Financial Services Association, January 29 (Reporter Hu Haoqiong) This evening, China Shipping (600150.SH) announced a pre-increase in its 2023 annual results. Net profit for the whole year increased sharply, but the net profit for the whole year was still negative after deducting non-net profit for the whole year. Despite this, an agency source told the Financial Federation reporter that the company's performance was in line with expectations.

According to China Shipping's announcement, net profit attributable to owners of the parent company is expected to be between 2.7 billion yuan and 3.2 billion yuan in 2023, an increase of 1470.95% to 1761.87% over the previous year. Net profit attributable to the owner of the parent company after deducting non-recurring profit and loss is expected to be between 500 million yuan and 0 yuan in 2023.

China Shipping explained in this regard that during the reporting period, due to matters such as non-monetary asset exchange gains and losses generated by the company's subsidiary's disposal of offshore platforms and receiving government subsidies, etc., the amount of non-recurring profit and loss in the current period was about 3.2 billion yuan, compared to 2,921 billion yuan for the same period last year.

At the same time, China Shipbuilding also said that the global new shipbuilding market will maintain a good development trend in 2023. With the gradual settlement of orders for low-cost ships in the early stages, the company's handheld order structure continued to improve; around the annual production task indicators, the company strengthened production control and improved production efficiency. Revenue increased significantly year-on-year, exceeding the annual mission target. Due to the combined impact of the above factors and with the company's performance indicators in the same period last year, the company's current performance increased significantly compared to the same period last year.

Judging from the performance situation, China Shipbuilding's Q4 net profit for a single quarter is expected to be 139 million yuan to 639 million yuan, a decrease of 68% to 93% over the previous quarter. Non-net profit deducted in Q4 for a single quarter was -0.72 billion yuan to 428 million yuan. “It can be seen from this that the Q4 results have improved compared to the Q3 net profit deduction of 311 million yuan, and the results have been released to a certain extent.” This is what the person from the agency mentioned above said.

A reporter from the Financial Services Association learned that Jiangnan Shipbuilding achieved six batches of docking each year. Among them, the sixth batch had a time span of December 15 to December 31, with 4 full ships leaving dock, 4 half-ships and 4 ring segments; Waigaoqiao Shipbuilding overcompleted the 2023 delivery order production and operation tasks two months ahead of schedule, delivering 23 ships/2.904 million dwt throughout the year, respectively. The most influential and representative of these was the delivery of the first large-scale domestic cruise ship “Aida Mordu”; Guangzhou Shipbuilding International's annual revenue, completed ships Both the quantity and the number of new orders received reached record highs. It is worth mentioning that Guangzhou Shipbuilding International's new shipbuilding order has been scheduled until 2028.

From an industry perspective, at present, the new shipbuilding market is still booming, and ship prices continue to rise. Taking Clarkson's new shipbuilding price as an example, the new ship price index climbed to 180.36 in early January 2024, up 10.8% year on year, greatly exceeding the 4.9% increase in 2022, and the highest ship price index since December 2008.

The China Shipbuilding Industry Association said in its latest report that from January to November 2023, shipbuilding industry enterprises above the scale of China achieved a 23% year-on-year increase in main business revenue and a 77.5% year-on-year increase in profit. The profit margin on main revenue reached 4.1%, an increase of 1.3 percentage points over the previous year. In 2024, as more expensive ships are delivered, the efficiency level of the shipping industry will continue to improve.