When facing thousands of listed company announcements every day, which ones should you read? What are the key points to take away from the dozens or hundreds of pages of material announcements? Are the many professional terms in the announcements bullish or bearish? Check out Caixin's "Quick Read Announcement" column, where our reporters across the country will provide you with accurate, fast and professional interpretations on the night of the announcement.

Caixin reported on July 26th that shipyards have full orders and have basically scheduled production to 2028. Apart from speeding up construction, expanding production capacity is also the main layout direction of ship enterprises at present.

Tonight, China Shipbuilding (601989.SH) announced that its wholly-owned subsidiary Wuhan Shipbuilding plans to purchase 100% equity of Wuchuan Invest held by Wuchuan Shipbuilding Hangrong with its own funds of 1.044 billion yuan; and the wholly-owned subsidiary of Dalian Shipbuilding, Tianjin Shipbuilding, plans to purchase some assets of Tianjin Ship Heavy Industry in the port industrial zone for 4.044 billion yuan.

Regarding the reasons for the purchase of the assets, China Shipbuilding stated in its announcement that the purchase of Wuchuan Shipbuilding Hangrong was to optimize and adjust the capability layout, realize the transformation and upgrading of final assembly construction, increase production capacity to meet production and operation needs, and fill in the short board of production capacity. The purchase of Tianjin Ship Heavy Industry is to optimize the allocation of ship repair production resources and production capacity layout in the Bohai Sea region, effectively increase the core shipbuilding capacity of Tianjin Shipbuilding, meet the transformation of Tianjin Shipbuilding to high value-added ship types, and comprehensively improve efficiency.

According to the announcement, both Tianjin Shipbuilding and Wuhan Shipbuilding currently have full orders, and production plans have been scheduled to 2028.

Through the acquisition of Wuchuan Shipbuilding Hangrong, the short board of high-tech products and segmented construction capacity of high-end ships of Wuhan Shipbuilding can be effectively filled. After the completion of the transaction, the production facilities of Wuhan Shipbuilding's land and factory building can be effectively expanded, and the related industries can be concentrated in the Shuangliu factory area for intensive and collaborative development, which can improve the asset utilization rate and production efficiency, realize the transformation and upgrading of ship assembly construction, and have a positive impact on the company's business results. In addition, after the completion of this transaction, Wuhan Shipbuilding will reduce the lease of related assets of Wuchuan Shipbuilding Hangrong and reduce the related transactions between the company and Wuchuan Shipbuilding Hangrong.

After acquiring the important production resources of shipbuilding mentioned above, Tianjin Shipbuilding will continue to carry out transformation and upgrading capacity construction based on these assets, create a modern shipyard that can meet the needs of bulk production of high value-added ships, effectively ensure the smooth delivery of its orders and meet the future market demand for the main ship types. It is estimated that the annual shipbuilding capacity of Tianjin Shipbuilding will increase by 2.4 million deadweight tons after the completion of this transaction. In addition, after the completion of this transaction, Tianjin Shipbuilding will not need to lease related assets of Tianjin Ship Heavy Industry, reducing the related transactions between the company and Tianjin Ship Heavy Industry.

On the same day, the Company also announced that its wholly-owned subsidiary Dalian Shipbuilding Heavy Industry Group Co., Ltd. intends to transfer the entire equity of Bohai Shipbuilding Heavy Industry Co., Ltd. held by it to its affiliated shareholder China Shipbuilding Group Bohai Shipbuilding Co., Ltd for a price of RMB 0.114 billion.

China Shipbuilding intends to divest its loss-making assets. The company stated in the announcement that Bohai Shipbuilding has been losing money for many years, and the cumulative loss amount since 2016 has exceeded RMB 3.4 billion, seriously affecting the company's operating performance. This transfer can effectively terminate the adverse effects of continuous losses of Bohai Shipbuilding on the company. After the completion of this transaction, Bohai Shipbuilding will no longer be included in the company's consolidated financial statements. This transaction is expected to have a positive impact on the company's performance in 2024. Preliminary estimates show that the company will receive a transfer income of approximately RMB 0.306 billion from the equity transfer in 2024 (excluding the income and expenses during the transition period between the settlement date and the evaluation reference date)

Since this year, orders received by China's shipbuilding companies have been continuously rising.

Regarding the operating conditions of Shanghai's three major shipbuilding companies under China Shipbuilding Group, Caixin learned that in the first half of this year, Shanghai's three major shipbuilding companies under China Shipbuilding Group, Jiangnan Shipyard, Waigaoqiao Shipbuilding, and Hudong-Zhonghua Shipbuilding, have completed the delivery of 38 ships and received orders for 65 ships, with high-end ship types accounting for more than 90%. All three companies have completed more than half of their annual production and operation targets, and their total completion and order volume have comprehensively surpassed the same period last year. Currently, the three major shipbuilding companies in Shanghai have nearly 80 civilian ships under construction, and their production tasks are full.

China Shipbuilding announced that Dalian Shipbuilding completed the delivery of 13 marine products in the first half of this year, completing 50% of the annual plan, and signed and implemented contracts for 24 marine products, over-fulfilling the annual undertaking task, and production plans have been scheduled to 2028; operating income increased by 58% year on year.

Recently, Hudong-Zhonghua also received a 1+1 18,600 cubic meter liquefied natural gas (LNG) refueling vessel construction order from French Total Energies. This effective order is the 100th LNG transportation equipment order that Hudong-Zhonghua has accumulated so far. At the same time, it also brings the number of new ship orders undertaken by Hudong-Zhonghua since this year to 23+1 vessels.

In addition, the relevant person in charge of CIMC ENRIC (03899.HK) also told a Caixin reporter that the company's two production lines and one dock were fully utilized this year, and compared with last year, both production capacity and delivery volume have increased. Three ships were delivered in the first half of this year, and it is expected that the company will deliver 8 main ship models throughout the year. In addition, more than ten new orders were signed for main ship models such as 0.04 million cubic meter MGC ships and LNG transportation refueling ships in the first half of this year.