China CSSC (600150) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached RMB 15.86 billion, up 3.85% year-over-year, with net profit attributable to shareholders surging 180.99% to RMB 1.13 billion.

• Excluding non-recurring items, adjusted net profit rose 230.20% year-over-year, reflecting improved operational efficiency and higher gross margins in delivered commercial vessels.

• The company is advancing a major merger with China Shipbuilding Industry Company (中国重工), which constitutes a significant asset restructuring but will not change the actual controller.

Financial highlights

• Operating income: RMB 15.86 billion, up 3.85% year-over-year.

• Net profit attributable to shareholders: RMB 1.13 billion, up 180.99% year-over-year.

• Adjusted net profit (excluding non-recurring items): RMB 1.12 billion, up 230.20% year-over-year.

• Basic and diluted EPS: RMB 0.252, up 180% year-over-year.

• Net cash flow from operating activities: -RMB 2.68 billion, improved from -RMB 3.10 billion in Q1 2024.

Outlook and guidance

• Shipbuilding industry remains robust, with upgraded order structure and improved profitability in delivered commercial vessels.

• Management continues to focus on production efficiency and high-quality development of core ship assembly business.