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PR Newswire
14-11-2013, 03:23 PM
Chairman Ren admitted the mistake. I value companies with candid chairman/CEO 
Well, I don't take it as mistake, if the market rate didn't recover, than those options are assets, rather than liabilities now...
Yangzijiang Shipbuilding set for best year in order win since 2007
China’s third-largest listed shipbuilder Yangzijiang Shipbuilding Holdings is on track this year to win the most new orders since 2007, a feat unlikely to be repeated soon as it has now almost reached full capacity.
Yangzijiang, based in eastern China’s Jiangsu Province, took home new orders worth US$2.1 billion in the first nine months of 2013 and is poised to end the year with US$3 billion worth of new orders, Chairman Ren Yuanlin told reporters.
The strong performance helped build up an outstanding order book worth US$3.9 billion at the end of September, the highest in nearly two years, but that also means the company will have limited capacity for new contracts from now until 2016, Ren said.
Profit margins are also likely to be squeezed as many of these outstanding orders were converted from options booked at prices that were below current market rates by as much as 10%, he added.
"We made a mistake by signing too many options with ship owners in March and April this year," Ren said after the company reported a six% decline in its third-quarter net profit.
"We are asking the ship owners that want early deliveries to pay more, and adjusting our capacity to squeeze in some slots for 2015 and 2016 deliveries, to mitigate the impact."
Well, I don't take it as mistake, if the market rate didn't recover, than those options are assets, rather than liabilities now...
Yangzijiang Shipbuilding set for best year in order win since 2007
China’s third-largest listed shipbuilder Yangzijiang Shipbuilding Holdings is on track this year to win the most new orders since 2007, a feat unlikely to be repeated soon as it has now almost reached full capacity.
Yangzijiang, based in eastern China’s Jiangsu Province, took home new orders worth US$2.1 billion in the first nine months of 2013 and is poised to end the year with US$3 billion worth of new orders, Chairman Ren Yuanlin told reporters.
The strong performance helped build up an outstanding order book worth US$3.9 billion at the end of September, the highest in nearly two years, but that also means the company will have limited capacity for new contracts from now until 2016, Ren said.
Profit margins are also likely to be squeezed as many of these outstanding orders were converted from options booked at prices that were below current market rates by as much as 10%, he added.
"We made a mistake by signing too many options with ship owners in March and April this year," Ren said after the company reported a six% decline in its third-quarter net profit.
"We are asking the ship owners that want early deliveries to pay more, and adjusting our capacity to squeeze in some slots for 2015 and 2016 deliveries, to mitigate the impact."
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡