Core Viewpoint - China Shipbuilding Industry Co., Ltd. (China Shipbuilding) and China Shipbuilding Industry Corporation (China Shipbuilding Heavy Industry) have announced a major asset restructuring plan, with the Shanghai Stock Exchange accepting the application for the issuance of shares to acquire assets [1][3]. Group 1: Transaction Details - China Shipbuilding plans to issue A-shares to all shareholders of China Shipbuilding Heavy Industry in a stock swap merger, with China Shipbuilding as the acquirer and China Shipbuilding Heavy Industry as the target [3]. - The transaction requires approval from the Shanghai Stock Exchange and registration with the China Securities Regulatory Commission, along with any other necessary legal approvals [3]. - The proposed transaction amount is 115.15 billion yuan, marking the largest absorption merger in the A-share market in the past decade [3]. Group 2: Business Overlap and Competition - Both companies operate in overlapping business areas, leading to significant competition in the shipbuilding sector [4]. - The merger aims to eliminate this competition, allowing China Shipbuilding to consolidate its position in the shipbuilding industry [4]. - Post-merger, the surviving company is expected to become the world's largest publicly listed shipbuilding company in terms of asset scale, revenue, and order backlog [4]. Group 3: Financial Performance - In 2024, China Shipbuilding reported revenues of 78.58 billion yuan and a net profit attributable to shareholders of 3.61 billion yuan, while China Shipbuilding Heavy Industry reported revenues of 55.44 billion yuan and a net profit of 1.31 billion yuan [5]. - As of the end of March 2024, total assets for China Shipbuilding and China Shipbuilding Heavy Industry were 181.24 billion yuan and 225.15 billion yuan, respectively [5].