On July 9, CSSC Offshore & Marine Engineering (Group) Company Limited (“COMEC”) released its 2024 Semi-annual Earnings Increase Announcement.
The announcement disclosed that COMEC expects its net attributable profit for the first half of 2024 to range from RMB 135 million to RMB 160 million (US$18.55 million – US$21.98 million), representing a year-on-year increase of 965.91% – 1163.3%; and its net profit from deductions is expected to range from RMB 120 million to RMB 145 million (US$16.50 million – US$19.92 million), representing a year-on-year increase of 675.25% – 836.76%.
For the main reasons for the increase in performance, COMEC said that the company is in an industry as a whole is improving, specifically: first, the full production tasks, production output, production efficiency steadily improved in the reporting period, the ship product revenue and gross profit increased year-on-year; second, the reporting period to recognize the associates and equity participation in the enterprise investment income increased year-on-year.
According to the official website, COMEC is one of the large-scale shipbuilding backbone enterprises under China State Shipbuilding Corporation (CSSC), and its predecessor is Guangzhou Shipyard International Company Limited (GSI). COMEC went public on Shanghai and Hongkong Stock Exchanges in 1993, and became the first “A+H” listed shipbuilding corporation nationwide.
In order to achieve the strategic capacity in the marine and offshore market, and to improve the company’s competiveness, COMEC pushed an industry consolidation, acquired CSSC Guangzhou Longxue Shipbuilding Company Limited in 2014 and CSSC Huangpu Wenchong Shipbuilding Company Limited (Huangpu Wenchong ) in 2015. Upon a series of acquisitions, COMEC successfully integrated the high-quality shipbuilding resources of CSSC in South China and becomes a large-scale comprehensive corporation specialized in offshore & marine engineering, including marine defense equipments, marine transport equipments and ocean research and development equipments.
