On the evening of October 20, China State Shipbuilding Corporation Limited issued a voluntary disclosure announcement of its main financial data for the first three quarters of 2025. This is the first quarterly report following the “merger of the north and south shipbuilding groups”.
The announcement shows that CSSC is expected to achieve a net profit attributable to the owners of the parent company of between 5.55 billion yuan and 6.15 billion yuan in the first three quarters of 2025. Compared with the same period last year (on a restated basis after the completion of the merger), this represents an increase of between 2.833 billion yuan and 3.433 billion yuan, a year-on-year increase of 104.30% to 126.39%. Compared with the disclosed figure for the same period last year (CSSC), it represents an increase of between 3.279 billion yuan and 3.879 billion yuan, a year-on-year increase of 144.42% to 170.85%.
CSSC expects the net profit attributable to the owners of the parent company after deducting non-recurring gains and losses to be between 4.08 billion yuan and 4.68 billion yuan. Compared with the same period last year (on a restated basis after the completion of the merger), this represents an increase of between 2.108 billion yuan and 2.708 billion yuan, a year-on-year increase of 106.93% to 137.36%; compared with the disclosed figure for the same period last year (CSSC), it represents an increase of between 2.108 billion yuan and 2.708 billion yuan, a year-on-year increase of 106.93% to 137.36%.
CSSC is expected to achieve a net profit of between 7.54 billion yuan and 8.14 billion yuan in the first three quarters of 2025. According to the provisions of the “Applicable Guidelines for Regulatory Rules – Accounting Category No. 1”, CSSC purchased 47.63% of the equity from the original controlling shareholder of China Shipbuilding Industry Company Limited (CSICL) and its persons acting in concert. When preparing comparative information for the consolidated financial statements, only the 47.63% equity share purchased from the controlling shareholder and its persons acting in concert was consolidated, and the other equity of CSICL was reported as non-controlling interests.
CSSC pointed out that during the reporting period, the company focused on its main responsibilities and core businesses. While ensuring production safety, it vigorously pursued production to guarantee deliveries, improved lean management levels, and steadily enhanced production efficiency. The shipbuilding industry as a whole maintained a positive development trend, and the company’s order book structure was upgraded and optimized. During the reporting period, the number and price of delivered civilian ships increased year-on-year, construction costs were well controlled, and gross operating profit increased year-on-year. The operating performance of affiliated enterprises continued to improve.
It is understood that CSSC obtained the “Securities Change Registration Certificate” issued by the China Securities Depository and Clearing Corporation Limited Shanghai Branch on September 11, 2025, completing the share swap absorption and merger of CSICL. The new shares were listed for trading on September 16. CSICL has been included in the consolidation scope of CSSC starting from the third quarter of 2025.
This restructuring transaction is the largest restructuring project in the history of the A-share capital market and, to date, the corporate merger case with the largest transaction value in the global shipbuilding industry. The merged CSSC, as the surviving company, 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.
Both CSSC and CSICL are core listed companies for the military and civilian main businesses of the China State Shipbuilding Corporation Group. Among them, CSSC focuses on ship and offshore equipment and marine technology applications. Its main businesses include shipbuilding (military and civilian), ship repair, marine engineering, and electromechanical equipment. Its main products include military ships, container ships, bulk carriers, liquefied gas carriers, large cruise ships, auxiliary military vessels, special ships, offshore support vessels, and other electromechanical equipment. Its main business entities are four subsidiaries: Jiangnan Shipbuilding, Waigaoqiao Shipbuilding, Chengxi Shipyard, and Guangzhou Shipyard International, making it the flagship listed shipbuilding company in China with the largest scale, most advanced technology, and most complete product structure.
CSICL was primarily engaged in the research, development, design, and manufacturing of ships, covering marine defense and ocean development equipment, marine transportation equipment, deep-sea equipment and ship /conversion, ship support and electromechanical equipment, strategic emerging industries, and others. Its main products included marine defense equipment, marine transportation equipment, marine scientific research equipment, and marine development equipment. It owned internationally renowned modern shipbuilding enterprises such as Dalian Shipbuilding, Wuchang Shipbuilding, and Beihai Shipbuilding.
After the completion of this merger, CSSC will integrate the high-quality assets of CSICL, including Dalian Shipbuilding, Wuchang Shipbuilding, and Beihai Shipbuilding. It will promote the synergistic optimization of the ship repair, building, and supporting businesses of CSSC and CSICL. It will possess the strength to reshape the industry landscape across multiple dimensions, from asset scale and technical capability to delivery capacity and global market share. It will also pool the strengths of all parties in the capital market, gathering intelligence to build a valuation logic for a globally scarce leading enterprise.
CSSC stated that the company’s current production and operations are normal, with a full order book. The schedule for orders in hand extends until the end of 2028, with some already reaching 2029. The company will closely study market trends, grasp the characteristics and patterns of the market, and strengthen order management.
