Core Viewpoint - Shaanxi Zhongtian Rocket Technology Co., Ltd. has issued convertible bonds named "Tianjian Convertible Bonds" with a total issuance scale of 4.95 billion RMB, aimed at enhancing production capacity and supporting military product capabilities [2][9]. Group 1: Bond Overview - The bond has a term of 6 years with a fixed interest rate that increases over the years, starting from 0.20% in the first year to 2.00% in the sixth year [2]. - The bond is secured by a full, unconditional, and irrevocable guarantee from the controlling shareholder, Aerospace Fourth Academy, covering 100% of the principal and interest [2][10]. - The bond's initial rating was AA for the issuer and AA+ for the bond itself, with ongoing ratings remaining unchanged [2]. Group 2: Financial Performance - The company's total assets as of the end of 2024 were 311,132.44 million RMB, showing a 1.75% increase from the previous year [8]. - The company's net profit for 2024 was 1,956.62 million RMB, a significant decrease of 79.62% compared to 9,601.27 million RMB in 2023 [8]. - The operating income for 2024 was 92,469.67 million RMB, down 21.64% from 118,008.94 million RMB in 2023 [8]. Group 3: Fund Utilization - The funds raised from the bond issuance are allocated as follows: 263 million RMB for the production line of large-size thermal field materials, 129 million RMB for military product capacity enhancement, and 93 million RMB for working capital [9]. - The actual use of raised funds aligns with the planned purposes, and a special account has been established for managing these funds [9]. Group 4: Debt Servicing and Management - The company has implemented measures to ensure timely and full repayment of the bond's principal and interest, including optimizing asset-liability management and enhancing liquidity [11]. - The company has maintained a stable debt structure and cash flow, which supports its ability to service the debt [12].

Group 1: Company Performance Overview - The overall performance of the company declined in 2024, primarily due to safety adjustments made by clients regarding rocket storage, leading to a decrease in procurement volume [2] - The rain enhancement and hail suppression rocket business remained stable, with a slight year-on-year decline [3] - The military small solid rocket business grew by over 50%, benefiting from the introduction of a series of guided rockets tailored to customer needs [3] Group 2: Business Challenges and Strategies - The carbon/carbon thermal field materials business faced losses due to market competition and price declines influenced by the photovoltaic industry [3] - The company is adjusting its market strategy to focus on leading industry players and is actively working on cost reduction and efficiency improvement [3] - New product development efforts are being accelerated, particularly in carbon-ceramic brake discs and hydrogen evolution electrodes, to seek new economic growth points [3] Group 3: Future Development Plans - The company aims to leverage its core solid rocket technology to meet national defense and civil construction needs, promoting significant technological innovations and multi-field industrialization [4] - Compliance and internal control systems will be strengthened to ensure sustainable development [5] - Innovation will be the core driver of development, focusing on new equipment, drones, and high-performance composite materials [5] Group 4: Management and Investor Relations - The company plans to enhance its management practices by implementing market-oriented incentive mechanisms and linking performance with compensation [5] - A transparent and scientific market value management system will be established to maximize shareholder interests [6] - Regular communication with investors will be prioritized to stabilize expectations and enhance confidence in the company's value [6]