Holding four major shipyards, the whole industrial chain layout

1. China ships integrate superior resources, and the four major shipyards are leading the way

There are 4 shipyards controlled by the company, namely: Jiangnan Shipbuilding, Waigaoqiao Shipbuilding, CSSC Chengxi and Guangship International. In 2007, China Shipbuilding acquired Waigaoqiao Shipbuilding and CSSC Chengxi, which are mainly engaged in civilian ships. In 2020, the acquisition of Jiangnan Shipbuilding and Guangzhou Shipbuilding International injected military shipyards. The military products of Jiangnan shipbuilding are mainly guided missile destroyers, which covers all surface and underwater vessels, and the civilian products are mainly super large container ships, scientific research ships and liquefied gas vessels. Waigaoqiao Shipbuilding is a purely civilian shipbuilding enterprise, mainly based on bulk carriers, large cruise ships and container ships. Guangshu International is the largest production and support base of military auxiliary ships in South China. The military ships are mainly supply ships, and the civilian ships are mainly refined oil ships. CSSC Chengxi is a pure civilian shipyard and a five-star repair shipyard, mainly bulk carriers and wood chips vessels.

1.1. Jiangnan Shipbuilding: the oldest and largest shipbuilding base in China

Jiangnan Shipyard has a long history and is the largest military shipbuilding base. Jiangnan Shipbuilding, formerly known as Jiangnan Machinery Manufacturing General Bureau, was founded in the fourth year of Tongzhi of the Qing Dynasty (that is, 1865), and was renamed Jiangnan Shipyard in the early 1950s. It is a military shipbuilding enterprise with the longest history, the most complete military structure and the highest shipbuilding efficiency, as well as the most advanced technology and the largest military ship production base in China. Jiangnan Shipbuilding gives full play to the advantages of military technology, facilities and talents, constantly strengthens the construction of military core capabilities, strives to enhance independent innovation capabilities, and becomes the main research and development and supplier of Chinese Navy defense equipment. In 1986, Jiangnan Shipyard received the task of developing a new generation of modern destroyers 112. After eight years of exploration, the 112 ship was delivered to the Navy on May 8, 1994, and was hailed as "China's first ship" by the troops.

Jiangnan Shipyard builds most of the destroyers for the Chinese Navy. From the 20th century to the 21st century, Jiangnan Shipyard has launched two types of four guided missile destroyers, namely Guangzhou and Wuhan (052B), and Lanzhou and Haikou (052C). The 052C is equipped with the source phased array radar and the Sea Red Q-9 ship-to-air missile for the first time, so as to have a strong regional air defense capability, known as the Chinese Shield, China for the first time has a real sense of modern advanced warships. In China's entire destroyer fleet, the destroyers built by Jiangnan Shipyard have accounted for the majority: Type 052D, Type 052C, Type 052B, Type 052 are built by Jiangnan Shipyard.

In terms of civilian ship business, Jiangnan Shipbuilding has adjusted from the original single bulk carrier series to high value-added super large container ship series and liquefied gas ship series. In 2020, the global market share of VLGC orders reached 57%, ranking first in the world, breaking the monopoly of the medium liquefied gas carrier (MGC) market, successfully entering the Japanese market, and achieving full spectrum coverage of LPG carriers. In 2021, Jiangnan Shipbuilding is the only shipbuilding enterprise in China with A full range of LPG vessels, research and development, design and construction capabilities. Currently, it has independent research and development, design and construction capabilities of various envelope systems for LPG vessels such as Type A, Type B, Type C and Mark III film tanks. Jiangnan Shipbuilding was able to successfully undertake and build 99,000 cubic meters of VLEC, indicating that the "BrilliancE" type B tank technology has been recognized by the competent authorities, classification societies, shipping industry and professional shipowners.

Jiangnan Shipbuilding independently developed and designed a complete set of "BrilliancE" type enclosure system with complete intellectual property rights, and declared more than 30 patents. The capital letter "B" indicates type B tank, and the capital letter "E" indicates Ethane (-89%uB0C) and Ethylene (-104%uB0C). Type B cargo tank has the advantages of high safety and reliability, long structural fatigue life, low maintenance cost, high flexibility of loading goods, no liquid level loading limit, and less residual cargo in the cargo tank. Type B tanks can carry a variety of liquefied gas cargoes including liquefied petroleum gas (LPG), ethylene and ethane. At the same time, the B-type tank technology can also be expanded to LNG cargo tanks and fuel tanks, to achieve the "alternative" of foreign patents, and break through the "jam neck" monopoly. Jiangnan Shipbuilding has developed and completed 80,000 cubic meters of B-class LNG vessels, and 6,000 to 18,500 cubic meters of LNG fuel tanks that can be configured on large container ships. In addition, VLEC's advanced structural design concepts also "feed" Jiangnan Shipbuilding's very large liquefied petroleum gas ship (VLGC) replacement model, Jiangnan Shipbuilding's latest research and development of 93,000 cubic VLGC received 11 orders, its comprehensive performance is ahead of Hyundai's similar ship.

In 2022-2025, container ships accounted for 67% of Jiangnan Shipbuilding's orders in hand. According to Clarkson data statistics, Jiangnan Shipbuilding has 2 dry docks, 1 berth, and the maximum working load of the crane is 1600 tons. As of May 2022, Jiangnan Shipbuilding has ordered 60 ships with a total of 5.54 million DWT. The completion of 22 vessels in 2021 totalling 1.42 million DWT with an order value of $1.5 billion, and the on-hand order + completion of 1.44 million DWT with an order value of $1.6 billion in 2022. In 2023, the order volume reached 2.24 million DWT and the order value was 2.24 billion US dollars. In terms of deadweight tons, container ships accounted for the highest proportion of orders in hand at 67%, followed by gas vessels at 32%. According to the company announcement, Jiangnan Shipbuilding will achieve revenue of 25.079 billion yuan in 2021, accounting for 41.98% of the total revenue of China Shipbuilding, and achieve a net profit of 447 million yuan.

1.2. Waigaoqiao Shipbuilding: China's leading enterprise in civil shipbuilding, with three major sectors: civil ships, offshore engineering and cruise ships

Waigaoqiao Shipbuilding is a leading enterprise in China's civil shipbuilding industry and one of the most large-scale, modern, professional and influential shipbuilding enterprises in the shipbuilding industry. The existing business of Waigaoqiao Shipbuilding is mainly divided into three major sectors: merchant shipping, Marine engineering and cruise. In the field of merchant shipping, the products cover bulk carriers, oil tankers, very large container ships, liquefied gas vessels. In the field of offshore engineering equipment, the products cover semi-submersible drilling platforms, jack-up drilling platforms, floating production and storage tankers. In 2021, three inventory RIGS were delivered and one 340,000 ton FPSO was commissioned. In the field of large cruise ships, Waigaoqiao Shipbuilding contracted to build China's first domestic large cruise ship, marking that China's shipping industry has achieved zero breakthroughs in this field, and officially entered a new era of large cruise ship construction. In 2021, it completed the configuration of a number of technologies such as dual fuel for a number of key ship types, and made efforts to break through a number of key core technologies, including the development of LNG transport ship types and the application of green fuel.

The bulk carrier is the dominant ship type of Waigaoqiao Shipbuilding, accounting for 16.7% of the world fleet, and Waigaoqiao Shipbuilding won the single manufacturing champion awarded by the Ministry of Industry and Information Technology in 2021. The "single champion" of the manufacturing industry represents the highest level of development and the strongest market strength of the global branch industry. Waigaoqiao Shipbuilding individual champion product is "Cape of Good Hope" type bulk carrier, from the first generation of 175,000 tons, experienced 175K, 176K, 186K, 206K, 208K and other 11 products, are independently developed by Waigaoqiao Shipbuilding. The typical ship type is the sixth-generation 180,000 tons standard Capesize bulk carrier, which adopts environment-friendly double hull protection and has a good leading role in energy-saving and low-carbon design. "Cape of Good Hope" type bulk carrier is one of the fine ship types with complete independent intellectual property rights and strong market core competitiveness in China's shipping industry, which is praised by the industry as a successful example of transforming from "Made in China" to "created in China". Waigaoqiao's "Cape of Good Hope" brand is the world's green ship type research and development center, is the largest domestic construction, the largest international market share of China's ship export "first brand", accounting for 16.7% of the world fleet. Clarkson data show that the total amount of Capesize bulk carriers manufactured by Waigaoqiao Shipbuilding reached 52.54 million DWT, ranking first in the world. The total volume of bulk carriers manufactured by the company is 52.87 million DWT, ranking second in the world.

In 2022-2025, Waigaoqiao Shipbuilding's orders in hand accounted for up to 40% of bulk carriers. According to Clarkson data statistics, Waigaoqiao shipbuilding has 2 dry docks, 4 berths, and the maximum working load of the crane is 800 tons. Waigaoqiao Shipbuilding has 60 ships on hand for a total of 7.12 million DWT. The completion of 20 ships in 2021 totalling 3.56 million DWT with an order value of $2.1 billion, and the on-hand order + completion of 2.62 million DWT with an order value of $800 million in 2022. In 2023, the order volume reached 2.96 million DWT and the order value was 4.2 billion US dollars. In terms of deadweight tons, bulk carriers accounted for up to 40% of the orders in hand, followed by containers at 34%. According to the company announcement, Waigaoqiao Shipbuilding will achieve revenue of 12.357 billion yuan in 2021, accounting for 20.68% of the total revenue of China Shipbuilding, and achieve a net profit of -420 million yuan.

1.3. Guangship International: the largest and strongest military auxiliary ship production support base in China

As the largest and strongest military auxiliary ship production support base in South China, CGSI can develop, design and build all kinds of ships below 400,000 DWT that meet the requirements of the world's major classification societies. Gf International is born and prospers by the military. After the founding of New China, the south coast defense was weak, at the request of the Navy, the torpedo speedboat factory was established in Guangzhou, and the Guangzhou Shipyard was prepared in 1954. Guangshu International built a number of wooden torpedo boats, in the "August 6th" Mindong Sea battle and the "Chongwu East Sea Battle" sank and wounded enemy gunboats, and made great achievements. Over the past 60 years, it has built and delivered hundreds of ships of various types for the Chinese Navy. It has built the Type 02 torpedo fast boat, the 55A high-speed gunboat, the Type 65 frigate, the 051 guided missile destroyer, the frigate, the aid ship, the peace boat hospital ship, the supply ship, the cable laying ship and so on.

In terms of civilian vessels, medium-range refined oil products (MR) and ultra-convenient oil tankers are the advantages of GF International. Cgsi has mastered core technologies in MR, LR1&LR2, VLCC, VLOC vessels, as well as semi-submersible vessels, passenger and roller vessels and other high-tech and high value-added vessels, achieving full coverage of tanker series. It has successfully built an 18,000-ton semi-submersible transport vessel known as the "all-around champion" and China's first 1,600-meter lane / 1,500-seat luxury passenger roller boat, and its high-tech research achievements are at the leading level in China. The 320,000 DWT VLCC and 250,000-ton ore carrier (VLOC) independently developed and built by GF International have won the favor of the market. According to Clarkson data, the total number of MR Ships manufactured by Guangsheng International reached 8.13 million DWT, ranking third in the world and first in China. Portable liquid cargo ship series products, its cost performance has reached the international first-class level, favored by the market, Guangshu International manufacturing super portable oil tanker total 9.95 million DWT, ranking third in the world.

In 2022-2025, the proportion of oil tankers in the orders in hand of Guangshu International is as high as 66%. According to Clarkson statistics, CGSI has two dry docks, four berths and a maximum crane load of 900 tons. Guangzhou Shipbuilding International has orders for 63 ships totaling 4.38 million DWT. The completion of 20 ships in 2021 totalling 1.21 million DWT with an order value of $1.1 billion, and the on-hand order + completion of 1.32 million DWT with an order value of $1.2 billion in 2022. In 2023, the order volume reached 1.9 million DWT and the order value was 1.8 billion US dollars. In terms of deadweight tons, the highest proportion of tankers in the order book is 66%, followed by container ships at 29%. According to the company announcement, CGSI will achieve revenue of 11.1 billion yuan in 2021, accounting for 18.58% of the total revenue of China's shipping.

1.4. CSSC Chengxi: five-star repair shipyard, aiming at high value-added ship types

CSSC Chengxi is known as a "five-star" repair shipyard in the industry, especially in the repair and modification business of high-tech and high value-added special ships with a large market share. CSSC Sumisai was formerly known as Sumisai Ship Repair Factory, which was built in 1973. In 2007, CSSC Chengxi Ship Repair Co., Ltd. was officially established. At the beginning of its establishment, the strategic goal was to "strengthen ship repair, moderate shipbuilding, and expand non-ship". "Short cycle, high efficiency and excellent quality" is the distinctive feature of the company's ship repair brand, with high recognition by shipowners and stable quality customers. In 2021, CSSC Chengxi successfully delivered 1 self-discharging refitted ship, 2 orange juice refitted ships, 46 newly installed desulfurization units, 85 ballast water treatment projects, undertook 12 special coating ship projects, 14 national ships, and 83 ballast water installation projects, and the output value of high value-added and high-tech ships accounted for 73%. In terms of shipbuilding, in 2021, CSIC Chengxi achieved phased results in 62,000 tons of heavy lifting vessels and 26,000 tons of self-discharging vessels, and various high-end ships such as asphalt vessels and refrigerated containers were delivered smoothly.

Self-discharging bulk carrier and portable bulk carrier are the dominant ship types of CSSC. According to Clarkson data, the total number of self-discharging bulk carriers built by Chengxi is 550,000 DWT, ranking first in the world. According to the International Shipping network, in January 2022, CSSC Chengxi delivered the world's most advanced green dump ship, 26,000 tons of double-paddle double-rudder all-electric push dump ship No. 1 ship. The ship is the world's most advanced green dump ship, using the world's most advanced Borg thruster "double fin full electric propulsion system", the propulsion efficiency increased to about 70%, the unique "sail mode" can effectively reduce about 20% of the sea water resistance; The dump system has a unloading rate of 5,450 tons per hour and, for the first time, uses a retractable boom for more flexible dock unloading points. The handy bulk carrier is also the dominant ship type of CSSC Chengxi. The total amount of the large handy bulk carrier built by CSSC Chengxi is 9.04 million DWT, ranking fifth in the world.