中船防务(00317) - 2025 - 中期业绩

Important Notice Basic Report Information and Dividend Plan This report is a summary of CSSC Offshore & Marine Engineering Company Limited's interim report for the six months ended June 30, 2025, with financial data prepared under PRC GAAP, unaudited but reviewed by the Board's Audit Committee; the company proposes a cash dividend of RMB 0.80 (tax inclusive) per 10 shares, totaling approximately RMB 113 million, representing 21.48% of net profit attributable to parent company shareholders for the period - This report is a summary of CSSC Offshore & Marine Engineering Company Limited's 2025 interim report, with financial data prepared under PRC GAAP, unaudited but reviewed by the Board's Audit Committee[3] 2025 Half-Year Cash Dividend Distribution Plan | Indicator | Amount/Ratio | | :--- | :--- | | Cash dividend per 10 shares | RMB 0.80 (tax inclusive) | | Total proposed cash dividend | RMB 113,080,510.24 (tax inclusive) | | Percentage of net profit attributable to parent company shareholders for Jan-Jun 2025 | 21.48% | | Remaining undistributed profit carried forward | RMB 1,468,170,857.41 | | Capital reserve converted to share capital | Not implemented | | Expected completion date for cash dividend distribution | On or before October 23, 2025 | - This profit distribution plan has been authorized by the 2024 Annual General Meeting for Board decision and does not require further shareholder approval[4] Company Profile Key Financial Data and Indicators During the reporting period, CSSC Offshore & Marine Engineering Company Limited achieved significant growth in operating revenue and total profit, with net profit attributable to listed company shareholders increasing by 258.46% year-on-year; net cash flow from operating activities turned positive, indicating a significant improvement in the company's operating condition, while non-recurring gains and losses had some impact on net profit 2025 Half-Year Key Accounting Data | Key Accounting Data (Jan-Jun) | Current Period (RMB Yuan) | Prior Year Period (RMB Yuan) | % Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Operating Revenue | 10,172,636,741.11 | 8,728,536,063.65 | 16.54 | | Total Profit | 656,113,231.71 | 150,721,702.25 | 335.31 | | Net Profit Attributable to Listed Company Shareholders | 526,386,355.89 | 146,845,686.17 | 258.46 | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-Recurring Gains/Losses) | 490,999,481.55 | 131,051,014.64 | 274.66 | | Net Cash Flow from Operating Activities | 1,530,898,629.05 | -5,557,686,660.25 | N/A | 2025 Half-Year Key Financial Indicators | Key Financial Indicators (Jan-Jun) | Current Period | Prior Year Period | % Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.3724 | 0.1039 | 258.42 | | Diluted Earnings Per Share (RMB/share) | 0.3724 | 0.1039 | 258.42 | | Basic Earnings Per Share (Excluding Non-Recurring Gains/Losses) (RMB/share) | 0.3474 | 0.0927 | 274.76 | | Weighted Average Return on Net Assets (%) | 3.11 | 0.83 | Increased by 2.28 percentage points | | Weighted Average Return on Net Assets (Excluding Non-Recurring Gains/Losses) (%) | 2.90 | 0.74 | Increased by 2.16 percentage points | - Total profit and net profit attributable to parent company shareholders significantly increased, primarily due to improved production efficiency, deepened cost management leading to higher product gross margins, and increased investment income from better performance of associates and dividends from investees[8] - Net cash flow from operating activities turned from a negative value in the prior year to a positive RMB 1.53 billion, mainly due to increased receipt of shipbuilding progress payments in the current reporting period[8] 2025 Half-Year Non-Recurring Gains and Losses Items | Non-Recurring Gains and Losses Item | Amount (RMB Yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -1,541,647.08 | | Government grants recognized in current profit or loss | 56,317,959.38 | | Fair value changes and disposal gains or losses from financial assets and liabilities held by non-financial enterprises | 21,351,165.42 | | Other non-operating income and expenses | 3,092,188.45 | | Less: Income tax impact | 13,588,854.17 | | Less: Impact on minority interests (after tax) | 30,243,937.66 | | Total | 35,386,874.34 | Employee Information and Remuneration Policy As of June 30, 2025, the Group's total number of employees was 4,557, with total employee remuneration paid in the first half of the year amounting to RMB 395 million; the company implements a position-performance-based salary system, with remuneration including wages, bonuses, and other state-mandated welfare plans 2025 Half-Year Employee Information | Indicator | Data | | :--- | :--- | | Total employees (as of June 30, 2025) | 4,557 persons | | Total employee remuneration paid (Jan-Jun 2025) | RMB 395 million | - The Group implements a position-performance-based salary system, with remuneration comprising wages, bonuses, and other state-mandated welfare plans, adhering to relevant Chinese laws and regulations[11] Discussion and Analysis of Operations Overall Operating Performance Discussion and Analysis for the Reporting Period In the first half of 2025, the global new shipbuilding market experienced a phased adjustment, with new vessel orders declining but prices remaining high, and China's shipbuilding industry maintaining its leading market share; the Group actively responded to market changes, focusing on the marine defense industry and its main vessel types, achieving significant growth in operating orders and revenue, and delivering multiple products ahead of schedule - In the first half of 2025, global new shipbuilding orders decreased by 34.36% (by deadweight tons) and 54.36% (by compensated gross tons) year-on-year, with container ships being the only highlight, increasing by 27.23% year-on-year[12] - New vessel prices eased from high levels, with the Clarkson Newbuilding Price Index decreasing by 0.1% year-on-year in June, but green vessel renewal demand and limited high-quality capacity supported prices[13] - China's shipbuilding industry continued to lead the world in three major indicators (new orders, completed shipbuilding, and outstanding orders), accounting for 56.12%, 52.20%, and 67.28% (by deadweight tons) of the global market, respectively[14] - The Group achieved operating orders of RMB 15.498 billion in the first half, a year-on-year increase of 64.6%, completing 88.8% of its annual plan, and undertaking 6 types of 32 new shipbuilding orders, including container ships, special vessels, and gas carriers[16] - During the reporting period, the Group completed and delivered 16 vessels, totaling 454,600 deadweight tons, achieving operating revenue of RMB 10.173 billion, a year-on-year increase of 16.54%[16] - As of the end of the reporting period, the Group's outstanding order contract value was approximately RMB 68 billion, including about RMB 65 billion for shipbuilding orders (140 vessels, 1 offshore engineering equipment unit) and about RMB 3 billion for non-shipbuilding products[17] Main Business Analysis During the reporting period, the company's operating revenue and operating costs both increased, with operating revenue growing by 16.54%; financial expenses varied due to exchange rate fluctuations and increased net interest income and expenses, while R&D investment significantly increased; investment income grew substantially, mainly from associates' investment income; balance sheet items showed various changes, with increases in accounts receivable and inventory, and significant growth in contract liabilities and non-current liabilities due within one year 2025 Half-Year Financial Statement Item Changes | Item | Current Period (RMB Yuan) | Prior Year Period (RMB Yuan) | % Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 10,172,636,741.11 | 8,728,536,063.65 | 16.54 | | Operating Cost | 9,218,419,877.97 | 8,079,818,322.37 | 14.09 | | Selling Expenses | 12,169,312.95 | 12,906,616.79 | -5.71 | | Administrative Expenses | 309,540,092.02 | 290,618,064.47 | 6.51 | | Financial Expenses | -119,100,650.46 | -159,756,474.23 | N/A | | R&D Expenses | 549,656,510.52 | 423,009,220.26 | 29.94 | | Net Cash Flow from Operating Activities | 1,530,898,629.05 | -5,557,686,660.25 | N/A | | Net Cash Flow from Investing Activities | 1,276,924,854.65 | 806,396,143.92 | 58.35 | | Net Cash Flow from Financing Activities | -300,581,028.11 | 451,347,377.55 | -166.60 | | Taxes and Surcharges | 23,743,301.09 | 11,454,711.70 | 107.28 | | Other Income | 98,929,395.67 | 58,358,958.88 | 69.52 | | Investment Income | 405,636,862.98 | 122,596,866.59 | 230.87 | | Fair Value Change Income | 9,266,578.75 | -64,857,252.63 | N/A | | Credit Impairment Losses | -637,579.53 | -3,698,846.98 | N/A | | Asset Impairment Losses | -36,840,864.55 | – | N/A | | Gains on Disposal of Assets | -187,689.66 | -32,490,144.44 | N/A | | Non-Operating Income | 3,395,110.41 | 1,564,607.84 | 116.99 | | Non-Operating Expenses | 1,656,879.38 | 1,238,089.30 | 33.83 | | Income Tax Expense | 54,405,068.22 | -33,905,499.07 | N/A | - Operating revenue growth was primarily driven by sufficient outstanding orders, the batch construction advantage of main vessel types, and increased production output and efficiency from lean management[20] - Investment income significantly increased by 230.87% year-on-year, mainly due to increased investment income from associates (especially Guangzhou Shipyard International Company Limited) recognized under the equity method[24][27] 2025 Half-Year Balance Sheet Major Item Changes | Item Name | Current Period End (RMB Yuan) | % of Total Assets | Prior Year End (RMB Yuan) | % of Total Assets | % Change from Prior Year End | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 16,380,760,423.37 | 29.09 | 15,260,594,444.32 | 28.47 | 7.34 | | | Trading Financial Assets | 119,063.01 | 0.00 | 1,171,434.07 | 0.00 | -89.84 | Financial derivatives matured and settled during the reporting period | | Notes Receivable | 20,732,902.81 | 0.04 | 56,102,457.89 | 0.10 | -63.04 | Some notes matured and settled during the reporting period | | Accounts Receivable | 1,934,505,426.91 | 3.44 | 1,326,920,478.98 | 2.48 | 45.79 | Uncollected payments due to unreached collection milestones increased at the end of the reporting period | | Receivables Financing | 114,015,583.63 | 0.20 | 236,548,075.95 | 0.44 | -51.8 | Supply chain platform notes matured and settled during the reporting period | | Inventories | 7,225,851,872.50 | 12.83 | 5,905,684,446.80 | 11.02 | 22.35 | | | Contract Assets | 3,091,069,008.37 | 5.49 | 2,388,466,443.95 | 4.46 | 29.42 | | | Long-term Receivables | 469,561,861.68 | 0.83 | 715,985,528.68 | 1.34 | -34.42 | Long-term receivables from deferred sales with financing nature matured and collected during the reporting period | | Long-term Equity Investments | 5,763,132,186.69 | 10.23 | 5,403,984,842.40 | 10.08 | 6.65 | | | Long-term Deferred Expenses | 119,043,239.44 | 0.21 | 79,792,669.10 | 0.15 | 49.19 | Improvement and renovation of fixed assets, production facilities, etc., during the reporting period | | Short-term Borrowings | 539,249,576.40 | 0.96 | 598,343,912.50 | 1.12 | -9.88 | | | Trading Financial Liabilities | 49,405,603.48 | 0.09 | 94,183,471.96 | 0.18 | -47.54 | Fair value changes of some held financial derivatives at the end of the reporting period | | Contract Liabilities | 14,920,868,699.17 | 26.50 | 13,291,127,772.51 | 24.80 | 12.26 | | | Employee Remuneration Payable | 190,383,293.37 | 0.34 | 1,367,643.45 | 0.00 | 13820.54 | Monthly accrual of wages, subsidies, and welfare expenses during the reporting period | | Other Payables | 365,637,588.27 | 0.65 | 265,576,439.57 | 0.50 | 37.68 | New ordinary share dividends payable of RMB 99 million at the end of the reporting period | | Non-current Liabilities Due Within One Year | 2,283,387,967.26 | 4.05 | 1,558,093,634.54 | 2.91 | 46.55 | Long-term borrowings due within one year increased at the end of the reporting period | | Long-term Borrowings | 3,162,900,000.00 | 5.62 | 4,048,900,000.00 | 7.55 | -21.88 | | Investment Status Analysis As of the end of the reporting period, the Group's long-term equity investments amounted to RMB 5.763 billion, an increase of 6.65% from the beginning of the year, mainly due to increased investment income from associates Long-term Equity Investment Changes | Indicator | Period-End Balance (RMB 10,000) | Year-Beginning Balance (RMB 10,000) | % Change | | :--- | :--- | :--- | :--- | | Long-term Equity Investments | 576,313.22 | 540,398.48 | 6.65 | - The increase in long-term equity investments was mainly due to increased investment income from associates during the reporting period[31] Non-Fundraising Investment Projects During the reporting period, the company had no non-fundraising investment projects - During the reporting period, the company had no non-fundraising investment projects[32] Significant Matters Asset Transactions, Business Combinations During the reporting period, the company had no asset transactions or business combinations - During the reporting period, the company had no asset transactions or business combinations[33] Profit Distribution and Suspension of Share Transfer Registration for the Reporting Period The company proposes a cash dividend of RMB 0.80 (tax inclusive) per 10 shares to all shareholders, totaling approximately RMB 113 million, representing 21.48% of net profit attributable to parent company shareholders for the period; to ensure shareholder eligibility, the company will suspend share transfer registration from September 22 to September 25, 2025 2025 Half-Year Cash Dividend Distribution Plan | Indicator | Amount/Ratio | | :--- | :--- | | Cash dividend per 10 shares | RMB 0.80 (tax inclusive) | | Total proposed cash dividend | RMB 113,080,510.24 (tax inclusive) | | Percentage of net profit attributable to parent company shareholders for Jan-Jun 2025 | 21.48% | | Remaining undistributed profit carried forward | RMB 1,468,170,857.41 | | Capital reserve converted to share capital | Not implemented | - The company will suspend share transfer registration from September 22, 2025, to September 25, 2025, to determine shareholder eligibility for the interim dividend[35] Major Litigation, Arbitration, and Matters of Widespread Media Questioning During the reporting period, the company had no major litigation, arbitration, or matters of widespread media questioning - During the reporting period, the company had no major litigation, arbitration, or matters of widespread media questioning[36] Custody, Contracting, Leasing Matters The Group has multiple land, building, and structure leases, primarily involving affiliated companies; additionally, the Group's total guarantees for subsidiaries amount to RMB 2.836 billion, representing 13.43% of the company's net assets, all provided for guaranteed entities with a debt-to-asset ratio exceeding 70% Major Leasing Information | Lessor Name | Lessee Name | Leased Asset Description | Lease Start Date | Lease End Date | Related Party Transaction | | :--- | :--- | :--- | :--- | :--- | :--- | | China State Shipbuilding Corporation Guangzhou Shipbuilding Industry Co., Ltd. | Huangpu Wenchong | Land, buildings, and structures | 2014.5.1 | Relocation completed and production commenced in new plant area | Yes | | Guangzhou CSSC Wenchong Industrial Co., Ltd. | Wenchong Shipyard | Land, buildings, and structures | 2018.11.1 | Relocation completed and production commenced in new plant area | Yes | | Guangdong Guangxin Shipbuilding Trading Co., Ltd. | Wenchuan Heavy Industry | Land, buildings, and structures | 2024.5.1 | 2026.4.30 | No | Company Guarantee Total (as of End of Reporting Period) | Indicator | Amount (RMB 10,000) | % of Company's Net Assets | | :--- | :--- | :--- | | Total new guarantees for subsidiaries during the reporting period | 122,092.05 | | | Total outstanding guarantees for subsidiaries at period-end (B) | 283,587.71 | | | Total Guarantees (A+B) | 283,587.71 | 13.43 | | Of which: Debt guarantees provided directly or indirectly for guaranteed entities with debt-to-asset ratio exceeding 70% (D) | 283,587.71 | | - During the reporting period, the Group's cumulative new external guarantees amounted to RMB 1.221 billion, all within the guarantee framework approved by the shareholders' meeting, with no overdue guarantees[40] - As of the end of the reporting period, the Group's outstanding external guarantees amounted to RMB 2.836 billion, all provided by the company's controlling subsidiary Huangpu Wenchong for its subsidiary Wenchuan Heavy Industry, covering bank credit line guarantees, parent company guarantees, advance payment guarantees, and performance guarantees[40] Environmental Information Disclosure Two of the Group's subsidiaries, Guangzhou Huangchuan Offshore Engineering Co., Ltd. and Guangzhou Wenchong Shipyard Co., Ltd., are included in the list of enterprises required to disclose environmental information, and their environmental information disclosure reports can be found on the Guangdong Provincial Department of Ecology and Environment's Enterprise Environmental Information Disclosure System Enterprises Included in the List of Enterprises Required to Disclose Environmental Information | No. | Enterprise Name | Query Index for Environmental Information Disclosure Report | | :--- | :--- | :--- | | 1 | Guangzhou Huangchuan Offshore Engineering Co., Ltd. | Guangdong Provincial Department of Ecology and Environment Enterprise Environmental Information Disclosure System | | 2 | Guangzhou Wenchong Shipyard Co., Ltd. | Guangdong Provincial Department of Ecology and Environment Enterprise Environmental Information Disclosure System | Explanation of Other Significant Matters As of June 30, 2025, the Group's asset-liability ratio was 62.50%, an increase of 2 percentage points from the beginning of the period; the company had no repurchases, sales, or redemptions of securities, nor did it hold any treasury shares; the Group's capital management objective is to ensure continuous operation and provide adequate returns to shareholders; no significant post-reporting period matters require disclosure - As of June 30, 2025, the company had RMB 10 million in bank deposits used as collateral for bank acceptance bills, guarantees, and letters of credit, with no other asset pledges[42] Asset-Liability Ratio Change | Indicator | June 30, 2025 | Beginning of Period | | :--- | :--- | :--- | | Asset-liability ratio | 62.50% | 60.50% | | Change | Increased by 2 percentage points | | - During the reporting period, the Group had no repurchases, sales, or redemptions of listed securities of the company or any of its subsidiaries, and held no treasury shares as of June 30, 2025[44] - The Group's primary capital management objective is to ensure continuous operation and regularly review and manage its capital structure based on economic environment, funding needs, and profitability[45] - As of the date of this report, the Group had no significant post-reporting period matters requiring disclosure[46] Corporate Governance Report Corporate Governance The company strictly complies with relevant laws, regulations, and listing rules, continuously improving its corporate governance structure; during the reporting period, the company applied and complied with Appendix C1 of the Hong Kong Listing Rules' Corporate Governance Code, but non-executive directors did not attend shareholder meetings and the chairman position was vacant, which has since been filled by Mr. Luo Bing as the new chairman - The company strictly adheres to the "Company Law," "Securities Law," and listing rules of the China Securities Regulatory Commission and Shanghai and Hong Kong stock exchanges to improve its corporate governance structure, with no significant discrepancies from relevant regulations currently[48] - For the six months ended June 30, 2025, the company applied and complied with Appendix C1 of the Hong Kong Listing Rules' Corporate Governance Code, but non-executive directors Mr. Yin Lu and Mr. Gu Yuan were unable to attend some shareholder meetings due to work reasons[49] - The company's former chairman, Mr. Xiang Huiming, resigned on May 21, 2024, and as of June 30, 2025, the positions of chairman and chairman of the Board's Strategy Committee were vacant; on August 21, 2025, Mr. Luo Bing was elected as the new chairman and chairman of the Strategy Committee, and the company has fully met the requirements of the Corporate Governance Code[49] Directors' Securities Transactions The company strictly complies with the restrictions on directors' securities transactions by domestic and overseas regulatory bodies and has adopted the "Model Code for Securities Transactions by Directors of Listed Issuers"; all directors have confirmed full compliance with this code during the reporting period - The company strictly complies with the relevant restrictions on directors' securities transactions by both domestic and Hong Kong regulatory bodies and has adopted the "Model Code for Securities Transactions by Directors of Listed Issuers"[50] - All directors have confirmed to the company that they have fully complied with the "Model Code for Securities Transactions by Directors of Listed Issuers" during the reporting period[50] Board Meetings As of the end of the reporting period, the company's Board of Directors held 4 meetings, with all directors attending; additionally, independent directors held 2 special meetings, the Audit Committee held 4 meetings, and the Remuneration and Appraisal Committee held 1 meeting, approving multiple important proposals - As of the end of the reporting period, the company's Board of Directors held 4 meetings (including 2 written meetings), with all directors attending (including attendance by proxy)[51] - During the reporting period, the Board's independent directors held 2 special meetings, approving 2 proposals, including the preliminary proposal for the controlling shareholder to change the "Letter of Undertaking to Avoid Competition with CSSC Offshore & Marine Engineering Company Limited"[51] - The Audit Committee held 4 meetings, approving 14 proposals, including the 2024 Annual Report, Internal Control Evaluation Report, and 2025 First Quarter Report[51] - The Remuneration and Appraisal Committee held 1 meeting, approving 1 proposal regarding the 2024 performance appraisal results and remuneration of the company's directors, supervisors, and senior management[51] Financial Statements Prepared Under PRC GAAP Consolidated Balance Sheet As of June 30, 2025, the Group's total consolidated assets amounted to RMB 56.312 billion, an increase of 5.07% from the end of 2024; total current assets were RMB 35.625 billion, total current liabilities were RMB 30.299 billion, and the asset-liability ratio was 62.50% Consolidated Balance Sheet Key Data (as of June 30, 2025) | Item | June 30, 2025 (RMB Yuan) | December 31, 2024 (RMB Yuan) | | :--- | :--- | :--- | | Total Current Assets | 35,625,080,814.03 | 32,140,949,910.03 | | Total Non-current Assets | 20,687,231,943.75 | 21,455,163,705.22 | | Total Assets | 56,312,312,757.78 | 53,596,113,615.25 | | Total Current Liabilities | 30,298,852,019.21 | 26,396,390,403.11 | | Total Non-current Liabilities | 4,898,864,999.14 | 6,029,266,122.27 | | Total Liabilities | 35,197,717,018.35 | 32,425,656,525.38 | | Total Equity Attributable to Parent Company Shareholders | 17,694,327,025.67 | 17,824,706,200.68 | | Total Equity | 21,114,595,739.43 | 21,170,457,089.87 | | Total Liabilities and Equity | 56,312,312,757.78 | 53,596,113,615.25 | Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets amounted to RMB 16.245 billion, a slight decrease from the end of 2024; total current assets were RMB 1.570 billion, total current liabilities were RMB 120 million, and total equity was RMB 15.070 billion Parent Company Balance Sheet Key Data (as of June 30, 2025) | Item | June 30, 2025 (RMB Yuan) | December 31, 2024 (RMB Yuan) | | :--- | :--- | :--- | | Total Current Assets | 1,570,081,545.77 | 1,499,544,628.10 | | Total Non-current Assets | 14,675,040,592.92 | 15,042,077,255.41 | | Total Assets | 16,245,122,138.69 | 16,541,621,883.51 | | Total Current Liabilities | 119,695,242.70 | 18,993,165.20 | | Total Non-current Liabilities | 1,055,849,222.96 | 1,240,808,494.84 | | Total Liabilities | 1,175,544,465.66 | 1,259,801,660.04 | | Total Equity | 15,069,577,673.03 | 15,281,820,223.47 | | Total Liabilities and Equity | 16,245,122,138.69 | 16,541,621,883.51 | Consolidated Income Statement In the first half of 2025, the Group achieved total operating revenue of RMB 10.173 billion, a year-on-year increase of 16.54%; net profit was RMB 602 million, with net profit attributable to parent company shareholders of RMB 526 million, a significant year-on-year increase of 258.46%; total comprehensive income was RMB 43.34 million, a substantial decrease from the prior year period Consolidated Income Statement Key Data (Jan-Jun 2025) | Item | 2025 Half-Year (RMB Yuan) | 2024 Half-Year (RMB Yuan) | | :--- | :--- | :--- | | I. Total Operating Revenue | 10,172,636,741.11 | 8,728,536,063.65 | | II. Total Operating Cost | 9,994,428,444.09 | 8,658,050,461.36 | | III. Operating Profit | 654,375,000.68 | 150,395,183.71 | | IV. Total Profit | 656,113,231.71 | 150,721,702.25 | | Less: Income Tax Expense | 54,405,068.22 | -33,905,499.07 | | V. Net Profit | 601,708,163.49 | 184,627,201.32 | | Net Profit Attributable to Parent Company Shareholders | 526,386,355.89 | 146,845,686.17 | | VI. Net Other Comprehensive Income After Tax | -558,365,322.44 | 1,834,065,131.74 | | VII. Total Comprehensive Income | 43,342,841.05 | 2,018,692,333.06 | | VIII. Earnings Per Share: Basic Earnings Per Share (RMB/share) | 0.3724 | 0.1039 | Parent Company Income Statement In the first half of 2025, the parent company achieved operating revenue of RMB 7.332 million, with net profit of RMB 444 million, a significant year-on-year increase; total comprehensive income was RMB -113 million, a substantial decrease from the prior year period Parent Company Income Statement Key Data (Jan-Jun 2025) | Item | 2025 Half-Year (RMB Yuan) | 2024 Half-Year (RMB Yuan) | | :--- | :--- | :--- | | I. Operating Revenue | 7,332,000.00 | 6,546,600.00 | | II. Operating Profit | 447,900,426.15 | 120,696,350.83 | | III. Total Profit | 447,899,542.95 | 120,696,350.83 | | Less: Income Tax Expense | 3,849,353.92 | 3,623,480.55 | | IV. Net Profit | 444,050,189.03 | 117,072,870.28 | | V. Net Other Comprehensive Income After Tax | -557,488,547.98 | 1,838,535,032.00 | | VI. Total Comprehensive Income | -113,438,358.95 | 1,955,607,902.28 | Consolidated Cash Flow Statement In the first half of 2025, the Group's net cash flow from operating activities was RMB 1.531 billion, a significant improvement from the prior year period; net cash flow from investing activities was RMB 1.277 billion, and net cash flow from financing activities was RMB -301 million; the net increase in cash and cash equivalents was RMB 2.491 billion Consolidated Cash Flow Statement Key Data (Jan-Jun 2025) | Item | 2025 Half-Year (RMB Yuan) | 2024 Half-Year (RMB Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 1,530,898,629.05 | -5,557,686,660.25 | | Net Cash Flow from Investing Activities | 1,276,924,854.65 | 806,396,143.92 | | Net Cash Flow from Financing Activities | -300,581,028.11 | 451,347,377.55 | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | -16,578,773.42 | 21,629,075.25 | | Net Increase in Cash and Cash Equivalents | 2,490,663,682.17 | -4,278,314,063.53 | | Cash and Cash Equivalents at End of Period | 10,403,314,333.35 | 5,422,846,011.31 | Parent Company Cash Flow Statement In the first half of 2025, the parent company's net cash flow from operating activities was RMB -1.997 million, net cash flow from investing activities was RMB 320 million, and net cash flow from financing activities was RMB -0.451 million; cash and cash equivalents at the end of the period amounted to RMB 382 million Parent Company Cash Flow Statement Key Data (Jan-Jun 2025) | Item | 2025 Half-Year (RMB Yuan) | 2024 Half-Year (RMB Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -1,996,468.13 | -3,579,607.45 | | Net Cash Flow from Investing Activities | 320,274,032.16 | 366,525,840.00 | | Net Cash Flow from Financing Activities | -450,562.67 | | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | -898.99 | -3,165.25 | | Net Increase in Cash and Cash Equivalents | 317,826,102.37 | 362,943,067.30 | | Cash and Cash Equivalents at End of Period | 381,695,038.16 | 413,918,306.52 | Notes to the Consolidated Financial Statements Basis of Financial Statement Preparation These financial statements are prepared in accordance with PRC Enterprise Accounting Standards, CSRC, and Hong Kong Listing Rules, on a going concern basis; management has assessed the going concern ability for 12 months from June 30, 2025, and believes the financial position can meet production and operation needs - These financial statements are prepared in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance, "Information Disclosure Rules for Companies Issuing Securities to the Public No. 15" by the China Securities Regulatory Commission, and relevant provisions of the "Hong Kong Companies Ordinance" and the "Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited"[76] - The Group's management has assessed its ability to continue as a going concern for 12 months from June 30, 2025, and believes that its current financial position can meet the Group's production and operations, thus the financial statements are prepared on a going concern basis[77] Statement of Compliance with Enterprise Accounting Standards These financial statements comply with the requirements of the Enterprise Accounting Standards issued by the Ministry of Finance, truly and completely reflecting the Group's consolidated and parent company financial position as of June 30, 2025, and operating results and cash flows for January to June 2025 - These financial statements comply with the requirements of the Enterprise Accounting Standards issued by the Ministry of Finance, truly and completely reflecting the Group's consolidated and parent company financial position as of June 30, 2025, and operating results and cash flows for January to June 2025[78] Notes to Major Items in Consolidated Financial Statements This section provides detailed notes on major items in the consolidated financial statements, including notes receivable, accounts receivable, notes payable, accounts payable, retained earnings, net current assets, total assets less current liabilities, operating revenue and cost, financial expenses, investment income, fair value change income, non-operating income, income tax expense, depreciation and amortization, gain (or loss) on disposal of investments or properties, earnings per share, dividends, and segment information, offering period-end balances, changes, and related explanations for each item 1. Notes Receivable Notes Receivable Classified by Type (Period-End Balance) | Item | Period-End Balance (RMB Yuan) | Period-Beginning Balance (RMB Yuan) | | :--- | :--- | :--- | | Bank Acceptance Bills | 12,577,205.57 | 45,894,339.59 | | Finance Company Acceptance Bills | 8,155,697.24 | 10,208,118.30 | | Total | 20,732,902.81 | 56,102,457.89 | - Among notes receivable endorsed or discounted and not yet due at the balance sheet date, bank acceptance bills amounted to RMB 10,980,162.56, and finance company acceptance bills amounted to RMB 5,847,128.76[83] 2. Accounts Receivable Accounts Receivable Aging Analysis (Period-End Balance) | Aging | Period-End Balance (RMB Yuan) | Period-Beginning Balance (RMB Yuan) | | :--- | :--- | :--- | | Within 1 year | 1,700,011,504.84 | 1,087,502,662.41 | | 1 to 2 years | 202,573,213.26 | 200,773,733.85 | | 2 to 3 years | 45,971,622.69 | 42,384,569.49 | | 3 to 4 years | 5,198,368.61 | 13,407,264.43 | | 4 to 5 years | 139,816.00 | 732,670.71 | | Over 5 years | 11,759,418.27 | 12,696,822.46 | | Subtotal | 1,965,653,943.67 | 1,357,497,723.35 | | Less: Provision for Bad Debts | 31,148,516.76 | 30,577,244.37 | | Total | 1,934,505,426.91 | 1,326,920,478.98 | - The period-end balance of accounts receivable increased by 45.79% from the beginning of the period, mainly due to an increase in amounts not yet due for collection[29] - The Group accrues bad debt provisions for accounts receivable based on aging, with expected default loss rates ranging from 0% (0-6 months) to 100% (over 5 years)[87] Top Five Accounts Receivable and Contract Assets by Debtor (Period-End Balance) | Debtor Name | Accounts Receivable Period-End Balance (RMB Yuan) | Contract Assets Period-End Balance (RMB Yuan) | Total Accounts Receivable and Contract Assets Period-End Balance (RMB Yuan) | % of Total Accounts Receivable and Contract Assets Period-End Balance | | :--- | :--- | :--- | :--- | :--- | | Debtor 1 | 79,235,000.00 | 1,855,455,315.40 | 1,934,690,315.40 | 38.26 | | Debtor 2 | 104,520,000.00 | 493,774,475.25 | 598,294,475.25 | 11.83 | | Debtor 3 | 282,137,783.00 | | 282,137,783.00 | 5.58 | | Debtor 4 | 211,407,775.20 | | 211,407,775.20 | 4.18 | | Debtor 5 | 249,688.37 | 135,205,880.04 | 135,455,568.41 | 2.68 | | Total | 677,550,246.57 | 2,484,435,670.69 | 3,161,985,917.26 | 62.53 | 3. Notes Payable Notes Payable Classification (Period-End Balance) | Type of Note | Period-End Balance (RMB Yuan) | Period-Beginning Balance (RMB Yuan) | | :--- | :--- | :--- | | Bank Acceptance Bills | 931,091,362.79 | 1,363,849,542.52 | | Finance Company Acceptance Bills | 832,734,998.67 | 510,322,494.34 | | Total | 1,763,826,361.46 | 1,874,172,036.86 | - The total notes payable at period-end was RMB 1,763,826,361.46, with all notes having an aging within 180 days[89] 4. Accounts Payable Accounts Payable Listing (Period-End Balance) | Item | Period-End Balance (RMB Yuan) | Period-Beginning Balance (RMB Yuan) | | :--- | :--- | :--- | | Material Procurement | 9,005,472,338.42 | 6,662,652,885.92 | | Construction in Progress Payments | 68,220,511.32 | 437,953,360.82 | | Quality Guarantee Deposits | 702,510,351.42 | 736,359,820.62 | | Other Engineering and Labor Services | 113,543,700.17 | 615,863,291.05 | | Total | 9,889,746,901.33 | 8,452,829,358.41 | Accounts Payable Aging Analysis (Period-End Balance) | Aging | Period-End Balance (RMB Yuan) | Period-Beginning Balance (RMB Yuan) | | :--- | :--- | :--- | | Within 1 year | 7,306,477,080.99 | 6,153,217,058.00 | | 1 to 2 years | 1,598,478,990.05 | 958,967,492.46 | | 2 to 3 years | 287,853,262.76 | 374,870,763.74 | | Over 3 years | 696,937,567.53 | 965,774,044.21 | | Total | 9,889,746,901.33 | 8,452,829,358.41 | - The total accounts payable at period-end was RMB 9.890 billion, with significant accounts payable over 1 year or overdue primarily consisting of estimated payables and quality guarantee deposits to units under China State Shipbuilding Corporation[90][92] 5. Retained Earnings Retained Earnings Movement | Item | Current Period Amount (RMB Yuan) | Prior Period Amount (RMB Yuan) | | :--- | :--- | :--- | | Retained earnings at end of prior period (adjusted) | 2,591,405,648.46 | 2,276,749,345.46 | | Add: Net profit attributable to parent company owners for the year | 526,386,355.89 | 146,845,686.17 | | Less: Ordinary share dividends payable | 98,945,446.47 | 15,548,570.16 | | Add: Other comprehensive income transferred to retained earnings | -467,760.08 | | | Period-end balance | 3,018,378,797.80 | 2,408,046,461.47 | 6. Net Current Assets Net Current Assets | Item | Period-End Balance (RMB Yuan) | Period-Beginning Balance (RMB Yuan) | | :--- | :--- | :--- | | Current Assets | 35,625,080,814.03 | 32,140,949,910.03 | | Less: Current Liabilities | 30,298,852,019.21 | 26,396,390,403.11 | | Net Current Assets | 5,326,228,794.82 | 5,744,559,506.92 | 7. Total Assets Less Current Liabilities Total Assets Less Current Liabilities | Item | Period-End Balance (RMB Yuan) | Period-Beginning Balance (RMB Yuan) | | :--- | :--- | :--- | | Total Assets | 56,312,312,757.78 | 53,596,113,615.25 | | Less: Current Liabilities | 30,298,852,019.21 | 26,396,390,403.11 | | Total Assets Less Current Liabilities | 26,013,460,738.57 | 27,199,723,212.14 | 8. Operating Revenue, Operating Cost Operating Revenue and Operating Cost (Current Period Amount) | Item | Revenue (RMB Yuan) | Cost (RMB Yuan) | | :--- | :--- | :--- | | Main Business | 10,032,831,730.56 | 9,099,088,302.38 | | Other Business | 139,805,010.55 | 119,331,575.59 | | Total | 10,172,636,741.11 | 9,218,419,877.97 | Main Business Gross Profit (Current Period Amount) | Item | Current Period Amount (RMB Yuan) | | :--- | :--- | | Main Business Revenue | 10,032,831,730.56 | | Main Business Cost | 9,099,088,302.38 | | Gross Profit | 933,743,428.18 | Main Business Revenue by Product Category (Current Period Amount) | Product Name | Current Period Amount (RMB Yuan) | | :--- | :--- | | Vessel Products | 9,395,989,883.27 | | Of which: Container Ships | 2,411,731,334.06 | | Of which: Special Vessels and Others | 6,984,258,549.21 | | Offshore Engineering Products | 34,271,270.38 | | Steel Structures | 33,539,675.24 | | Vessel Repair and Modification | 446,468,248.35 | | Electromechanical Products and Others | 122,562,653.32 | | Total | 10,032,831,730.56 | Main Business Revenue by Region (Current Period Amount) | Region Name | Current Period Amount (RMB Yuan) | | :--- | :--- | | China (including Hong Kong, Macau, Taiwan) | 6,807,845,601.08 | | Other Asian Regions | 1,634,612,408.52 | | Europe | 825,424,472.72 | | Oceania | 8,307,287.53 | | North America | 21,998,511.56 | | Africa | 734,643,449.15 | | Total | 10,032,831,730.56 | - As of June 30, 2025, the transaction price corresponding to contracts signed but not yet fulfilled was RMB 57.629 billion, with RMB 10.271 billion expected to be recognized as revenue in 2025 and RMB 21.649 billion in 2026[105] Top Five Customers by Operating Revenue (Current Period Amount) | Customer | Relationship with the Group | Current Period Amount (RMB Yuan) | % of Total Main Business Revenue | | :--- | :--- | :--- | :--- | | Customer 1 | Non-related party | 4,475,656,894.53 | 44.61 | | Customer 2 | Non-related party | 1,586,306,861.34 | 15.81 | | Customer 3 | Non-related party | 852,615,748.31 | 8.50 | | Customer 4 | Under common control of CSSC Group | 479,745,180.81 | 4.78 | | Customer 5 | Non-related party | 442,303,805.31 | 4.41 | | Total | | 7,836,628,490.30 | 78.11 | Top Five Suppliers by Purchase Amount (Current Period Amount) | Supplier | Relationship with the Group | Current Period Amount (RMB Yuan) | % of Total Main Business Cost | | :--- | :--- | :--- | :--- | | Supplier 1 | Under common control of CSSC Group | 3,789,843,948.33 | 41.65 | | Supplier 2 | Non-related party | 368,983,300.00 | 4.06 | | Supplier 3 | Non-related party | 252,428,713.60 | 2.77 | | Supplier 4 | Non-related party | 247,208,400.00 | 2.72 | | Supplier 5 | Non-related party | 159,078,911.75 | 1.75 | | Total | | 4,817,543,273.68 | 52.95 | 9. Financial Expenses Financial Expenses Details (Current Period Amount) | Item | Current Period Amount (RMB Yuan) | Prior Period Amount (RMB Yuan) | | :--- | :--- | :--- | | Interest Expense | 60,459,609.21 | 53,527,454.83 | | Less: Interest Income | 196,337,751.14 | 183,004,781.70 | | Exchange Gains/Losses | 10,944,638.85 | -34,961,105.31 | | Other Expenses | 5,832,852.62 | 4,681,957.95 | | Total | -119,100,650.46 | -159,756,474.23 | - The change in financial expenses is primarily a combined effect of net exchange losses from exchange rate fluctuations and an increase in net interest income and expenses in the current reporting period[22] 10. Investment Income Investment Income Details (Current Period Amount) | Item | Current Period Amount (RMB Yuan) | Prior Period Amount (RMB Yuan) | | :--- | :--- | :--- | | Investment income from long-term equity investments accounted for using equity method | 358,620,177.75 | 54,607,253.60 | | Dividend income from other equity instrument investments during holding period | 55,984,108.56 | 43,601,866.29 | | Investment income from disposal of trading financial assets | -8,967,423.33 | 23,631,659.80 | | Investment income from disposal of long-term equity investments | | 756,086.90 | | Total | 405,636,862.98 | 122,596,866.59 | - Current period investment income significantly increased by 230.87% year-on-year, mainly from increased investment income from associates recognized under the equity method and increased dividend income from shares[24][111] 11. Fair Value Change Income Fair Value Change Income Sources (Current Period Amount) | Source of Fair Value Change Income | Current Period Amount (RMB Yuan) | Prior Period Amount (RMB Yuan) | | :--- | :--- | :--- | | Trading Financial Assets | -1,052,371.06 | -3,494,098.85 | | Trading Financial Liabilities | 10,318,949.81 | -30,721,087.90 | | Hedging Instruments | | -30,642,065.88 | | Total | 9,266,578.75 | -64,857,252.63 | - Fair value change income turned from a loss in the prior year period to a profit in the current period, mainly influenced by changes in the book fair value of held financial derivatives[24][112] 12. Non-Operating Income Non-Operating Income Details (Current Period Amount) | Item | Current Period Amount (RMB Yuan) | Prior Period Amount (RMB Yuan) | Amount Included in Current Non-Recurring Gains/Losses (RMB Yuan) | | :--- | :--- | :--- | :--- | | Non-current asset impairment loss | 282,921.96 | 208,056.62 | 282,921.96 | | Insurance compensation | 2,893,148.84 | 366,000.35 | 2,893,148.84 | | Fine income | 217,515.56 | 72,301.71 | 217,515.56 | | Other | 1,524.05 | 28,014.72 | 1,524.05 | | Total | 3,395,110.41 | 1,564,607.84 | 3,395,110.41 | - Non-operating income increased by 116.99% year-on-year, mainly due to an increase in insurance claim income[26][113] 13. Income Tax Expense Income Tax Expense Table (Current Period Amount) | Item | Current Period Amount (RMB Yuan) | Prior Period Amount (RMB Yuan) | | :--- | :--- | :--- | | Current Income Tax Expense | 9,997,482.35 | -6,974,725.75 | | Deferred Income Tax Expense | 44,407,585.87 | -26,930,773.32 | | Total | 54,405,068.22 | -33,905,499.07 | - The change in income tax expense is mainly due to the year-on-year change in deferred income tax expense, as some subsidiaries' profitability in the current period led to the reversal of deferred income tax assets[26] - The Group enjoys multiple tax incentives, including VAT exemption, credit, and refund for export goods, immediate VAT refund for software products, additional VAT deduction for advanced manufacturing enterprises, and several subsidiaries enjoying a 15% income tax rate for high-tech enterprises or a 20% income tax rate for small and micro-profit enterprises[118] 14. Depreciation and Amortization Depreciation and Amortization Details (Current Period Amount) | Item | Current Period Amount (RMB Yuan) | Prior Period Amount (RMB Yuan) | | :--- | :--- | :--- | | Depreciation of Fixed Assets | 174,321,080.50 | 181,629,598.49 | | Amortization of Intangible Assets | 16,489,485.89 | 16,705,424.13 | | Depreciation of Right-of-Use Assets | 45,782,980.95 | 43,935,983.70 | | Amortization of Long-term Deferred Expenses | 9,729,504.34 | 4,981,148.76 | | Depreciation of Investment Properties | 3,268,712.52 | 3,268,712.52 | | Total | 249,591,764.20 | 250,520,867.60 | 15. Gain (or Loss) on Disposal of Investments or Properties - The loss on disposal of investments in the current period was RMB 0, and the loss on disposal of properties was RMB 187,689.66[120] - The gain on disposal of investments in the prior period was RMB 756,086.90, and the gain on disposal of properties was RMB 0[120] 16. Earnings Per Share - Basic and diluted earnings per share were both RMB 0.3724/share, a significant increase from RMB 0.1039/share in the prior year period[122][123] - Earnings per share are calculated by dividing the current period's net profit attributable to the Group's ordinary shareholders by the weighted average number of ordinary shares outstanding[121] 17. Dividends Dividend Distribution | Item | Current Period Amount (RMB Yuan) | Prior Period Amount (RMB Yuan) | | :--- | :--- | :--- | | Dividends declared for the year ended December 31, 2024 | 98,945,446.47 | 15,548,570.16 | | Interim dividends proposed for the six months ended June 30, 2025 | 113,080,510.24 (tax inclusive) | 16,962,076.54 (tax inclusive) | - This interim dividend distribution plan has been authorized by the 2024 Annual General Meeting for Board decision and does not require further shareholder approval[124] 18. Segment Information - The Group's operating activities are divided into 4 reporting segments: shipbuilding and related businesses, steel structure engineering, vessel repair segment, and other segments, determined based on major product types[125] Segment Financial Information (Current Period Amount) | Item | Shipbuilding and Related Businesses (RMB Yuan) | Steel Structure Business Segment (RMB Yuan) | Vessel Repair Segment (RMB Yuan) | Other Segments (RMB Yuan) | Inter-segment Eliminations (RMB Yuan) | Total (RMB Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | External Transaction Revenue | 9,426,285,700.78 | 97,972,885.20 | 451,035,798.79 | 197,342,356.34 | | 10,172,636,741.11 | | Total Profit | 319,011,420.45 | -81,992,026.83 | 320,087.53 | 435,330,880.52 | -16,557,129.96 | 656,113,231.71 | | Total Assets | 45,633,203,647.39 | 4,890,242,448.37 | 9,698,547.51 | 16,139,947,345.55 | -10,360,779,231.04 | 56,312,312,757.78 | | Total Liabilities | 36,454,833,535.79 | 4,045,959,124.51 | 1,012,259.07 | 2,815,755,431.58 | -8,119,843,332.60 | 35,197,717,018.35 | External Transaction Revenue by Origin (Current Period Amount) | Item | Current Period Amount (RMB Yuan) | Prior Period Amount (RMB Yuan) | | :--- | :--- | :--- | | External transaction revenue from domestic sources | 6,817,152,661.25 | 5,440,717,421.83 | | External transaction revenue from other countries | 3,355,484,079.86 | 3,287,818,641.82 | | Total | 10,172,636,741.11 | 8,728,536,063.65 | Non-Current Assets by Location (Period-End Balance) | Item | Period-End Balance (RMB Yuan) | Period-Beginning Balance (RMB Yuan) | | :--- | :--- | :--- | | Non-current assets located in China (excluding Hong Kong) | 14,746,740,801.23 | 12,330,803,838.37 | | Total | 14,746,740,801.23 | 12,330,803,838.37 | Reference Documents Report Access Methods and Board Members The 2025 interim report is available on the HKEXnews website, SSE disclosure website, and at the company's Board Office; as of the announcement date, the Board comprises 9 members, including executive, non-executive, and independent non-executive directors - The 2025 interim report can be accessed on the HKEXnews website (www.hkexnews.hk), Shanghai Stock Exchange disclosure website (www.sse.com.cn), and at the company's Board Office (15th Floor, Shipbuilding Building, No. 137 Gexin Road, Haizhu District, Guangzhou)[130] - As of the date of this announcement, the nine members of the Board of Directors include executive directors Mr. Luo Bing and Mr. Chen Liping; non-executive directors Mr. Gu Yuan, Mr. Ren Kaijiang, and Mr. Yin Lu; and independent non-executive directors Mr. Lin Bin, Mr. Nie Wei, Mr. Li Zhijian, and Ms. Xie Xin[130]