China Shipbuilding Industry announced that recently, the State-owned Assets Supervision and Administration Commission and other regulatory authorities have given principle approval to the company's share swap absorption merger plan with China CSSC. This Trade constitutes a major asset reorganization and also constitutes a related party transaction. After the Trade is completed, China Shipbuilding Industry will terminate its listing and cancel its legal person status, while China CSSC, as the surviving company, will have China CSSC Group Co., Ltd. as the actual controller and the final controller will still be the State-owned Assets Supervision and Administration Commission.