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The shipbuilding industry maintained a good development trend in the first half of the year

In the first half of 2024, the global demand for shipping capacity has significantly increased again, and the shipbuilding industry in Zhejiang Province continues to maintain a good development trend. The three major shipbuilding indicators of the shipbuilding industry, namely completion volume, new order volume, and held order volume, continue to grow significantly, with the new order volume approaching the total new order volume for the whole year of 2023.1、 Overall situation of industry operationIn the first half of the year, the shipbuilding industry in Zhejiang Province continued to maintain a good development trend. Completed 2.794 million deadweight tons of ships, up 59.6% year on year, including 1.641 million deadweight tons of completed export ships, up 63.6% year on year. Newly received orders of 7.004 million deadweight tons, a year-on-year increase of 86.2%; Among them, the newly undertaken export orders amounted to 5.722 million deadweight tons, a year-on-year increase of 104.5%; Handheld orders amounted to 15.66 million deadweight tons, a year-on-year increase of 54.1%. The completion volume, new orders, and held orders of the shipbuilding industry in Zhejiang Province account for 11.2%, 12.9%, and 9.1% of the national share, respectively, ranking third, fourth, and fifth in the country, and their share of the national share is steadily increasing.(1) From the perspective of segmented industries. The completed output value of shipbuilding, ship repair, ship supporting and marine equipment manufacturing in Zhejiang Province accounted for 45.1%, 32.2%, 8.5% and 7.3% respectively (see the figure below). The export value of shipbuilding and ship accessories increased by 34.3% and 65.1% year-on-year, respectively, driven by strong export orders; The shipbuilding industry has also continued to maintain steady growth, with total output value and repair export output value increasing by 21.5% and 34.5% respectively year-on-year. In the past three years, its contribution to the province's output value has gradually stabilized at over 30%; The manufacturing of offshore equipment has continued its strong development momentum in the past two years, with a year-on-year increase in output value of 356.5%, accounting for 5.2 percentage points higher than the same period last year in the entire province.Proportion of segmented shipbuilding industries in Zhejiang Province from January to June 2024(2) From the perspective of regional development. Zhoushan City, the main gathering place for shipbuilding and repair enterprises in the province, saw a year-on-year increase of 91.4%, 105%, and 110.2% in the three major shipbuilding indicators of ship completion, new orders, and held orders, accounting for 58.5%, 80.1%, and 78.0% of the province's total, respectively; The total output value and completion volume of Taizhou's shipbuilding industry have maintained year-on-year growth for five consecutive years, and the orders held by key shipbuilding enterprises are basically scheduled until the end of 2025. The contribution rate of the ship distribution industry in Ningbo and Hangzhou to the subdivision industry of ship distribution in the province has remained above 75% for five consecutive years.(3) From the perspective of industrial clusters. The two core areas and three collaborative areas of the "High end Ship and Marine Equipment Industry Cluster" have maintained a high level of contribution to various statistical indicators in the province. The completion volume, new orders, and handheld orders have increased by 70.4%, 94.8%, and 67.8% respectively year-on-year, and their share in the province has been increasing year by year. The three major shipbuilding indicators of the top ten shipbuilding enterprises in the province accounted for 82.1%, 93.6%, and 89.9% of the province's total, respectively.2、 Main characteristics of industry operation(1) The ship structure has been further optimized, and the new energy ship market is steadily expanding. In the first half of the year, the structure of new orders received in Zhejiang Province showed new changes: firstly, with the improvement of international environmental protection requirements and the rapid iteration of new energy technology for ships, the number of new energy powered ship orders steadily increased. From January to June, the number of new energy powered ship orders received was 2.747 million deadweight tons, accounting for 39.2% of the total new orders received in the province, which is a new high in the past three years and in sync with the national trend. New energy ships will become an important growth point for the shipbuilding industry in Zhejiang Province in the coming years. The second is that the three mainstream ship types in the newly received orders - bulk carriers, container ships, and oil tankers - account for 35.5%, 34.6%, and 27.3% respectively, showing a pattern of "three parts of the world", which is in sharp contrast to the previous situation in the shipping market where bulk carriers were the only ones and accounted for more than 80% of new ship orders in Zhejiang Province for a long time. This indicates that shipbuilding in Zhejiang Province is gradually moving away from low-end and developing towards high-tech and high value-added ship types.(2) Ship repair tends towards high added value, and breakthroughs have been made in repair and modification technology. The high-value retrofitting business aimed at energy conservation and carbon reduction has significantly increased, driving a 19.5% increase in operating revenue for the ship repair sector compared to the same period last year. The leading enterprises in the shipbuilding industry are constantly seeking innovation in new energy ship repair and modification technology, and have frequently achieved breakthroughs. For example, Zhoushan COSCO Shipping Heavy Industries completed the repair of the world's largest LNG dual fuel container ship; Zhoushan Pacific Ocean Engineering has completed the world's first container ship methanol dual fuel conversion; Zhejiang Wanbang and Zhoushan Xinya have successively completed energy-saving and carbon reduction retrofitting of traditional freight ships, including the installation of advanced equipment such as air lubrication drag reduction systems and flow deflectors.(3) Equipment updates are accelerating, and the innovation vitality of shipping companies is further enhanced. The demand for improving production efficiency and enhancing production conditions among various shipbuilding enterprises is becoming increasingly urgent. It is reported that in the first half of the year, 22 shipping companies in the province plan to carry out large-scale equipment updates and technological transformations, mainly focusing on upgrading and updating old production equipment with high energy consumption and high pollution, environmental protection equipment, and digital transformation and upgrading. The government departments at all levels in Zhejiang Province actively guide enterprises to strengthen research and development, carry out technological innovation, and upgrade products, further stimulating the innovation vitality of shipbuilding enterprises and improving the modernization level of the industry.

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I have achieved comprehensive breakthroughs in the three major indicators of the shipbuilding industry

In recent years, China's shipbuilding industry has achieved remarkable success, making significant breakthroughs in multiple fields and becoming an important force in the global shipbuilding industry.1、 Three major indicators of the shipbuilding industry1. Scale of Ship ConstructionChina's shipbuilding industry ranks first in the world in terms of construction scale. In recent years, China has continuously undertaken large vessel orders, including very large crude oil tankers (VLCCs), large container ships, etc., demonstrating China's strength in the field of high-end shipbuilding. In addition, China has actively expanded into fields such as marine engineering equipment and high-end yachts, further enriching the types of ship products.2. Technological innovation strengthChina's shipbuilding industry has achieved significant results in technological innovation. By introducing digestion and innovation, China has made significant breakthroughs in areas such as ship design, intelligent construction, and green shipping.3. Integration and optimization of industrial chainChina's shipbuilding industry has achieved significant results in the integration and optimization of the industrial chain. Through policy guidance and the efforts of enterprises themselves, China's shipbuilding industry has formed a relatively complete industrial chain system, covering multiple links such as research and development design, production and manufacturing, and supporting services. This not only reduces production costs, but also improves production efficiency and enhances the global competitiveness of China's shipbuilding industry.2、 Comprehensive breakthrough in marine products1. Marine engineering equipmentChina has made significant breakthroughs in the field of marine engineering equipment. With the development and utilization of marine resources, the demand for marine engineering equipment continues to grow. Chinese enterprises have achieved significant results in fields such as offshore platforms, offshore wind power, and submarine pipelines, providing important support for the global marine engineering equipment market.2. High end yacht industryThe high-end yacht industry is an emerging field in China's shipbuilding industry. With the upgrading of consumption and the rapid development of tourism in China, the demand for high-end yachts in the market continues to grow. Chinese enterprises have made significant breakthroughs in high-end yacht design, manufacturing, and services, launching multiple competitive high-end yacht products.3. Green shipping and intelligent shipsGreen shipping and intelligent ships are the future development directions of China's shipbuilding industry. China actively promotes green shipping technologies, such as new energy and clean energy, to reduce ship emissions and pollution. At the same time, China has made significant progress in the field of intelligent ships, improving the efficiency and safety of ship operations through intelligent technology.3、 Looking ahead to the futureLooking ahead, China's shipbuilding industry will continue to maintain its global leading position. Firstly, China will further strengthen technological innovation and promote high-quality development of the shipbuilding industry. Secondly, China will optimize the layout of the industrial chain, improve production efficiency and quality level. In addition, China will actively expand into emerging fields such as ocean tourism and ocean new energy, injecting new impetus into the development of the shipbuilding industry.In summary, China's shipbuilding industry leads the world in three key indicators, with comprehensive breakthroughs in marine products, demonstrating strong competitiveness and broad development prospects. In the future, China will continue to strengthen technological innovation, optimize the layout of the industrial chain, expand emerging fields, and promote high-quality development of the shipbuilding industry. This will not only provide strong support for China's economic and social development, but also make important contributions to the development of the global shipbuilding industry.

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China has made multiple breakthroughs in the field of ship propulsion technology

Recently, China has made multiple breakthroughs in the field of ship power technology, successfully developing new products and critical components, and successfully signing multiple orders.WinGD X52-S2.0 engine successfully completed classification society type approvalRecently, the X52-S2.0 engine of WinGD, a subsidiary of China Shipbuilding Industry Corporation, completed type approval testing at Zhuhai Yuchai Marine Power Co., Ltd. and successfully passed the type approval of major ship class societies worldwide.The X52-S2.0 is a short stroke two-stroke low-speed engine developed based on the X52 model. This engine is designed to be compact, simple, and has superior fuel efficiency, making it particularly suitable for shallow draft ships or ships with specific requirements for the height of the main deck and engine room. At present, the types of ships that use short stroke engines include container feeder ships, automobile transport ships, multi-purpose cargo ships, and roll on/roll off/container transport ships. This model meets the IMO Emission II standard and can meet the IMO Emission III standard by configuring iSCR or HPSCR.China Shipbuilding Power Group has successfully developed power components with independent intellectual property rightsRecently, China Shipbuilding Marine Power Parts Co., Ltd., a subsidiary of China Shipbuilding Power Group, successfully developed a cast fuselage for a medium speed dual fuel engine with the largest independent intellectual property diameter (450mm).The 450mm bore medium speed dual fuel engine is a new generation of ultra large bore dual fuel medium speed engine independently developed by China Shipbuilding Power Group. Its integral fuselage length exceeds 7 meters, width and height also exceed 2 meters, and the casting weight reaches 63 tons. The material quality requirements for casting the body are extremely high, and the difficulty of controlling casting deformation is high, which puts higher demands on the treatment of molten iron in the smelting process.The localization project of LNG tank top relief valve has passed the acceptance smoothlyRecently, the localization project of LNG tank top relief valve at Shanghai Marine Diesel Engine Research Institute has successfully passed the factory acceptance.The tank top relief valve is an essential safety device for LNG storage tanks. It is a low-temperature safety device that relies on the discharge of medium from the pilot valve to drive the main valve to open and close. When the tank pressure exceeds the set pressure, the valve exhales the gas medium, ensuring a constant pressure inside the tank and avoiding damage caused by overpressure. The successful acceptance of this localization project has broken the market monopoly of imported products on the top relief valves of large LNG storage tanks, and will greatly promote the comprehensive localization of large-scale liquefied natural gas storage technology.CSIC Engine achieves annual target of 'double over half' ahead of scheduleRecently, CSSC Engine has shipped 5 main engines to customers such as Guangzhou Shipbuilding International and COSCO Shipping. At this point, the company has fully completed all the task targets for the first half of 2024, achieving the "double over half" of major task targets such as business undertaking, total industrial output value, operating income, and total profit 16 days ahead of schedule. The number of completed sets of main engines has increased by 17.2% year-on-year, with continuous acceleration in the delivery of dual fuel main engines. The number of sets and horsepower have increased by 85.7% and 64.7% respectively year-on-year; Successfully delivered and tested the first domestic methanol dual fuel host 6G50ME-C9.6-LIGM+EGRBP, making significant progress in low-carbon and zero carbon fuel layout; Continuously delivering two world first dual engine twin propeller engines, 6X72DF-2.2+iCER, further enriching the engine product spectrum.Yuchai Ship signs contract for 12 main enginesRecently, Yuchai Shipyard and China Merchants Industrial Yangzhou Jinling held a contract signing ceremony for 12 main engines. The contract this time includes 10 units of 5S50ME-C9.7-LPSCR and 2 units of 5X52-S2.0-HPSCR hosts. As of now, China Merchants Industrial has become the largest customer of Yuchai Shipping, with a total of over 40 main engines in cooperation between the two parties.Weihai Heavy Industry Technology has received an order for 5 sets of methanol fuel supply systems for shipsRecently, Weihai Heavy Industry Technology signed an order with Yangzhou Zhongyuan Shipping Heavy Industry for two 325000 ton VLOC and three 114000 ton oil tanker methanol fuel supply system projects. Among them, the 325000 ton VLOC first production ship will become the world's first methanol dual fuel powered large ore carrier to be put into operation.(Source: News from various enterprises, compiled by China Shipping Association)

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