RMB12.9bn (US1.8bn, €1.6bn) along with a double-digit rise in sales volume and net profit growth. As the world’s second largest aluminium producer, China Zhongwang worked through the first half of this year to expand production capacity so as to enhance the group’s bottom line. Improvement in its technology systems were carried out to secure operational advantages in the global market.
A key element of China Zhongwang’s growth strategy is the acquisition of high-end aluminium product manufacturers, such as Silver Yachts, and for this fiscal period the delivery of the 85m (279ft) Bold – the largest superyacht build in Australia so far – was a key factor behind the group’s strong performance. This superyacht was called Silver Loft during her construction and following delivery she is making her way to the Mediterranean where she will be exhibited at the 2019 Monaco Yacht Show.
Other key financial figures for China Zhongwang were that sales volume increased 63.7% to reach RMB532.274m (US$74.3m, €66.9m) compared with the corresponding period of 2018; gross profit was up 32% at RMB3,909m (US$545.8m, €491.3m) and the group’s EBITDA rose 21.5% to reach RMB3,425m (US$478.2m, €430.5m). The group’s net profit at RMB1,465m (US$204.5m, €184.1) showed a 15.7% increase.
In a press statement Lu Changqing, chairman and president of China Zhongwang, said: “On the back of the ongoing upgrading and transformation of China’s manufacturing industry, breakthroughs are being made in widening the applications of aluminium alloy, which is dubbed a ‘green metal’, in various industries.”
He added: “The Group’s outstanding capability in research and development, specialisation in high-end products and consistent optimisation of its product mix have enabled it to progressively expand its businesses, providing one-stop light-weight solutions for such high-end applications as ecological construction, new energy vehicles, rail transport, shipbuilding and aviation. The Group always dedicates itself to the aluminium fabrication, therefore it has long been in a leading position in the industry.”
The statement explained that the group continues to pursue its strategy of concentrating primarily on China and to a lesser degree on overseas markets but that it is carefully planning further global expansion.
In China, the Group has completed the set-up of its shipyard in Jiangmen to manufacture all-aluminium yachts and commercial vessels, with production of the first all-aluminium yacht – the 35m (115ft) SpaceCat designed by Espen Oeino – now in progress.