Revenue reached RMB 17.53bn and attributable net profit RMB 5.37bn in the first half of 2026, both setting new interim records. The group ended June with a US$22.4bn orderbook extending into 2030, while new capacity, a strategic investment in Seaspan’s parent company and expansion into repair and retrofit services point to a broader growth strategy.

Yangzijiang Shipbuilding has delivered another record set of interim results.https://links.sgx.com/FileOpen/YZJSH_1H2026_Press_Release_final.ashx?App=Announcement&FileID=898898

For the first half of 2026, Yangzijiang Shipbuilding (Holdings) Ltd. reported revenue of RMB 17.53bn, up 36.2% year on year, while gross profit increased 42.8% to RMB 6.35bn. Net profit attributable to shareholders reached RMB 5.37bn, rising 28.4% from a year earlier.

Based on an exchange rate of RMB 6.7851 to the US dollar as of 30 June 2026, the figures are equivalent to approximately US$2.58bn in revenue, US$936m in gross profit and US$791m in attributable net profit.

Both revenue and earnings reached record levels for a first-half period.

More importantly, profitability continued to strengthen.

The group’s overall gross margin rose to 36.2%, compared with 34.5% in the first half of 2025. Its core shipbuilding business, which accounted for around 94% of total revenue, achieved a gross margin of approximately 37.1%.

The improvement shows that Yangzijiang is not simply generating higher revenue through increased production volumes. Higher-value contracts secured during the strong newbuilding market of recent years are increasingly moving through construction and revenue recognition, while the rising proportion of more sophisticated and higher-value vessels is continuing to support margins.

For comparison, Yangzijiang Shipbuilding reported full-year 2025 revenue of RMB 28.50bn and attributable net profit of RMB 8.64bn, both record highs at the time. Its net profit in the first six months of 2026 alone has already reached roughly 62% of the company’s full-year 2025 result.

US$1.75bn of New Orders in H1

The group also continued to replenish its future workload.

During the first half of 2026, Yangzijiang secured 38 newbuilding contracts worth approximately US$1.75bn.

The orders comprised 25 containerships, 10 tankers, two gas carriers and one bulk carrier.

A further approximately US$210m of new orders was added in July, bringing year-to-date order intake to around US$1.96bn.

Yangzijiang has set a full-year 2026 order target of US$4.5bn. The shipbuilder has been working to fill its remaining 2029 delivery slots while progressively opening capacity for 2030.

With global shipyard capacity still tight, the company has continued to emphasise pricing discipline and project selection rather than pursuing order volume alone.

As of 30 June, Yangzijiang’s orderbook stood at 256 vessels with a total contract value of US$22.4bn, with deliveries extending as far as 2030.

The backlog included 151 containerships, 41 tankers, 37 bulk carriers and 27 gas carriers.

The total orderbook value was broadly unchanged from the US$22.4bn reported at the end of 2025, when the company had 245 vessels on order. This suggests that new contracts have continued to replenish the backlog even as vessels are being delivered.

The scale of the orderbook gives Yangzijiang substantial revenue visibility for the coming years.

27 Vessels Delivered in Six Months

Production remained at a high level during the reporting period.

Yangzijiang delivered 27 vessels in the first half of 2026, representing around 47% of its full-year target of 58 ships.

The company said its newbuilding programmes remain on schedule and expects to meet its annual delivery target.

Many of the vessels scheduled for delivery in 2026 stem from contracts secured in 2023 and 2024, when newbuilding prices were already at elevated levels.

As these higher-value vessels move through the construction and delivery cycle, the effect is becoming increasingly visible in the group’s financial performance.

The 36.2% increase in revenue and the rise in shipbuilding gross margin to 37.1% underline that the group’s core shipbuilding operation remains the principal driver of earnings growth.

Hongyuan Yard Starts to Add Capacity

2026 is also becoming an important year for Yangzijiang’s next phase of capacity expansion.

The group’s new Hongyuan Yard has begun initial shipbuilding activities, with steel processing and related production work progressively starting during the first quarter.

The overall project is scheduled for completion by the end of 2026, with the first vessel expected to be delivered in 2027.

Yangzijiang said the yard has already started contributing revenue, marking the transition of the project from a major capital expenditure programme toward active production.

For a shipbuilder whose existing capacity is largely committed through 2029 and which has already begun offering 2030 delivery slots, the additional capacity is strategically important.

It provides more forward slots for new orders and increases Yangzijiang’s ability to take on larger, more sophisticated and higher-value green vessels.

The strong profit performance in the first half of 2026 is largely the result of existing high-value orders moving through the production cycle. Hongyuan, by contrast, is expected to play a more important role in determining the group’s growth potential from 2027 onward.

US$825.7m Investment in Seaspan Parent

Capacity expansion was not the only major strategic move made by Yangzijiang during the first half.

In March, the company announced an US$825.7m cash investment for a 10% stake in Poseidon Corp., the holding company of Seaspan Corporation. The transaction was subsequently completed on 30 May.

Seaspan, one of the world’s largest containership owners, has long been a major customer of Yangzijiang.

The shipbuilder said the investment was intended to strengthen its long-term strategic relationship with the group, deepen customer engagement, improve order visibility and enhance access to market intelligence.

For a shipyard already holding orders through 2030, the transaction goes beyond a conventional financial investment.

It strengthens the relationship with one of Yangzijiang’s most important shipowning customers through an equity link, extending a traditional yard-and-owner relationship into a broader strategic partnership.

Expanding Into Repair, Retrofit and Green Upgrades

Another significant move came in April, when Yangzijiang established Jiangsu Yangzi Hongda Shipbuilding & Repair Co., Ltd. as a wholly owned subsidiary with registered capital of US$100m.

The company plans to develop and operate facilities in Nantong for the delivery, repair and retrofit of large vessels.

Hongda is expected to focus particularly on repair, conversion and delivery services for green and technologically advanced ships.

Management has also indicated that the facility could participate in LNG and dual-fuel retrofit projects, supporting owners seeking to improve fuel efficiency, reduce emissions and lower operating costs.

The move complements the expansion of Hongyuan.

Hongyuan adds newbuilding capacity, while Hongda extends the group’s reach further into lifecycle services for vessels already in operation.

As decarbonisation requirements become more demanding, a growing number of existing ships are expected to require energy-efficiency upgrades, propulsion modifications and alternative-fuel retrofits, creating an increasingly important market for major shipbuilders.

From High-Value Order Execution to Broader Strategic Expansion

Taken together, Yangzijiang’s first-half figures present a clear picture of where the group currently stands.

Revenue of RMB 17.53bn, attributable net profit of RMB 5.37bn and a 37.1% shipbuilding gross margin reflect the ongoing conversion of high-value contracts into earnings.

A US$22.4bn orderbook covering 256 vessels and extending into 2030 provides substantial forward visibility.

Hongyuan is beginning to address the group’s next phase of capacity growth.

The US$825.7m investment in Poseidon strengthens ties with Seaspan, while the development of Hongda expands Yangzijiang’s footprint into ship repair, retrofits and green upgrades.

Yangzijiang Shipbuilding has once again raised the bar for its interim financial performance in the first half of 2026.

The next question is whether the combination of new capacity, high-value order execution, stronger strategic customer relationships and an expanding aftermarket business can extend this earnings cycle further into the second half of the decade.