Financial Performance - The company's operating revenue for Q1 2022 was RMB 611,425.30 million, a decrease of 14.17% year-on-year[2] - The net profit attributable to shareholders was RMB 55.55 million, down 72.70% compared to the same period last year[2] - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB -37.35 million, a decline of 143.98% year-on-year[2] - The basic earnings per share for the period was RMB 0.002, a decrease of 77.78% year-on-year[2] - The diluted earnings per share was also RMB 0.002, reflecting the same percentage decrease[3] - The company's net profit attributable to shareholders of the parent company for Q1 2022 was 0.06 billion RMB, a decrease of 72.70% from 0.20 billion RMB in Q1 2021[10] - Net profit for Q1 2022 was approximately $42.09 million, a significant decline of 79.0% from $200.11 million in Q1 2021[18] - The company recorded a total comprehensive income of approximately -$2.82 million in Q1 2022, compared to $190.14 million in Q1 2021[18] Cash Flow - The net cash flow from operating activities was RMB -2,751.96 million, compared to RMB -314 million in the same period last year[3] - The company reported a net cash outflow from operating activities of approximately $2.75 billion in Q1 2022, compared to an outflow of $313.60 million in Q1 2021[19] - The net cash flow from financing activities was 0.81 billion RMB, a substantial increase of 291.04% from 0.21 billion RMB in the previous year[12] - Cash inflow from financing activities amounted to approximately $4.33 billion, up from $3.64 billion year-over-year[20] - Net cash flow from financing activities increased to $813.73 million, compared to $208.09 million in the previous year[20] - The net decrease in cash and cash equivalents was approximately -$7.28 billion, compared to -$4.17 billion in the previous year[20] - The ending balance of cash and cash equivalents was approximately $27.65 billion, down from $32.61 billion year-over-year[20] Assets and Liabilities - The total assets at the end of the reporting period were RMB 18,419,077.70 million, an increase of 2.25% from the end of the previous year[3] - The total assets as of March 31, 2022, were 184.19 billion RMB, reflecting a growth of 2.25% from 180.14 billion RMB at the end of 2021[11] - The total liabilities increased by 4.28% to 98.07 billion RMB compared to 94.04 billion RMB at the end of 2021[11] - Total liabilities amounted to CNY 98,071,060,138.03, compared to CNY 94,042,164,637.11, reflecting an increase of about 4.3%[16] - Long-term borrowings reached 10.50 billion RMB, up 35.57% from 7.75 billion RMB at the end of 2021[13] - Long-term borrowings increased significantly to CNY 10,501,126,527.78 from CNY 7,745,827,777.78, representing a rise of approximately 35.8%[16] Revenue and Costs - The operating cost for Q1 2022 was 5.43 billion RMB, down 15.36% from 6.41 billion RMB in the same period last year[10] - Total operating costs for Q1 2022 were approximately $6.22 billion, down 12.4% from $7.10 billion in Q1 2021[17] - The gross profit margin increased to 11.27%, up 1.25 percentage points year-on-year[10] - Investment income for the reporting period was 0.76 billion RMB, a significant increase of 152.21% compared to 0.30 billion RMB in Q1 2021[10] - Research and development expenses increased to approximately $146.71 million in Q1 2022, up from $128.45 million in Q1 2021, reflecting a growth of 14.2%[17] Challenges and Strategies - The company faced challenges due to the uneven distribution of revenue recognition in shipbuilding and high costs of raw materials and labor[3] - The company implemented cost control measures to mitigate the impact of rising costs and improve efficiency[3] - The company plans to enhance its market expansion efforts and invest in new product development to drive future revenue growth[14] Other Financial Metrics - The company's cash and cash equivalents decreased to CNY 65,939,273,780.20 from CNY 67,978,718,297.03, a decline of about 3.0%[14] - Accounts receivable increased to CNY 8,649,993,463.67 from CNY 8,107,585,641.78, reflecting a growth of approximately 6.7%[14] - Inventory rose to CNY 29,260,201,576.13 from CNY 26,606,053,579.36, indicating an increase of around 10.0%[15] - Total non-current assets reached CNY 57,160,509,478.16, up from CNY 56,891,534,636.22, marking a growth of about 0.5%[15] - The company's financial expenses showed a reduction, with net financial costs of approximately -$280.89 million in Q1 2022, compared to -$339.20 million in Q1 2021[17] Accounting Standards - The company has implemented new accounting standards starting from 2022[20]

Financial Performance - In 2021, the company's operating revenue reached RMB 39.54 billion, a year-on-year increase of 13.27%[17]. - The net profit attributable to shareholders was RMB 2.20 billion, compared to a loss of RMB 481.19 million in the previous year[18]. - The net cash flow from operating activities was -RMB 1.80 billion, a decrease of 119.39% year-on-year[18]. - The company achieved a basic earnings per share of RMB 0.010, recovering from a loss of RMB 0.021 per share in 2020[18]. - The total assets at the end of 2021 were RMB 180.14 billion, an increase of 4.49% compared to the previous year[17]. - The company reported a weighted average return on equity of 0.26%, an increase of 0.82 percentage points from the previous year[18]. - The company’s net assets attributable to shareholders were RMB 85.31 billion, a slight increase of 0.12% from the previous year[17]. - The company’s revenue from non-main business activities was RMB 1.08 billion, primarily from waste material processing and leasing[18]. - The company received land compensation of RMB 1.046 billion from the government, contributing to the net profit[18]. - The total profit reached 155 million RMB, compared to a loss of 391 million RMB in the previous year[44]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of 0.03 RMB per 10 shares to all shareholders, totaling approximately 68.41 million RMB based on a total share capital of 22,802,035,324 shares as of December 31, 2021[3]. - The company does not plan to implement any capital reserve transfers to increase share capital this year, focusing solely on cash dividends[3]. - The company has a cash dividend policy that adheres to its articles of association and has been executed properly[154]. Governance and Compliance - The company has received a standard unqualified audit report from Lixin Certified Public Accountants, ensuring the accuracy and completeness of the financial report[2]. - The company has confirmed that all board members attended the board meeting, ensuring collective responsibility for the report's content[2]. - The company has not violated any decision-making procedures regarding external guarantees, maintaining compliance with regulations[5]. - The company has established a robust governance structure, ensuring compliance with corporate laws and protecting shareholder rights[119]. - The company has maintained independence from its controlling shareholder in terms of assets, personnel, finance, and operations, ensuring compliance with relevant laws and regulations[119]. - The company received an A-level rating for information disclosure from the Shanghai Stock Exchange in August 2021, reflecting its commitment to transparency and investor relations[120]. Risk Management and Challenges - The company has outlined potential risks in the management discussion and analysis section, emphasizing the importance of investor awareness regarding these risks[5]. - The company faces risks from macroeconomic fluctuations, including demand contraction and supply shocks[109]. - There is a risk of demand slowdown in the shipping market due to global economic uncertainties[110]. - Rising costs of shipbuilding materials and labor shortages pose significant challenges[111]. - The competitive landscape is intensifying as global shipbuilding companies vie for orders[112]. Technological Innovation and Development - The company is actively pursuing technological innovation, including the development of low-pressure, high-pressure, and self-pressurizing LNG supply systems[29]. - The company emphasizes the importance of technological innovation, with a robust R&D system and significant investment in technology to maintain its competitive edge[40]. - The company has established a national enterprise technology center and has been recognized as a national high-tech enterprise[70]. - The company applied for 1,118 patents during the reporting period, a 19.1% increase from the previous year, with 596 of these being invention patents[70]. Environmental Responsibility - The company has established dedicated environmental protection management personnel and monitoring teams at all 12 key pollutant discharge units, ensuring compliance with environmental regulations[163]. - The company has implemented a comprehensive waste management system, including designated hazardous waste storage areas with environmental protection measures[163]. - The company has made significant investments in pollution prevention facilities across its subsidiaries, enhancing overall environmental performance[163]. - The company invested CNY 292 million in energy conservation and emission reduction initiatives in 2021[173]. - The company actively participated in carbon trading markets, selling carbon emission quotas to reduce carbon intensity[173]. Market Position and Future Outlook - The company secured new ship orders totaling 70 vessels, amounting to 8.7773 million deadweight tons, a year-on-year increase of 277%[26]. - The global new ship order volume reached 120 million deadweight tons in 2021, a year-on-year increase of 77%, the highest since 2014[24]. - The company anticipates continued demand for new ship orders in 2022, with a projected global new ship transaction volume of approximately 9 million deadweight tons[32]. - The company aims to enhance its global competitiveness by focusing on low-carbon, energy-saving, and environmentally friendly shipbuilding technologies[96]. - The company plans to achieve operating revenue exceeding 40 billion yuan in 2022[105]. Human Resources and Management - The company has a total of 33,509 employees, with 18 in the parent company and 33,491 in major subsidiaries[148]. - The workforce includes 16,999 production personnel, 704 sales personnel, 8,212 technical personnel, 521 financial personnel, and 7,073 administrative personnel[148]. - The company has 1,925 employees with a postgraduate degree, 12,667 with a bachelor's degree, and 8,423 with a college diploma[148]. - The remuneration for senior management is determined based on annual performance assessments, aligning incentives with company performance[134]. Related Party Transactions - In 2021, the company executed related party transactions within the approved limits, with actual sales of related products amounting to 3.768 billion RMB against a limit of 4.8 billion RMB, and related product purchases totaling 9.557 billion RMB against a limit of 15.5 billion RMB[194]. - The company’s related party transactions for labor procurement were executed at 716 million RMB against a limit of 1 billion RMB, remaining within the approved threshold[194]. - The company’s related party transactions for asset leasing totaled 2.4 million RMB against a limit of 500 million RMB, also within the approved limits[194]. Leadership and Board Changes - The company appointed Sun Dongming as a supervisor on November 15, 2021, following the resignation of the previous supervisor Yang Weizan due to work arrangements[130]. - The company reported a significant leadership change with the resignation of independent director Wang Yongli on February 10, 2022, due to new job restrictions[130]. - The company has a new independent director, Chen Ying, who has extensive experience in finance and management, previously serving as CFO of Baosteel Group[129]. - The company has seen a transition in its board with the resignation of Zhang Delin on March 10, 2022, due to reaching the legal retirement age[130].

[Major Financial Data](index=1&type=section&id=Major%20Financial%20Data) [Key Accounting Data and Financial Indicators](index=1&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) Q3 net profit recorded a 103 million yuan loss, while year-to-date net profit turned positive despite high raw material costs and significant operating cash outflow 2021 Q3 and Year-to-Date Major Financial Indicators | Item | Current Period (Q3) | Year-to-Date (YTD) | YTD YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 8.645 billion yuan | 24.847 billion yuan | 0.31% | | Net Profit Attributable to Shareholders | -103 million yuan | 55 million yuan | N/A (Turned Profitable) | | Net Profit Attributable to Shareholders (Excluding Non-recurring) | -163 million yuan | -168 million yuan | N/A | | Net Cash Flow from Operating Activities | N/A | -4.300 billion yuan | N/A | | Total Assets (Period-end) | 184.797 billion yuan | 184.797 billion yuan | 7.19% (vs. prior year-end) | | Equity Attributable to Shareholders (Period-end) | 85.301 billion yuan | 85.301 billion yuan | 0.11% (vs. prior year-end) | - Despite the recovery in the shipping market and increased new vessel orders, the company faces significant operational pressure from global pandemics, trade frictions, and high raw material and equipment prices[6](index=6&type=chunk) - The company improved economic efficiency and achieved year-to-date net profit attributable to shareholders turning profitable by implementing cost engineering and strengthening cost governance in procurement and outsourcing[6](index=6&type=chunk) - Year-to-date net cash flow from operating activities was **-4.30 billion yuan**, primarily due to a significant year-on-year increase in procurement expenditures for materials and equipment based on production schedules[6](index=6&type=chunk) [Non-recurring Gains and Losses Items and Amounts](index=2&type=section&id=Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Year-to-date non-recurring gains and losses totaled 223.06 million yuan, primarily from government subsidies recognized in current profit or loss Year-to-Date Major Non-recurring Gains and Losses Items | Item | Amount (Million Yuan) | | :--- | :--- | | Government Subsidies Recognized in Current Profit or Loss | 218.9991 million yuan | | Disposal Gains/Losses on Non-current Assets | 14.2174 million yuan | | Gains/Losses from Financial Assets | 18.2350 million yuan | | Reversal of Impairment Provisions for Individually Assessed Receivables | 42.4699 million yuan | | Other Non-operating Income and Expenses | -36.8952 million yuan | | **Total** | **223.0616 million yuan** | [Analysis of Major Financial Indicator Changes](index=4&type=section&id=Analysis%20of%20Major%20Financial%20Indicator%20Changes) Several financial indicators changed significantly, with net profit attributable to shareholders turning profitable due to cost control, despite substantial operating cash outflow - Net profit attributable to shareholders in Q3 recorded a loss, mainly due to uneven distribution of product construction milestones, leading to the recognition of more revenue from previously undertaken low-margin orders in this period[11](index=11&type=chunk) - Year-to-date net profit attributable to shareholders and non-recurring net profit turned profitable, primarily because the company continuously improved management efficiency through cost engineering and enhanced cost governance in key areas to counter adverse factors like rising raw material prices[11](index=11&type=chunk)[12](index=12&type=chunk) - Year-to-date net cash flow from operating activities saw an increased outflow year-on-year, mainly due to a significant increase in procurement expenditures for materials and equipment based on production schedules[12](index=12&type=chunk) [Shareholder Information](index=5&type=section&id=Shareholder%20Information) [Shareholding Status of Shareholders](index=5&type=section&id=Shareholding%20Status%20of%20Shareholders) As of the reporting period end, the company had 657,836 common shareholders, with the controlling shareholder and its concerted parties holding significant stakes - As of the end of the reporting period, the company had **657,836** common shareholders[13](index=13&type=chunk) Top Five Shareholders' Holdings | Shareholder Name | Shareholder Type | Shareholding (%) | Number of Shares | | :--- | :--- | :--- | :--- | | China Shipbuilding Industry Corporation | State-owned Legal Entity | 34.53 | 7,872,473,398 | | Dalian Shipbuilding Investment Holding Co., Ltd. | State-owned Legal Entity | 7.94 | 1,810,936,360 | | China State-owned Capital Venture Capital Fund Co., Ltd. | State-owned Legal Entity | 6.10 | 1,390,285,391 | | China Cinda Asset Management Co., Ltd. | State-owned Legal Entity | 3.83 | 873,430,059 | | Bohai Shipbuilding Group Co., Ltd. | State-owned Legal Entity | 2.24 | 511,832,746 | - Dalian Shipbuilding Investment, Bohai Shipbuilding Group, and Wuchuan Investment are wholly-owned subsidiaries of controlling shareholder CSIC, forming concerted parties, while concerted action agreements with several other state-owned legal entity shareholders expired on March 1, 2021[14](index=14&type=chunk) [Other Reminders](index=7&type=section&id=Other%20Reminders) [Analysis of Major Income Statement Item Changes](index=7&type=section&id=Analysis%20of%20Major%20Income%20Statement%20Item%20Changes) Q1-Q3 2021 saw slight revenue growth, improved gross profit margin, and increased other income, while investment income decreased due to a high prior-year base - The year-to-date gross profit margin was **7.23%**, an increase of **0.35 percentage points** year-on-year, primarily due to enhanced refined management and cost engineering, improving profitability[16](index=16&type=chunk) - Other income increased by **61.39%** year-on-year, mainly due to subsidiaries receiving industrial support funds and major technical equipment insurance subsidies[16](index=16&type=chunk) - Investment income decreased by **46.55%** year-on-year, primarily due to a high base from a **100 million yuan** investment gain from the disposal of China Shipbuilding Diesel Engine Co equity in the prior year[16](index=16&type=chunk) [Analysis of Other Major Financial Item Changes](index=7&type=section&id=Analysis%20of%20Other%20Major%20Financial%20Item%20Changes) Significant changes occurred in balance sheet and cash flow items, including increased prepayments, contract assets, and short-term borrowings, alongside shifts in investing and financing cash flows Balance Sheet and Cash Flow Statement Major Item Changes | Item Name | YoY/Period-end Change (%) | Primary Reason | | :--- | :--- | :--- | | Prepayments | 38.26% | Subsidiaries increased large-scale procurement based on production schedules | | Contract Assets | 97.01% | Performance progress of some vessel contracts exceeded settlement payments and increased quality assurance deposits | | Short-term Borrowings | 210.38% | Significant increase in short-term borrowings by subsidiaries | | Net Cash Flow from Investing Activities | -144.09% | Significant year-on-year increase in net deposits into time deposits by subsidiaries | | Net Cash Flow from Financing Activities | N/A (Turned from negative to positive) | Significant year-on-year increase in net borrowings by subsidiaries to meet operational needs | - Effective January 1, 2021, the company adopted new lease standards, resulting in new right-of-use assets of **934 million yuan** and lease liabilities of **412 million yuan**[18](index=18&type=chunk) [Quarterly Financial Statements](index=9&type=section&id=Quarterly%20Financial%20Statements) [Type of Audit Opinion](index=9&type=section&id=Type%20of%20Audit%20Opinion) The company's Q3 2021 financial statements are unaudited - The third-quarter financial statements are **unaudited**[3](index=3&type=chunk)[19](index=19&type=chunk) [Financial Statements](index=9&type=section&id=Financial%20Statements) The financial statements present the company's financial position, operating results, and cash flows, showing asset growth, net profit turning positive, and shifts in cash flow activities [Consolidated Balance Sheet](index=9&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2021, total assets increased by 7.19% to 184.797 billion yuan, driven by current assets, while total liabilities grew by 14.34% due to increased borrowings and contract liabilities Consolidated Balance Sheet Major Items | Item | Sep 30, 2021 (Billion Yuan) | Dec 31, 2020 (Billion Yuan) | | :--- | :--- | :--- | | **Assets** | | | | Cash and Bank Balances | 64.013 billion yuan | 62.422 billion yuan | | Prepayments | 15.212 billion yuan | 11.002 billion yuan | | Inventories | 30.434 billion yuan | 26.722 billion yuan | | **Total Assets** | **184.797 billion yuan** | **172.407 billion yuan** | | **Liabilities and Owners' Equity** | | | | Short-term Borrowings | 7.275 billion yuan | 2.344 billion yuan | | Contract Liabilities | 34.114 billion yuan | 28.019 billion yuan | | **Total Liabilities** | **98.627 billion yuan** | **86.256 billion yuan** | | Equity Attributable to Parent Company Owners | 85.301 billion yuan | 85.204 billion yuan | | **Total Liabilities and Owners' Equity** | **184.797 billion yuan** | **172.407 billion yuan** | [Consolidated Income Statement](index=12&type=section&id=Consolidated%20Income%20Statement) Q1-Q3 2021 total operating revenue remained stable, and net profit attributable to parent company shareholders turned profitable at 55 million yuan due to effective cost control Consolidated Income Statement Major Items | Item | Q1-Q3 2021 (Billion Yuan) | Q1-Q3 2020 (Billion Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 24.847 billion yuan | 24.770 billion yuan | | Total Operating Costs | 25.186 billion yuan | 25.248 billion yuan | | Operating Profit | 150 million yuan | -40 million yuan | | Total Profit | 113 million yuan | -31 million yuan | | Net Profit | 19 million yuan | -114 million yuan | | Net Profit Attributable to Parent Company Shareholders | 55 million yuan | -112 million yuan | | Basic EPS (Yuan/Share) | 0.002 yuan/share | -0.005 yuan/share | [Consolidated Cash Flow Statement](index=14&type=section&id=Consolidated%20Cash%20Flow%20Statement) Net cash flow from operating activities was a significant outflow of 4.30 billion yuan, while investing activities also saw a large outflow, and financing activities turned positive due to increased borrowings Consolidated Cash Flow Statement Major Items | Item | Q1-Q3 2021 (Billion Yuan) | Q1-Q3 2020 (Billion Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -4.300 billion yuan | -208 million yuan | | Net Cash Flow from Investing Activities | -6.631 billion yuan | 15.040 billion yuan | | Net Cash Flow from Financing Activities | 5.540 billion yuan | -11.807 billion yuan | | Net Increase in Cash and Cash Equivalents | -5.244 billion yuan | 2.884 billion yuan | [First-Time Adoption Adjustments for New Lease Standards](index=16&type=section&id=First-Time%20Adoption%20Adjustments%20for%20New%20Lease%20Standards) Effective January 1, 2021, the company adopted new lease standards, leading to retrospective adjustments including recognition of right-of-use assets and lease liabilities Major Impacts of New Lease Standards on Opening Balance Sheet | Adjustment Item | Adjustment Amount (Billion Yuan) | | :--- | :--- | | **Assets** | | | Right-of-Use Assets | +1.088 billion yuan | | Fixed Assets | -921 million yuan | | **Liabilities** | | | Lease Liabilities | +490 million yuan | | Non-current Liabilities Due Within One Year | +41 million yuan | | Long-term Payables | -316 million yuan | | **Equity** | | | Retained Earnings | -48 million yuan |

Financial Performance - The company's operating revenue for 2020 was CNY 34.91 billion, a decrease of 8.66% compared to CNY 38.22 billion in 2019[18]. - The net profit attributable to shareholders for 2020 was a loss of CNY 481.19 million, down from a profit of CNY 501.16 million in 2019, representing a decline of 196.02%[18]. - The total assets at the end of 2020 were CNY 172.41 billion, a decrease of 5.82% from CNY 183.07 billion at the end of 2019[19]. - The company's net asset attributable to shareholders was CNY 85.20 billion at the end of 2020, a slight decrease of 0.58% from CNY 85.70 billion at the end of 2019[19]. - The basic earnings per share for 2020 was -CNY 0.021, a decrease of 195.45% from CNY 0.022 in 2019[20]. - The total profit for the year was a loss of CNY 0.391 billion, compared to a profit of CNY 0.649 billion in the previous year[48]. - The net profit attributable to the parent company was a loss of CNY 0.481 billion, down from a profit of CNY 0.501 billion in the previous year[48]. - The gross profit margin was 10.79%, an increase of 1.16 percentage points year-on-year[51]. Audit and Compliance - The company received a standard unqualified audit report from the accounting firm[3]. - The company has confirmed that all board members attended the board meeting[3]. - The company has not faced any risks of suspension or termination of listing during the reporting period[134]. - The company has not encountered any significant accounting errors that require correction during the reporting period[132]. Operational Highlights - The company completed the acquisition of 100% equity in Chongqing Hengshan Machinery Co., Ltd., which became a subsidiary during the reporting period[20]. - The company completed the delivery of 6.49 million deadweight tons of ships during the reporting period, receiving positive feedback from shipowners[44]. - The company repaired 440 ships during the reporting period, benefiting from the booming desulfurization device retrofit business[59]. - The company maintained a leading position in the ship repair market, successfully completing various high-profile repair projects[59]. Market Conditions - The global shipbuilding market faced a significant downturn, with new ship orders dropping by 29% year-on-year, totaling approximately 53 million DWT in 2020[31]. - The revenue of major shipbuilding enterprises in China decreased by 13% year-on-year, while total profit dropped by 84.3%, indicating increased operational pressure on companies[32]. - The shipbuilding sector's new orders were significantly impacted by the global economic downturn, with a notable decrease in shipowners' willingness to place orders[58]. Research and Development - The company invested a total of CNY 2.75 billion in R&D, accounting for 7.89% of its operating revenue[45]. - The company has established a robust technology innovation system, significantly increasing R&D investment and promoting the commercialization of technological achievements[34]. - The company plans to enhance its technology innovation system and strengthen collaborative innovation to support product competitiveness[73]. Strategic Initiatives - The company is actively expanding its international market presence, becoming the only qualified supplier for major international contractors like MODEC and McDermott[39]. - The company aims to enhance its core military capabilities and support the construction of a world-class navy by focusing on advanced defense equipment development[33]. - The company is focusing on innovation and digital transformation to improve competitiveness in the shipbuilding supply chain[103]. Shareholder and Governance - The company did not distribute cash dividends or increase share capital from reserves during the reporting period[4]. - The company has committed to minimizing related party transactions that could adversely affect the interests of all shareholders, ensuring fair transaction conditions[123]. - The company has extended the lock-up period for 718,232,042 shares held by major shareholders by 12 months, until May 25, 2021, reflecting confidence in future development[125]. Environmental and Social Responsibility - The company has established dedicated environmental protection management teams and pollution prevention facilities at all 10 key pollutant discharge units, with no major environmental pollution incidents reported during the reporting period[172]. - The company invested a total of 10.97 million yuan in poverty alleviation efforts during the reporting period[162]. - The company provided educational support, funding 2.1 million yuan for 13 impoverished students[164]. Risks and Challenges - The company acknowledges risks related to insufficient demand due to ongoing global pandemic uncertainties, which may impact the new shipbuilding market[113]. - Rising costs are a concern, particularly with increasing steel prices and labor costs, which could lead to higher shipbuilding expenses[114]. - The company faces intense market competition, which may result in downward pressure on new ship prices and challenges in securing new orders[115].