Compared to other ship repair companies, Changhong International has advantages in equipment, technology, and management. Since the beginning of this year, Changhong International has been proactive and wise, striving to improve ship repair production efficiency and control production costs, achieving record high monthly ship repair output. On the other hand, it has strengthened internal management. In the third quarter of this year, 33 ships were repaired, achieving a total operating output value of 49.37 million yuan, an increase of 3.7% compared to the previous quarter.%.

Pre-sale

1. Establish a systematic market research and visiting mechanism. In the current situation where the shipping market is relatively weak, with significant fluctuations and unclear recovery prerequisites, actively participate in various maritime exhibitions and shipping expos organized by international, domestic, and industry organizations. Regularly organize personnel to visit shipowners in different countries based on the distribution characteristics of customers in different regions, expanding the company's visibility and influence.

2. Design market planning schemes tailored to different customer needs and regional distribution characteristics. Referencing past repair experiences, provide convenient services to customers in terms of technology, quality, production, and life, so that the overall advantages and company image are recognized by customers, maintaining good relationships with them.

3. Expand the market through specialized services, always maintaining the provision of professional production services and comprehensive technical and quality guidance.

During-sale

1. Based on the existing ship repair foundation, further strengthen the awareness of project teams and the entire ship repair system regarding ship schedules and dock periods, requiring control of ship schedules in days and dock periods in hours. Develop a 'Ship Schedule/Dock Period Change Application Form' to strengthen control over dock periods. From January to September, our company maintained a dock period control rate of 100%, achieving a good production situation with no idle docks and good production continuity.

2. Achieved lean management of simultaneous repairs for multiple ships or shared dock repairs. The high frequency of shared docks not only improved dock utilization but also helped the company overcome technical difficulties in repairs, reducing rework and increasing the first-time pass rate. Continuous innovations in technical aspects such as prefabrication of typical ship sections and lifting methods have been made to shorten construction periods and improve production efficiency.

This quarter had many rainy days and heavy precipitation. To ensure employee health, production safety, and repair quality, Changhong International has planned, coordinated, and improved efficiency, strengthening key controls over the safety of ship mooring and docking operations. This ensured that all repaired ships were completed and set sail on time. Successfully completed challenging projects such as the large-scale repair of the propeller blades of the 'THEMISTOCLES', the complete replacement of the bulbous bow of the 'HR RESOLUTION', sandblasting and painting of the outer plate of the 'ULUSOY 11', and the external extraction of the tail shaft of the 'ARNICA', ensuring safe and efficient production.

During this period, Changhong International also successfully withstood the impact of strong typhoons such as 'Chan-Hong', with the number of ships in the yard peaking at 9, continuously overcoming multiple peak periods of ship repairs.

Additionally, the dock period for repair ships in the yard has consistently been maintained at 5-6 days, reaching international standards and surpassing industry peers, providing a strong boost to the company's competitiveness.

After-sale

Ship after-sales service is a continuation of the survival and development of the shipyard and serves as a window for the shipyard to connect with shipowners. It plays an important role in improving the service and quality of the shipyard and is significant for attracting new customers.

Whether for routine ship repairs or modification projects, Changhong International aims to meet shipowners' needs and achieve a win-win situation for both shipowners and the company as its service purpose. Since the launch of ship repair services, we have continuously improved service quality through follow-up surveys, social events, and other activities, further strengthening the management of customer feedback and enhancing the good cooperative relationship with shipowners, increasing customer retention rates. For example, in the Greek market, in the third quarter, we repaired 12 Greek ships, accounting for one-third of the total number of repairs this quarter. The number of repeat customer ships reached 20, exceeding half of the total repaired ships for the quarter. The stability of repeat customers provides a solid guarantee for the company's subsequent production.

As of now, ship repair orders have been scheduled until early next year, totaling20remaining ships awaiting repair, with a majority being foreign vessels.