Ren Yuanlin said that from October last year, as the market is slightly warmer, shipping enterprises received new orders will receive an average of 10% of gross profit. Despite the current state of China's shipbuilding industry is still exhausted, but seems to have felt faint light.

    "Gray 2011, black 2012, 2013 Scarlet." Chinese shipbuilder Yangzijiang local market (Yangzijiang Shipbuilding), Chairman Ren Yuanlin, who puts it in recent years, China's shipbuilding industry bleak picture.
So what is the color of 2014? He described as "darkness before the dawn."

    According to Ren Yuanlin estimates, the first half of 2013, new orders may take as long as a loss of 5% to 10%, but some of China's shipbuilding enterprises will still try to steal a single, he called this because hungry to eat "poisonous rice", but did not join the Yangtze River team. From June to October, the price of a new boat has been restored to the contract can be guaranteed basic level, so the company began operations. From October last year, as the market is slightly warmer, shipping enterprises take in new orders achieved an average 10% gross margin.

    He believes that, despite the current state of China's shipbuilding industry still continued hardship, but it seems to have been able to feel the faint light.

    However, Rome was not built in a day, to get out of the shipbuilding industry is also not frozen overnight. According to Chinese media reports, the first three quarters of last year, China's shipbuilding industry capacity utilization rate is only 50-55%, compared with 2012, lower by about 20 percentage points, while far below a reasonable yield of about 80% capacity utilization. China Shipbuilding Industry Economic and Market Research Center estimated shipbuilding capacity in 2015 compared with 2011, China will be able to cut about 30%. Thus the problem of severe overcapacity, and will result in a slump in the shipbuilding industry, the recovery time is more lengthy than expected.

    Another dragon Chips COSCO (COSCO Corp) disclosed that recently published results may face new orders fell, so that the challenges of overcapacity.

    However, the brains turn faster Ren Yuanlin, practitioners in the eyes of "problem" to develop a new business: shipping logistics and leasing. Yangtze River last year set up a subsidiary operation related business, it is called Ren Yuanlin reservoir.

    He said: "When a shortage of orders, ship the lowest when I first shipbuilding for shipping companies to use, and other market climate improves buyers appear again to get rid of us are not going to strive to become the boss of the shipping industry, shipbuilding or for the purpose of doing so. service, balance production capacity. "

    In addition, through this round of industrial winter, some shipyards closed down, those vessels not yet completed at the receiving bank mortgage assets eyes is junk, and put them into the new Yangtze River ship, shipping the platform waiting sell, not to earn low profits in the future.

    In addition to shipping and logistics and leasing, the strategic restructuring of the five sections of the Yangtze River last year as well as financial investments, scrapping, steel processing and related metals trading business, real estate development, as well as the core business of shipbuilding, marine engineering.

    Appropriate business diversification

    Net profit of 650 million yuan last year

    Ren Yuanlin that precisely because the appropriate business diversification, help to improve the Yangtze River in the winter cold in industrial capacity, and achieved 3.1 billion yuan (about 650 million dollars) net profit last year. For what is "appropriate diversification"? His explanation is that other businesses are the main shipbuilding, marine engineering services, like stars around the moon, but it will not weaken the moon light. Such as real estate development is due after the relocation of the old shipyard, appear vacant land, together with the government before the development of commercial and residential tray. "Profit real estate sector is high, but the company will not increase the proportion of its business, after all, we are not professional real estate company, always do, but strong."

    As revenue last year reached about 1.5 billion yuan financial investment business, it includes two parts: financial assets held-to-maturity investments (held to maturity investment) and micro-loans. The former is mainly shipbuilding deposit will be charged on investments in fixed income financial products, last year its revenue reached 1.4 billion 14 million yuan.

    However, risk Yangzijiang financial investment business by many investors and analysts concerned.

    Credit Suisse analyst Huang Jielun in an interview pointed out that in 2012 and 2013 fiscal year, investments held-to-maturity financial assets accounted Yangtze total operating margin 24-25%, the proportion of some high, this long-term profits from investments trend might not last long. China is facing the financial sector reform, financing system if a problem occurs, the expiration of financial products can not be honored, then the Yangtze River will be affected.

    But he believes that the shipbuilding industry began to show signs of recovery, relying on the Yangtze River has received more orders can be competitive, thus giving a "buy" rating and target price of 1.5 yuan.
 
    Two shipyards fate of the different

    In the shipbuilding industry as a whole China, the Bohai Bay, Dalian, Guangzhou, the Pearl River estuary, Yangzhou Yangtze River estuary in Shanghai and Jiangsu, Nantong, Taizhou city are shipbuilding industry. Dalian, Guangzhou, Shanghai-based state-owned shipyard, and Jiangsu mainly by private shipyards, the operating mechanism is relatively flexible. Jiangsu is located in the Yangtze River Group, also stationed in China's largest private shipbuilding enterprises RSHI. With two shipyards in the Yangtze River, but fate was different.

    Lack of ability to perform last year RSHI suffered huge losses. Ren Yuanlin Far from standing on the sidelines when the former rival in trouble, also sent his men to help with the Bank Rongsheng complete order is not delivered.

    This is helping others or Yanghuweihuan? Ren Yuanlin eloquently said: "less a competition, we may not have changed much of the day which is like a big city, there are plenty of restaurants, a collapse, do another business will suddenly particularly hot right opposite.? If RSHI bankrupt, it would hit the confidence of financial institutions to the shipbuilding industry, the impact of the global industry's perception of China's shipbuilding industry, the so-called gates of fire affecting the fish, the lips are gone, so we do not want it to fall. "