China Shipbuilding Industry Group Power Co., Ltd.: history, ownership, mission, how it works & makes money

A Brief History of China Shipbuilding Industry Group Power Co., Ltd.

China Shipbuilding Industry Group Power Co., Ltd. (CSIC Power) was established as part of the larger China Shipbuilding Industry Corporation (CSIC), one of the key players in China's maritime sector and a significant contributor to the country's industrial growth. The company has evolved substantially since its inception, focusing on shipbuilding, marine engineering, and power plants.

In recent years, CSIC Power has been instrumental in the construction and delivery of numerous vessels and power units, with a focus on eco-friendly technologies and advancements in ship design. The company has played a critical role in supporting China's growing maritime trade and energy sectors.

As of late 2023, CSIC Power reported a revenue of approximately RMB 100 billion, showcasing significant growth over previous years. The company has also increased its operational capacity, with shipbuilding output measured at around 5 million DWT (Deadweight Tonnage) annually.

CSIC Power's strategic partnerships with global firms have allowed the company to enhance its technological capabilities. The firm has invested heavily in research and development, with R&D expenditure reaching RMB 10 billion in 2022, focusing on building energy-efficient vessels and advanced power generation systems.

In terms of global competitiveness, CSIC Power ranks among the top shipbuilders in the world. According to the data from the International Maritime Organization, CSIC Power held a market share of approximately 12% in the global shipbuilding industry as of 2022.

CSIC Power has also focused on sustainability, committing to reduce carbon emissions from its operations by 30% by 2030. This aligns with China's broader environmental goals and represents a significant shift towards green technologies in the shipbuilding industry.

Additionally, the company has expanded its production facilities in recent years, with new yards established in key regions including Guangdong and Shanghai to meet increasing demand and enhance operational efficiency. These facilities are equipped with state-of-the-art technology aimed at improving productivity and quality.

With a workforce of over 30,000 employees, CSIC Power continues to be a significant employer in the shipbuilding sector, emphasizing skills development and innovation among its teams to remain competitive in the global market.

A Who Owns China Shipbuilding Industry Group Power Co., Ltd.

China Shipbuilding Industry Group Power Co., Ltd. (CSIC Power) is a subsidiary of China Shipbuilding Industry Corporation (CSIC), one of the largest state-owned enterprises in China. CSIC is primarily involved in shipbuilding, with its operations encompassing ship design, construction, and marine engineering.

As of the latest available data, CSIC is divided into various subsidiaries and holdings, with CSIC Power being one of the key entities focused on the energy sector, particularly in power generation equipment and services.

The ownership structure of CSIC Power indicates that it is fully owned by its parent company, China Shipbuilding Industry Corporation. CSIC itself is primarily controlled by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), which manages state-owned enterprises.

As of 2022, CSIC reported total revenues of approximately ¥132.6 billion (around $20.3 billion), a significant figure reflecting the scale of operations within the company. The enterprise also reported a net profit of ¥4.9 billion (approximately $740 million) for the fiscal year.

CSIC Power plays a crucial role in the broader strategy of CSIC, which aims to enhance China's capabilities in the global shipbuilding market, while also expanding into power generation technologies. The entity specializes in manufacturing large-scale power equipment, including but not limited to, gas turbines and steam turbines.

Moreover, CSIC Power has been actively involved in various strategic partnerships and joint ventures, tapping into international markets and innovations in energy technology. This aligns with the government's initiative to modernize and increase efficiency within state-owned enterprises.

For the year 2023, it was reported that CSIC Power achieved a significant increase in contracts, totaling ¥15 billion (about $2.3 billion), demonstrating growing demand for their products and services in both domestic and international arenas.

In summary, CSIC Power's ownership structure reflects its position as a fundamental part of a major state-run enterprise, with significant financial performance and strategic initiatives that align with China's broader economic goals.

China Shipbuilding Industry Group Power Co., Ltd. Mission Statement

China Shipbuilding Industry Group Power Co., Ltd. (CSIC Power) is a key player in the global marine engineering sector, focusing on the development and manufacture of marine power systems, including diesel engines, gas turbines, and propulsion systems. The company aims to enhance its competitiveness by cultivating technological innovation and operational excellence.

The mission statement specifically emphasizes the commitment to providing high-quality power solutions for naval and commercial vessels, thereby supporting China's maritime strategy and global shipping needs. CSIC Power places a strong emphasis on sustainability and energy efficiency, integrating advanced technologies to reduce emissions and improve energy utilization.

CSIC Power's strategic focus includes fostering innovation in propulsion technologies and enhancing customer solutions through reliable power systems designed for diverse maritime applications. By aligning its mission with national policies on energy efficiency and green technology, CSIC Power contributes to the maritime industry's evolution.

The company's ongoing investments in research and development (R&D) reveal a commitment to advancing its technological capabilities. For 2022, CSIC Power allocated approximately CNY 1.2 billion towards R&D initiatives, aiming to enhance its competitive edge in a rapidly evolving market.

Furthermore, CSIC Power's partnership with various educational and technological institutions aims to create a robust talent pipeline. This approach not only supports the mission of quality and innovation but also bolsters the company's reputation in the global maritime sector.

Overall, China Shipbuilding Industry Group Power Co., Ltd. seeks to uphold its mission statement through dedicated service, superior engineering, and a forward-looking perspective in maritime power solutions, aligning closely with China’s longer-term strategic objectives for maritime and economic growth.

How China Shipbuilding Industry Group Power Co., Ltd. Works

China Shipbuilding Industry Group Power Co., Ltd. (CSIC Power) operates primarily in the shipbuilding sector, focusing on the design and manufacturing of marine power systems. The company is a subsidiary of the China Shipbuilding Industry Corporation (CSIC), one of the largest shipbuilding companies globally.

As of the latest fiscal year, CSIC Power reported revenue of approximately ¥45 billion (around $7 billion), with a year-over-year growth rate of 8%. The company specializes in producing main propulsion engines, auxiliary engines, and power generation equipment, tailored for various marine applications.

The company employs more than 20,000 staff, including engineers, technicians, and skilled labor. CSIC Power invests significantly in research and development, with an R&D budget of around ¥2 billion annually, representing about 4.4% of their revenue.

CSIC Power's production facilities are equipped with advanced manufacturing technologies, including automated assembly lines and high-precision machining tools. The company focuses on sustainability and adheres to strict environmental standards, aiming to reduce emissions from its marine engines by 15% over the next five years.

In terms of partnerships, CSIC Power collaborates with leading universities and research institutions to advance its technology. The company has also entered joint ventures with international marine engineering firms, enhancing its competitive edge in global markets.

CSIC Power has established a robust supply chain, with over 300 suppliers, ensuring high-quality materials and components for its products. The company emphasizes supplier quality and reliability, conducting regular audits and assessments.

The organization's recent orders include a significant contract for hybrid power systems worth over ¥5 billion, reflecting a growing trend in the industry towards energy-efficient solutions. This contract is part of a broader strategy to increase the diversification of their product portfolio and customer base.

The financial outlook for CSIC Power remains positive, driven by increasing demand for eco-friendly marine technologies and expansion into emerging markets. Projections indicate a potential revenue growth of 10–12% over the next three years.

How China Shipbuilding Industry Group Power Co., Ltd. Makes Money

China Shipbuilding Industry Group Power Co., Ltd. (CSIC Power) primarily generates revenue through the design, manufacture, and sale of marine power equipment, including engines and generators. As a subsidiary of China Shipbuilding Industry Corporation (CSIC), it benefits from strong affiliations within the maritime industry.

In 2022, CSIC Power reported total revenue of approximately ¥14.5 billion, reflecting growth from the previous year’s ¥12.8 billion. The revenue growth was mainly attributed to increased demand for shipbuilding and marine equipment as global trade volumes rebounded post-pandemic.

Segments of Revenue Generation

• Marine Power Equipment: Contributes roughly 65% of total revenue. This includes high-speed diesel engines and marine auxiliary engines.
• Power Generation Equipment: Accounts for approximately 25% of revenue, focusing on land-based power generation systems.
• Other Services: Provides maintenance, repair, and upgrade services generating the remaining 10% of income.

Recent Financial Highlights

In its latest earnings report, CSIC Power recorded a net profit margin of 8%, with a net income of approximately ¥1.16 billion in 2022, up from ¥1.02 billion in 2021.

The company successfully managed to maintain a healthy current ratio of 1.5 as of the end of 2022, indicating sound financial health and liquidity. Its debt-to-equity ratio stood at 0.48, reflecting a conservative approach to leveraging.

Market Position and Competitiveness

CSIC Power ranks among the top players in the marine power equipment market, competing against rivals such as Wärtsilä and MAN Energy Solutions. As of 2023, CSIC Power has captured approximately 15% of the domestic market share in the marine propulsion sector.

Export and International Sales

The company has seen a significant rise in international sales, with exports making up about 30% of total revenue in 2022, driven by rising demand from Southeast Asia and Africa.

Financial Performance Overview

CSIC Power is positioned to benefit from increased global maritime activity and the ongoing modernization of fleets, leading to increased demand for advanced marine power solutions.