China CSSC Holdings reports Q3 2025 profit surge, addresses stock drop

China CSSC Holdings Limited (SSE:600150) reported a 137% increase in net profit for the first three quarters of 2025, reaching 7.84 bn yuan. The company's gross profit margin also improved to 12.56%. Despite these gains, the stock price has fallen over 20% from its May 2025 high. Management acknowledged investor concerns regarding market valuation and confirmed its commitment to investor returns, with a three-year average cash dividend payout ratio of no less than 30% of net profit.

The company highlighted its leading position as the largest, most technologically advanced, and product-diverse shipbuilding enterprise in China. Its business spans marine defense, offshore development equipment, marine transport equipment, deep-sea equipment, and strategic emerging industries. China's shipbuilding industry completed 38.53 million deadweight tons (DWT) from January to September 2025, an increase of 6.0% year-on-year, and secured new orders totaling 66.60 million DWT. The company's order book stood at 242.24 million DWT by the end of September, up 25.3% year-on-year, contributing to 53.8% of the world's total completed DWT and 67.3% of new orders.

China CSSC Holdings emphasized its focus on an "intelligent and deep blue" strategy, leveraging technological innovation to enhance competitiveness in high-end, green, and intelligent shipbuilding. The company also confirmed its commitment to improving its supply chain digitization and integrating smart equipment with manufacturing scenarios. Regarding the proposed injection of Hudong-Zhonghua Shipbuilding into China CSSC Holdings, the controlling shareholder has made a three-year commitment to divest assets unsuitable for a listed company, ensuring compliance with listing conditions.