On November 3, the chairman proposed to repurchase the company's shares and buy back the company's shares for an amount not less than RMB 150 million (inclusive) and no more than RMB 30,000 million (inclusive). The upper limit of the repurchase price should not be higher than 150% of the average trading price of the company's stock in the 30 trading days before the company's board of directors considered and passed the repurchase plan. The repurchased shares will be used for the company's employee stock ownership plans or equity incentives.

The repurchase plan shows confidence in the company's continued stable development in the future and recognition of its intrinsic value. Given the company's firm confidence in the future and confidence in its own intrinsic value. In order to strengthen investor confidence and protect investors' rights and interests, taking into account the prospects and financial conditions of the company's main business, the company plans to use its own capital to buy back some of the company's shares through centralized bidding transactions, showing that the company has a clear strategy and plan for future development.

The chairman proposed the repurchase of the company's shares for employee stock ownership plans or equity incentives to fully motivate employees. By establishing an incentive and restraint mechanism, it is possible to ensure the long-term steady development of the company and the continuous increase in the value of the company. The company had implemented equity incentives twice before that. In October 2022, the company implemented equity incentives and granted 3.6 million restricted shares. The initial incentive targets were middle management and core cadres, with a total number of 101 people, and 3 million shares granted for the first time; in 2023, the company carried out another equity incentive. The second equity incentive was intended to grant a total of 8.5 million restricted shares to incentive targets, and 8 million restricted shares for the first time. Among them, the chairman of the board was granted 1.7 million restricted shares, accounting for 0.98% of the total share capital; other senior managers received a total of 1.15 million shares, accounting for 0.66% of the total share capital; and middle management and core executives received 5.15 million shares, accounting for 2.96% of the total share capital.

The 2023 equity incentive plan covers a wider range and is larger in scale. I believe it can fully mobilize the work enthusiasm of the company's senior management and core talents, effectively combine shareholders' interests, company interests, and personal interests of operators, and promote the steady and rapid improvement of the company's business performance.

The company's performance is growing steadily, and there are plenty of orders in hand. In 2023Q3, the company achieved operating income (234 million, +7.40% year-on-year); realized net profit (69 million, +29.11% year-on-year). Net profit for the first three quarters of 2023 after deducting the impact of share payments was $304 million, an increase of about 22.98% over the same period last year.

The company's inventory was 1,880 million, up 499 million from the beginning of the year; contract liabilities were 537 million, up 157 million from the beginning of the year. The rise in inventory and contract liabilities reflects the company's abundant orders and sufficient deliverable products. As downstream customers confirm receipt of goods, the company's turnover will fully increase.

Profit forecast: The company's net profit from 2023-2025 is predicted to be 346 million, 419 million, and 506 million respectively, with corresponding valuations of 33, 27, and 23 times, maintaining a “highly recommended” rating.

Risk warning: Military purchase orders have fluctuated, market competition has intensified, and the implementation of the repurchase plan has fallen short of expectations.