China CSSC secures RMB 50 bn in major shipbuilding contracts

China Shipbuilding Industrial Company Limited (China CSSC Holdings) announced that its actual controller, China Shipbuilding Group Co., Ltd., has signed new shipbuilding cooperation agreements with China COSCO Shipping Corporation Limited in Shanghai. The contracts involve the construction of 87 various types of vessels, with a total value of approximately RMB 50 billion. This includes RMB 47 billion in cross-border RMB settlements. All construction will be undertaken by China CSSC Holdings' direct subsidiaries.

The new shipbuilding projects involve several of the company's subsidiaries, including Jiangnan Shipyard (Group) Co., Ltd., Dalian Shipbuilding Industry Co., Ltd., Wuchang Shipbuilding Industry Group Co., Ltd., Guangzhou Shipyard International Co., Ltd., CSSC Chengxi Shipyard Co., Ltd., and CSSC Qingdao Beihai Shipbuilding Co., Ltd. The diverse range of vessels includes ultra-large container ships, ultra-large bulk carriers, ultra-large oil tankers, grain carriers, multi-purpose heavy lift vessels, MR tankers, passenger ro-ro ships, and small box ships.

While the contracts are expected to positively impact the company's future operating revenue and profit, and enhance its long-term market competitiveness, China CSSC Holdings also issued a risk warning. Due to the extended contract performance period and the inclusion of some indicative orders, fulfillment may be affected by changes in the shipping and shipbuilding markets, leading to potential uncertainties in actual performance. The company emphasized that this cooperation signing does not constitute a performance commitment.