Shou Xiaoli:

The last two questions, please.

CCTV.com:

Recently, China and France signed a cooperation agreement, setting the record for the largest single order by value that Chinese shipbuilders have ever received. How did the shipbuilding industry perform in the first quarter of this year? Thank you.

Tao Qing:

Thank you for your question. In the first quarter of 2023, the shipbuilding industry has rebounded. While registering stable performance, the industry also has demonstrated good momentum for growth, made steady progress and improved quality. According to statistics, in the first three months, the completed volume of shipbuilding in China reached 9.17 million deadweight tons (DWT). New shipbuilding orders amounted to 15.18 million DWT, increasing by 53% year on year. At the end of March, the volume of holding orders stood at 11.452 billion DWT, up 15.6% year on year.

First, the industry registered stable performance with good momentum for growth. From January to March, China's completed volume and new and holding orders of shipbuilding in deadweight tonnage accounted for 43.5%, 62.9% and 50.8% of the global market share, ranking first in the world. China's shipbuilding industry led the world in terms of orders for 10 out of 18 mainstream ship types in 2021.

Second, the industry has made steady progress while ensuring stability. Breakthroughs have been made in high-end ships. As of the end of March, all six container ships with a TEU (20-foot equivalent unit) capacity of 24,000 delivered globally were built at Chinese shipyards. China's shipbuilding companies seized the favorable opportunity when the car carrier market rebounded, and took all 24 orders globally for building car carriers in the first quarter of this year. Additionally, smooth progress has been made in building China's first self-developed large cruise ship, with over 91% of construction completed. Its equipment tuning work is well underway and interior installations are nearing completion. The cruise ship is expected to be delivered at the end of 2023.

Third, the industry has improved quality while ensuring stability. The quality of shipbuilding orders has been significantly enhanced and green development has been accelerated. From January to March, the structure of new shipbuilding orders received has been optimized, with CGT/DWT ratio standing at 0.485, marking the best level in history. Since the beginning of 2022, the orders of green-energy-powered ships have taken up 50% of new shipbuilding orders. As you mentioned, a series of deals concerning the construction of green and low-carbon large container ships were inked between China State Shipbuilding Corp and French shipping group CMA CGM, comprising 12 dual-fuel methanol-powered container ships with a capacity of 15,000 TEUs and four 23,000 TEUs dual-fuel liquefied natural gas (LNG) powered ones, worth more than 21 billion yuan in total.

On the whole, playing an increasingly greater and more influential role in global industrial and supply chains, China's shipbuilding industry will also be advanced from a new and higher starting point. Thank you.