I. Company Merger Completed
On September 16, China Cssc Holdings Limited's 3.053 billion new shares from the share swap absorption merger with China Shipbuilding Industry Company Limited were listed on the Shanghai Stock Exchange, marking the official conclusion of this largest absorption merger case in A-share history. The merged China Cssc Holdings Limited now has total assets exceeding 400 billion yuan, with expected annual operating revenue surpassing 130 billion yuan, becoming the world's largest listed shipbuilding company.
Behind this industry giant merger, China Shipbuilding Industry Company Limited had previously faced regulatory penalties for information disclosure issues. This merger represents not only a capital market operation but also a major restructuring of China's shipbuilding industry landscape. The transaction for China Cssc Holdings Limited to absorb and merge China Shipbuilding Industry Company Limited was completed on September 5, 2025.
After the merger, China Cssc Holdings Limited, as the surviving company, will inherit and assume all assets, liabilities, businesses, personnel, and all other rights and obligations of China Shipbuilding Industry Company Limited. This means that compensation claims against China Shipbuilding Industry Company Limited will now be handled by China Cssc Holdings Limited.
II. Related Financial Reports Had Issues
Some cases have been submitted to the court for filing and are awaiting further court arrangements. The investor lawsuits stem from a penalty notice. On December 29, 2023, the company received an Administrative Penalty Decision from the Beijing Bureau of the China Securities Regulatory Commission. Upon investigation, the company's violations involved failure to accurately provide for inventory impairment of subsidiary companies in corresponding accounting periods, resulting in overstated profits of 71.8124 million yuan in 2018, overstated profits of 107.1129 million yuan in 2019, and understated profits of 122 million yuan in 2020.
These issues led to misstatements in China Shipbuilding Industry Company Limited's annual reports for 2018, 2019, and 2020, resulting in administrative penalties from regulators. Based on the implementation and disclosure dates of the violations, investors who purchased shares between April 27, 2019, and July 12, 2023, and sold or still held shares after July 13, 2023, while incurring losses, may join the rights protection action. Investors who traded during the above period and suffered losses can register for compensation claims.
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