Core Viewpoint - The final ruling of the US Section 301 trade investigation will have a temporary impact on global shipowners' order decisions, but the actual impact is expected to be milder than previously anticipated [1] Industry Outlook - In the short term, the impact of the US trade investigation is assessed to be moderate compared to market expectations [1] - In the medium to long term, the global shipbuilding industry's upcycle, which began in 2021, is supported by solid fundamentals [1] - Key drivers of this upcycle include a sustained balance in global shipyard capacity, periodic renewal demand from the existing fleet, and accelerated decarbonization efforts in the shipping industry under the International Maritime Organization (IMO) framework [1] - The current shipbuilding market upcycle is expected to continue as long as there are no disruptive changes in maritime trade [1]

Investment Rating - The industry investment rating is "Positive" [2] Core Viewpoints - The report emphasizes the importance of developing deep-sea technology as a new engine for economic growth, with the deep-sea technology-related industries expected to exceed 3.25 trillion yuan by 2025, accounting for over 25% of the marine economy [5][14] - The report highlights the strategic shift of China from a "maritime power" to a "maritime strong power," with deep-sea technology becoming a key focus of national strategy [12][14] - The report identifies four major directions for deep-sea technology: marine resource development, marine technology, marine environmental protection, and marine rights protection [19][57] Summary by Sections What is Deep-Sea Technology? - Deep-sea technology refers to advanced technologies and related disciplines used for exploring, developing, and utilizing deep-sea resources and studying the deep-sea environment [4] Why Develop Deep-Sea Technology? - It is crucial for economic structural transformation and national security, with deep-sea technology expected to play a significant role in safeguarding national interests and resource rights [5] Directions of Deep-Sea Technology - Key areas include marine resource development (renewable energy, deep-sea mining, fisheries, oil and gas), marine technology (carriers, sensors, special materials), environmental protection (green ships, island engineering), and rights protection (polar engineering, integrated information networks) [6][19] Investment Recommendations - Focus on sectors with production material or new infrastructure attributes, specifically deep-sea equipment, deep-sea information technology, deep-sea exploration, and deep-sea special materials [7][59] - Recommended companies include: - Deep-sea equipment: Yaxing Anchor Chain, Zhenhua Heavy Industries, China Shipbuilding, China Power, China Shipbuilding Defense [7][59] - Deep-sea information technology: Zhongtian Technology, Oriental Cable [9][59] - Deep-sea exploration: China Marine Defense, Weiguang Co., Ltd. [9][59] - Deep-sea materials: BaoTi Co., Ltd., Western Materials, Western Superconducting [9][59]

Market Overview - The recent US-China talks exceeded market expectations, leading to a significant surge in the Hang Seng Index by 2.98% with trading volume reaching 322.4 billion [1] - The ceasefire agreement between India and Pakistan has positively impacted both countries' stock markets, with Pakistan's KSE-30 index soaring by 9.2%, marking its largest increase since 2008 [1] US-China Trade Relations - The US announced a suspension of a 24% tariff set to take effect on April 2, 2025, while maintaining a 10% tariff, effectively reducing the overall tariff on Chinese goods from 145% to 30% [2] - This significant concession from the US is attributed to several factors, including the need to replenish dwindling inventories and the urgency to achieve results ahead of the upcoming elections [3] Sector Performance - The consumer electronics sector, particularly companies within Apple's supply chain, benefited the most from the tariff reductions, with stocks like Highway Electronics and AAC Technologies rising over 13% [4] - Automotive parts suppliers with significant North American business exposure, such as Minth Group and Quanfeng Holdings, saw stock increases of nearly 10% [4] Financial Sector Response - Major financial institutions, including Hongye Futures and CITIC Securities, experienced stock price increases of over 6%, reflecting positive market sentiment following the trade talks [5] Individual Company Highlights - Midea Group reported a record revenue of 128.4 billion yuan in Q1 2025, a 20.61% year-on-year increase, and plans to enhance its overseas presence through strategic partnerships [10] - The company is also making strides in the commercial air conditioning sector and aims to expand its robotics division with new product testing scheduled for May [11] International Relations and Infrastructure - Brazilian President Lula's visit to China aims to strengthen bilateral relations and discuss infrastructure projects, including a railway connecting Brazil to China, which could reshape international trade logistics [8]

Core Viewpoint - The "national team" has increased its holdings in several A-share listed companies during the first quarter of 2025, indicating a strategic investment approach in key sectors such as finance, energy, and defense. Group 1: National Team Holdings - A total of 285 A-share listed companies have the "national team" (China Securities Finance Corporation and Central Huijin) among their top ten shareholders [1] - The "national team" has increased its holdings in 26 stocks, including China Ping An, Baogang Group, Guotai Junan, and others [1] - New additions to the "national team" holdings include Citic Special Steel, Tianfu Energy, and China Shipbuilding Defense [1][2][3] Group 2: Company Performance - Citic Special Steel reported a first-quarter revenue of 26.84 billion yuan, a year-on-year decrease of 5.59%, with a net profit of 1.384 billion yuan, up 1.76% [1] - Tianfu Energy's first-quarter revenue was 2.21 billion yuan, down 3.12%, while net profit increased by 22.75% to 181 million yuan [2] - China Shipbuilding Defense achieved a first-quarter revenue of 3.641 billion yuan, a year-on-year increase of 29.73%, with a net profit of 184 million yuan, up 1099.85% [3] Group 3: Strategic Developments - Citic Special Steel is recognized for producing over 3,000 varieties and 5,000 specifications of special steel materials, enhancing its market share in high-end steel products [1] - Tianfu Energy has signed a contract for a comprehensive energy efficiency enhancement project, with an investment of 313 million yuan [2] - China Shipbuilding Defense is noted for its strong order backlog and profitability, expected to stabilize with high-value ship deliveries [3]

天风证券指出，2025Q1主动型基金前十大军工股持有流入总市值绝对值的前十中，军工电子板块标的 占80%。 过去三年军工电子板块较其他军工子板块超跌较多，在长尾效应下周期反弹锐度或将凸显，板块景气度 修复时或成为先选，军工电子持仓占比有望持续提升。2025Q1航空发动机产业相关标的在主动型基金 前十大军工股持有流出总市值占公司总市值前十中占比30%，我们认为，航发产业或受制于2025年周期 相对底部的影响，伴随国产商发持续加速，新型号装备型号持续成熟，航发子板块有望企稳修复。 军工板块相关企业港股： 中航科工（02357）、中船防务（00317） 智通财经APP获悉，据知情政府官员透露，美国总统特朗普将为10月1日开始的下一财年申请创纪录的 1.01万亿美元国家安全支出，比当前财年的数字高出13%以上。 美国国防预算将为金穹导弹防御项目、造船和核现代化、边境安全提供资金。其中包括3.8%的军人加 薪。其中一位要求不具名的官员说，13%的增幅与里根总统领导下的国防建设相呼应。作为埃隆·马斯 克削减成本努力的一部分，特朗普政府试图削减五角大楼的一些开支，但表示希望提高总体国防预算。 中国银河证券研报表示，新质筑基 ...

Performance Summary - Industrial and Commercial Bank of China (01398.HK) reported Q1 revenue of 204.688 billion yuan, a decrease of 2.61% year-on-year, and a net profit of 84.156 billion yuan, down 3.99% [3] - China Construction Bank (00939.HK) had Q1 operating income of 185.99 billion yuan, down 4.76% year-on-year, with a net profit of 83.351 billion yuan, also down 3.99% [3] - Agricultural Bank of China (01288.HK) achieved Q1 revenue of 186.735 billion yuan, an increase of 0.32% year-on-year, and a net profit of 71.931 billion yuan, up 2.2% [3] - Bank of China (03988.HK) reported Q1 revenue of 164.911 billion yuan, an increase of 2.41% year-on-year, but a net profit of 58.644 billion yuan, down 2.22% [3] - Postal Savings Bank of China (01658.HK) had Q1 revenue of 89.406 billion yuan, a slight decrease of 0.1%, and a net profit of 25.246 billion yuan, down 2.62% [3] - China Merchants Bank (03968.HK) reported Q1 revenue of 83.731 billion yuan, down 3.11% year-on-year, with a net profit of 37.286 billion yuan, down 2.08% [3] - Bank of Communications (03328.HK) had Q1 net operating income of 66.44 billion yuan, down 1.13%, but a net profit of 25.372 billion yuan, up 1.54% [3] - HSBC Holdings (00005.HK) reported Q1 revenue of 17.649 billion USD, down 14.95%, and a post-tax profit of 7.57 billion USD, down 30.15% [3] - China People's Insurance Group (01339.HK) achieved Q1 revenue of 156.589 billion yuan, up 12.8%, and a net profit of 12.849 billion yuan, up 43.4% [3] - China Life Insurance (02628.HK) reported Q1 revenue of 110.177 billion yuan, down 8.9%, but a net profit of 28.802 billion yuan, up 39.5% [3] - New China Life Insurance (01336.HK) had Q1 revenue of 33.402 billion yuan, up 26.1%, and a net profit of 5.882 billion yuan, up 19% [3] - China National Petroleum Corporation (00857.HK) reported Q1 revenue of 753.108 billion yuan, down 7.3%, but a net profit of 46.809 billion yuan, up 2.3% [3] - CNOOC (00883.HK) had Q1 revenue of 106.854 billion yuan, down 4.1%, and a net profit of 36.563 billion yuan, down 7.9% [3] - Huadian International Power (01071.HK) reported Q1 revenue of 26.577 billion yuan, down 14.14%, but a net profit of 1.93 billion yuan, up 3.66% [3] - China International Marine Containers (01880.HK) had Q1 revenue of 16.746 billion yuan, down 10.96%, and a net profit of 1.938 billion yuan, down 15.98% [3] - Air China (00753.HK) reported Q1 revenue of 40.023 billion yuan, down 0.11%, with a net loss of 2.044 billion yuan, an increase of 22.07% [3] - CITIC Securities (06030.HK) achieved Q1 revenue of 17.761 billion yuan, up 29.13%, and a net profit of 6.545 billion yuan, up 32% [3] - China Galaxy Securities (06881.HK) reported Q1 revenue of approximately 7.558 billion yuan, up 4.77%, and a net profit of approximately 3.016 billion yuan, up 84.86% [3] - CITIC Construction Investment Securities (06066.HK) had Q1 operating income of 4.919 billion yuan, up 14.54%, and a net profit of 1.843 billion yuan, up 50.07% [3] - Huatai Securities (06886.HK) reported Q1 revenue of approximately 8.232 billion yuan, up 34.83%, and a net profit of approximately 3.642 billion yuan, up 58.97% [3] - China Railway Construction (01186.HK) had Q1 revenue of 256.762 billion yuan, down 6.61%, and a net profit of 5.151 billion yuan, down 14.51% [3] - China Energy Engineering (03996.HK) reported Q1 revenue of 100.371 billion yuan, up 3.05%, and a net profit of 1.612 billion yuan, up 8.83% [3] - Times Electric (03898.HK) achieved Q1 revenue of 4.537 billion yuan, up 14.81%, and a net profit of 631 million yuan, up 13.42% [3] - Midea Group (00300.HK) reported Q1 revenue of 127.839 billion yuan, up 20.49%, and a net profit of 12.422 billion yuan, up 38.02% [3] - WH Group (00288.HK) had Q1 revenue of 6.554 billion USD, up 6.0%, and a profit of 364 million USD, up 20.9% [3] - Suncity Group (00880.HK) reported Q1 total revenue of 7.48 billion HKD, up 8.1%, and a net profit of 31 million HKD, turning profitable [3] - COSCO Shipping Ports (01199.HK) had Q1 revenue of 3.82 billion USD, up 14.7%, and a net profit of 839 million USD, up 33.5% [3] - Flat Glass Group (06865.HK) reported Q1 revenue of 4.079 billion yuan, down 28.76%, and a net profit of 106 million yuan, down 86.03% [3] - Zoomlion Heavy Industry (01157.HK) achieved Q1 revenue of 12.117 billion yuan, up 2.92%, and a net profit of 1.41 billion yuan, up 53.98% [3] - Ganfeng Lithium (01772.HK) reported Q1 revenue of approximately 3.772 billion yuan, down 25.43%, with a net loss of approximately 356 million yuan, narrowing by 18.93% [3] - Qingdao Port (06198.HK) had Q1 revenue of 4.807 billion yuan, up 8.51%, and a net profit of 1.402 billion yuan, up 6.51% [3] - China Shipbuilding Defense (00317.HK) reported Q1 revenue of approximately 3.641 billion yuan, up 29.73%, and a net profit of approximately 184 million yuan, up about 11 times [3] - Baiyunshan Pharmaceutical (00874.HK) had Q1 revenue of 22.473 billion yuan, down 2.06%, and a net profit of 1.821 billion yuan, down 6.99% [3] Investment Activities - New China Life Insurance (01336.HK) plans to invest no more than 10 billion yuan to subscribe to a private fund [4] - China Life Insurance (02628.HK) intends to invest 2 billion yuan to establish a partnership [4] Contract Signing - China Metallurgical Group (01618.HK) reported a new contract signing amount of 230.66 billion yuan in Q1, a decrease of 27.2% year-on-year, with overseas contracts amounting to 12.04 billion yuan, down 35.7% [5] Energy Production - Xin Tian Green Energy (00956.HK) completed power generation of 4.5442 million MWh in Q1, an increase of 10.37% year-on-year [6] - China Power (02380.HK) reported total electricity sales of 30.7477 million MWh in the first three months, up 2.59% year-on-year, with March sales of 10.9617 million MWh, up 3.95% [6] - Qingdao Port (06198.HK) achieved a total cargo throughput of 177 million tons in the first three months, up 2.9% year-on-year [6] Licensing Agreement - Fuhong Hanlin (02696.HK) entered into a licensing agreement with Sandoz AG for the commercialization of HLX13 in specified regions [6] Privatization Offer - Dingsheng Creation (00113.HK) received a privatization offer at a premium of approximately 50.63%, with a maximum cash consideration of about 1.0986 billion HKD [7] Share Buybacks - AIA Group (01299.HK) repurchased shares for 342.6 million HKD, buying back 6.2592 million shares at prices between 54.25 and 55.35 HKD [8] - J&T Express-W (01519.HK) repurchased shares for 9.2485 million HKD, buying back 1.54 million shares at prices between 5.98 and 6.03 HKD [8]

Financial Performance - The company's operating revenue for Q1 2025 was CNY 3,641,442,907.15, representing a year-on-year increase of 29.73% compared to CNY 2,806,869,058.01 in the same period last year[3]. - Net profit attributable to shareholders reached CNY 184,464,019.76, a significant increase of 1,099.85% from CNY 15,373,901.72 in the previous year[3]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 177,951,301.87, up 605.35% from CNY 25,228,892.06 year-on-year[3]. - Basic and diluted earnings per share were both CNY 0.1305, reflecting a year-on-year increase of 1,097.25% from CNY 0.0109[3]. - Operating profit for Q1 2025 was RMB 221,840,221.41, compared to RMB 26,918,285.68 in Q1 2024, indicating significant growth[18]. - Net profit for Q1 2025 was RMB 223,642,641.52, a substantial increase from RMB 26,975,829.81 in Q1 2024[18]. - The net profit for Q1 2025 was approximately ¥220.94 million, a significant increase from ¥24.68 million in Q1 2024, representing a growth of 795.5%[19]. Cash Flow and Liquidity - The net cash flow from operating activities was CNY 359,469,340.17, a significant recovery from a negative cash flow of CNY -3,403,181,373.38 in the same period last year[3]. - The net cash flow from operating activities for Q1 2025 was ¥359.47 million, a recovery from a negative cash flow of ¥3.40 billion in Q1 2024[23]. - The net cash flow from investing activities for Q1 2025 was ¥1.11 billion, a substantial increase from ¥16.07 million in Q1 2024[24]. - The company incurred a total of ¥3.69 billion in cash payments for goods and services in Q1 2025, down from ¥5.79 billion in Q1 2024, reflecting a decrease of 36.3%[23]. - Cash and cash equivalents as of March 31, 2025, were RMB 15,371,732,215.13, slightly up from RMB 15,260,594,444.32 at the end of 2024[14]. - The cash and cash equivalents at the end of Q1 2025 amounted to ¥9.19 billion, an increase from ¥6.17 billion at the end of Q1 2024[24]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 54,876,784,503.45, an increase of 2.39% from CNY 53,596,113,615.25 at the end of the previous year[4]. - Total liabilities increased by 88.23% to ¥182,340,048.11, attributed to the rise in the fair value of hedged projects[11]. - Total liabilities rose to RMB 34,372,094,200.10 as of March 31, 2025, from RMB 32,425,656,525.38 at the end of 2024[16]. - The company's equity decreased to RMB 20,504,690,303.35 as of March 31, 2025, down from RMB 21,170,457,089.87 at the end of 2024[16]. Shareholder Information - HKSCC NOMINEES LIMITED holds 589,904,992 shares, accounting for 41.73% of total shares[9]. - China Shipbuilding Industry Group Co., Ltd. owns 481,337,700 shares, representing 34.05% of total shares[9]. - The company has no significant changes in the top 10 shareholders or their shareholding status due to margin trading activities[10]. Research and Development - Research and development expenses increased by 44.33% to ¥197,703,698.08, reflecting higher investment in research projects[12]. - Research and development expenses in Q1 2025 amounted to RMB 197,703,698.08, up from RMB 136,983,220.26 in Q1 2024, reflecting a focus on innovation[18]. Other Income and Expenses - The company received government subsidies amounting to CNY 19,800,485.72, which positively impacted the financial results[5]. - The company reported a 370.42% increase in other income, reaching ¥2,630,968.74, primarily from insurance claims[12]. - The company reported a tax expense of approximately ¥2.70 million in Q1 2025, compared to ¥2.30 million in Q1 2024, reflecting an increase of 17.6%[19].

Financial Performance - The company's operating revenue for Q1 2025 was RMB 3,641,442,907.15, representing a year-on-year increase of 29.73% compared to RMB 2,806,869,058.01 in the same period last year[6]. - Net profit attributable to shareholders reached RMB 184,464,019.76, a significant increase of 1,099.85% from RMB 15,373,901.72 in the previous year[6]. - The net profit excluding non-recurring gains and losses was RMB 177,951,301.87, up 605.35% from RMB 25,228,892.06 year-on-year[6]. - The basic earnings per share (EPS) was RMB 0.1305, reflecting a 1,097.25% increase from RMB 0.0109 in the same quarter last year[6]. - In Q1 2025, the company reported a net profit of ¥220,940,523.02, a significant increase from ¥24,679,465.08 in Q1 2024, representing a growth of approximately 795%[30]. - The operating profit for Q1 2025 was ¥221,840,221.41, compared to ¥26,918,285.68 in Q1 2024, indicating a substantial increase of about 720%[30]. - The total revenue from operating activities in Q1 2025 was ¥4,410,663,938.72, up from ¥2,787,618,537.83 in Q1 2024, reflecting an increase of approximately 58%[35]. - The company’s total profit for Q1 2025 was ¥223,642,641.52, compared to ¥26,975,829.81 in Q1 2024, indicating an increase of about 728%[30]. Cash Flow and Assets - The net cash flow from operating activities was RMB 359,469,340.17, a significant recovery from a negative cash flow of RMB -3,403,181,373.38 in the previous year[6]. - The cash flow from investment activities surged by 6,807.75% to ¥1,110,349,129.00 from ¥16,073,973.30, indicating a substantial increase in cash from long-term deposits maturing[22]. - The net increase in cash and cash equivalents for Q1 2025 was approximately $1.28 billion, compared to a decrease of $3.53 billion in Q1 2024[37]. - The ending balance of cash and cash equivalents for Q1 2025 was approximately $9.19 billion, up from $6.17 billion in Q1 2024[37]. - The beginning balance of cash and cash equivalents for Q1 2025 was approximately $7.91 billion, compared to $9.70 billion in Q1 2024[37]. - Total assets at the end of the reporting period were RMB 54,876,784,503.45, an increase of 2.39% from RMB 53,596,113,615.25 at the end of the previous year[6]. - Current assets totaled ¥34,389,278,300.54 as of March 31, 2025, an increase from ¥32,140,949,910.03 as of December 31, 2024[24]. - Non-current assets decreased to ¥20,487,506,202.91 as of March 31, 2025, down from ¥21,455,163,705.22 as of December 31, 2024[25]. - Total liabilities increased to ¥34,372,094,200.10 as of March 31, 2025, compared to ¥32,425,656,525.38 as of December 31, 2024[26]. - Total equity decreased to ¥20,504,690,303.35 as of March 31, 2025, from ¥21,170,457,089.87 as of December 31, 2024[27]. Shareholder Information - The company reported a total of 83,911 common shareholders at the end of the reporting period[12]. - Shareholders' equity attributable to the company was RMB 17,121,032,147.70, down 3.95% from RMB 17,824,706,200.68 at the end of the previous year[6]. Research and Development - Research and development expenses increased by 44.33% to ¥197,703,698.08 from ¥136,983,220.26, reflecting higher investment in research projects[21]. - The company plans to continue investing in R&D to enhance product offerings and market competitiveness[29]. Market Strategy - The company focused on annual goals and improved production efficiency, leading to a significant increase in gross profit margins[10]. - The company plans to continue expanding its market presence and investing in new technologies to enhance competitiveness[19]. - The company is exploring market expansion opportunities and potential acquisitions to drive future growth[29]. Other Financial Metrics - The company's trading financial assets decreased by 87.10% to ¥151,076.50 from ¥1,171,434.07 in the previous year, primarily due to the expiration and settlement of certain financial derivatives[20]. - Accounts receivable decreased by 63.33% to ¥20,570,686.03 from ¥56,102,457.89, attributed to the maturity of certain notes receivable[20]. - Investment income rose to ¥127,471,417.55 from a loss of -¥1,317,113.77, indicating a positive turnaround in returns from joint ventures[21]. - The company reported a 370.42% increase in non-operating income to ¥2,630,968.74 from ¥559,279.07, driven by higher insurance claims received[21]. - The financial expenses decreased significantly to -¥38,783,288.48 from -¥84,189,143.88, reflecting improved interest income and exchange rate gains[21]. - The company recorded a total comprehensive income of ¥-666,167,418.36 in Q1 2025, a decrease from ¥1,254,806,694.09 in Q1 2024, indicating a decline of approximately 153%[32]. - The company reported other income of ¥25,831,426.81 in Q1 2025, up from ¥21,744,091.72 in Q1 2024, representing an increase of about 9.6%[30]. - The investment income from associates and joint ventures was ¥129,024,744.82 in Q1 2025, a substantial increase from ¥3,197,798.47 in Q1 2024, reflecting a growth of approximately 3,925%[30].

Financial Performance - The company's operating revenue for 2024 reached RMB 19.40 billion, representing a year-on-year increase of 20.17% compared to RMB 16.15 billion in 2023[23]. - The net profit attributable to shareholders for 2024 was RMB 377.26 million, a significant increase of 684.86% from RMB 48.07 million in 2023[26]. - The basic earnings per share for 2024 was RMB 0.2669, reflecting a growth of 685% compared to RMB 0.0340 in 2023[25]. - The weighted average return on equity increased to 2.20% in 2024, up by 1.90 percentage points from 0.30% in 2023[25]. - The total cash dividend for the year, including interim distributions, amounts to RMB 115.91 million (including tax), representing 30.72% of the net profit attributable to shareholders of the listed company[6]. - The company has a retained earnings balance of RMB 1.14 billion to be distributed in future periods[6]. Cash Flow and Assets - The net cash flow from operating activities for 2024 was RMB -21.96 billion, a decrease from RMB 33.12 billion in the previous year, primarily due to increased production scale and material procurement[26]. - The total assets at the end of 2024 amounted to RMB 53.60 billion, an increase of 5.37% from RMB 50.86 billion at the end of 2023[24]. - The net assets attributable to shareholders at the end of 2024 were RMB 17.82 billion, reflecting an 8.57% increase from RMB 16.42 billion at the end of 2023[24]. - The net cash flow from investing activities was RMB -428 million, an increase of RMB 2.672 billion year-on-year, mainly due to a decrease in net outflow of time deposits over three months[77]. - The net cash flow from financing activities was RMB 808 million, an increase of RMB 2.431 billion year-on-year, primarily due to increased net borrowings from financial institutions[77]. Orders and Deliveries - The company secured new orders for 56 ships across 12 types, including 6 methanol dual-fuel container ships and 12 gas carriers, enhancing its market position[41]. - The total value of the company's order backlog reached approximately RMB 61.6 billion, with shipbuilding orders valued at about RMB 58.7 billion, comprising 130 vessels[42]. - The company delivered 37 ships totaling 1.0844 million deadweight tons during the reporting period, including significant defense equipment and various series of ships[42]. - The company completed 165.56% of its annual operational target with a total operational undertaking of RMB 25 billion[41]. Research and Development - Research and development expenses rose by 34.92% to RMB 888 million, reflecting the company's commitment to innovation and technology advancement[49]. - The company has established 13 provincial and national-level technology innovation platforms, enhancing its technological capabilities in shipbuilding[46]. - The company is focusing on developing autonomous products, particularly the "Honghu" series of feeder container ships and the "Haiqing" series of bulk carriers, to improve market competitiveness[75]. Market and Industry Trends - The shipbuilding industry remains buoyant, with new ship orders significantly increasing and prices stabilizing at high levels[43]. - The global new shipbuilding market saw a significant increase in new orders, with a total of 178.035 million deadweight tons, representing a year-on-year growth of 39.3%[86]. - China's shipbuilding industry maintained its global leadership, with new orders and hand-held orders accounting for 69.0% and 66.7% of the world's total, respectively[88]. Environmental Initiatives - The company is actively pursuing green development initiatives, as outlined in the "Green Development Action Plan for Shipbuilding Industry (2024-2030)"[91]. - Environmental protection investments during the reporting period amounted to RMB 46,165,500[191]. - The company has been included in the list of key pollutant discharge units by the Guangzhou Ecological Environment Bureau for 2024[193]. Governance and Compliance - The company adheres to corporate governance standards and has made efforts to improve its governance structure in line with relevant laws and regulations[118]. - The board of directors consists of 8 members, including 1 executive director and 4 independent non-executive directors, ensuring diverse expertise[123]. - The company emphasizes continuous professional development for directors and senior management, with a minimum of 15 hours of training required annually[129]. Shareholder Engagement - The company has established multiple channels for ongoing communication with shareholders, including printed reports and online disclosures[138]. - Shareholders holding more than 10% of the company's shares can request a temporary shareholders' meeting, with a response required from the board within 10 days[139]. - The company held four shareholder meetings during the reporting period, all of which were conducted in compliance with relevant laws and regulations[147].

Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.70 per 10 shares, totaling RMB 98,945,446.46 (including tax) based on a total share capital of 1,413,506,378 shares as of December 31, 2024[5]. - The total cash dividend for the year, including the interim distribution, amounts to RMB 115,907,523.00 (including tax), representing 30.72% of the net profit attributable to shareholders of the listed company[5]. - The remaining undistributed profit carried forward to future periods is RMB 1,137,201,178.63[5]. - The profit distribution proposal is subject to approval at the company's 2024 annual general meeting[6]. - The company does not plan to implement a capital reserve fund conversion into share capital for the 2024 fiscal year[5]. Financial Performance - The company's operating revenue for 2024 reached RMB 19.40 billion, representing a year-on-year increase of 20.17%[20]. - Net profit attributable to shareholders for 2024 was RMB 377.26 million, a significant increase of 684.86% compared to the previous year[21]. - The basic earnings per share for 2024 was RMB 0.2669, reflecting a growth of 685% year-on-year[21]. - The net cash flow from operating activities for 2024 was RMB -2.20 billion, a decrease of 166.29% compared to the previous year[20]. - The company's total assets at the end of 2024 amounted to RMB 53.60 billion, an increase of 5.37% from the previous year[20]. - The weighted average return on equity for 2024 was 2.20%, an increase of 1.90 percentage points year-on-year[21]. Revenue Breakdown - Revenue from shipbuilding products was RMB 16.73 billion, a year-on-year increase of 26.39%, with a gross margin of 9.33%, up by 3.86 percentage points[62]. - The revenue from offshore engineering products was RMB 697.80 million, a year-on-year increase of 64.97%, but with a negative gross margin of -21.01%, down by 8.59 percentage points[62]. - Steel structure engineering revenue decreased by 38.43% to RMB 826.44 million, with a gross margin of 11.15%, down by 0.75 percentage points[62]. - Revenue from ship repair and modification was RMB 758.59 million, a slight increase of 1.96%, but with a gross margin of -11.70%, down by 15.61 percentage points[62]. - The revenue contribution from shipbuilding and offshore engineering products accounted for 90.91% of total revenue, an increase of 5.24 percentage points year-on-year[62]. Contracts and Orders - The company secured new contracts worth RMB 25 billion, completing 165.56% of the annual plan, with a total of 56 new ship orders across 12 types[29]. - As of the end of the reporting period, the total value of the company's order backlog was approximately RMB 61.6 billion, including contracts for 130 vessels[30]. - The company delivered 37 vessels totaling 1.0844 million deadweight tons during the reporting period, including significant defense equipment and various types of commercial vessels[30]. - The company successfully signed contracts for 6 methanol dual-fuel container ships and 12 gas transport vessels, enhancing its position in the medium-sized gas transport shipbuilding sector[29]. - The company has made significant progress in green transformation, securing contracts for 24 new energy vessels across 7 types[29]. Research and Development - Research and development expenses increased by 34.92% to RMB 888 million, reflecting a focus on enhancing R&D capabilities[40]. - The company completed 542 patent applications and received 167 patent grants during the year, enhancing its technological reserves[90]. - The proportion of R&D personnel to total employees was 21.56%, with a total of 1,345 R&D staff[85]. - The company is focusing on new technologies and products to meet the evolving demands of the defense industry and maritime sector[129]. - The company plans to continue optimizing ship types and innovating to improve product performance and meet customer demands[37]. Corporate Governance - The company has ensured the accuracy and completeness of the annual report, with no false records or significant omissions[8]. - The company has engaged Lixin Certified Public Accountants to provide a standard unqualified audit report for the financial statements[8]. - The company maintains its commitment to transparency and governance, adhering to the corporate governance code as per the Hong Kong Stock Exchange[11]. - The board of directors consists of 8 members, including 1 executive director, 3 non-executive directors, and 4 independent non-executive directors, ensuring diverse expertise in various fields[155]. - The company has established a robust internal control system, conducting annual reviews to ensure its effectiveness[159]. Investor Relations - The company emphasizes the importance of maintaining continuous communication with shareholders through various channels[177]. - The investor relations management system includes regular information disclosure and communication to enhance understanding and recognition among investors[178]. - The company has established a dedicated investor relations office to manage communication and feedback from investors and stakeholders[182]. - The company conducts various investor relations activities, including roadshows and site visits, to facilitate interaction with investors[182]. - The company ensures compliance with legal and regulatory requirements in its investor relations management activities[179]. Market Outlook - The company anticipates stable economic growth in 2025, driven by favorable fiscal and monetary policies, with emerging industries expected to develop rapidly[127]. - The global shipbuilding industry is experiencing a dual cycle of old ship replacement and green transformation, with a potential demand for new orders due to aging fleets[129]. - The global offshore wind power installed capacity is projected to grow from 10.9 GW to 66.2 GW from 2023 to 2033, with a compound annual growth rate of 19.8%[130]. - The company is focusing on enhancing ship type research and development, promoting product upgrades, and increasing production efficiency[132]. - The company aims to strengthen contract performance management to mitigate customer risks related to financing difficulties and potential defaults[135]. Risk Management - The company has detailed potential risks in the board report, advising investors to be aware of investment risks[9]. - The company has no instances of non-operational fund occupation by controlling shareholders or related parties[9]. - The company has implemented measures to manage market, liquidity, credit, operational, and legal risks associated with derivative investments[115]. - The company has established a financial derivative business management system to regulate foreign exchange derivative trading operations and risk management procedures[115]. - The company is committed to reducing costs through efficiency improvements and optimizing product structure to counteract raw material price fluctuations[136].