On the evening of August 29, China Shipbuilding Industry Company Limited (CSIC) issued an announcement regarding the termination of listing of the company’s shares. The date for the termination of listing and delisting of the company’s A-shares is September 5, 2025.
The announcement stated that on August 29, 2025, the company received the self-regulatory decision document ([2025] No. 201) “Decision on the Termination of Listing of China Shipbuilding Industry Company Limited Shares” issued by the Shanghai Stock Exchange (hereinafter referred to as the “SSE”). The SSE decided to terminate the listing of the company’s A-shares.
According to Article 9.7.11 of the “Shanghai Stock Exchange Listing Rules,” shares of companies that voluntarily terminate their listing do not enter a delisting consolidation period for trading. The SSE will delist them within 5 trading days after announcing the decision to terminate the listing of the company’s shares, and the company’s shares will be terminated from listing. Therefore, CSIC shares will not enter a delisting consolidation period for trading.
After the termination of listing of CSIC A-shares on September 5, 2025, the shares held by all CSIC A-share shareholders registered with the China Securities Depository and Clearing Corporation Limited Shanghai Branch at the close of business on the equity registration date for the share swap implementation of the absorption and merger by China Shipbuilding Industry Group Power Co., Ltd. (CSSC) will be converted into CSSC A-shares at a ratio of 1:0.1339. That is, each share of CSIC A-shares can be exchanged for 0.1339 shares of CSSC A-shares.
After the termination of listing, CSIC A-shares will no longer be displayed in the stock accounts of CSIC A-share shareholders, and the corresponding stock market value will not be reflected in the total market value of the investors’ accounts. Until the CSIC A-shares are converted into CSSC A-shares and the relevant procedures for the listing of the new A-shares are completed, the stock accounts of the original CSIC A-share shareholders will display CSSC A-shares starting from the listing date of the new shares, and the corresponding stock market value will be reflected in the total market value of the investors’ accounts.
Upon completion of this share swap absorption and merger, CSSC will succeed to and assume all assets, liabilities, businesses, personnel, contracts, and all other rights and obligations of CSIC. CSIC will subsequently cancel its legal entity status. The equity in subsidiaries held by CSIC will belong to the surviving company and be re-registered as subsidiaries of CSSC. The branches of CSIC will belong to the surviving company and be re-registered as branches of CSSC.
It is understood that in September last year, CSSC and CSIC jointly released a preliminary plan for a restructuring transaction valued at up to 115.15 billion yuan. This restructuring transaction is the largest restructuring project in the history of the A-share capital market to date and also the largest corporate merger case in the global shipbuilding industry by transaction value to date.
In this transaction, CSSC is the absorbing party, and CSIC is the absorbed party. Upon completion of this share swap absorption and merger, CSIC will terminate its listing and cancel its legal entity status. CSSC will succeed to and assume all assets, liabilities, businesses, personnel, contracts, and all other rights and obligations of CSIC. As the surviving company, CSSC will have total assets exceeding 400 billion yuan and annual revenue surpassing 130 billion yuan, becoming the world’s largest listed shipbuilding giant with the most comprehensive business portfolio.
After the completion of this merger, CSSC will integrate high-quality assets under CSIC, such as Dalian Shipbuilding, Wuchang Shipbuilding, and Beihai Shipbuilding, to promote the synergistic optimization of ship repair, building, and supporting businesses belonging to CSSC and CSIC. It will possess the strength to reshape the industry landscape across multiple dimensions, including asset scale, technical capability, delivery capacity, and global market share. It will also pool the efforts of all parties in the capital market to collectively build a valuation logic for a globally scarce leading enterprise.
Furthermore, to further avoid同业竞争 (same-industry competition), CSSC Group has committed to divesting assets of Hudong-Zhonghua that are unsuitable for injection into the listed company within three years, making Hudong-Zhonghua eligible for injection into the listed company. Hudong-Zhonghua is one of the world’s leading shipbuilding enterprises, currently 100% owned by CSSC Group. It is primarily engaged in shipbuilding and offshore engineering businesses, with main products including defense equipment, large LNG carriers, ultra-large container ships, offshore engineering, and special vessels.
