Core Viewpoint - The merger of China Shipbuilding Industry Co., Ltd. and China Shipbuilding Heavy Industry Co., Ltd. marks a significant step in the consolidation of the Chinese shipbuilding industry, aiming to enhance competitiveness and drive high-quality development in the sector [1][3]. Group 1: Merger Details - The share exchange ratio for the merger is set at 1:0.1339, with the registration date for the share exchange being September 4 [1]. - Following the merger, China Heavy Industry's A-shares will be delisted on September 5, 2025, and its assets, liabilities, and operations will be fully absorbed by China Shipbuilding [1][3]. - This merger is recognized as the largest absorption merger in A-share history, having received approval from the Shanghai Stock Exchange and the China Securities Regulatory Commission [3]. Group 2: Financial Performance - The combined entity is projected to have total assets exceeding 400 billion yuan [3]. - For the first half of 2025, China Heavy Industry reported a revenue of 32.621 billion yuan, a year-on-year increase of 47.56%, and a net profit of 1.745 billion yuan, up 227.07% [3]. - China Shipbuilding reported a revenue of 40.325 billion yuan for the same period, reflecting an 11.96% year-on-year growth, with a net profit of 2.946 billion yuan, an increase of 108.59% [3]. Group 3: Market Reaction - As of September 3, China Shipbuilding's stock price decreased by 2.42%, closing at 37.52 yuan per share, with a market capitalization of 167.806 billion yuan [3].

Core Viewpoint - China Shipbuilding Industry Corporation is set to absorb China Shipbuilding Heavy Industry Company through a share swap, which will result in the latter becoming the largest listed shipbuilding company globally. The transaction is expected to be completed by September 5, 2024, with a share exchange ratio of 1:0.1339 [1][3][10]. Group 1: Transaction Details - China Shipbuilding plans to issue A-shares to all shareholders of China Shipbuilding Heavy Industry as part of the share swap [1][3]. - The exchange ratio is confirmed as 1 share of China Shipbuilding Heavy Industry converting to 0.1339 shares of China Shipbuilding [1][3]. - The transaction has received approval from the China Securities Regulatory Commission and the Shanghai Stock Exchange [3]. Group 2: Financial Data - As of June 30, 2025, the total assets of China Shipbuilding Heavy Industry and China Shipbuilding are reported at 2214.65 billion and 1819.77 billion respectively, with net assets of 856.56 billion and 527.48 billion [8][10]. - Following the merger, China Shipbuilding's total assets will reach 4034.42 billion, and net assets will be 1384.04 billion [10]. - For the first half of 2025, the net profit attributable to shareholders for China Shipbuilding Heavy Industry and China Shipbuilding was 17.45 billion and 29.46 billion, reflecting year-on-year growth of 227.07% and 108.59% respectively [10]. Group 3: Strategic Implications - The merger is expected to enhance focus on national strategic priorities and improve the quality of operations within the shipbuilding sector [10]. - Both companies aim to accelerate high-quality development in shipbuilding and streamline competition within the industry [10].