CSSC Holdings(SH:600150)2018-04-20 16:00Financial Performance - In 2017, the company reported a net profit attributable to shareholders of -2,300,065,734.57 RMB, indicating a significant loss compared to the previous year[4]. - The total operating revenue for 2017 was 16,691,101,409.65 RMB, a decrease of 22.21% from 2016[20]. - The company's total assets at the end of 2017 were 52,326,571,319.72 RMB, reflecting a 2.75% decline compared to the previous year[20]. - The company will not distribute cash dividends for 2017 due to operational losses, with a profit distribution plan proposed by the board[4]. - The net cash flow from operating activities was 8,075,313,283.00 RMB, showing a recovery from the previous year's negative cash flow[20]. - The company's net assets attributable to shareholders decreased by 19.25% to 12,581,847,968.94 RMB at the end of 2017[20]. - The company reported a basic earnings per share of -1.67 CNY for 2017, an improvement from -1.89 CNY in 2016[21]. - The diluted earnings per share also stood at -1.67 CNY for 2017, compared to -1.89 CNY in the previous year[21]. - The total profit for the year was a loss of RMB 2.484 billion, with a net profit attributable to the parent company of RMB -2.3 billion due to significant impairment losses and exchange rate losses[53]. - Revenue from shipbuilding and repair decreased by 27.20%, while costs decreased by 27.25%, reflecting ongoing market challenges in the shipping industry[58]. - The company reported a 22.21% decrease in total revenue compared to the previous year, with operating costs also down by 22.10%[55]. Operational Highlights - The company achieved a net profit of 891,520,884.98 CNY from non-recurring gains in 2017, compared to 315,241,075.25 CNY in 2016[28]. - The company completed shipbuilding of 42.68 million deadweight tons, representing a year-on-year increase of 20.9%[36]. - New ship orders received amounted to 33.73 million deadweight tons, an increase of 60.1% year-on-year[36]. - The company held a backlog of ship orders totaling 87.23 million deadweight tons, a decrease of 12.4% year-on-year[36]. - The company’s export shipbuilding accounted for 92.4% of the total completed shipbuilding volume, 83.4% of new orders, and 90.2% of the backlog[36]. - The company’s market share in global shipbuilding was 41.9% for completed ships, 45.5% for new orders, and 44.6% for the backlog, ranking first worldwide[36]. - The company produced 34 bulk carriers and 12 oil tankers, with production of oil tankers increasing by 50% year-on-year[61]. - The ship repair segment completed 283 orders with a total value of 911 million RMB, comprising 278 conventional repairs and 5 modifications[46]. - The company delivered 49 vessels with a total deadweight tonnage of 7.33 million tons, including 31 vessels from Hudong-Zhonghua and 18 vessels from CSSC Chengxi[47]. Strategic Initiatives - The company is focused on expanding its core business in shipbuilding and marine engineering, leveraging its strong R&D capabilities[33]. - The company plans to continue developing large green and environmentally friendly vessels, maintaining its leadership in high-precision marine engineering technology[33]. - The company is actively pursuing supply-side structural reforms to address overcapacity through mergers and acquisitions[37]. - The company aims to increase its global shipbuilding market share by 5 percentage points by 2020, with specific targets for marine engineering and high-tech vessels[48]. - The company is focusing on innovation in the power business, establishing a three-in-one development model for research, manufacturing, and service[51]. - The company plans to strengthen innovation by preparing for luxury cruise ship construction and focusing on high-value ship technology, including polar vessels and LNG-powered ships[108]. Risk Management - The company has outlined various risk factors in its report, emphasizing the importance of investor awareness[5]. - The company faced risks from fluctuations in the prices of key raw materials, including steel and metals, which could adversely impact operations[112]. - The company has implemented centralized procurement and price adjustment strategies to mitigate the impact of raw material price volatility[112]. - The company emphasizes quality improvement and safety measures to ensure successful delivery of ships and compliance with environmental standards[110]. - The company will enhance risk management to improve operational quality and financial stability, including establishing early warning mechanisms for financial risks[109]. Environmental Compliance - In 2017, Waigaoqiao Shipbuilding discharged a total of 419,900 tons of wastewater, ensuring compliance with the first-level standard of the "Comprehensive Discharge Standard for Wastewater" (DB31/199-2009)[170]. - Waigaoqiao Shipbuilding processed 52,337.2 tons of general solid waste and 1,736.26 tons of hazardous waste in 2017, adhering to the regulations for hazardous waste disposal[165]. - The company completed the installation and system debugging of VOCs treatment facilities in the A1 painting workshop in 2017, achieving compliance with emission standards[166]. - The company has established a comprehensive environmental management system to monitor and manage pollutant emissions effectively[172]. Corporate Governance - The company has appointed Xinyong Zhonghe Accounting Firm as the auditor for 2017, with a remuneration of 80 million RMB[129]. - The internal control audit will also be conducted by Xinyong Zhonghe Accounting Firm, with a fee of 32 million RMB[129]. - The company reported a total remuneration of 556.98 million yuan for its board members and senior management during the reporting period[190]. - The board of directors and supervisory board are set to undergo a re-election process, which has been postponed for up to 6 months[190]. - The company is committed to maintaining normal operations despite the delay in board elections[190]. Shareholder Information - The total number of common stock shareholders at the end of the reporting period is 145,879, down from 167,897 at the end of the previous month[179]. - The largest shareholder, China Shipbuilding Industry Group Co., Ltd., holds 705,360,666 shares, representing 51.18% of total shares[181]. - The second-largest shareholder, China Ocean Shipping (Group) Company, holds 43,920,000 shares, accounting for 3.19%[182]. - The report indicates no changes in the number of shareholders with restored voting rights for preferred shares, remaining at zero[179]. Legal Matters - The company is currently involved in significant litigation related to two ships (H1350 and H1351) with a total advance payment of approximately 5.55 million USD at stake[131]. - The company has received an arbitration request from Singapore ESSM1 LTD for the return of approximately 19.36 million USD due to contract termination for ship H1368[131]. - The company is facing a lawsuit involving Tianjin Yali Industrial Gas Co., with a potential liability of 28.79 million RMB, and has already lost the first instance judgment[134]. - The company has been actively responding to arbitration notifications and has submitted counterclaims against the shipowners for losses incurred[131].