After half a year, China’s largest private shipbuilding enterprise Yangzijiang Shipbuilding Group, has made new progress in its acquisition of shares of Tsuneishi Group (Zhoushan) Shipbuilding. (Zhoushan Tsuneishi Shipbuilding).
On March 24, Yangzijiang Shipbuilding (Holdings), Ltd. announced that Yangzijiang Shipbuilding Group had completed its capital injection into Zhoushan Tsuneishi Shipbuilding on the same day of the announcement.
It is understood that Yangzijiang Shipbuilding Group announced on September 12, 2024 that it had signed a joint venture agreement with Japan’s Tsuneishi Group, planning to acquire 34% of Zhoushan Tsuneishi Shipbuilding’s equity through a private placement. The purchase price will be paid entirely in cash, with funds coming from the company’s internal resources. Yangzijiang Shipbuilding Group said at the time that this further deepening of cooperation would help to actively leverage each other’s advantages and resources in terms of capital, technology, talent, and supply chain.
Public information shows that Zhoushan Tsuneishi Shipbuilding is a wholly-owned subsidiary of Tsuneishi Holdings under the Tsuneishi Group in China. It was established in March 2003 with a registered capital of US$73.4075 million. Since its establishment, it has completed the construction of more than 280 ships of various types. It mainly engages in the manufacturing of various ships below 100,000 tons, the production and processing of ship sections, various steel components and related design and sales businesses.
At present, Zhoushan Tsuneishi Shipbuilding has two 80,000-ton slipways, one 80,000-ton dry dock, two 80,000-ton outfitting wharfs and one 3,000-ton loading and unloading dock. In order to expand the production scale and further shorten the shipbuilding cycle, Zhoushan Tsuneishi Shipbuilding invested a 3,000-ton floating crane and two 700-ton gantry cranes in early 2009, with an annual production capacity of about 25 ships of various types ranging from 50,000 to 80,000 tons.
As China’s largest private shipbuilding enterprise, Yangzijiang Shipbuilding Group achieved a record high annual operating income and net profit.
According to the data in the annual report, Yangzijiang Shipbuilding realized operating revenue of RMB26.5 billion in 2024, up 10.1% year-on-year, while net profit reached RMB6.6 billion, up 61.7% year-on-year, with a profit margin of nearly 25%. In 2024, the shipping market ushered in a new growth cycle. Yangzijiang Shipbuilding focused on high-tech and high value-added orders, and achieved new orders for 126 vessels valued at about US$14.6 billion (approximately RMB 106 billion at current exchange rates) for the year, accomplishing 324% of the annual target.
As of December 31, 2024, Yangzijiang Shipbuilding holds orders for 245 vessels valued at about US$24.4 billion (Approximately RMB177.1 billion at current exchange rates), of which the value of orders for clean energy vessels accounts for about 74% of the total value, and the production scheduling of the orders in hand has been up to 2030 at the farthest. In terms of ship delivery, Yangzijiang Shipbuilding Group successfully delivered 64 newbuildings in 2024, exceeding the target task of ship delivery for the whole year.
In order to speed up the construction of clean energy ships, the Yangzijiang Shipbuilding Group has invested about RMB 3 billion to build the Yangzi Hongyuan Green High-tech Clean Energy Ship Manufacturing Base project, which has officially started. After completion, the project will become the group’s main base for the construction of green clean energy ship orders.