On October 31, China CSSC Holdings Limited (hereinafter referred to as “CSSC”) released the “2024 Third Quarter Report”.
The announcement disclosed that in the first three quarters of 2024, CSSC achieved operating income of RMB 56.169 billion (approximately US$7.888 billion), a year-on-year increase of 13.12%; net profit attributable to the parent company was RMB 2.271 billion, a year-on-year decrease of 11.35%. In the third quarter, the company achieved operating income of RMB 20.152 billion (approximately US$2.830 billion), a year-on-year increase of 5.35%; net profit attributable to the parent company was RMB 858 million, a year-on-year decrease of 57.26%.
CSSC said that during the reporting period, the company achieved steady growth in revenue and performance, mainly due to the year-on-year increase in the number of ships completed and delivered by the company and the average price of each ship. The decline in net profit was mainly affected by the non-monetary asset exchange gains and losses of RMB 2.521 billion (US$354 million) in the disposal of offshore platforms by CSSC’s wholly-owned subsidiary Shanghai Waigaoqiao Shipbuilding (SWS) in the same period last year.
As China’s largest flagship shipbuilding listed company, the development of CSSC reflects the quality of China’s shipbuilding industry. Industry datas show that in the first three quarters of 2024, the three major indicators of China’ss shipbuilding industry continued to grow steadily, among which the shipbuilding completion volume was 36.34 million deadweight tons, a year-on-year increase of 18.2%; the new orders were 87.11 million deadweight tons, a year-on-year increase of 51.9%; as of the end of September, the hand orders was 193.3 million deadweight tons, a year-on-year increase of 44.3%. From January to September, China’s three major shipbuilding indicators accounted for 55.1%, 74.7% and 61.4% of the global total in terms of deadweight tonnage. Among them, China has undertaken more than 70% of the global green ship orders and achieved full coverage of mainstream ship types.
In addition, according to Clarksons data, the average price of new ship transactions worldwide has hit a record high. In the first three quarters of 2024, the global new ship (over 1,000 GT) transaction volume was 1,733 ships, with a value of US$155.2 billion, and the average price of a single ship was US$89.55 million, much higher than the average level of US$51 million in the past 10 years. Industry insiders said that this was due to the increase in new ship prices in recent years, and was also affected by the larger size and higher-end ship types.