On the evening of July 10th, two flagship listed companies under China State Shipbuilding Corporation (CSSC)—China CSSC Holdings Limited (China CSSC) and China Shipbuilding Industry Company Limited (China Shipbuilding Industry)—both released preliminary earnings forecasts.
China CSSC Holdings Limited announced that, based on preliminary financial estimates, the company expects to achieve a net profit attributable to shareholders of the parent company ranging between 2.8 billion yuan and 3.1 billion yuan for the period from January 1 to June 30, 2025. This represents an increase of approximately 1.388 billion yuan to 1.688 billion yuan compared to the same period last year, a year-on-year growth of 98.25% to 119.49%.
The company also anticipates a net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses of 2.635 billion yuan to 2.935 billion yuan for the first half of 2025, up by about 1.437 billion yuan to 1.737 billion yuan year-on-year, an increase of 119.89% to 144.93%.
In the same period last year, China CSSC reported a total profit of approximately 1.533 billion yuan, a net profit attributable to shareholders of the parent company of around 1.412 billion yuan, and a net profit after deducting non-recurring gains and losses of about 1.198 billion yuan, with earnings per share of 0.316 yuan per share.
During the reporting period, China CSSC focused on its core business, prioritized production safety, ensured timely deliveries, improved lean management, and steadily enhanced production efficiency. The shipbuilding industry maintained a favorable development trend, and the company upgraded and optimized its order portfolio. The prices of delivered civilian vessels increased year-on-year, construction costs were effectively controlled, and gross profit rose accordingly. Additionally, the performance of affiliated enterprises continued to improve. These factors contributed to the expected earnings growth.
Meanwhile, China Shipbuilding Industry announced that it expects a net profit attributable to shareholders of the listed company of 1.5 billion yuan to 1.8 billion yuan for the first half of 2025, representing a year-on-year increase of 181.73% to 238.08% compared to the legally disclosed data from the same period last year, or 181.09% to 237.30% compared to restated financial data.
The company also projected a net profit after deducting non-recurring gains and losses of 1.3 billion yuan to 1.6 billion yuan, up 192.96% to 260.57% year-on-year compared to both the legally disclosed and restated data from the previous year.
Prior to retrospective adjustments, China Shipbuilding Industry reported a total profit of approximately 570 million yuan, a net profit attributable to shareholders of 532 million yuan, and a net profit after deducting non-recurring gains and losses of 444 million yuan for the first half of 2024, with basic earnings per share of 0.023 yuan per share.
In the second half of 2024, Wuchang Shipbuilding Industry Group Co., Ltd., a wholly-owned subsidiary of China Shipbuilding Industry, acquired a 100% stake in Wuhan Wuchang Hangrong Heavy Industry Equipment Co., Ltd. from Wuhan Wuchang Investment Holdings Co., Ltd. for 1.044 billion yuan in self-raised funds. This acquisition, classified as a merger under common control, led to the inclusion of Wuchang Hangrong in the consolidated financial statements from the beginning of 2024, with retrospective adjustments made to the prior year’s comparative financials. After adjustments, the company’s total profit for the first half of 2024 was approximately 571 million yuan, with a net profit attributable to shareholders of 534 million yuan and a net profit after deducting non-recurring gains and losses of 444 million yuan, maintaining basic earnings per share at 0.023 yuan per share.
China Shipbuilding Industry noted that during the reporting period, the company capitalized on industry trends, leveraged its strengths in batch production of key ship types, enhanced lean management and cost control, and significantly increased the number of delivered civilian vessels, leading to higher revenue and improved performance year-on-year.
Currently, China CSSC and China Shipbuilding Industry are undergoing the largest absorption-merger restructuring in the history of China’s A-share market. China CSSC plans to absorb and merge China Shipbuilding Industry by issuing A-shares to all shareholders of the latter, with the transaction valued at 115.15 billion yuan—the largest merger in the global shipbuilding industry to date.
The merger was approved by the Shanghai Stock Exchange’s M&A and Restructuring Committee on July 4th, and the registration draft of the restructuring plan was submitted to the China Securities Regulatory Commission (CSRC) on July 8th. With regulatory reviews largely completed, the merger will proceed once the CSRC issues approval and the Shanghai Stock Exchange finalizes the listing arrangements.
Post-merger, China Shipbuilding Industry will delist and dissolve, while China CSSC will inherit all assets, liabilities, businesses, personnel, contracts, and other rights and obligations. The surviving entity, China CSSC, will boast total assets exceeding 400 billion yuan and annual revenue surpassing 130 billion yuan, becoming the world’s largest and most comprehensive listed shipbuilding conglomerate.
Both companies are core listed entities of CSSC, focusing on military and civilian shipbuilding. China CSSC specializes in marine engineering and technology applications, covering shipbuilding (military and civilian), ship repair, offshore engineering, and electromechanical equipment. Its subsidiaries include Jiangnan Shipyard, Waigaoqiao Shipbuilding, Chengxi Shipyard, and Guangzhou Shipyard International, making it China’s most advanced and diversified shipbuilding flagship.
China Shipbuilding Industry is primarily engaged in R&D, design, and manufacturing of naval and commercial vessels, including marine defense, transport, deep-sea equipment, ship repair, and supporting industries. Its subsidiaries include Dalian Shipbuilding, Wuchang Shipbuilding, and Beihai Shipbuilding.
In 2024, China CSSC secured orders for 154 vessels totaling 12.7246 million deadweight tons (DWT), while China Shipbuilding Industry won orders for 103 vessels totaling 15.8995 million DWT. Combined, the two companies accounted for 25.7 vessels or 28.6241 million DWT, representing 16.84% of global new orders (1.7 billion DWT across 2,412 vessels, per Clarksons).
Post-merger, China CSSC will integrate premium assets such as Dalian Shipbuilding, Wuchang Shipbuilding, and Beihai Shipbuilding, optimizing synergies in ship repair and supporting businesses. This will strengthen its market position across asset scale, technological prowess, delivery capacity, and global market share, while reshaping industry valuation logic as a globally rare leader.
Additionally, to further avoid competition, CSSC has committed to divesting Hudong-Zhonghua Shipbuilding’s non-compliant assets within three years to meet listing criteria. Hudong-Zhonghua, wholly owned by CSSC, is a top global shipbuilder specializing in defense equipment, large LNG carriers, ultra-large container ships, and offshore engineering vessels.
