Xi'an Tianhe Defense Technology Co., Ltd.

Xi'an Tianhe Defense Technology Co., Ltd. is a high-tech manufacturing enterprise listed on the ChiNext board of the Shenzhen Stock Exchange since 2014. The company specializes in the research, development, production, and delivery of low-altitude short-range defense equipment, with a strong emphasis on enhancing capabilities for low-altitude air superiority. It operates through a market-oriented approach, focusing on portable air defense missile intelligence command systems and integrating military and civilian product development. The company's main business lines include military equipment, radio frequency electronics, and integrated electronic information systems. Its military operations, primarily conducted through its subsidiary Tianwei Electronics, focus on low-altitude defense and border protection. The civilian sector, managed by Huayang Communication, centers on the radio frequency industry chain, developing RF chips and devices for various applications. Additionally, the Tianrong Project aims to create a comprehensive electronic information system that serves both military and civilian needs, emphasizing low-altitude data services and digital health solutions.

(1) Forward-looking and leading strategic determination The company adheres to the long-term development strategy of "three stages and six steps over thirty years", forming a top-level guideline that runs through the entire development cycle. Over the past twenty years, it has adhered to strategic focus, dynamically optimized resource allocation, risk management and control, and innovative layout. It has maintained clear direction and steady pace in main business integration, transformation and upgrading, opportunity grasping, and crisis response, ensuring the company's sustained high-quality development in a complex market and industry environment. The strategic guidance has achieved remarkable results. (II) Authoritatively recognized brand qualifications As a high-tech listed enterprise, the company boasts comprehensive industry qualifications and a highly recognized brand image. It has been awarded numerous honors, including national high-tech enterprise, All-China Federation of Industry and Commerce technology innovation enterprise, Shaanxi Province excellent private enterprise, innovative enterprise, and intellectual property advantage enterprise. Its technical strength and compliant operations have been highly recognized by the state, local governments, and the industry. The brand's credibility and market reputation are solid, laying a solid foundation for business expansion. During the reporting period, "Tianrong Zhihang" was selected as a national-level innovative typical case of new productive forces, and "Research and Application of Green Computing Power Technology" was selected for the national computing power foundation unveiling action. (III) Collaborative and efficient industrial layout Focusing on three major business systems: military equipment, radio frequency electronics, and space-integrated engineering, with the Xi'an scientific research pilot base and 5G communication industrial park as the core, we have completed nationwide industrial deployment in Shaanxi, Beijing, Hainan, Jiangsu, Sichuan, Guangdong, and other regions, building an integrated closed-loop system of research, production, quality assurance, and sales, with efficient coordination between the industrial chain and the innovation chain. Capacity projects such as the Tianhe Defense Phase II - 5G Communication Industrial Park (North Area) project and the Nanjing Radio Frequency Material Factory support the scaling and industrialization of core products, entering a new stage of rapid growth. (IV) Independent and controllable scientific research strength Build an open innovation platform featuring "three institutes integrated and seven centers collaborating", strengthen the dominant position of enterprises in innovation, and deepen the collaboration between military, local universities, research institutions, and application. Establish academician expert workstations and postdoctoral innovation bases to gather high-end intellectual resources; continue high-intensity R&D investment, possessing over a thousand independent intellectual property rights and core technological achievements. Promote digitalization and intelligent manufacturing upgrades, forming a virtuous cycle of technology iteration, achievement transformation, and quality improvement. (V) High-quality and stable customer ecosystem In the military product field, we have deep coverage across multiple military services including the Army, Navy, Air Force, Rocket Force, and People's Armed Police Force, with stable cooperation and outstanding loyalty. We actively participate in international defense exhibitions, lay out our strategy in the "the Belt and Road" market, and continuously enhance our international influence. In the civilian product field, we have completed the integration of the communication electronics industry chain, achieved breakthroughs in magnetic materials, radio frequency devices, and other aspects, entered the qualified supplier system of the world's six major communication equipment manufacturers, and become a core supplier. The dual-driven pattern of military and civilian products is stable. (VI) Well-structured talent echelon Build a team of highly educated, professional, and dedicated talents, with a leading proportion of R&D technical personnel. Establish R&D centers in Beijing, Xi'an, Chengdu, and Shenzhen to form a multi-point innovation support system. Adhere to the harmonious unity of interests among the country, enterprises, and employees, and build a concentric sharing mechanism through current incentives, equity incentives, and employee stock ownership. Ensure a stable talent echelon and a reasonable echelon structure to provide sufficient human resources for long-term development. (VII) Compliant and lean operational capabilities Establish a comprehensive management system encompassing quality, safety, confidentiality, and compliance, tailored to meet the stringent standards of military and high-end electronic manufacturing. Implement professional, standardized, and meticulous operations, ensuring product reliability through professional processes and quality control. Strengthen supply chain collaboration and cost management, enhance delivery efficiency and market responsiveness, and support large-scale delivery and sustainable operation. (VIII) A corporate culture that fosters unity and cohesion A core cultural system featuring military service to serve the country, self-reliance, hard work, and collaborative dedication has been established, with the "harmonious unity of national, corporate, and employee interests" as the core value. We have deeply cultivated a culture of compliance, quality, safety, model, confidentiality, and innovation, using culture to unite people, stimulate vitality, strengthen employees' sense of mission and belonging, and provide inexhaustible spiritual motivation for the company's sustainable development.