Global shipbuilding leader, benefit from the industry cycle recovery

1. China Shipbuilding: CSSC core military and civilian products main listed company, leading the development of advanced and sophisticated technology in the shipbuilding industry

1.1 Core military and civilian products main listed companies, leading the development of high-tech shipbuilding industry

China Shipbuilding is the core military and civilian products listed company platform of CSSC Group, and the leading enterprise of China's shipbuilding industry. China Shipbuilding is a large ship manufacturer with international advanced level, and continues to lead the development of high-end and sophisticated technology in the shipbuilding industry. The company's main business segments include shipbuilding business, ship repair business, power business, Marine engineering and mechanical and electrical equipment. As a partner of the world shipping industry, the company adheres to the high-quality development strategy and promotes the layout of the four major industries of the Group: "Marine defense equipment industry, Marine Marine equipment industry, Marine science and technology innovation and application industry, and Marine Marine engineering service industry". With strong scientific research and innovation strength, advanced management level and exquisite manufacturing skills, the company has made great efforts to improve the quality of its products. We continue to launch a series of large green ship types and ship machinery new products, and continue to lead the development of high-end technology in the Marine industry.

China Shipbuilding integrates the large ship repair, power and Marine engineering businesses of China State Shipbuilding Group, and has a complete shipbuilding industry chain. China Shipbuilding has a complete ship industry chain, including large shipyards Jiangnan Shipbuilding, Waigaoqiao Shipbuilding, Guangzhou Shipbuilding International, CSSC Power, CSSC Chengxi and so on. Jiangnan Shipbuilding is a large-scale industrial enterprise with the longest history in China. Its civilian products are mainly super large container ships, liquefied gas vessels and special vessels, and its military products cover all surface and underwater vessels. Waigaoqiao Shipbuilding is a pure civilian shipbuilding enterprise, mainly based on bulk carriers, cruise ships and container ships. CSSC Chengxi is the leader of the domestic ship repair industry, known as the five-star repair shipyard, the products are mainly bulk carriers, wood chips ships, in addition to wind tower business; According to the international ship network, CSSC Power Group is the domestic first-class power enterprise, as of 2020, CSSC power low-speed machine international market share of 20%, ranking second in the world; By 2022, the domestic market share is more than 70%; Guangzhou Shipbuilding International is the largest and strongest production and support base for military auxiliary ships in South China. The main civilian ships are container ships and refined oil tankers. In terms of military products, the hospital ship "Peace Ark" and supply ships have been manufactured.

The company's ownership structure is clear, and the actual holding is the State-owned Assets Supervision and Administration Commission of the State Council. As of the end of 2021, China State Shipbuilding Corporation directly holds 44.47% of the shares of China State Shipbuilding, and indirectly holds 5.95% through CSSC Investment and CSSC Defense, collectively holding 50.42% of the shares of the company, becoming a direct controlling owner. In October 2021, the State-owned Assets Supervision and Administration Commission of the State Council agreed to the joint reorganization of CSSC and CSIC, and the new China State Shipbuilding Group Co., LTD., and CSSC and CSIC as a whole were incorporated into China State Shipbuilding Group. After the free transfer of equity, China State Shipbuilding Group obtained 100% of the shares of CSSC, thereby indirectly controlling 50.42% of the shares of the company, the company's direct controlling shareholder is still CSSC, the actual control is the State-owned Assets Supervision and Administration Commission of the State Council.

1.2. Historical review: Listed for more than 20 years, resonates with the development cycle of China's shipbuilding industry

The company has been listed for more than 20 years, resonating with the development cycle of China's shipbuilding industry. It can be divided into four stages: beginning, rising, low valley and bottom building. After more than 20 years of development, the company has gone through the peak and trough period of the shipbuilding industry cycle from Hudong Heavy Machinery to China Ships mainly engaged in civilian products, and then to the core military and civilian products listing platform of CSSC. According to the company's revenue performance, business proportion and major historical events, combined with the overall cycle of the shipbuilding industry, the company's history is divided into four stages:

(1) Beginning (1998-2006) : Formerly known as Hudong Heavy Machinery, the company is a diesel engine manufacturing company with outstanding strength under CSSC. From 1998 to 2006, the annual compound growth rate of the company's operating income was 15.5%, and the annual compound growth rate of performance was 23.5%.