Core Viewpoint - The company, Dongfang Cable, is undergoing a strategic transformation to enhance its product offerings and align with national energy policies, focusing on smart grids and renewable energy solutions [4][5]. Financial Performance - In the first quarter, the company achieved a main business revenue of 2.145 billion yuan, representing a year-on-year increase of 64.01% [6]. - The net profit attributable to shareholders for the same period was 281 million yuan, reflecting a growth of 6.66% year-on-year [6]. Product and Service Transformation - The company is transitioning from a single product manufacturer to a system solution provider, with four major product/service systems established: ultra-high voltage cables, submarine cable systems, smart distribution network cables, and marine engineering services [4][5]. - Starting in 2025, the company will adjust its product classification for revenue reporting to better align with national strategic needs and improve operational efficiency [5]. Market Engagement and Orders - The company has intensified its strategic partnerships and market expansion in sectors such as power construction, rail transit, and offshore wind power, securing significant contracts with major power companies [6]. - As of April 21, 2025, the company has an order backlog of approximately 18.9 billion yuan, with significant portions allocated to submarine cables and high-voltage cables [6].

Summary of Deep Sea Technology and Robotics Conference Call Industry Overview - The conference focuses on the **Deep Sea Technology** industry, which has been recognized as a national emerging industry in China's 2025 government work report, indicating increased governmental support and investment opportunities in this sector [2][3]. Key Points and Arguments - **Government Support**: The inclusion of deep sea technology in the national strategy reflects the government's commitment to the marine power strategy, leading to increased market attention and investment opportunities [2][3]. - **Significant Achievements**: China's deep submergence system has made notable progress with the "Jiaolong" and "Fendouzhe" achieving full coverage, and plans to build an ecological space station in the South China Sea, marking a new phase in deep sea technology [5][6]. - **Economic Growth Driver**: Deep sea technology is seen as a crucial driver for economic growth, facilitating industrial upgrades and innovations, particularly in oil and gas resource development and military capabilities [5][6]. - **Shipbuilding Industry Benefits**: The shipbuilding sector is expected to benefit from deep sea technology advancements, with standardized ship types potentially changing traditional valuation systems and increasing order volumes [13][15]. - **Global Leadership**: China holds a leading position in the global shipbuilding industry, with significant demand for deep sea engineering vessels in resource extraction and infrastructure projects [20][17]. - **Distinction from Low Altitude Economy**: Deep sea technology relies heavily on government investment and is primarily driven by state-owned enterprises, contrasting with the low altitude economy which is more market-oriented [21][22]. - **Rapid Industrialization**: The deep sea industry is expected to progress faster than the low altitude economy due to fewer regulatory hurdles and a more straightforward investment process [22]. Additional Important Insights - **Resource Exploration**: There is a significant potential for deep sea mineral resource exploration, with manganese nodules already showing economic viability [19][23]. - **Technological Advancements**: The development of AI and robotics is anticipated to enhance the efficiency of resource extraction in deep sea environments [19]. - **Investment Recommendations**: Key companies recommended for investment include: - **Changying Tong**: Specializes in underwater communication products, crucial for underwater infrastructure [9]. - **Zhongke Haixun**: Focuses on underwater acoustic equipment, playing a vital role in national defense [10]. - **China Marine Defense**: A state-owned enterprise with a dominant position in underwater equipment [11]. - **Zhongke Xingtou**: Engaged in digital earth research, contributing to marine monitoring [12]. Conclusion - The deep sea technology sector is poised for significant growth driven by government support, technological advancements, and increasing global demand for marine resources. The shipbuilding industry, in particular, stands to benefit from these developments, making it a key area for investment and strategic focus in the coming years.