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].

Core Viewpoint - The long-awaited merger between China Shipbuilding Industry Corporation (CSIC) and China Shipbuilding Heavy Industry Corporation (CSHC) is nearing completion, with significant announcements made regarding shareholder rights and stock trading halts [1][3]. Group 1: Merger Details - CSIC announced a stock suspension starting August 13, 2025, to facilitate the implementation of dissenting shareholders' acquisition rights, with an estimated 18.54 million shares eligible for this process at a price of 30.02 CNY per share, representing a 13.39% premium over the closing price of 34.04 CNY on August 4, 2025 [1]. - CSHC similarly announced a stock suspension for the implementation of dissenting shareholders' cash options, with up to 323 million shares eligible at a price of 4.03 CNY per share, compared to a closing price of 4.68 CNY on August 4, 2025 [2]. Group 2: Historical Context - The merger process began in October 2019, when the State-owned Assets Supervision and Administration Commission approved the restructuring of CSIC and CSHC [3]. - In September 2024, CSIC announced plans to absorb CSHC through a share issuance to all CSHC shareholders [3]. Group 3: Company Performance - Both companies forecast a combined net profit of 4.3 billion to 4.9 billion CNY for the first half of 2025, reflecting a year-on-year growth of approximately 121% to 152% [4]. - CSIC expects a net profit of 2.8 billion to 3.1 billion CNY, a growth of 98.25% to 119.49%, while CSHC anticipates a net profit of 1.5 billion to 1.8 billion CNY, with a growth of 181.73% to 238.08% [4]. Group 4: Industry Impact - As of May 2025, CSIC held 322 civil ship orders totaling 24.61 million deadweight tons, with production capacity scheduled until 2029, indicating a recovery in demand and potential synergies from the merger [5]. - Post-merger, the combined entity is expected to hold approximately 15% of global ship orders, over 14% of global ship completions, and more than 16% of new orders, enhancing competitiveness and global influence in the shipbuilding industry [5].