North-South Ship's Strategic Reorganization promotes low-end capacity withdrawal

On the evening of July 1, five companies, including China Heavy Industries, China Coastal Defence, China Power, China Emergency Response and Jiuzhiyang, announced that after receiving the notification from the actual controller, China Shipping Heavy Industries is planning a strategic restructuring with China Shipping Group. Similar to the above statement, China Shipping, China Shipping Defense, China Shipping Technology and other three companies also issued a public announcement that China Shipping Group is planning a strategic reorganization with China Shipping Heavy Industry after receiving notification from the controlling shareholder. The above companies indicated that the relevant plan has not yet been determined, and the plan also needs to be approved by the relevant competent authorities. Since June,most of the eight listed companies have risen, with only a slight decline in China's emergency response. As of July 1, the total market value of eight listed companies was 250.166 billion yuan, compared with 229.022 billion yuan a month ago. In one month, the market value soared 21.144 billion yuan. Journalistnoticed that the reorganization and integration in the marine industry had started before the reorganization of the South-North Ship was determined.

In April of this year, Guohai Maritime Wage Property Management Co., Ltd. officially unveiled its name. Its shareholders include seven state-owned enterprises such as China Shipping Heavy Industry and China Shipping Group. The reasons for the establishment of Guohai Marine Industry are to give full play to its overall and professional advantages, promote the complementarity of high-quality resources of all parties, enhance our voice in the marine industry equipment market, ensure the quality and value of marine products, and realize the adjustment of industrial structure and layout optimization.

It is generally believed in the industry that the restructuring of North-South vessels will reduce unnecessary competition and duplicate construction problems in the field of civilian ships, promote the withdrawal of low-end production capacity and technological progress; moreover, in the field of military ships, due to the close cooperation between North-South vessels in the development of military ships, the merger will be more conducive to the upgrading of our naval equipment strength.

Although the restructuring at the level of North-South Shipping Group has just emerged, the asset restructuring within the two vessels has quietly started, and many listed companies under the two vessels have issued asset restructuring plans or plans since this year.

It is the first to start the internal asset reorganization of China Shipping Group. In early March this year, China Shipping Science and Technology announced that it planned to purchase 100% equity and other assets of Haiying Enterprise Group Co., Ltd. by issuing shares and paying cash, and raise matching funds.

At the beginning of April, China Ship and China Ship Defense announced the asset restructuring plan. According to the plan, Chinese ships will acquire assets such as Jiangnan Shipbuilding, Guangzhou Shipping International and Huangpu Wenchong, while China Shipping Defense will acquire assets such as Shanghai East Heavy Machinery, China Shipping Power, China Shipping Sanjing and China Shipping Power Institute. If the above restructuring is successfully completed, China Shipping and China Shipping Defense will become China Shipping Group's ship assembly assets platform and ship power assets platform respectively. Last week, China Dynamics disclosed its restructuring plan. It intends to acquire 7.79% of Guanghan Dynamics, 8.42% of Changhai Telecom and 47.82% of China Shipwood by issuing shares and convertible bonds to further consolidate the company's position in the field of ship power.

From a series of internal restructuring of listed companies affiliated to the North and South Ships, the two ships have formed their own listing platforms around ship assembly, ship power and high-tech industries. Referring to the case of the merger of central enterprises such as North and South Vehicles, the group reorganization often implements the merger of similar items at the level of listed companies, and how the relevant listed companies will operate after the merger of the two ships in the future Look forward to it.