Guangzhou Shipyard International Co Ltd (GSI), the largest shipyard in South China, witnessed a net profit decrease of 12.78 percent year-on-year due to losses in financial derivative products and cost increases.

In 2008, business revenue of GSI increased by 17.83 percent to 6.85 billion yuan ($1 billion) but its net profit declined to 820 million yuan, according to the annual financial report the Shanghai-listed company filed on Wednesday.

The report said GSI lost 130 million yuan in financial derivative products in 2008, which directly affected the profit. Shipbuilding costs increased by 18.6 percent to 5.16 billion yuan.

In 2008, GSI completed 18 ships, which totaled 710,000 dead-weight tons. By the end of 2008, the company had pooled orders of 63 ships, ample for its production until 2010.

(China Daily March 12, 2009)