New Shipyard Opens! A 'Little Giant' of Zhoushan Shipbuilding Successfully Restructured.

Zhoushan Penglai Shipbuilding Co., Ltd.'s successful bankruptcy reorganization and the official opening of the "new" shipyard, Ningxing Shipbuilding Co., Ltd. This former "small giant" in Zhoushan's shipbuilding industry has now become a new and important part of the local state-owned enterprise, Ningbo Ningxing Holding Group, and is also a rare successful case of bankruptcy reorganization of a private shipbuilding enterprise in recent years.

On the morning of June 12th, an opening ceremony was held at the factory site of Zhoushan Ningxing Shipbuilding Co., Ltd., established through the acquisition and reorganization by Ningbo Ningxing Holding Group, in the Daixi Shipbuilding Industrial Base in Daishan County. Attendees included Ye Shaohua, General Manager of China Water Group Ocean Shipping Co., Ltd.; Peng Binhui, Executive Vice Secretary-General of the China Fisheries Association; Su Tie, Deputy Director of Ningbo Customs; Chen Zhiang, Chairman of Ningxing (Group) Co., Ltd.; Jin Xiaolong, Vice General Manager of Ningxing (Group) Co., Ltd.; Wu Yigang, Chairman of Ningxing Holding; Huang Yongzeng, President of Ningxing Holding; Gao Ping, Vice Chairman and Party Secretary of Ningxing Holding; and Xie Lijuan, Chairman of Zhejiang Virgin Investment Management Co., Ltd. Also in attendance were local government officials, representatives from relevant banks, classification society representatives, ship owner representatives, and supplier representatives.

         The "small giant" shipbuilding company's bankrupt assets were auctioned for less than 100 million yuan.

According to International Ship Network, Zhoushan Ningxing Shipbuilding Co., Ltd. is a new company reorganized after Ningxing Holding Group acquired the bankrupt Zhoushan Penglai Shipbuilding Co., Ltd.

The original Zhoushan Penglai Shipbuilding Co., Ltd., founded in 1998, is located in the Zhoushan Daishan Shipbuilding Industrial Park, close to Shanghai and Ningbo, and is a leading location in the Yangtze River Delta economic region. Zhoushan Ningxing Shipbuilding covers an area of 177,000 square meters, with a building area of 35,000 square meters. It has five shipways, a maximum load capacity of 70,000 tons, and a 200T gantry crane. It can build and repair various types of ships, including ultra-low temperature refrigerated vessels, ocean-going refrigerated vessels, ice-strengthened bulk carriers, container barges, dredgers, three-purpose tugboats, product tankers, chemical tankers, and ocean-going fishing vessels. The company has built modern high-end fishing vessels such as DNV-classed 8300 m3 Class II chemical tankers, CCS-classed 12,000 horsepower ocean-going three-purpose workboats, China Classification Society-classed 17,000 cubic meter large-scale suction dredgers (currently the largest and most technologically advanced in China), and large-scale ocean-going squid jigging vessels of various sizes, as well as 6000T ultra-low temperature ocean-going refrigerated transport vessels.

Zhoushan Penglai Shipbuilding Co., Ltd. was one of the first six characteristic and advantageous enterprises in Zhoushan's shipbuilding industry for shipbuilding and offshore equipment manufacturing, and one of the nine affiliated fishing vessel construction enterprises in the Zhoushan National Offshore Fisheries Base. It is a medium-sized characteristic shipbuilding enterprise in the Daishan "Zhejiang Provincial Shipbuilding Industry Base," specializing in the construction of various types of special vessels and offshore equipment of 30,000 tons or less. It was known in the local industry as a powerful, vibrant, and promising "small giant" shipbuilding company.

In August 2017, Penglai Shipbuilding Co., Ltd. launched the "Ping Tai Rong Leng 1," China's first domestically built ultra-low temperature tuna refrigerated transport vessel. This was also the first domestically built ultra-low temperature tuna refrigerated transport vessel. In February 2017, Penglai Shipbuilding Co., Ltd. started construction of the "Xin Jili 55," currently the largest domestically developed ocean-going squid jigging vessel.

On August 30, 2015, the "Zhongchang Jun 27" suction dredger, invested by Shanghai Zhongchang Navigation Engineering Co., Ltd. and built by Zhoushan Penglai Shipbuilding Co., Ltd., was successfully launched. This is one of the largest and most advanced suction dredgers in China and globally.

In 2019, Penglai Shipbuilding Co., Ltd. went bankrupt, and its assets entered judicial auction procedures with a total appraised value of 176 million yuan. On December 30, 2019, the second auction was finally concluded at the starting price of 98.6 million yuan.

Local state-owned enterprise Ningxing Holding aims to build a medium-sized characteristic shipbuilding enterprise.

Ningbo Ningxing Holding Co., Ltd. is a state-owned enterprise under the Ningbo Municipal Government. It is an international, diversified investment and operating holding group, mainly engaged in circulation trade, and primarily involved in international trade, special steel business, cross-border e-commerce, agricultural technology, shipbuilding, liquefied storage, automobile business, and equity investment, developing across multiple industries and fields. After more than 20 years of development, it has gradually formed seven major Ningxing business brands: "Ningxing Import and Export, Ningxing Special Steel Business, Ningxing Cross-border E-commerce, Ningxing Agricultural Feed Technology, Ningxing Liquefied and Youbei Storage Logistics, Ningxing Foreign Comprehensive Services, and Ningxing Shipbuilding." It has also established eight industrial production bases: "Ningxing Rubber Shoes Production Base, Ningxing Special Steel Circular Saw Washing Machine Production Base, Ningxing Yongyou Dairy Cow Fermented Feed Production Base, Ningxing Outdoor Shade Production Base, Ningxing Garment Production Base, Ningxing Special Steel Precision Manufacturing Production Base, Ningxing Shipbuilding Base, and Ningxing Aquatic Products Production Base," forming a certain scale of business expertise, industrial foundation, and good reputation.

According to International Ship Network, Ningxing Holding entered the shipbuilding business quite early. Shanghai Ningxing Shipbuilding Co., Ltd. was jointly invested and established by Ningbo Ningxing Trade Group Co., Ltd. and Panlian International Co., Ltd., both under Ningxing Holding. Ningbo Ningxing Trade Group Co., Ltd. is a professional trading company. In addition to general commodity trading, its shipbuilding-related business involves ship financing, import and export of ships and ship equipment, providing prepayment refund guarantees for new ship projects to foreign ship owners, importing ship equipment, handling new ship exports, and second-hand ship import and export procedures.

Panlian International Co., Ltd. is a company specializing in new ship and ship brokerage business, maintaining good cooperative relationships with many domestic shipyards and foreign ship owners and brokerage companies.

Ningxing Shipbuilding is a new and important part of Ningxing Holding. Relying on the overall resource integration advantages of Ningxing Holding, it is of significant strategic importance for optimizing and improving Ningxing Holding's business structure, enhancing its core competitiveness, and maintaining sustainable development.

It is understood that Ningxing Shipbuilding will focus on building various types of ships as a medium-sized characteristic shipbuilding enterprise. Future plans include undertaking the construction of ocean-going fishing vessels, product tankers, chemical tankers, and engineering equipment vessels, supplemented by ship maintenance and repair, actively building a shipbuilding base in Zhejiang Province.