Group 1: Business Overview - The company's primary business is ship design and construction, with marine engineering accounting for over 90% of revenue [2] - In 2024, the defense equipment business revenue reached 1.8 billion RMB, a 170% increase compared to 2023 [2] - The strategic focus includes special unmanned vessels, intelligent ship systems, and underwater security [3] Group 2: Profitability and Financial Outlook - The gross margin for the defense equipment business in 2024 is projected to be negative due to adjustments on contracts from 2015-2019, affecting approximately 28 million RMB in revenue [4] - Excluding this adjustment, the gross margin would be around 7.2% [4] - The profitability of special vessels is linked to contract margins and production volume, with higher production leading to lower fixed cost allocation [5] Group 3: Product and Market Development - The defense equipment business includes special defense vessels, intelligent systems, and underwater security systems [6] - The company has signed over 40 contracts for 5,200-ton multi-purpose bulk carriers and nearly 20 contracts for 5,900-ton multi-purpose bulk carriers in 2024 [7] - The shipbuilding market is expected to remain favorable, driven by fleet renewal needs and low-carbon policies [8] Group 4: Future Prospects - The government’s focus on deep-sea technology is expected to enhance demand for deep-sea engineering vessels [8] - Future innovations in deep-sea farming and floating wind power technology may create new vessel demands [8] - Traditional marine engineering vessels will continue to be essential for deep-sea resource development [8]