On July 24, Tianhai Defense announced that its wholly-owned subsidiary, Shanghai Jiahao Ship Technology Development Co., Ltd., will sign multiple contracts with Jiangxi Xinjiangzhou Shipbuilding Heavy Industry Co., Ltd., with a total value of RMB 162.24 million.
The announcement revealed that to meet production and operational needs, Jiahao Technology intends to sign a project management service contract, ship design contract, and equipment procurement contract with Xinjiangzhou Shipbuilding Heavy Industry for the construction of two 15,000-ton methanol-electric hybrid multipurpose vessels. The prices of these contracts are RMB 4.278 million, RMB 1.86 million, and RMB 10.086 million, respectively.
Jiahao Technology will provide comprehensive project management and consulting services for the entire process of the construction of these two multipurpose vessels, including ship design review, shipyard bidding, procurement of related equipment and services, ship construction, final acceptance, and delivery until final account approval. It will also supply all design submission, detailed design, and completion design drawings and technical documents for the project, as well as the required methanol supply system, ship-wide cybersecurity and energy management system, power distribution equipment, and intelligent energy efficiency monitoring system.
Tianhai Defense stated that the company plans to establish an independent and controllable core equipment technology system for new energy vessels through this project, achieving goals such as cost reduction, efficiency improvement, R&D reserves, and market expansion. The implementation of this project will help enhance the company’s comprehensive capabilities in inland vessel design and lay the foundation for future work in the design and construction of new energy vessels, project management, and vessel type reserve research, making it a necessary endeavor.
Given that Xinjiangzhou Shipbuilding Heavy Industry is an enterprise controlled by Mr. He Xudong, the actual controller and chairman of Tianhai Defense, this transaction constitutes a related-party transaction.
It is understood that Jiangxi Xinjiangzhou Shipbuilding Heavy Industry Co., Ltd. was established on March 31, 2023, with a registered capital of RMB 50 million, and commenced operations in late November of the same year. Its predecessor, Jiangxi Jiangzhou United Shipbuilding Co., Ltd., was restructured from the state-owned Jiangzhou Shipyard (Factory 6214), founded in 1969. The state-owned Jiangzhou Shipyard was one of the key projects of the national “Third Front” construction in the 1970s and was Jiangxi’s largest shipbuilding enterprise, employing over 7,000 people at its peak.
The investment entities of Xinjiangzhou Shipbuilding Heavy Industry are Qinshi Group Co., Ltd. and Jiangsu Yangchuan Investment Development Co., Ltd. Qinshi Group Co., Ltd. is the controlling parent company of the listed company Tianhai Fusion Defense Equipment Technology Co., Ltd., while Jiangsu Yangchuan Investment Development Co., Ltd. is a wholly-owned subsidiary of Yangzijiang Shipbuilding Group. Xinjiangzhou Shipbuilding Heavy Industry focuses on the small and medium-sized vessel market, specializing in the construction of liquid cargo vessels, feeder container bulk carriers, and multipurpose heavy-lift vessels.
Xinjiangzhou Shipbuilding Heavy Industry boasts comprehensive infrastructure, including an indoor shipbuilding berth unique among China’s inland shipyards, meeting the hardware and infrastructure requirements for high-quality construction of large vessels and aligning with the technical and infrastructure demands for building large new energy vessels. As of December 31, 2024, Xinjiangzhou Shipbuilding Heavy Industry had total assets of RMB 403 million, net assets of RMB 50.9849 million, annual revenue of RMB 140 million, and a net profit of RMB 791,500.
