Recently, the administrator of Nanjing Dongze Shipbuilding Co. Ltd. issued the “Announcement on Recruiting Reorganization Investors of Nanjing Dongze Shipbuilding Co., Ltd.”, officially launching the bankruptcy reorganization procedure of the shipyard.
On March 26, 2025, the Qixia District People’s Court filed a case to review the debtor Dongze Shipbuilding’s application for bankruptcy reorganization, and on the same day designated Beijing Dacheng Law Offices as the administrator of Dongze Shipbuilding.
According to the preliminary draft of the audit report, as of March 26, 2025, the date when the bankruptcy case was accepted, the total assets on Dongze Shipbuilding’s financial books were RMB 59,164,415.51, the total liabilities on its financial books were RMB 633,127,400.39, and the owners’ equity on its financial books was RMB -573,962,984.88.
The announcement disclosed that Dongze Shipbuilding was established on March 3, 2005 with a registered capital of RMB 50 million. Its registered address is Qixia District, Nanjing City, and its legal representative is Wang Changtai. Its business scope includes shipbuilding (less than 100,000 tons) and repair; manufacturing of various metal components and building components; operation of general machinery and equipment, metal materials, instruments and meters, electronic components, hardware tools; loading and unloading of general materials, warehousing; self-operation and agency of import and export of various commodities and technologies (projects subject to approval according to law can only be carried out after approval by relevant departments). The shareholders of the company are Xiong Chenggen, Nanjing Dongpei International Trade Group Co., Ltd. and Yu Dongqin, holding 55%, 35% and 10% of the shares respectively.
Dongze Shipbuilding’s main business is shipbuilding. Due to business reasons, the company rented out its factory buildings, equipment, harbors, land and related ancillary equipment. After Dongze Shipbuilding entered the bankruptcy reorganization procedure, the administrator applied in accordance with the law. On May 16, 2025, the Qixia Court made a reply, allowing Dongze Shipbuilding to continue operating. On May 16, 2025, the Qixia Court made a second reply, allowing Dongze Shipbuilding continued performance of engineering contracting agreements, service contracts and related leasing contracts that had not been fully performed before the bankruptcy was accepted.
The main lease contract is the one signed between Dongze Shipbuilding and a certain company. The rent under the contract is RMB 25 million per year. The lease contract stipulates that if the lessor unilaterally terminates the lease contract in advance for reasons other than the lessee, resulting in the inability to perform the lease contract, the lessor shall compensate the lessee for liquidated damages of RMB 50 million.
The announcement shows that the existing buildings in Dongze Shipbuilding’s factory area were mainly built between 2007 and 2014, including the block processing workshop, steel processing workshop, painting workshop, equipment warehouse, etc. Most of them are single-story, steel structure and brick-concrete structure, with a total construction area of 66,217.39 square meters, and 2 buildings have been demolished (demolished area of 54.48 square meters). At the same time, Dongze Shipbuilding’s factory area also has other structures, mainly built between 2005 and 2014, including No. 1 slipway, No. 2 slipway, 50,000-ton outfitting dock, block production and stacking site, etc.
It is reported that Dongze Shipbuilding has a 900-meter Yangtze River coastline and corresponding waters license, and is the only shipyard in Nanjing that meets the planning requirements. The coastline resources are extremely scarce and non-renewable resources. At the same time, the Dongze Shipbuilding site has not been fully utilized and has room for subsequent development.