China State Shipbuilding: Order Book Exceeds 520 Billion Yuan, Gross Margin Expected to Stay Healthy in 1-2 Years

September 24, 2026 — At its 2026 semi-annual performance briefing held on September 24, A-share shipbuilding leader China State Shipbuilding Corporation (CSSC, 600150) shared its latest outlook on the shipbuilding market, citing demand driven by aging vessel replacement and environmental regulations.

"Driven by the replacement of old ships and environmental regulations, orders for tankers, container ships, and others are coming in succession, and the industry's prosperity is expected to continue."

Strong Growth in China's Shipbuilding Industry

In recent years, China's shipbuilding sector has entered a new cycle of prosperity. According to data from the China Association of the National Shipbuilding Industry (CANSI) , the country's three major shipbuilding indicators — completion volume, new orders, and order backlog — have all risen to multi-year highs in 2024 and 2025, with the order backlog setting consecutive records.

First Half of 2026 Performance

| Indicator | Volume (million DWT) | YoY Growth | Global Share | |-----------|----------------------|------------|--------------| | Shipbuilding completion | 36.50 | +51.2% | 62.2% | | New orders received | 121.06 | +173.1% | 82.3% | | Order backlog (as of end of June) | 363.25 | +54.9% | 71.2% |

All three major indicators recorded comprehensive growth, with China maintaining a global lead in market share.

CSSC's Business and Order Book

CSSC is the core listed entity under the China State Shipbuilding Corporation (CSSC Group) , focusing on military and civilian shipbuilding, ship repair, marine engineering, and related equipment. The company operates seven major shipyards, including Jiangnan Shipyard, Dalian Shipbuilding, and Wuchang Shipbuilding.

In its 2026 semi-annual report, CSSC disclosed that as of June 30, 2026, it held a cumulative order backlog of 729 civilian and offshore engineering vessels, totaling 93.89 million DWT / RMB 526.266 billion. During the first half of 2026, the company secured 177 new orders for civilian and offshore vessels, amounting to 22.45 million DWT / RMB 119.386 billion.

Key Issues Addressed at the Performance Briefing

Future Orders and Market Outlook

CSSC management noted that the new shipbuilding market performed strongly in the first half of 2026, with global new orders reaching a record high for the period. Key points include:

• New orders continue to grow, with shipyard slots booked through 2029 to 2030
• Handheld orders cover more than four years of production
• Demand is supported by aging vessel replacement and environmental regulations
• Sequential ordering of tankers, container ships, and other vessel types is expected to sustain industry prosperity

Pricing Trends

Regarding pricing trends for new orders this year, CSSC stated:

• Under a tight global shipbuilding capacity environment, the industry's prosperity is backed by solid supply-demand dynamics
• New ship prices remain firm
• The company's order book structure has further improved
• Prices for oil tankers and bulk carriers remain at cyclical highs
• Prices for container ships and LNG carriers are broadly stable
• Overall price levels remain elevated

Gross Margin Outlook

Sustained high prices have positively impacted the company's gross margins. CSSC management explained that, according to international shipbuilding market conventions:

• Orders are executed according to contract terms
• Delivery timelines vary by product, typically ranging from 16 to 36 months from order signing to delivery

"Since June 2021, the global new ship price index has risen significantly. Based on the delivery schedule of our order book, vessels delivered in 2026 are mostly from relatively high-priced orders signed in 2023 and 2024. As these high-price orders are gradually delivered, gross margins over the next one to two years are expected to remain at a favorable level."

Financial Highlights

In the first half of 2026, CSSC reported:

• Revenue: RMB 91.530 billion, up 26.01% year-on-year
• Net profit attributable to shareholders: RMB 9.954 billion, up 163.51% year-on-year
• Market capitalization as of September 24 close: RMB 286.7 billion

Editor: Peng Bo | Proofreader: Tao Qian