Financial Performance - The company's operating revenue for 2021 was ¥1,421,746,409.51, representing a 171.56% increase compared to ¥523,552,744.58 in 2020[37]. - The net profit attributable to shareholders for 2021 was ¥25,970,776.33, a slight increase of 1.62% from ¥25,557,506.83 in 2020[37]. - The net profit after deducting non-recurring gains and losses was ¥15,399,264.73, which is a 182.09% increase from ¥5,458,962.49 in 2020[37]. - The total assets at the end of 2021 amounted to ¥2,450,762,071.17, reflecting a 20.19% increase from ¥2,038,996,381.88 at the end of 2020[37]. - The basic earnings per share for 2021 was ¥0.0150, down 43.18% from ¥0.0264 in 2020[37]. - The net cash flow from operating activities was -¥185,016,783.52, worsening by 43.95% compared to -¥128,531,902.11 in 2020[37]. - The company received government subsidies amounting to ¥13,096,342.82 in 2021, an increase from ¥9,997,980.47 in 2020[45]. - The weighted average return on net assets for 2021 was 1.56%, down from 5.96% in 2020[37]. - The company’s net assets attributable to shareholders at the end of 2021 were ¥1,677,352,677.17, a 1.73% increase from ¥1,648,832,566.34 at the end of 2020[37]. - The company achieved a revenue of 1,421.75 million CNY in 2021, representing a year-on-year increase of 171.56%[83]. Business Strategy and Development - The company plans to enhance its research and development efforts across its three main business segments to improve core competitiveness and ensure stable growth[16]. - The company has invested in Nanhua Industrial to expand into ship automation and smart port businesses, creating synergy with existing military products[16]. - The company aims to mitigate risks related to customer defaults and contract management due to uncertainties from the global pandemic and geopolitical tensions[10]. - The company is actively adjusting its industrial and product structure to respond to cyclical changes in the international shipping market[7]. - The company emphasizes cost control and management improvements to counteract the impact of rising costs on its operations[11]. - The company is committed to promoting and utilizing new energy vessels, with its subsidiary Dajin Heavy Industry recognized as a demonstration unit for LNG-powered shipbuilding[16]. - The company aims to enhance its market competitiveness in the field of intelligent vessels by developing a 300 TEU unmanned intelligent ship[120]. - The company is committed to achieving a "dual carbon" goal by leveraging opportunities in the new energy sector, particularly in LNG applications[154]. - The company will focus on differentiating its products and services to build competitive advantages in the market[154]. - The company aims to establish a cooperative innovation ecosystem by collaborating with research institutions and enhancing its R&D capabilities[154]. Market and Industry Trends - In 2021, the company experienced significant growth in shipbuilding revenue and new orders, benefiting from the recovery of the shipping market[16]. - The shipbuilding industry is facing challenges such as labor shortages, rising human costs, and increasing prices of raw materials and energy[52]. - The global shipbuilding investment reached $147 billion, with new shipbuilding investment totaling $103 billion, a year-on-year increase of 106%[52]. - China's shipbuilding completion, new orders, and hand-held orders accounted for 47.2%, 53.8%, and 47.6% of the global total, respectively, with year-on-year increases of 4.1%, 5.0%, and 2.9 percentage points[52]. - The company is navigating challenges such as rising material costs and fluctuating exchange rates while maintaining a positive outlook for future growth[86]. Research and Development - The company has accumulated significant technology and experience in LNG cargo systems, natural gas power systems, and refueling facilities, forming a leading position in regional energy enterprises[56]. - Research and development expenses increased by 76.03% to ¥63,253,850.03, driven by significant technological changes in the shipbuilding market[119]. - The number of R&D personnel increased to 245, representing a 40% growth compared to 175 in the previous year[126]. - R&D investment amounted to ¥63,253,850.03 in 2021, which is 4.45% of operating revenue, down from 6.86% in 2020[126]. - The company completed the design of a new multi-functional self-elevating offshore wind power operation platform, which is now applied to actual orders[126]. Governance and Compliance - The company maintains independence from its controlling shareholder, with no guarantees provided to the shareholder or its affiliates during the reporting period[164]. - The board of directors consists of 9 members, including 3 independent directors, complying with legal and regulatory requirements[165]. - The supervisory board has 5 members, including 2 employee representatives, ensuring compliance with legal standards[168]. - The company has established a performance evaluation and incentive mechanism for directors and senior management, linking compensation directly to operational performance[169]. - The company respects the rights of stakeholders, balancing the interests of shareholders, employees, and society for sustainable development[170]. - The company adheres to strict information disclosure practices, ensuring timely and accurate communication with investors[171]. - The internal audit system is actively implemented, with no objections raised regarding the effectiveness of internal controls by the accounting firm[173]. Operational Efficiency - The company has established a procurement management system to enhance the efficiency of fund utilization and maintain corporate interests[66]. - The company has developed a strong customer network and marketing strategy, focusing on direct contracts with various shipowners and shipyards[66]. - The company has a comprehensive business model in shipbuilding and marine engineering, providing multi-level technical services including research, design, and project management[66]. - The company has a well-structured business model with three main segments: shipbuilding engineering, defense equipment, and new energy, all showing positive growth trends[59]. - The company has introduced a new management structure and talent from various sectors to optimize its operations post-restructuring[59]. Future Outlook - In 2022, the company plans to enhance production and management efficiency through increased R&D investment and precise management, aiming to meet annual operational goals[155]. - The shipbuilding sector will focus on high-end technology R&D, aiming to increase the proportion of high-value-added products and improve market competitiveness[154]. - The defense equipment sector will develop four main product categories, including emergency rescue equipment and underwater security systems, while emphasizing technological innovation[154]. - The new energy sector will enhance the operation of existing LNG refueling stations and expand the network layout for LNG refueling stations for vehicles and vessels[154]. - The company will implement a governance structure of "one headquarters and three platforms" to ensure effective risk control and compliance in operations[155].

Revenue and Profitability - Revenue for Q3 2021 reached ¥276,244,306.33, an increase of 60.46% year-over-year, and a total revenue of ¥859,859,959.64 for the first three quarters, up 112.49% compared to the same period last year[6] - Net profit attributable to shareholders was -¥12,119,869.30 for Q3 2021, a decrease of 801.50% year-over-year, with a year-to-date net profit of ¥19,423,714.91, down 50.63%[6] - Total operating revenue for the current period reached ¥859,859,959.64, a significant increase from ¥404,665,257.35 in the previous period, representing a growth of approximately 112.2%[48] - Net profit for the current period was ¥20,146,401.71, down from ¥39,513,094.06 in the previous period, reflecting a decrease of approximately 49.1%[51] - The net profit attributable to the parent company's shareholders was ¥19,423,714.91, compared to ¥39,343,818.22 in the previous period, a decline of about 50.7%[53] Cash Flow and Financial Position - The net cash flow from operating activities showed a significant decline of 46,764.80%, totaling -¥182,008,980.17 year-to-date[6] - Net cash flow from operating activities decreased by 46,764.80% year-on-year, significantly impacted by increased guarantee deposits and advance payments for raw material procurement due to rapid growth in EPC project orders[29] - Operating cash inflow totaled CNY 1,157,810,806.75, compared to CNY 512,055,676.05 in the previous period[57] - Operating cash outflow amounted to CNY 1,339,819,786.92, up from CNY 511,665,641.24 year-over-year[57] - Net cash flow from operating activities was negative CNY 182,008,980.17, a significant decline from a positive CNY 390,034.81 previously[57] - Cash flow from investing activities showed a net outflow of CNY 32,549,554.77, compared to a smaller outflow of CNY 1,475,318.10 last year[59] - Cash inflow from financing activities was CNY 126,567,001.00, an increase from CNY 70,456,000.00 in the prior period[59] - The ending cash and cash equivalents balance was CNY 160,821,353.50, compared to CNY 109,490,971.54 at the end of the previous period[59] Assets and Liabilities - The company's total assets increased by 20.92% year-over-year, reaching ¥2,465,619,198.35[6] - As of September 30, 2021, the total assets of Tianhai Fusion Defense Equipment Technology Co., Ltd. amounted to CNY 2,465,619,198.35, an increase from CNY 2,038,996,381.88 at the end of 2020, representing a growth of approximately 21%[42] - The company's current assets totaled CNY 1,296,328,800.61, up from CNY 920,553,459.05 at the end of 2020, indicating a growth of about 41%[42] - The total liabilities of the company increased to CNY 1,200,000,000.00, reflecting a significant rise in financial obligations[45] - The total liabilities amounted to ¥802,948,874.07, up from ¥390,514,425.65, representing an increase of about 105.5%[48] Operational Performance - The company experienced a 138.64% increase in operating costs, attributed to rising material and labor costs amid longer execution cycles for EPC orders[26] - R&D expenses rose by 100.46% year-over-year, reflecting increased investment following the recovery of business operations[28] - The company reported a significant increase in prepayments, which rose to CNY 244,098,600.43 from CNY 71,361,352.07, indicating a growth of about 242%[42] - Total operating costs amounted to ¥885,875,853.81, compared to ¥738,022,973.65 in the previous period, indicating an increase of about 19.9%[51] Shareholder Information - Total number of ordinary shareholders at the end of the reporting period was 120,109, with the top ten shareholders holding significant stakes[31] - Xiamen Longhai Energy Investment Partnership holds 12.50% of shares, with 216,000,000 shares frozen[31] - Liu Nan, a natural person, holds 8.34% of shares, with 39,425,000 shares frozen[31] - China Great Wall Asset Management Co., Ltd. holds 6.16% of shares[31] - The total number of restricted shares at the beginning of the period was 216,000,000, with no shares released during the period[35] - The restricted shares are set to be released on December 29, 2023[35] Strategic Focus - The company plans to enhance operational efficiency through cost control and financing expansion in response to market challenges[8] - The company is focusing on three major business segments: "Ship Engineering," "Defense Equipment," and "New Energy," as part of its strategic recovery phase[8] - The company is focusing on expanding its market presence and enhancing product development strategies to drive future growth[56] Regulatory and Compliance - The company received an investigation notice from the China Securities Regulatory Commission on January 25, 2021, due to suspected violations of securities laws, with no progress reported as of the end of the reporting period[41] - The company has not conducted an audit for the third-quarter report, which may affect the reliability of the financial data presented[71] - The company is implementing new leasing standards, which may impact future financial reporting[71]

Industry Recovery and Strategic Focus - The company reported a significant recovery in the global shipbuilding industry, with the Baltic Dry Index (BDI) rising above 3000 points in the first half of 2021[9]. - The company has outlined a strategic plan for 2021-2025 focusing on three main business segments: "Ship Engineering," "Defense Equipment," and "New Energy" to enhance core competitiveness[8]. - The company plans to actively adjust its industrial and product structure to mitigate risks associated with market fluctuations and pursue technological innovation[12]. - The company acknowledges that its future business development and profitability will be influenced by market volatility[4]. Financial Performance - The company's operating revenue for the reporting period was ¥583,615,653.31, representing a year-on-year increase of 151.01% compared to ¥232,504,176.93 in the same period last year[48]. - The net profit attributable to shareholders of the listed company was ¥31,543,584.21, a decrease of 22.47% from ¥40,688,225.53 in the previous year[48]. - The net profit after deducting non-recurring gains and losses was ¥27,967,578.68, down 60.72% from ¥71,203,240.45 in the same period last year[48]. - The net cash flow from operating activities was -¥150,216,770.32, a significant decline of 5,162.08% compared to ¥2,967,493.16 in the previous year[48]. - The total assets at the end of the reporting period were ¥2,315,593,991.66, an increase of 13.57% from ¥2,038,996,381.88 at the end of the previous year[48]. - The net assets attributable to shareholders of the listed company were ¥1,679,056,787.50, up 1.83% from ¥1,648,832,566.34 at the end of the previous year[48]. Cost Management and Risk Mitigation - The company is enhancing its management capabilities and cost control measures to address rising raw material prices and labor costs, aiming to reduce the proportion of costs to revenue[15]. - The company faces risks related to customer defaults due to financing difficulties caused by the ongoing COVID-19 pandemic, which may lead to order breaches[14]. - The company emphasizes the importance of strengthening credit assessments of shipowners to minimize order default risks[14]. - The company will continue to analyze exchange rate trends and develop risk prevention strategies to mitigate foreign currency exposure, particularly in USD-denominated export orders[13]. Research and Development - The company is committed to increasing its research and development efforts across its three main business segments to ensure stable growth[8]. - Research and development investment rose by 113.39% to ¥32,335,790.08 from ¥15,153,495.77, reflecting the company's commitment to innovation as business activities resumed[92]. Business Expansion and Diversification - The company is expanding its business into defense equipment and new energy sectors while maintaining its core shipbuilding engineering operations[56]. - The company has established a competitive shipbuilding engineering industry chain, focusing on ship design, manufacturing, and supporting services[56]. - The company has developed a unique EPC business model that has gained rapid market recognition and is a significant source of revenue[56]. - The company’s total contracting business focuses on specialized products like military auxiliary vessels and has rapidly gained market recognition, becoming a significant source of revenue through projects like wind power installation platforms and LNG transport vessels[62]. Corporate Governance and Compliance - The company completed its restructuring at the end of 2020, optimizing its shareholder structure and improving its financial and governance structures[56]. - The company held its first extraordinary general meeting of 2021 on February 22, with a participation rate of 23.27%[119]. - The company’s board of directors and supervisory board were re-elected on February 22, 2021[123]. - The company has committed to avoiding direct or indirect competition with its subsidiaries[137]. - The company has not engaged in any non-compliance external guarantees during the reporting period[181]. Social Responsibility and Community Engagement - The company is actively engaged in fulfilling its corporate social responsibility by supporting education in remote areas[134]. - The company made a charitable donation of RMB 50,000 and teaching materials to a primary school in Guizhou during the reporting period[134]. Related Party Transactions - The company reported a total related party transaction amount of 54.97 million yuan, with 55.82% of this amount related to sales of products such as unloading machines[194]. - The company engaged in related party transactions with Jiangsu Green Energy Heavy Industry Equipment Co., Ltd., amounting to 40.83 million yuan for sales and 10.15 million yuan for procurement services[194]. - The company has maintained compliance with market pricing principles in all related party transactions[194].

Financial Performance - The company's operating revenue for Q1 2021 was ¥180,572,044.65, representing a 113.01% increase compared to ¥84,771,732.06 in the same period last year[8]. - The net profit attributable to shareholders for Q1 2021 was ¥11,736,535.37, a decrease of 7.78% from ¥12,726,695.52 in the previous year[8]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥9,852,135.45, down 9.93% from ¥10,938,570.74 year-on-year[8]. - Basic earnings per share for Q1 2021 were ¥0.0068, a decrease of 48.87% from ¥0.0133 in the previous year[8]. - The total net profit for the current period is 11,702,136.55, a decrease from 12,148,831.89 in the previous period, representing a decline of approximately 3.7%[115]. - The total comprehensive income for the current period is 11,702,136.55, down from 12,148,831.89, reflecting a decrease of around 3.7%[121]. Cash Flow - The net cash flow from operating activities was -¥37,437,895.06, a significant decline of 1,422.92% compared to -¥2,458,301.34 in the same period last year[8]. - Cash flow from operating activities for the current period is 191,034,244.08, an increase from 90,435,507.57 in the previous period, representing a growth of approximately 111.7%[126]. - Cash outflow from operating activities was CNY 281,928,576.77, up from CNY 156,321,775.37, leading to a net cash flow from operating activities of -CNY 37,437,895.06, compared to -CNY 2,458,301.34 previously[130]. Assets and Liabilities - Total assets at the end of the reporting period were ¥2,098,490,509.30, an increase of 2.92% from ¥2,038,996,381.88 at the end of the previous year[8]. - The total liabilities of the company were CNY 438.39 million, an increase from CNY 390.51 million at the end of 2020, indicating a rise of approximately 12.3%[99]. - The company's total assets decreased to ¥2,568,340,227.81 from ¥2,591,079,912.87, a decline of about 1%[109]. - The total liabilities decreased to ¥47,168,123.59 from ¥57,793,750.84, showing a reduction of approximately 18%[109]. Operating Costs and Expenses - Operating costs increased by 147.06% year-on-year, driven by the growth in revenue[24]. - Total operating costs amounted to ¥183,146,185.99, up from ¥81,787,189.00, indicating a year-over-year increase of about 124%[112]. - R&D expenses surged by 424.48% year-on-year, reflecting the company's increased investment in research and development[24]. - Research and development expenses were ¥8,227,424.81, compared to ¥1,568,677.46 in the same period last year, reflecting a substantial increase of approximately 424%[112]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 104,118[11]. - The company reported a total of 937.50 million shares to be released from lock-up after 24 months following the completion of the share issuance[61]. - The total equity attributable to shareholders of the parent company was ¥2,521,172,104.22, down from ¥2,533,286,162.03, a decrease of about 0.5%[109]. Contracts and Projects - The company has signed significant contracts, including a total of 65 million CNY for LNG-powered vessel construction, with all 45 units of the 600-ton LNG vessels delivered by the reporting period[28]. - The company signed a wind turbine installation platform project with a contract amount of RMB 53.578 million, having received the first payment of RMB 9.856 million and recognized revenue of RMB 25.29 million by the end of the reporting period[36]. - The company entered into a contract for the construction of 12 multipurpose cargo ships with a total value of approximately RMB 68.212 million, with no initial payment received as of the reporting period's end[36]. Compliance and Commitments - The company is currently in the process of fulfilling commitments related to non-competition and fair trading with its controlling entities[46]. - The company has ongoing commitments to ensure that related transactions are conducted at fair market prices and comply with legal regulations[49]. - The company is in compliance with its commitments regarding shareholding and non-competition as per the agreements made during previous transactions[55].

Business Directions and Focus - The company has established three main business directions: "Ship and Ocean Engineering," "Military-Civil Integration," and "New Energy Utilization" after its listing[6] - The company completed its bankruptcy restructuring in December 2020, clarifying its focus on "Ship and Ocean Engineering," "Military Defense," and "New Energy" sectors[6] - The company aims to adjust its industrial and product structure to acquire new orders and enter new product and service areas[11] - The company is focusing on expanding its business structure into three main sectors: marine engineering, military defense, and new energy[46] - The company aims to establish a healthy development pattern characterized by "technology leadership, dual land and sea operations, military-civilian integration, and intelligent green development"[46] Financial Performance - The company's operating revenue for 2020 was ¥523,552,744.58, a decrease of 11.17% compared to ¥589,369,324.87 in 2019[37] - The net profit attributable to shareholders in 2020 was ¥25,557,506.83, a significant turnaround from a loss of ¥358,271,940.85 in 2019, representing a 107.13% increase[37] - The net cash flow from operating activities was negative at ¥128,531,902.11, a decline of 620.93% compared to a positive cash flow of ¥24,673,373.81 in 2019[37] - Basic earnings per share for 2020 were ¥0.0264, recovering from a loss of ¥0.3732 per share in 2019, marking a 107.07% improvement[37] - The company's gross profit margin for the manufacturing sector was 24.10%, a decrease of 20.42% from the previous year[93] Revenue Sources and Segments - The shipbuilding and marine engineering EPC business was one of the most important sources of revenue for the company during the reporting period[46] - Revenue from the ship and marine engineering segment was 45.83 million yuan, a year-on-year increase of 1.39%[87] - Revenue from EPC business decreased by 5.31% to 332.26 million yuan due to insufficient orders in previous years[87] - Revenue from high-performance polymer materials and aerospace equipment products increased by 2.56% to 68.13 million yuan[87] - Revenue from the natural gas business decreased by 44.32% to 64.30 million yuan, impacted by funding and procurement price issues[87] Research and Development - The company’s research and development expenses increased by 5.20% to RMB 35.93 million, reflecting ongoing investment in core marine engineering technologies[118] - The company completed 10 R&D projects focused on core marine engineering technologies and automation systems, enhancing its technological capabilities[119] - R&D investment in 2020 amounted to ¥35,934,317.68, representing 6.86% of operating revenue, an increase from 5.80% in 2019[123] - The company is actively expanding its research and production of unmanned intelligent systems and emergency rescue equipment, focusing on key technologies in autonomous navigation and digital control systems[62] Risk Management - The company faces risks from rising raw material prices and labor costs, which have increased due to market conditions and the pandemic[17] - The company will strengthen credit investigations of shipowners and enhance project execution management to mitigate the risk of order defaults[16] - The company is focused on risk prevention regarding exchange rate fluctuations, particularly for export ship orders denominated in USD[12] - The company is committed to reducing the proportion of costs in revenue through improved management and cost control measures[17] Shareholder and Governance Commitments - The company will not distribute cash dividends, issue bonus shares, or convert reserves into share capital for the year[18] - The company has ongoing commitments to ensure that related transactions are conducted fairly and in accordance with normal commercial practices, with a focus on maintaining transparency and compliance with legal regulations[167] - The company has a commitment to not utilize related transactions to harm the interests of the company and its shareholders, ensuring that all related transactions are conducted at fair market prices[170] - The company has a share reduction commitment from China Great Wall Asset Management Co., Ltd., with a lock-up period of 6 months following the completion of the restructuring on December 29, 2020[173] Market Position and Future Plans - The company has designed and delivered over 2,000 vessels and marine engineering projects, maintaining a leading position in the design of special engineering vessels[49] - The company aims to enhance its overall profitability by exploring the development of military auxiliary ships and creating a comprehensive defense equipment industrial chain[141] - The company plans to strengthen the research and promotion of environmentally friendly and high-end special ship types, focusing on new energy applications in the shipping industry[140] - The company plans to gradually complete the network layout of LNG refueling stations for vehicles and vessels through various strategies, including mergers and strategic partnerships[152]

Financial Performance - Operating revenue for the reporting period was CNY 172,161,080.42, an increase of 22.42% year-on-year [9]. - Net profit attributable to shareholders was a loss of CNY 1,344,407.31, a decrease of 95.75% compared to the same period last year [9]. - The net cash flow from operating activities was a negative CNY 2,577,458.35, a decrease of 88.06% year-on-year [9]. - Basic earnings per share were CNY -0.0014, a decrease of 95.76% compared to the same period last year [9]. - The weighted average return on net assets was -0.05%, down from 1.14% in the previous year [9]. - The company's operating revenue for the first nine months was 404.67 million yuan, a year-on-year decrease of 17.27% [30]. - The net profit attributable to shareholders was 39.34 million yuan, turning from loss to profit compared to the same period last year [30]. - The total operating revenue for the current period is ¥404,665,257.35, a decrease of 17.3% compared to ¥489,136,465.08 in the previous period [126]. - The net profit for the current period is -¥4,200,440.73, compared to -¥29,144,785.48 in the previous period, indicating an improvement [124]. - The company's net profit for the current period is ¥39,513,094.06, a significant recovery from a net loss of ¥76,571,015.05 in the previous period, representing a turnaround of over 151% [129]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,853,281,931.07, a decrease of 8.46% compared to the end of the previous year [9]. - Total current assets decreased to ¥692,006,425.43 from ¥864,358,993.16, reflecting a decline of about 19.9% [91]. - Total liabilities decreased to ¥1,410,994,201.27 from ¥1,621,297,050.74, a reduction of about 13% [97]. - The company's total assets as of September 30, 2020, were ¥1,853,281,931.07, down from ¥2,024,537,949.15, indicating a decrease of approximately 8.4% [96]. - Total liabilities reached CNY 1,621,297,050.74, with current liabilities at CNY 1,606,426,133.98 and non-current liabilities at CNY 14,870,916.76 [159]. - The total liabilities to equity ratio stands at approximately 4.02, suggesting a high level of leverage [162]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 126,257 [13]. - The largest shareholder, Liu Nan, held 18.83% of the shares, totaling 180,796,514 shares [13]. - The company did not conduct any repurchase transactions among the top 10 shareholders during the reporting period [18]. Cash Flow - The cash balance at the end of the period increased by 60.00% compared to the beginning of the year, mainly due to the suspension of various liabilities payments and receipt of investor deposits [30]. - Cash and cash equivalents at the end of the period stood at 109,490,971.54, a significant increase from 17,094,330.73 at the end of the previous period [144]. - Total cash inflow from operating activities was 512,055,676.05, compared to 691,665,428.16 in the prior period, indicating a decrease of approximately 26% [142]. Restructuring and Investments - The company is currently in the restructuring process due to an inability to repay debts, with a court ruling allowing the company to continue operations during this period [51]. - The restructuring plan was approved by the court on September 10, 2020, terminating the restructuring process for the company [51]. - The company has signed a framework agreement for restructuring investment, confirming new investors to support the restructuring efforts [51]. - The company plans to increase its shareholding in Tianhai Defense by purchasing shares in the secondary market within 12 months after completing the acquisition of 100% equity in Jiangsu Dajin Heavy Industry Co., Ltd. [80]. Related Party Transactions - The company has made commitments to avoid and regulate related party transactions, ensuring fair operations based on market principles and fair prices [75]. - The company has a long-term commitment to not engage in any business that competes with Tianhai Defense, either directly or indirectly [70]. - The company has confirmed that it will not engage in any activities that may constitute competition with Tianhai Defense in the future [70]. Research and Development - Research and development expenses for the quarter were ¥6,730,434.50, slightly down from ¥7,980,144.15 in the previous period, indicating a focus on cost management [112]. - Research and development expenses for the current period are ¥21,883,930.27, slightly up from ¥21,245,381.84 in the previous period [126].

Financial Performance - The company's operating revenue for the reporting period was ¥232,504,176.93, a decrease of 33.29% compared to the same period last year[39]. - The net profit attributable to shareholders of the listed company was ¥40,688,225.53, an increase of 194.88% year-on-year[39]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥71,203,240.45, showing a significant increase of 445.79%[39]. - The net cash flow from operating activities was ¥2,967,493.16, an increase of 111.54% compared to the previous year[39]. - The basic earnings per share was ¥0.0424, an increase of 194.85% year-on-year[39]. - The total assets at the end of the reporting period were ¥1,770,425,543.45, a decrease of 12.55% from the end of the previous year[39]. - The net assets attributable to shareholders of the listed company increased to ¥444,899,295.88, up by 10.04% compared to the previous year[39]. - The weighted average return on equity was 9.58%, an increase of 15.45% compared to the previous year[39]. - The company reported a non-operating loss of ¥30,515,014.92, primarily due to other operating income and expenses, with a government subsidy of ¥2,345,670.37 included[45]. - Financial expenses decreased by 169% due to the suspension of interest on debts during the restructuring phase and foreign exchange gains[99]. Restructuring and Bankruptcy Risks - The company is at risk of bankruptcy if its restructuring efforts fail, as it must submit a restructuring plan within a legal timeframe to avoid court declaration of bankruptcy[16]. - The company has entered a restructuring process, and successful execution of the restructuring plan is crucial to improving its financial structure and resolving debt crises[19]. - The company plans not to distribute cash dividends or issue bonus shares, focusing instead on resolving its debt issues[19]. - The actual controller's high stock pledge rate and judicial freezes pose a risk of changes in control for the company[15]. - The company is currently cooperating with relevant courts and management to promote restructuring, aiming to create a healthy development pattern[48]. - The company is actively cooperating with the administrator to ensure the restructuring process is effectively managed[169]. - The first creditors' meeting was held on April 29, 2020, where all proposals were approved[171]. - The company has been allowed to continue operations during the restructuring period while managing its assets and business affairs[170]. - Tianhai Defense's restructuring plan includes self-management under the supervision of appointed managers, as approved by the Shanghai Third Intermediate Court[186]. - The company is actively engaging with creditors to negotiate settlements and manage outstanding debts[188]. Market Challenges and Strategic Adjustments - The company reported a significant challenge in the international shipbuilding market, with the Baltic Dry Index (BDI) remaining at low levels, impacting its shipbuilding and marine engineering business[7]. - The company is actively adjusting its industrial and product structure to mitigate cyclical market risks, focusing on expanding the variety of shipbuilding and marine engineering products to secure new orders[7]. - The company is enhancing its research and marketing efforts in the fields of new energy ships and intelligent ships to improve its core competitiveness in shipbuilding and defense equipment manufacturing[10]. - The company is experiencing cash flow pressures, which have led to challenges in maintaining stable salary levels, contributing to talent retention issues in its core technology teams[14]. - The company is focusing on expanding its business in the marine equipment sector, which is expected to drive future revenue growth[130]. Research and Development - The company has established a comprehensive technical service system in ship and marine engineering, covering design, consulting, and manufacturing[49]. - The company is actively expanding its traditional shipbuilding business into military-civilian integration and clean energy applications, aiming to build a natural gas application industry chain[48]. - The company has designed over 2,000 vessels and marine engineering projects, maintaining a leading position in clean fuel vessel design[52]. - The company is involved in key national marine engineering projects, including deep-water pipe-laying vessels and large oil spill recovery ships, aligning with the national "Marine Power" strategy[52]. - The company is engaged in the development of new energy technologies, which may provide future growth opportunities[130]. - The company emphasizes cost control and quality assurance through advanced three-dimensional digital design methods and process management[62]. - The company has established a unique development model by integrating design, supervision, and manufacturing capabilities[85]. Legal and Litigation Issues - The company has faced significant litigation, with a total amount involved in disputes reaching approximately 297 million yuan, of which 26.1 million yuan is related to an asset purchase agreement dispute[174]. - The company has paid a total of approximately 43.4 million yuan to China Great Wall Asset Management Co., Ltd. as part of the litigation settlement[174]. - The company has received a civil mediation document from the Shanghai Financial Court regarding a loan dispute amounting to 150 million yuan[179]. - The company has a total of 140 million yuan in settlement obligations related to design errors in multiple vessels, with 130 million yuan still outstanding[191]. - The company is involved in ongoing litigation regarding a claim for 10 million yuan related to a note receivable, with the case still undecided[194]. - A court ruling confirmed the effectiveness of an international arbitration decision involving a contract dispute, marking the case as resolved[197]. - The company has a pending execution claim for approximately 21.12 million yuan against a gas company, with the execution process currently ongoing[197]. - A settlement agreement was reached in a contract dispute with a gas station, concluding the case[200]. - The company is awaiting payment of 2.59 million yuan from a partnership agreement dispute, with the case concluded but payment not yet received[200]. - A judgment was issued requiring a payment of 25.48 million yuan from a trading dispute, which has been fully paid and concluded[200]. - The company has successfully executed a claim for 39.61 million yuan from a thermal insulation company, marking the case as resolved[200].

Financial Performance - Total revenue for Q1 2020 was ¥84,771,732.06, a decrease of 57.47% compared to the same period last year[8]. - Net profit attributable to shareholders was ¥12,726,695.52, an increase of 369.42% year-on-year[8]. - Net profit excluding non-recurring gains and losses was ¥10,938,570.74, up 230.80% from the previous year[8]. - Basic earnings per share increased to ¥0.0133, compared to a loss of ¥0.0049 in the same period last year, representing a growth of 371.43%[8]. - The weighted average return on net assets was 3.10%, an increase of 3.73% compared to -0.63% last year[8]. - The company reported a net loss of ¥1,767,207,566.51, an improvement from a loss of ¥1,779,934,262.03 in the previous period[83]. - The company reported a total comprehensive income of ¥17,246,677.41, compared to a loss of ¥5,485,750.72 in the previous period[99]. - The total profit for the period was -1,930,857.36, reflecting a decrease of 80,008.45 from the previous period[103]. - The total comprehensive income for the period was 1,397,273.45, a decrease of 80,008.45 compared to the previous period[106]. Assets and Liabilities - Total assets at the end of the reporting period were ¥2,036,196,370.25, a slight increase of 0.58% from the end of the previous year[8]. - Total assets increased to ¥2,036,196,370.25, up from ¥2,024,537,949.15, reflecting a growth of approximately 0.08%[82]. - The total assets amount to ¥2,328,130,328.34, an increase from ¥2,303,756,495.24 in the previous period[90]. - Total liabilities decreased slightly to ¥1,615,708,794.43 from ¥1,621,297,050.74, a reduction of approximately 0.34%[80]. - The total liabilities amount to ¥959,064,455.15, a decrease from ¥972,703,459.81 in the previous period[90]. - Current liabilities totaled ¥1,610,500,366.01, showing a marginal increase from ¥1,606,426,133.98[80]. - The company has a long-term receivable balance of 481,393,913.24 CNY, reflecting ongoing financial commitments[120]. - Owner's equity totals ¥1,369,065,873.19, an increase from ¥1,331,053,035.43 in the previous period[90]. - The total equity attributable to shareholders was 404,298,197.16 CNY, indicating a challenging profitability environment with retained earnings showing a deficit[124]. Cash Flow - The net cash flow from operating activities was -¥2,458,301.34, a decrease of 146.51% compared to the previous year[8]. - Cash inflows from operating activities totaled 153,863,474.03, down from 269,184,547.05 in the previous period[107]. - Cash outflows from operating activities were 156,321,775.37, compared to 263,899,434.86 in the previous period[110]. - The ending cash and cash equivalents balance was 50,759,875.22, down from 68,083,761.60 in the previous period[113]. - Cash inflows from investment activities amounted to 1,195,000.00, down from 6,200,000.00 in the previous period[110]. - Cash inflows from financing activities totaled 3,200,000.00, compared to 58,500,000.00 in the previous period[113]. Operational Changes - Operating costs decreased by 64.36% year-on-year, attributed to the decline in revenue and cost control measures[28]. - Sales expenses dropped by 85.24% year-on-year, mainly due to reduced business development investments by a subsidiary[28]. - R&D expenses fell by 55.61% year-on-year, reflecting a decrease in investment due to declining operational performance[28]. - Financial expenses decreased by 161.81% year-on-year, influenced by restructuring and foreign currency receivables[28]. - The company confirmed cumulative revenue of 47.82 million yuan from a major contract with Dalian Yintai, which is currently at risk of breach[30]. - Cumulative revenue from contracts with Green Power Water Transport reached 15.99 million yuan, with all 45 units of a specific LNG vessel model delivered[31]. Reorganization and Compliance - The company has filed for reorganization due to an inability to repay due debts, with the Shanghai Third Intermediate People's Court accepting the case on February 14, 2020[36]. - The court appointed a manager for the reorganization process, allowing the company to manage its assets and operations under supervision[36]. - There is a risk of bankruptcy if the reorganization plan is not submitted or approved within the legal timeframe[38]. - The company has committed to not engaging in competitive business activities that could harm its interests or those of its shareholders[39]. - The company has made promises regarding share repurchase and reduction, with specific timelines for lifting restrictions on shares[39]. - The company has not reported any significant changes in its core technology team or major suppliers and customers during the reporting period[36]. - There are no major changes in the company's intangible assets or core competencies reported[36]. - The company has not disclosed any significant new product developments or market expansion strategies in the current report[36]. - The company has committed to avoiding any competitive business activities during the tenure of its key personnel, ensuring compliance with regulatory standards[60]. - There were no violations regarding external guarantees during the reporting period, maintaining a clean compliance record[66]. - The company has made commitments to avoid any illegal occupation of funds or assets, ensuring the protection of shareholder interests[63]. - The company is actively pursuing market expansion and new technology development, although specific figures were not disclosed in the current report[62]. Inventory and Receivables - Accounts receivable increased to CNY 276,563,674.21 from CNY 202,773,913.04, indicating a growth of approximately 36.4%[74]. - Inventory decreased significantly to CNY 83,516,545.30 from CNY 492,684,748.19, reflecting a reduction of about 83.0%[74]. - The company reported a total of CNY 356,044,219.43 in contract assets, with no previous data available for comparison[74].

Acquisitions and Business Development - The company acquired 100% equity of Taizhou Jinhaiyun Ship Equipment Co., Ltd. in 2016 and Jiangsu Dajin Heavy Industry Co., Ltd. in 2017, establishing a full industry chain from R&D to manufacturing [6]. - The company has developed a unique EPC business model that has rapidly gained market recognition and become a significant revenue source [51]. - The company has been actively expanding its traditional business into military-civilian integration and clean energy applications [51]. - The company has established a military-civilian integration business framework, covering six high-tech fields including defense vessels and special rescue equipment [66]. - The company has established a comprehensive military-civilian integration strategy, positioning itself as a pioneer in the defense equipment market [146]. Financial Performance - The company's operating revenue for 2019 was ¥589,369,324.87, a decrease of 42.70% compared to ¥1,028,627,302.36 in 2018 [42]. - The net profit attributable to shareholders for 2019 was -¥358,271,940.85, an improvement of 80.93% from -¥1,878,411,487.24 in 2018 [42]. - The total assets at the end of 2019 were ¥2,024,537,949.15, down 14.20% from ¥2,359,709,293.05 at the end of 2018 [42]. - The net assets attributable to shareholders decreased by 46.27% to ¥404,298,197.16 from ¥752,405,066.75 in 2018 [42]. - The company reported a significant asset impairment loss of CNY -104,999,070.95, accounting for 29.26% of total profit [124]. Debt and Restructuring - The company is undergoing a restructuring process to improve its financial structure and mitigate debt risks, with a focus on executing the restructuring plan effectively [19]. - The company acknowledges the risk of being delisted if the restructuring fails, which could lead to bankruptcy [20]. - The actual controller's stock pledge rate is high, with all shares subject to judicial freezing, posing a risk of control change [16]. - The company faced a bankruptcy reorganization application due to inability to repay debts, with the Shanghai Third Intermediate People's Court accepting the reorganization on February 14, 2020 [188]. - The company has entered a restructuring phase following a court's acceptance of the reorganization application [197]. Research and Development - The company is enhancing R&D efforts in new energy and intelligent ships to improve core competitiveness in shipbuilding and defense equipment sectors [9]. - The company has established and completed seven R&D projects focusing on key technologies in marine engineering and intelligent ship research [117]. - The company has maintained a high level of R&D investment, ensuring core patents and software copyrights in key technology areas [117]. - The company is committed to a strategic direction of "design-led, military-civilian integration, and intelligent green development" for future growth [51]. - The company has a strong technical research and development team that has participated in national-level research projects and key engineering projects, enhancing its competitive edge [64]. Revenue Sources and Challenges - The company has secured over 20 engineering general contracting projects, including wind power installation platforms and LNG transport vessels, delivering nearly 100 ships, which has become the most important source of revenue [57]. - The company has faced challenges in its funding chain due to financial environment and debt factors, impacting various business segments [51]. - The company reported a total sales revenue of 333,430,650.25 for shipbuilding, down 45.49% from 611,633,066.58 in the previous year [100]. - The clean energy business reported revenue of ¥11,547.21 million, a decline of 56.69% due to financial environment impacts and natural gas procurement prices [90]. - The company incurred financial expenses totaling ¥96.36 million, including unpaid amounts of ¥64.67 million due to overdue debts [90]. Legal and Compliance Issues - The company reported a total litigation amount of 297 million yuan related to a dispute with China Great Wall Asset Management [191]. - The company has reached a settlement agreement regarding a debt repayment of 26.1 million yuan, with a total payment of 43.36 million yuan already made to China Great Wall Asset Management [191]. - The company is obligated to pay 150 million yuan in principal and interest related to a loan dispute with China Minsheng Bank [194]. - The company has been involved in multiple legal proceedings, with ongoing litigation impacting its financial obligations and restructuring efforts [197]. - The company has reached a settlement in a dispute involving a total of 31.1256 million yuan, with joint liability from other parties involved [191]. Market and Operational Strategy - The company is focused on building a value-added natural gas utilization industry chain, particularly in the water transportation sector, aligning with the national "clean energy" strategy [149]. - The company plans to actively develop land and inland gas refueling projects as part of its clean energy business strategy, focusing on project maturity and successful implementation [152]. - The company is enhancing its production efficiency and advancing automation and smart manufacturing technologies to address labor shortages in the shipbuilding sector [151]. - The company has designed and delivered over 2,000 vessels and marine engineering projects, maintaining a leading position in the industry [55]. - The company aims to enhance its capabilities in the research and promotion of environmentally friendly and high-end special ship types, focusing on clean energy utilization in ships and deep-sea equipment market opportunities [145].

Acquisitions and Business Development - The company acquired 100% equity of Taizhou Jinhai Shipping Equipment Co., Ltd. in 2016 and Jiangsu Dajin Heavy Industry Co., Ltd. in 2017, establishing a full industry chain from R&D to manufacturing[7] - The company has re-entered the military industry through the acquisition of Jin Haiyun Ship Equipment Company, which has complete military qualifications and a rich portfolio of military products[155] - Tianhai Defense completed the acquisition of 100% equity in Dajin Heavy Industry within 12 months after the transaction[199] - The company has made commitments regarding shareholding incentives and promises to minority shareholders[199] Financial Performance - The company's operating revenue for 2019 was ¥589,369,324.87, a decrease of 42.70% compared to ¥1,028,627,302.36 in 2018[38] - The net profit attributable to shareholders for 2019 was -¥358,271,940.85, an improvement of 80.93% from -¥1,878,411,487.24 in 2018[38] - The net cash flow from operating activities was ¥24,673,373.81, a significant increase from -¥19,996,367.48 in 2018, representing a 223.39% change[38] - The total assets at the end of 2019 were ¥2,024,537,949.15, down 14.20% from ¥2,359,709,293.05 at the end of 2018[38] - The net assets attributable to shareholders decreased to ¥404,298,197.16, a decline of 46.27% from ¥752,405,066.75 in 2018[38] - The basic earnings per share for 2019 was -¥0.3732, an improvement of 80.93% from -¥1.9566 in 2018[38] - The weighted average return on equity was -60.44% for 2019, compared to -110.55% in 2018[38] - The company reported a net profit of -¥31,666,952.01 in Q4 2019, with total revenue for the quarter at ¥100,232,859.79[39] - The company plans not to distribute cash dividends or issue bonus shares, focusing on improving its financial structure and resolving debt issues[19] - The company’s net profit for 2019 was -358,271,940.85 RMB, with no cash dividends proposed for that year[174] Market Challenges and Risks - The Baltic Dry Index (BDI) remains low, indicating ongoing challenges in the international shipping market, which affects the company's shipbuilding and marine engineering business[11] - As of the end of the reporting period, the company faces significant accounts receivable and advance payment risks due to its EPC business and inventory disposal[11] - The actual controller's high stock pledge rate and judicial freezes pose a risk of control change for the company[16] - The company is at risk of bankruptcy if its restructuring plan fails, which could lead to termination of the restructuring process by the court[19] - The company faced challenges in new order acquisition due to frozen bank credit limits, impacting overall sales and production volumes[97] Research and Development - The company is enhancing R&D efforts in new energy and intelligent ships to improve core competitiveness in shipbuilding and defense equipment sectors[10] - The company is actively engaged in research and development of new technologies to improve operational efficiency and product quality[30] - The number of R&D personnel increased to 148, accounting for 19.73% of the total workforce[120] - The company established and completed 7 R&D projects focusing on key technologies in marine engineering and smart ship applications[120] - The company has accumulated multiple national patent authorizations, including 45 invention patents and 201 utility model patents[84] Business Model and Strategy - The company has developed a unique EPC business model, which has become its most important source of revenue[47] - The company has a unique business model in the shipbuilding and marine engineering sector, focusing on specialized products and integrated technical services[53] - The company is positioned as the only integrated technical service provider in the industry, combining design, manufacturing, and support services[53] - The company aims to further integrate its existing EPC business under the general contracting framework, enhancing operational efficiency and project management[53] - The company is committed to a strategic direction of "design-led, military-civilian integration, and intelligent green development" for future growth[47] Revenue Sources and Segments - The company has secured over 20 engineering general contracting projects, including wind power installation platforms and LNG transport vessels, delivering nearly 100 ships, which has become its most important revenue source[53] - The company's revenue from the manufacturing sector was 399,861,724.30, accounting for 67.85% of total revenue, with a year-over-year decrease of 39.50%[93] - The EPC revenue was 333,430,650.25, which is 56.57% of total revenue, showing a significant decrease of 45.49% compared to the previous year[93] - The clean energy business reported revenue of ¥115.47 million, a decline of 56.69% due to financial environment impacts and natural gas procurement price issues[88] - The defense equipment and related business saw revenue of ¥41.94 million, an increase of 44.98% influenced by changes in military procurement methods[88] Future Outlook and Commitments - The company aims to enhance its capabilities in the research and promotion of environmentally friendly and high-end special ship types, focusing on clean energy utilization in ships and deep-sea engineering equipment market opportunities[154] - In 2020, the company aims to improve its financial structure and resolve debt crises while enhancing its research capabilities and expanding market reach[160] - The company plans to actively expand its blue economy space by integrating shipbuilding and marine engineering with renewable energy sectors, aiming to create new growth points in the marine economy[161] - The company has committed to avoiding any form of direct or indirect competition with its subsidiaries for a period of no less than 36 months or until it holds at least 5% of the listed company's shares[175] - The company has pledged to minimize and regulate related party transactions, ensuring that any necessary transactions are conducted at fair market prices and comply with legal disclosure obligations[187]