Sunbird invests RMB750 million in Yacht Manufacturing Base

by Sunbird Boats on 2 Feb 2012 Sunbird has signed 'investment contract' and 'complementary investment contract' with Changsha High Tech Development Zone to invest 7.5 billion Yuan in a yacht production base, 'Sun Bird LUGU Industrial Park', to break through the production bottlenecks predicament.

Sunbird is a mass production yacht manufacturing company, the first listed yacht manufacturer in China, and currently one of the largest composite yacht manufacturers in the country. Its main products include relatively low cost powerboats for the domestic market, and commercial boats, many of which are built to government contracts.

At present, production capacity is proving to be a constraint in a rapidly expanding market. According to Sunbird’s first three quarters of 2011 data, the company earned revenue of RMB225 million (up 38.60% from 2010) and returned a net profit of RMB28.75 million (up 29.21%). SOA special law enforcement boat orders are the main drivers of revenue growth sustained large orders. In October 2011 the company won a contract to build 27 boats, following on from the successful bid for 34 law enforcement boats at the end of 2010 (RMB216 million).

The Sunbird IPO project is only expected to be put into operation in the second half of 2012. Last year, the company began action to ease the production capacity shortage problem. In August last year, Sunbird announced its intention to plough RMB100 million into its Zhuhai Sunbird branch and PUTELANDI (Hong Kong) Yacht for expansion of yacht production capacity, and to expand the development in Hong Kong market. This is expected to achieve 40 new composite boats production capacity, 80% expansion of original capacity. Sunbird has also used acquisitions to expand production capacity. In September 2010, Sunbird announced a wholly-owned investment of RMB82 million acquisition of Guangzhou Baoda Yachts, involved in the speed boats business, which in 2008 ranked fifth in sales in the market for domestic composite boats.

Sunbird said that if the project can be successfully put into operation in Changsha, in particular the construction of yacht mass production line, it will greatly improve the efficiency of yacht manufacturing, change the traditional yacht manufacturing model, optimize the company's product mix, expand the company's production scale of operation, and enhance profitability.

More information: www.cnsunbird.com