Core Viewpoint - The merger between China Shipbuilding and China Shipbuilding Industry Corporation is progressing, with China Shipbuilding set to absorb China Shipbuilding Industry through a share exchange, leading to the latter's delisting [1][3]. Group 1: Merger Details - China Shipbuilding announced that its stock will resume trading on August 19, 2025, following the merger announcement [1]. - China Shipbuilding plans to absorb China Shipbuilding Industry by issuing A-shares to all shareholders of the latter [1]. - The merger will result in China Shipbuilding inheriting all assets, liabilities, businesses, personnel, contracts, and other rights and obligations of China Shipbuilding Industry [3]. Group 2: Shareholder Actions - As of August 18, 2025, three shareholders submitted requests to exercise their dissenting shareholder rights, totaling 10,500 shares, but ultimately no valid dissenting shares were reported [2]. - The dissenting shareholders have the right to sell their shares at a price of 30.02 yuan per share, which is 28.25% lower than the closing price of 38.50 yuan per share on August 12, 2025 [2]. Group 3: Financial Performance - China Shipbuilding expects to achieve a net profit attributable to shareholders of 2.8 billion to 3.1 billion yuan in the first half of 2025, representing an increase of 98.25% to 119.49% year-on-year [3]. - The company anticipates a non-recurring net profit of 2.635 billion to 2.935 billion yuan, reflecting a year-on-year increase of 119.89% to 144.93% [3].

格隆汇8月5日｜A股开盘，上证指数涨0.15%，深证成指涨0.34%，创业板指涨0.65%。盘面上，消费电 子概念盘初活跃，易德龙(603380)、福日电子(600203)涨停；"两船合并"新进展，将于8月13日起双双停 牌，中国船舶(600150)涨超3%，中国重工(601989)涨超2%；部分影视院线股回调，幸福蓝海(300528)跌 超3%；中药板块盘初走低，奇正藏药(002287)、新光药业(300519)跌超5%。(格隆汇) (责任编辑：宋政 HN002) 【免责声明】本文仅代表作者本人观点，与和讯网无关。和讯网站对文中陈述、观点判断保持中立，不对所包含内容 的准确性、可靠性或完整性提供任何明示或暗示的保证。请读者仅作参考，并请自行承担全部责任。邮箱： news_center@staff.hexun.com ...

A股开盘，上证指数涨0.15%，深证成指涨0.34%，创业板指涨0.65%。盘面上，消费电子概念盘初活 跃，易德龙、福日电子涨停；"两船合并"新进展，将于8月13日起双双停牌，中国船舶涨超3%，中国重 工涨超2%；部分影视院线股回调，幸福蓝海跌超3%；中药板块盘初走低，奇正藏药、新光药业跌超 5%。(格隆汇) ...

Core Viewpoint - The merger of China Shipbuilding Industry Co., Ltd. and China Shipbuilding Heavy Industry Co., Ltd. has received approval from the China Securities Regulatory Commission, marking a significant step towards creating the largest shipbuilding enterprise in China [2][3]. Group 1: Merger Details - The merger is the first major asset restructuring project approved under the revised regulations since May 2025, and it will be the largest absorption merger in A-share history [3]. - China Shipbuilding will issue A-shares to acquire all shares of China Heavy Industry, with a swap ratio of 1:0.1335, meaning one share of China Heavy Industry can be exchanged for 0.1335 shares of China Shipbuilding [4]. - The total transaction amount for the merger is estimated at 115.15 billion yuan, exceeding 50% of the asset values of both companies, thus constituting a major asset restructuring [4]. Group 2: Financial Impact - Post-merger, China Shipbuilding's total assets are projected to exceed 400 billion yuan, with operating revenue surpassing 130 billion yuan based on 2024 financial estimates [5]. - Both companies have reported significant profit increases for the first half of the year, with China Shipbuilding's net profit expected to rise by 98.25% to 119.49%, and China Heavy Industry's net profit projected to increase by 181.73% to 238.08% [7]. Group 3: Strategic Goals - The merger aims to eliminate intra-group competition, enhance operational efficiency, and position the combined entity as a world-class shipbuilding company [5][6]. - The integration will focus on consolidating shipbuilding operations and leveraging strengths in research and design to improve manufacturing capabilities [5]. Group 4: Industry Context - The global shipbuilding industry is experiencing a recovery, with China maintaining a leading market share in shipbuilding metrics [9]. - As of mid-2025, China's shipbuilding completion volume, new orders, and backlog all reflect a strong competitive position, with significant contributions to global shipbuilding output [9].

Summary of Conference Call Company and Industry - The conference call primarily discusses the **shipbuilding industry** in China, focusing on **China Shipbuilding Industry Corporation** and its performance in the first half of the year. Key Points and Arguments Financial Performance - In Q2, the company achieved a performance of **17 to 20 billion**, exceeding expectations. The first half of the year saw a performance of **15 to 18 billion**, representing nearly a **100% year-on-year growth** [1] - The combined performance of China Shipbuilding and China Heavy Industry reached nearly **50 billion** in the first half, with Q2 alone contributing approximately **30 billion** [1] - The economic rate for China Shipbuilding reached nearly **Q2% to 10%**, while China Heavy Industry exceeded **6%** [2] - The overall shipbuilding economic rate has returned to a range of **5% to 10%**, indicating a significant profit surge driven by improved economic rates [2] Order Backlog and Market Outlook - The order backlog for the shipbuilding industry is robust, with production schedules extending to the end of **2027** and potentially into **2028** [3] - The industry is expected to experience high growth for at least the next **two to three years**, with a valuation of **over 150 billion** anticipated based on current economic rates [2][3] - Despite concerns over order declines, the total order volume remains strong compared to previous years, indicating that the shipbuilding cycle is still ongoing [7][8] Market Dynamics and External Factors - The decline in orders is attributed to high base effects from the previous year, which was marked by geopolitical tensions and disruptions [8] - The impact of the **301 investigation** and the **China-US trade war** is gradually easing, with a resurgence in orders expected in the latter half of the year [9] - The demand for oil tankers is projected to remain stable due to global oil production increases, particularly in the Middle East [10][11] Management Changes and Internal Improvements - Recent management changes within the company have introduced new leadership with experience from other industries, leading to significant internal reforms aimed at improving efficiency and reducing costs [6] - The merger of two major shipbuilding entities has resulted in a combined order backlog of approximately **450 to 500 billion** [4] Investment Considerations - The shipbuilding sector is viewed as having strong investment potential due to its stable demand and economic conditions, making it a compelling asset within the machinery sector [12][14] - The current market conditions present a favorable opportunity for investment, as the sector is perceived to be at a low point with potential for recovery and growth [14][15] Other Important Insights - The shipbuilding industry is characterized by a high degree of certainty in demand due to replacement needs and environmental regulations [12] - The overall sentiment in the market remains cautious, with many investors still hesitant to allocate funds despite the positive outlook for the industry [5] This summary encapsulates the key insights from the conference call, highlighting the financial performance, market dynamics, and future outlook for the shipbuilding industry in China.