Merger Overview - Golden Ocean Group Limited is undergoing a stock-for-stock merger with CMB.TECH NV, with CMB.TECH Bermuda as the surviving entity [2] - The exchange ratio for the merger is set at 0.95 ordinary shares of CMB.TECH for each common share of Golden Ocean, resulting in the issuance of approximately 95,952,934 new ordinary shares by CMB.TECH [2] Special General Meeting - A special general meeting (SGM) for Golden Ocean shareholders is scheduled for 19 August 2025 to vote on the approval of the merger agreement and related transactions [3] - Shareholders of record as of 16 July 2025 are entitled to vote at the SGM [3] Timeline and Conditions - The merger is expected to close around 20 August 2025, contingent upon a positive outcome from the SGM and other closing conditions [4] - The day before the closing date will mark the last trading day for Golden Ocean's common shares on Nasdaq and Euronext Oslo Børs [4] Company Profiles - Golden Ocean is a Bermuda-based shipping company specializing in dry bulk cargo transportation, with a fleet of 89 vessels and a total capacity of approximately 13.5 million deadweight tonnes as of June 2025 [7] - CMB.TECH is a diversified maritime group operating over 160 vessels, including crude oil tankers and dry bulk vessels, and is involved in hydrogen and ammonia fuel production [8]

Core Viewpoint - The merger between China Shipbuilding and China State Shipbuilding has received regulatory approval, marking a significant step in the restructuring of China's shipbuilding industry, with the aim of enhancing resource synergy and market competitiveness [1][4][8]. Group 1: Merger Details - The merger involves a share swap where China Shipbuilding will absorb China State Shipbuilding, leading to the latter's delisting [1][4]. - The merger has been in the works for over a year, with the approval process taking only 71 days, indicating strong support for state-owned enterprise consolidation [8]. - Following the merger, both companies will halt trading on August 13, with a resumption date yet to be determined [1][3]. Group 2: Financial and Operational Impact - Combined assets of the two companies will exceed 400 billion yuan, surpassing the asset scale of previous major mergers in the industry [7]. - In 2024, the two companies are projected to achieve combined revenues exceeding 1 trillion yuan and net profits over 50 billion yuan [7]. - The order backlog for China Shipbuilding stands at 322 vessels with a total weight of 24.61 million tons, valued at 216.96 billion yuan, while China State Shipbuilding has 216 vessels valued at 233.77 billion yuan, together accounting for 15% of the global order backlog [7]. Group 3: Strategic Advantages - The merger will facilitate the integration of complementary technologies and enhance bargaining power in the market [7][11]. - The consolidation is expected to reduce internal competition and improve supply chain resilience, positioning the new entity to better capitalize on the upcoming shipbuilding cycle [11]. - The merger aligns with the trend of state-owned enterprises leveraging capital markets for integration, potentially leading to more M&A activities in the future [8][11].

Core Insights - The domestic ship auction market in the first half of the year continued its recovery, with a total of 423 ships auctioned and 181 sold, representing year-on-year increases of 57.2% and 69.2% respectively, with a total transaction value of approximately 2 billion yuan, up 62.3% year-on-year [1] Group 1: Auction Market Performance - Judicial auctions showed remarkable performance, with 139 ships sold for 438 million yuan, marking a year-on-year surge of 247.5% and 140.2% [1] - Commercial auctions experienced a decline in transaction volume, but due to a higher proportion of high-value ship transactions, the total transaction value reached 1.46 billion yuan, a year-on-year increase of 42.1% [1] - The total number of auctioned ships increased significantly, with 405 ships auctioned and 173 sold in the first half of 2025, compared to 270 auctioned and 107 sold in the same period of 2024, reflecting growth rates of 50.0% and 61.7% respectively [3] Group 2: Market Segmentation - The international shipping market showed significant activity, particularly in the capesize segment, influenced by fluctuations in iron ore prices, leading to increased inquiries for bulk carriers over 50,000 tons [2] - The coastal market remained sluggish, with transactions for ships over 40,000 deadweight tons being quiet, while smaller vessels of 1-2 thousand tons emerged as a few bright spots [2] - Engineering vessels led in transaction value, with a total of 819 million yuan, a staggering year-on-year increase of 532.2% [2] Group 3: Judicial Auction Trends - The proportion of judicial auctions increased, accounting for 27.3% of total transaction value, up 14.1 percentage points year-on-year, reversing a four-year decline [3] - Major maritime courts such as Tianjin and Ningbo led in transaction value, with Tianjin Maritime Court achieving a single transaction of 127 million yuan [5] Group 4: Platform Performance - The three major ship auction platforms showed significant divergence, with the "Pai Chuan Wang" platform achieving a transaction value of 1.3 billion yuan, a year-on-year increase of 188.3%, capturing 89% of the commercial auction market [6] - The Guangzhou Shipping Trading Platform managed to sell ships worth 120 million yuan, while the "Gang Yun Pai" platform only sold 4 tugboats for a mere 1.3 million yuan [6][8]

Core Viewpoint - The article highlights China's dominance in the global shipbuilding industry, achieving a 74.7% share of new ship orders in 2024, effectively ending South Korea's 20-year reign as the leader in this sector [1][4]. Group 1: Historical Context - The shipbuilding industry has historically seen shifts in dominance among major nations, with the UK, Japan, and South Korea each holding the crown at different times [1][3]. - In 2000, South Korea surpassed Japan with a 40% market share, while China held only 4% at that time [3]. Group 2: Recent Developments - By 2024, China led in three key metrics: completion volume (55.1%), order backlog (61.4%), and new orders (74.7%), while South Korea's shares were significantly lower at 25.6%, 24.1%, and 17% respectively [4]. - China's new orders reached 87.11 million deadweight tons (DWT), a 51.7% year-on-year increase, while South Korea's new orders were only 10.98 million compensated gross tons (CGT) [4]. Group 3: Competitive Advantages - China's shipbuilding success is attributed to its scale, technology, and integrated supply chain, allowing for greater efficiency compared to South Korea's fragmented approach [6][7]. - The China State Shipbuilding Corporation (CSSC) has consolidated its shipyards to create a closed-loop system from design to construction, enhancing operational efficiency [6]. Group 4: Technological Advancements - China has made significant strides in high-end ship types, including LNG carriers, where it captured 48% of the global orders in 2024, closely trailing South Korea's 50% [8]. - The successful delivery of China's first self-developed large cruise ship, "Aida Magic City," demonstrates a shift from low-end manufacturing to high-end intelligent manufacturing [8]. Group 5: Green Technology Leadership - China leads in green shipbuilding, with green vessel orders rising from 8.2% in 2016 to 41% in 2024, capturing over 70% of global green ship orders [8][9]. - Innovations include the world's first LNG-powered ultra-large crude carrier and the largest dual-fuel powered car carrier, showcasing China's advancements in green technology [9][11].

Investment Rating - The report indicates a positive outlook for the shipbuilding sector, particularly in light of the potential exemptions from the U.S. 301 tariff measures, which could benefit the shipping companies and the shipbuilding industry overall [2][11]. Core Insights - The U.S. 301 tariff hearings concluded, with specific measures expected by April 17. There is a possibility of exemptions for certain types of vessels, which could lead to increased shipping rates if implemented strictly, benefiting container shipping [2][11]. - The report highlights that Hengli Heavy Industry's order book has increased, with a total order value of approximately $13.4 billion, which is significant compared to its competitors [2][12]. - The performance forecasts for major Chinese shipbuilding companies for Q1 2025 are generally in line with expectations, indicating a recovery in the sector [2][24]. Group 1: U.S. 301 Tariff Impact - The U.S. 301 tariff measures could impose significant fees on Chinese vessels docking at U.S. ports, with potential costs reaching up to $1 million per vessel depending on the circumstances [5][7]. - The report suggests that if the tariff measures are implemented, it could lead to increased shipping rates due to port congestion and adjustments in shipping routes [11][12]. Group 2: Company Updates - Hengli Heavy Industry has seen a significant increase in its order book, with a hand-held order value of approximately $13.4 billion, which is about 49% of China Shipbuilding's and 66% of China State Shipbuilding's order values [12][19]. - The company is expected to achieve a production capacity of 230,000 tons of steel annually and produce 180 engines, covering four types of dual-fuel engines [12][23]. Group 3: Market Trends - The new ship price index decreased by 0.49% month-on-month, while the second-hand ship price index increased by 1.15% [36][40]. - The global shipbuilding order book increased by 1% month-on-month, with container ships and oil tankers being the primary contributors to this growth [45][46].