CSSC to sell Wenchong Shipyard for RMB 3.041 bln
China State Shipbuilding Corporation (CSSC), the country’s biggest ship builder, is putting its entire 100% stake in Guangzhou Wenchong Shipyard Co Ltd up for sale, with expected price set at RMB 3.041 billion.
Industry analysts estimate that CSSC will most likely sell its assets to its Shanghai-listed subsidiary Guangzhou Shipyard International Co Ltd, to make the latter a world leader among producers of agile liquid cargo ships.
Wenchong Shipyard realized operating revenue of RMB 3.19 billion in 2007, which yielded a net profit of RMB 625.62 million. Its net assets stood at RMB 1.57 billion at the end of May 31, according to a statement filed by CSSC with the Beijing Property Right Exchange.
Wenchong’s 2007 ratio of return on equity (ROE) hit 39.78%, while its net profit margin stayed at 19.64%. Rated as one of the top ten shipyards in terms of profitability, Wenchong is capable of producing 10 units of 1700 TEU-below feeder container vessels and bulk cargo vessels of 30,000 tons, besides medium and large-sized dredgers.
Guangzhou Shipyard posted core business revenue of RMB 5.1 billion last year, and its total assets amounted to RMB 11 billion at the end of 2007.
Tags: CSSC, Shipbuilding