Yangzijiang Maritime profit drops 29% as fund costs surge

Group has contracted 12 vessel sales worth $640m and secured $54m for four vessels.

Yangzijiang Maritime Development Ltd.’s net profit attributable to equity holders fell 29% to $57.47m (US$44.9m) in the first half (H1) of 2026, from $81.28m (US$63.5m) a year earlier, as costs from its expanded maritime fund asset portfolio increased.

Total expenses rose 152% to $41.86m (US$32.7m) from $16.64m (US$13m), with operating costs of maritime fund assets increasing to $34.43m (US$26.9m) from $12.03m (US$9.4m).

Operating costs rose to $27.39m (US$21.4m) from $7.81m (US$6.1m), driven by higher voyage costs, transit fees, and a change in chartering strategy, whilst vessel depreciation increased to $7.04m (US$5.5m) from $4.22m (US$3.3m).

The higher costs came as the company expanded its maritime fund assets through increased investments in newbuild vessels.

Total income increased 49% to $104.45m (US$81.6m) from $69.89m (US$54.6m). Income from the Maritime Business rose 70% to $66.18m (US$51.7m), driven by higher income from maritime fund assets as the company expanded its newbuild portfolio.

Yangzijiang Maritime has entered into sale contracts for 12 newbuild vessels over the past nine months, with an aggregate gross contract value of about $640m (US$500m).

The contracts are expected to contribute to financial performance in financial year (FY) 2026, FY2027, and FY2028, subject to completion, delivery schedules, and accounting recognition.

“Given the two- to three-year shipbuilding cycle, there is a natural transition period before our maritime investments are realised, during which upfront capital commitments and expenses are required,” said Ren Yuanlin, Executive Chairman and CEO of Yangzijiang Maritime.

The company’s Cash Management segment generated $18.43m (US$14.4m) in income, up 120% from $8.32m (US$6.5m).

The increase was mainly due to net gains from fair value movements in financial assets and liabilities.

Income from Other Non-Maritime Investments fell 12% to $19.84m (US$15.5m) from $22.66m (US$17.7m) on lower interest income.

The company’s share of profits from joint ventures and associates fell to $8.92m (US$6.97m) from $18.69m (US$14.6m).

It also recorded other losses of $7.17m (US$5.6m), compared with other gains of $20.61m (US$16.1m) a year earlier, mainly due to currency revaluation losses on financial assets.

As at 30 June, Yangzijiang Maritime had total assets of $2.42b (US$1.89b), up 4% from $2.33b (US$1.82b) at 31 December 2025.

Net assets rose 2% to $2.29b (US$1.79b), whilst cash and cash equivalents stood at $304.64m (US$238m).

The company said it aims to expand its maritime investment activities through newbuild orders, vessel sales, and leasing agreements.

“Looking ahead, the Group aims to capitalise on the macro opportunities brought on by the structural shifts within the maritime industry, which are driven by tighter capital conditions in the Western capital markets and accelerating decarbonisation requirements by the International Maritime Organization, amongst others,” the company said.

(US$1 = SG$1.28)