Event
Recently, China Shipping Defense released its annual report in 2019, with an operating income of 21.829 billion yuan, an increase of 13.61% over the same period last year, and a net profit of 548 million yuan, from a loss to a profit. Achieve deduction of non-return net profit-1.017 billion yuan, loss narrowed.
Brief comment
Recently, China Shipping Defense released its annual report in 2019, with an operating income of 21.829 billion yuan, an increase of 13.61% over the same period last year, and a net profit of 548 million yuan, from a loss to a profit. Achieve deduction of non-return net profit-1.017 billion yuan, loss narrowed. 51 ships + 3 platforms / 215.04 deadweight tons were completed, with an operating income of 21.829 billion yuan, an increase of 13.61 percent over the same period last year. Non-operating income totaled RMB 2.2943994 billion yuan, an increase of 1.7408959 billion yuan compared with the same period last year, mainly due to the net income of 1.279 billion yuan of compensation for land acquisition and storage recognized by Guangzhou Shipbuilding International and 999 million yuan of compensation for the first phase of relocation compensation confirmed by Wenchong Shipyard during the reporting period. the net income of relocation compensation recognized by Guangzhou Shipping International last year was 538 million yuan.
According to the business segment, the company's shipbuilding business revenue was 16.481 billion yuan, an increase of 9.33% over the same period last year. As the current price of new ships is still low, coupled with the rising prices of raw materials, the gross profit margin is relatively low at 1.59%. The income of the marine industry is 1.321 billion yuan, down 7.72% from the same period last year. It is expected that due to the drop in oil prices since 2020, it will be difficult for the marine business to pick up in the short term. The business income of ship repair and refitting business will give you 14.80%, mainly due to the demand for environmental protection, the market demand for refitting marine desulfurization equipment is relatively strong.
Looking to the future, the growth of the company's military orders lays the foundation for future performance. For the whole year, business orders totaled 31.946 billion yuan, an increase of 32.4 percent over the same period last year, of which military orders increased significantly over the same period last year, and new breakthroughs were made in the application industry, accepting orders of more than 2 billion yuan. From the perspective of contract liabilities, the liabilities of shipbuilding products and ship repair contracts have increased by a relatively high margin. The contract liabilities for shipbuilding products increased by 22% compared with the same period last year, and the contract liabilities for ship repair and modification increased substantially by 27 times.
At present, China Shipping Defense is conducting a major asset sale, and the plan has been adjusted after several rounds. The current way is that China Shipping Defense intends to sell 27.4214% stake in Guangzhou Shipping International to Chinese ships. At the same time, give up the 23.5786% stake in Guangzhou Shipping International and the preemptive right to Wenchong 30.9836% stake in Wenchong, and Chinese ships will pay in the form of a non-public offering of A shares. After the completion of this transaction, Chinese ships will hold a total of 51.00% of Guangzhou Shipping International, taking control of Guangzhou Shipping International, and the remaining 46.3018% will still be held by China Shipping Defense.
After the completion of this transaction, the listed company still has control of Wenchong, but no longer has control of Guangzhou Shipping International. The business scope will still cover four major sectors: defense equipment, ship repair and construction, marine engineering and non-ship business, but with the sale of international control of Guangzhou ship, listed companies will no longer engage in the production of ship types such as oil tankers and ro-ro ships. Wenchong's main products include military ships, special auxiliary ships, official ships and other ship types, offshore platforms and other marine products, as well as steel structures, complete sets of mechanical and electrical equipment and other non-ship products.