Core Viewpoint - The company faces significant legal challenges, including a recent court ruling that requires it to pay over 56.7 million yuan in damages, which may impact its future performance [1][2][3]. Legal Issues - The company’s subsidiary, Thickpu Engineering, was ordered by the court to pay 56.7 million yuan in damages and to dismantle certain project facilities due to a lawsuit from Ling Shi Tong Yi [1][2]. - The court ruling also allows for an appeal, and the company plans to pursue legal action to protect its rights [3]. - In addition to the Ling Shi Tong Yi case, Thickpu Engineering is involved in another legal dispute regarding a construction contract, with a claim of 20 million yuan against it [4]. Financial Performance - The company reported a net loss of 82.39 million yuan in 2024, a decline of 17.38% year-on-year, with total assets decreasing by 6.65% to 2.234 billion yuan [6]. - Over the past five years, the company has accumulated losses totaling 444.5 million yuan [4]. - The company’s revenue for 2024 was 630 million yuan, down 32.67% from the previous year [6]. Business Operations - Thickpu Engineering provides comprehensive solutions in the clean energy equipment sector, covering various applications including natural gas and hydrogen [5]. - The company has strategically optimized its customer base, leading to a decline in revenue as it chose to forgo less profitable orders [6]. - The aviation parts manufacturing segment experienced a significant revenue drop of 54.09% in 2024, attributed to increased fixed costs and production adjustments [7].

Group 1: Order and Revenue Insights - As of the end of 2024, the company has an order backlog amounting to approximately 1,097.39 million yuan, representing a growth of about 30% compared to the end of 2023 [2] - The international order portion of the backlog is approximately 298.83 million yuan, indicating a healthy order situation [2] - The company has adjusted its operational strategy to enhance profitability, leading to a decrease in revenue due to the strategic abandonment of less profitable orders [3] Group 2: Profitability and Business Optimization - The company plans to focus on high-margin orders and will continue to evaluate customer financial health and payment capabilities to optimize its client base [3] - There is a commitment to eliminate clients with unstable demand and long payment cycles, reallocating resources to more profitable areas [3] Group 3: Competitive Advantages - The company possesses several competitive advantages, including "AI + business" smart data technology, a comprehensive hydrogen energy industry chain, and nationwide technical service coverage [3] - The company has established a strong production and service capability across the entire clean energy equipment industry chain, enhancing market competitiveness [3] Group 4: Financial Health and Cash Flow - The net cash flow from operating activities for 2023 and 2024 was 117 million yuan and 116 million yuan, respectively, indicating a stable and healthy cash flow [3] - The company employs a "sales-driven production" model to manage production based on sales contracts, which helps maintain a robust cash flow [3] Group 5: Strategic Planning for Future Growth - The company aims to enhance its overall competitive advantage through industry chain integration, focusing on clean energy sectors such as natural gas and hydrogen [3] - Plans include expanding into new markets and developing aviation equipment, leveraging internal synergies for improved production efficiency [3] Group 6: International Business Development - The company anticipates growth in overseas business, leveraging experiences in regions like Germany, the Netherlands, France, and Egypt to enhance brand influence [4] - Future plans include establishing overseas sales teams and standardizing products to facilitate rapid international project expansion [4]