Core Viewpoint - Jianglong Shipbuilding has secured a significant sales contract with the Hong Kong Special Administrative Region government for the sale of five aluminum alloy patrol boats, totaling HKD 125 million, marking a return to collaboration after a year of zero transactions [2][3]. Group 1: Contract Details - The contract stipulates that Jianglong Shipbuilding will deliver the first two boats within 22 months and the remaining three within 28 months [3]. - The contract amount of approximately HKD 125 million is equivalent to about RMB 114 million, representing 6.59% of Jianglong Shipbuilding's audited revenue for the most recent fiscal year [3]. - Payment for the contract will be made in installments based on progress [3]. Group 2: Historical Context - Jianglong Shipbuilding has a history of collaboration with the Hong Kong government, with sales amounts recorded since at least 2019, including previous contracts totaling HKD 228.29 million in 2019, HKD 782.63 million in 2022, and HKD 991.84 million in 2023 [4]. - The company has previously engaged in multiple contracts with the Hong Kong government, including sales of firefighting boats and marine cleaning vessels [3][4]. Group 3: Market Insights - The Hong Kong ferry market is undergoing a renewal phase, with the government planning to purchase 47 eco-friendly ferries over the next decade to replace aging vessels [5]. - Jianglong Shipbuilding aims to leverage its successful completion of current orders to build a strong reputation in the local market, enhancing its competitive advantage [5]. - Despite a decline in the revenue share from the Hong Kong and Taiwan markets, the company has seen a steady increase in absolute revenue from overseas and the Chinese Hong Kong and Taiwan regions over the past three years [6]. Group 4: Revenue Trends - Jianglong Shipbuilding's revenue from the Hong Kong and Taiwan regions has shown a downward trend, with shares of total revenue decreasing from 5.74% in 2021 to 2.89% in 2024 [5]. - The company’s overall revenue still predominantly comes from mainland China, with over 80% of revenue consistently derived from this market over the past decade [6].