[Definitions](index=4&type=section&id=Section%201%20Definitions) This chapter primarily explains professional terms and company entity abbreviations used in the report to ensure accurate information transmission - This chapter primarily explains professional terms and company entity abbreviations used in the report to ensure accurate information transmission[15](index=15&type=chunk)[16](index=16&type=chunk) [Company Profile and Key Financial Indicators](index=6&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides an overview of the company's key financial performance and indicators for the first half of 2024, highlighting significant growth in revenue and net profit [Key Accounting Data and Financial Indicators](index=7&type=section&id=VI.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In the first half of 2024, the company reported significant financial growth with operating revenue increasing by 19.99% to 10.284 billion yuan and net profit attributable to shareholders rising by 30.56% to 1.507 billion yuan, alongside a positive shift in operating cash flow Key Accounting Data (January-June 2024) | Key Accounting Data | Current Period (Jan-Jun) (Yuan) | Prior Period (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 10,283,733,393 | 8,570,210,633 | 19.99 | | Net Profit Attributable to Shareholders of Listed Company | 1,506,841,018 | 1,154,168,154 | 30.56 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains/Losses) | 1,158,683,608 | 928,692,585 | 24.77 | | Net Cash Flow from Operating Activities | 670,363,515 | -468,059,212 | Not Applicable | Key Financial Indicators (January-June 2024) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | YoY Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/Share) | 1.07 | 0.81 | 32.10% | | Diluted Earnings Per Share (Yuan/Share) | 1.07 | 0.81 | 32.10% | | Weighted Average Return on Net Assets (%) | 3.93 | 3.28 | Increased by 0.65 percentage points | | R&D Investment as % of Operating Revenue (%) | 9.47 | 9.97 | Decreased by 0.50 percentage points | - The company explained the changes in key financial indicators: - **Net profit attributable to parent company increased by 30.56%**: Primarily due to the year-on-year increase in operating profit driven by revenue growth[26](index=26&type=chunk) - **Net cash flow from operating activities turned positive**: Primarily due to the year-on-year increase in cash received from sales of goods and provision of services[26](index=26&type=chunk) - **Earnings per share increased by 32.10%**: Primarily due to the year-on-year increase in net profit attributable to the parent company[26](index=26&type=chunk) Non-recurring Gains and Losses (January-June 2024) | Non-recurring Gains and Losses | Amount (Yuan) | | :--- | :--- | | Government Subsidies | 359,866,247 | | Fair Value Changes and Disposal Gains/Losses of Financial Assets/Liabilities | 56,608,780 | | Disposal Gains/Losses of Non-current Assets | 2,958,532 | | Other Non-operating Income and Expenses | 6,082,662 | | **Total** | **348,157,410** | [Management Discussion and Analysis](index=10&type=section&id=Section%203%20Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's industry landscape, core business operations, technological advancements, and strategic initiatives during the reporting period [Industry and Main Business Overview](index=10&type=section&id=I.%20Industry%20and%20Main%20Business%20Overview%20for%20the%20Reporting%20Period) The company, a leader in rail transit traction converter systems, pursues a concentric diversification strategy by expanding into power semiconductors and new energy sectors, benefiting from national strategic opportunities - The company's main business involves R&D, design, manufacturing, sales, and service of rail transit equipment products, forming an "device + system + complete machine" industrial structure[29](index=29&type=chunk) - The company actively expands beyond rail transit, with businesses extending to power semiconductor devices, industrial converter products (wind, solar, storage, hydrogen, mining truck electric drives, etc.), new energy vehicle electric drive systems, sensor devices, marine engineering equipment, and other fields[29](index=29&type=chunk) - National top-level strategies such as the "Outline for Building a Powerful Transportation Nation" and "Dual Carbon" targets provide important opportunities for the company's business development, especially in intelligent and green transportation equipment and new energy sectors[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) [Core Technologies and R&D Progress](index=12&type=section&id=II.%20Core%20Technologies%20and%20R%26D%20Progress) The company maintains its technological leadership through 13 core technologies and 3,540 patents, demonstrating significant R&D achievements in rail transit and new industries with a 13.95% increase in R&D investment in H1 2024 [R&D Achievements](index=23&type=section&id=2.%20R%26D%20Achievements%20During%20the%20Reporting%20Period) In H1 2024, the company achieved international leading technical standards in CR450 EMU systems and made breakthroughs in 4500V press-pack and 1200V SiC modules, adding 142 new patents to its total of 3,540 - **Rail Transit Industry**: Completed the development of key traction network systems for CR450 EMU, with technical indicators reaching international leading levels; completed the installation and debugging of Fuxinghao locomotive permanent magnet traction system; further expanded application scenarios for hybrid power traction systems[47](index=47&type=chunk) - **New Industries**: Breakthroughs in 4500V press-pack product cosmic ray resistance technology; completed development of 1200V automotive-grade L5 plastic-packaged SiC modules; completed development of offshore floating 20MW full-power wind power converters; achieved demonstration application of 120t hydrogen-electric hybrid mining truck electric drive system[48](index=48&type=chunk) Intellectual Property Overview (First Half 2024) | Category | New Applications This Period | New Grants This Period | Cumulative Grants | | :--- | :--- | :--- | :--- | | Invention Patents | 95 | 93 | 2,215 | | Utility Model Patents | 21 | 46 | 1,200 | | Design Patents | 2 | 3 | 125 | | **Total** | **124** | **148** | **3,924** | [R&D Investment](index=25&type=section&id=3.%20R%26D%20Investment%20Table) In H1 2024, total R&D investment increased by 13.95% to 0.974 billion yuan, with expensed R&D rising by 16.69% and capitalized R&D decreasing by 35.55%, while R&D intensity slightly declined to 9.47% of revenue R&D Investment (January-June 2024) | Item | Current Period (Yuan) | Prior Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 944,888,068 | 809,725,754 | 16.69 | | Capitalized R&D Investment | 28,905,627 | 44,852,017 | -35.55 | | **Total R&D Investment** | **973,793,695** | **854,577,771** | **13.95** | | R&D Investment as % of Operating Revenue (%) | 9.47 | 9.97 | Decreased by 0.50 percentage points | | Capitalization Ratio of R&D Investment (%) | 2.97 | 5.25 | Decreased by 2.28 percentage points | [R&D Personnel Information](index=45&type=section&id=5.%20R%26D%20Personnel%20Information) As of the reporting period end, the company's R&D personnel increased to 3,076, comprising 37.08% of total staff, with over 43% holding master's or higher degrees and nearly 80% under 40 years old R&D Personnel Overview | Item | Current Period | Prior Period | | :--- | :--- | :--- | | R&D Personnel Count (Persons) | 3,076 | 2,775 | | R&D Personnel as % of Total Company Headcount (%) | 37.08 | 35.26 | - The R&D team's educational background is primarily bachelor's and master's degrees, totaling over **95%**. The age structure is young, with the **30-40 age group** forming the backbone, accounting for nearly **50%**[74](index=74&type=chunk)[75](index=75&type=chunk) [Analysis of Core Competitiveness](index=46&type=section&id=III.%20Analysis%20of%20Core%20Competitiveness%20During%20the%20Reporting%20Period) The company's core competitiveness stems from its leading market position in rail transit, innovation-driven technology, high-quality service, full-chain synergy, and top-tier talent, with emerging businesses also achieving significant market presence - **Market Position**: High-speed rail and locomotive traction converter products lead the domestic market; urban rail traction converter systems have held the top domestic market share for **twelve consecutive years** from 2012 to 2023[77](index=77&type=chunk) - **Breakthroughs in Emerging Businesses**: Passenger vehicle power module installations ranked among the **top two** in the industry in the first half of 2024 (market share **13.4%**); domestic winning bids for photovoltaic inverters entered the **top five** in the industry; new energy vehicle electric drive system installations ranked among the **top nine** domestically[78](index=78&type=chunk) - **Technology and Talent**: Possesses **6 national-level technology innovation platforms** and has accumulated **3,540 authorized patents**. The R&D team is led by a Chinese Academy of Engineering academician, with R&D personnel accounting for **37.08%** of the total, of whom over **43%** hold master's or doctoral degrees[80](index=80&type=chunk)[84](index=84&type=chunk) [Discussion and Analysis of Operating Conditions](index=49&type=section&id=IV.%20Discussion%20and%20Analysis%20of%20Operating%20Conditions) In H1 2024, the company achieved steady growth through its concentric diversification strategy, with rail transit maintaining market share and emerging equipment businesses expanding rapidly, though the sensor segment faced challenges - **Rail Transit Industry**: China National Railway Group's EMU tender volume exceeded last year's full-year total, and the company's market share remained stable; new orders for urban rail traction systems continued to lead the industry[88](index=88&type=chunk) - **Power Semiconductors**: Existing production lines are at full capacity, and the Yixing Phase III project is progressing steadily, expected to commence production in the **second half of 2024**. IGBT **7.5 generation chip products** achieved batch delivery, and SiC products are undergoing continuous verification[89](index=89&type=chunk) - **New Energy Passenger Vehicle Electric Drives**: The national "1+N" four major production bases layout is largely complete, with capacity steadily increasing, and approximately **40,000 units** exported overseas in partnership with Hozon and SAIC-GM-Wuling[89](index=89&type=chunk) - **Sensor Segment**: Revenue declined in the first half of 2024 due to decreased demand growth in the photovoltaic industry and a decline in the unit price of automotive sensor products[90](index=90&type=chunk) [Risk Factors](index=50&type=section&id=V.%20Risk%20Factors) The company faces various risks, including uncertainties in core technology R&D, complexities of overseas operating environments, financial risks from exchange rate fluctuations, fierce market competition in new energy vehicles and other industries, and macro-environmental risks from international trade protectionism - The main risks identified by the company include: - **Core Competitiveness Risk**: High R&D investment with uncertainties, potentially leading to R&D failure or lower-than-expected returns from new products[91](index=91&type=chunk) - **Operating Risk**: Overseas operations face political, supply chain, and increased cost risks[93](index=93&type=chunk) - **Financial Risk**: Increased international operations may lead to asset losses or increased costs due to exchange rate fluctuations[94](index=94&type=chunk) - **Industry Risk**: Fierce price competition and rapid technological iteration in the new energy vehicle component market[95](index=95&type=chunk) - **Macro-environmental Risk**: International trade protectionism may lead to increased costs and greater difficulty in securing orders[96](index=96&type=chunk) [Key Operating Conditions](index=53&type=section&id=VI.%20Key%20Operating%20Conditions%20During%20the%20Reporting%20Period) During the reporting period, the company achieved robust financial performance with operating revenue up 19.99% to 10.284 billion yuan and net profit up 30.56% to 1.507 billion yuan, driven by growth in both rail transit and emerging equipment businesses, alongside significant asset increases and a strategic capital increase for a subsidiary [Main Business Analysis](index=53&type=section&id=(I)%20Main%20Business%20Analysis) In H1 2024, the company's main business showed strong performance, with rail transit equipment revenue growing by 30.87% to 6.139 billion yuan, notably in communication signal systems, and emerging equipment revenue increasing by 9.21% to 4.094 billion yuan, despite a decline in sensor devices Revenue by Business Segment (Unit: Billion Yuan) | Revenue Segment | Current Period (Billion Yuan) | Prior Period (Billion Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | **Rail Transit Equipment Business** | **6.139** | **4.691** | **30.87** | | Of which: Rail Transit Electrical Equipment | 4.947 | 3.885 | 27.33 | | Rail Engineering Machinery | 0.557 | 0.482 | 15.57 | | Communication Signal Systems | 0.416 | 0.180 | 131.47 | | **Emerging Equipment Business** | **4.094** | **3.749** | **9.21** | | Of which: Power Semiconductor Devices | 1.747 | 1.380 | 26.63 | | Sensor Devices | 0.136 | 0.257 | -47.01 | | New Energy Vehicle Electric Drive Systems | 0.903 | 0.833 | 8.23 | | Industrial Converters | 0.903 | 0.937 | -3.58 | | Marine Engineering Equipment | 0.405 | 0.342 | 18.61 | | **Total** | **10.284** | **8.570** | **19.99** | [Analysis of Assets and Liabilities](index=55&type=section&id=(III)%20Analysis%20of%20Assets%20and%20Liabilities) As of the reporting period end, total assets grew 16% to 61.936 billion yuan, primarily driven by increases in monetary funds, accounts receivable, and construction in progress, while other payables significantly rose due to unpaid dividends Major Balance Sheet Item Changes | Item Name | End of Current Period (Yuan) | End of Prior Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Monetary Funds | 10,788,369,571 | 7,903,177,340 | 36.51 | | Notes Receivable | 986,313,390 | 2,376,882,219 | -58.50 | | Accounts Receivable | 12,653,604,811 | 9,635,843,983 | 31.32 | | Construction in Progress | 3,197,950,382 | 1,261,506,969 | 153.50 | | Other Payables | 2,819,948,208 | 1,145,345,758 | 146.21 | [Significant Asset and Equity Disposals](index=59&type=section&id=(V)%20Significant%20Asset%20and%20Equity%20Disposals) During the reporting period, the company completed a 4.328 billion yuan capital increase and share expansion for its controlling subsidiary CRRC Times Semiconductor, reducing its stake to 77.7771% while retaining control - Controlling subsidiary CRRC Times Semiconductor completed capital increase and share expansion, introducing strategic investors and an employee stock ownership platform, with a capital increase of **4.328 billion yuan**. The company's shareholding decreased to **77.7771%**, but it maintained its controlling position[106](index=106&type=chunk) [Corporate Governance](index=62&type=section&id=Section%204%20Corporate%20Governance) This section details significant changes in the company's board, supervisory committee, senior management, and core technical personnel, along with share repurchase activities during the reporting period [Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel](index=63&type=section&id=II.%20Changes%20in%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Core%20Technical%20Personnel) During the reporting period, several changes occurred in the company's directors, supervisors, senior management, and core technical personnel, including resignations and new appointments across various key positions - Changes in Board of Directors members: - **Resignations**: Zhang Xinning (Non-executive Director), Liu Ke'an (Vice Chairman, Executive Director), Gao Feng (Independent Non-executive Director)[114](index=114&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) - **New Appointments/Elections**: Shang Jing (Vice Chairman, Executive Director), Xu Shaolong (Executive Director), Feng Xiaoyun (Independent Non-executive Director)[114](index=114&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) - Changes in Senior Management: - **Resignations**: Yan Changqi (Deputy General Manager), Liu Zehua (Deputy General Manager, CFO), Shang Jing (General Manager), Yi Weihua (Deputy General Manager), Li Peng (Deputy General Manager)[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) - **Appointments**: Gan Weiwei (Deputy General Manager), Sun Shan (Deputy General Manager, CFO), Xu Shaolong (General Manager)[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) [Repurchase, Sale or Redemption of Listed Securities of the Company](index=67&type=section&id=(IV)%20Repurchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities%20of%20the%20Company) During the reporting period, the company repurchased a total of 4,696,800 H shares on the Hong Kong Stock Exchange in January 2024, which have since been cancelled, with a total consideration of approximately 98.56 million HKD, aiming to enhance shareholder value H-share Repurchase Details (January 2024) | Repurchase Month | Number of H-shares Repurchased | Highest Price Paid Per Share (HKD) | Lowest Price Paid Per Share (HKD) | Total Consideration (HKD) | | :--- | :--- | :--- | :--- | :--- | | January 2024 | 4,696,800 | 21.8 | 19.64 | 98,558,789.24 | [Environmental and Social Responsibility](index=69&type=section&id=Section%205%20Environmental%20and%20Social%20Responsibility) This section outlines the company's environmental protection efforts, including investments, compliance, and initiatives to reduce carbon emissions through product innovation and clean energy adoption [Environmental Information](index=69&type=section&id=I.%20Environmental%20Information) The company has established environmental protection mechanisms, investing 3.96 million yuan in environmental protection during the reporting period, ensuring compliance for key pollutant-discharging subsidiaries and actively pursuing carbon reduction through energy-saving products and clean energy initiatives - Environmental protection investment of **3.96 million yuan** during the reporting period[131](index=131&type=chunk) - Contributes to carbon reduction through R&D and production of new products, for example: - **SiC Traction System**: Implemented in Shenzhen Metro lines, with actual measured energy savings exceeding **10%**[140](index=140&type=chunk) - **Hydrogen Energy Catenary Maintenance Vehicle**: Completed online trial operation, with a single vehicle expected to reduce CO2 emissions by over **75 tons** annually[140](index=140&type=chunk) - Achieves carbon reduction through the use of clean energy and energy-saving technical upgrades: - Added **3MW** of rooftop photovoltaic capacity, with an annual power generation capacity of approximately **3 million kWh**[141](index=141&type=chunk) - Purchased over **5 million kWh** of green electricity in the first half of the year, with a full-year plan to purchase **18 million kWh**, expected to reduce emissions by approximately **10,000 tons**[142](index=142&type=chunk) - Implemented energy-saving optimization for production line equipment and smart air conditioning and lighting upgrades[141](index=141&type=chunk)[142](index=142&type=chunk) [Significant Matters](index=74&type=section&id=Section%206%20Significant%20Matters) This section covers key corporate actions and financial disclosures, including significant guarantees and the progress of raised funds utilization [Significant Guarantees Provided and Outstanding During the Reporting Period](index=109&type=section&id=(II)%20Significant%20Guarantees%20Provided%20and%20Outstanding%20During%20the%20Reporting%20Period) During the reporting period, the company had no external guarantees, only guarantees for its subsidiaries, totaling 0.262 billion yuan, with 0.226 billion yuan provided for entities with an asset-liability ratio exceeding 70% Company Guarantee Total | Item | Amount (Yuan) | | :--- | :--- | | Total Guarantees (A+B) | 262,217,410.39 | | Total Guarantees as % of Company's Net Assets (%) | 0.71 | | Debt Guarantees for Guaranteed Entities with Asset-Liability Ratio > 70% (D) | 226,075,000.00 | [Explanation of Progress in Use of Raised Funds](index=110&type=section&id=XI.%20Explanation%20of%20Progress%20in%20Use%20of%20Raised%20Funds) The net proceeds from the company's initial public offering amounted to 7.443 billion yuan, with 5.450 billion yuan cumulatively invested as of the reporting period end, representing a 73.22% investment progress, while temporarily idle funds are utilized for cash management Overall Use of Raised Funds | Item | Amount (Yuan) | | :--- | :--- | | Net Proceeds from IPO (after deducting issuance expenses) | 7,443,212,046 | | Cumulative Raised Funds Invested as of End of Reporting Period | 5,449,575,035 | | Cumulative Investment Progress as of End of Reporting Period (%) | 73.22 | - The company used temporarily idle raised funds not exceeding **3.2 billion yuan** for cash management to increase returns on the company's cash assets. As of the end of the reporting period, the cash management balance was **1.66 billion yuan**[227](index=227&type=chunk) [Share Changes and Shareholder Information](index=116&type=section&id=Section%207%20Share%20Changes%20and%20Shareholder%20Information) This section details changes in the company's share capital due to repurchases and provides an overview of its shareholder structure, including major shareholders and lock-up commitments [Share Capital Changes](index=116&type=section&id=I.%20Share%20Capital%20Changes) During the reporting period, the company's total share capital decreased from 1,416,236,912 shares to 1,411,540,112 shares due to the repurchase and cancellation of 4,696,800 H shares in January 2024 - The company repurchased and cancelled **4,696,800 H shares** in January 2024, leading to a reduction in total share capital[233](index=233&type=chunk) Share Capital Change Table | Share Class | Quantity Before This Change | Change (Increase/Decrease) | Quantity After This Change | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 608,966,468 | 0 | 608,966,468 | | II. Unrestricted Tradable Shares | 807,270,444 | -4,696,800 | 802,573,644 | | Of which: Overseas Listed Foreign Shares (H-shares) | 547,329,400 | -4,696,800 | 542,632,600 | | **III. Total Shares** | **1,416,236,912** | **-4,696,800** | **1,411,540,112** | [Shareholder Information](index=117&type=section&id=II.%20Shareholder%20Information) As of the reporting period end, the company had 16,516 common shareholders, with CRRC Zhuzhou Institute Co., Ltd. and HKSCC NOMINEES LIMITED as the top two largest shareholders, and the controlling shareholder extending its pre-IPO share lock-up period Top Ten Shareholders' Shareholding (As of June 30, 2024) | Shareholder Name | Shares Held at Period End | Proportion (%) | | :--- | :--- | :--- | | CRRC Zhuzhou Institute Co., Ltd. | 591,000,716 | 41.87 | | HKSCC NOMINEES LIMITED | 541,316,466 | 38.35 | | Hong Kong Securities Clearing Company Limited | 26,498,358 | 1.88 | | China Merchants Bank - Huaxia SSE STAR Market 50 ETF | 20,052,422 | 1.42 | | CRRC Zhuzhou Electric Locomotive Co., Ltd. | 10,000,000 | 0.71 | - Controlling shareholder CRRC Zhuzhou Institute pledged to voluntarily extend the lock-up period for its **589,585,699 pre-IPO shares** by **12 months**, until **September 6, 2025**[217](index=217&type=chunk)[240](index=240&type=chunk) [Preferred Shares Information](index=127&type=section&id=Section%208%20Preferred%20Shares%20Information) This section confirms the company had no preferred shares outstanding or related activities during the reporting period - During the reporting period, the company had no preferred shares information[246](index=246&type=chunk) [Bond Information](index=128&type=section&id=Section%209%20Bond%20Information) This section confirms the company had no outstanding bonds or bond-related activities during the reporting period - During the reporting period, the company had no bond information[247](index=247&type=chunk) [Financial Report](index=129&type=section&id=Section%2010%20Financial%20Report) This section presents the company's comprehensive financial statements for the first half of 2024, providing a detailed view of its financial position, performance, and cash flows [Financial Statements](index=129&type=section&id=II.%20Financial%20Statements) This chapter provides the company's unaudited consolidated and parent company financial statements for the first half of 2024, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, showing growth in total assets, revenue, and profit, with significantly improved operating cash flow Consolidated Balance Sheet Summary (June 30, 2024) | Item | End of Period Balance (Yuan) | Beginning of Period Balance (Yuan) | | :--- | :--- | :--- | | **Total Assets** | **61,936,184,997** | **53,404,847,387** | | **Total Liabilities** | **19,395,527,401** | **15,688,316,505** | | Owners' Equity Attributable to Parent Company | 39,518,775,875 | 36,865,956,579 | | **Total Owners' Equity** | **42,540,657,596** | **37,716,530,882** | Consolidated Income Statement Summary (January-June 2024) | Item | Amount for Current Period (Yuan) | Amount for Prior Period (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 10,283,733,393 | 8,570,210,633 | | Operating Profit | 1,702,661,203 | 1,211,280,886 | | Total Profit | 1,708,743,865 | 1,225,639,966 | | Net Profit | 1,601,032,565 | 1,188,316,862 | | Net Profit Attributable to Parent Company Shareholders | 1,506,841,018 | 1,154,168,154 | Consolidated Cash Flow Statement Summary (January-June 2024) | Item | Amount for Current Period (Yuan) | Amount for Prior Period (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 670,363,515 | -468,059,212 | | Net Cash Flow from Investing Activities | -3,074,478,598 | 69,930,686 | | Net Cash Flow from Financing Activities | 4,495,429,019 | 37,816,024 | | Net Increase in Cash and Cash Equivalents | 2,090,396,372 | -355,366,109 |

三、 公司全体董事出席董事会会议。 2024 年半年度报告 公司代码：688187 公司简称：时代电气 株洲中车时代电气股份有限公司 2024 年半年度报告 1 / 239 2024 年半年度报告 重要提示 一、 本公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实性、准确性、 完整性，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 二、 重大风险提示 请查阅本报告第三节"管理层讨论与分析"中有关风险的说明。 四、 本半年度报告未经审计。 五、 公司负责人李东林、主管会计工作负责人孙珊及会计机构负责人（会计主管人员）袁峰声明： 保证半年度报告中财务报告的真实、准确、完整。 六、 董事会决议通过的本报告期利润分配预案或公积金转增股本预案 无 七、 是否存在公司治理特殊安排等重要事项 □适用 √不适用 八、 前瞻性陈述的风险声明 √适用 □不适用 本报告中所涉及的未来计划、发展战略等前瞻性描述不构成公司对投资者的实质承诺，敬请投资 者注意投资风险。 九、 是否存在被控股股东及其他关联方非经营性占用资金情况 否 十、 是否存在违反规定决策程序对外提供担保的情况 否 十一、 是否 ...

证券代码:688187(A 股) 证券简称:时代电气(A 股) 公告编号:2024-029 证券代码: 3898(H 股) 证券简称:时代电气(H 股) 株洲中车时代电气股份有限公司 关于 2024 年半年度业绩预告的自愿性披露公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者 重大遗漏,并对其内容的真实性、准确性和完整性依法承担法律责任。 一、本期业绩预告情况 (一)业绩预告期间 2024 年 1 月 1 日至 2024 年 6 月 30 日。 (二)业绩预告情况 1、预计业绩:同比增长 2、经财务部门初步测算,株洲中车时代电气股份有限公司(以下简称"公司") 预计 2024 年半年度实现归属于母公司所有者的净利润人民币 150,684 万元,较上年同 期增加人民币 35,267 万元,同比增长 30.56%。 3、预计公司 2024 年半年度实现归属于母公司所有者的扣除非经常性损益的净利 润人民币 126,769 万元,较上年同期增加人民币 33,900 万元,同比增长 36.50%。 (三)本次业绩预告未经注册会计师审计。 二、上年同期业绩情况 公司 2023 年半年度实现归属 ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company's main business is expected to benefit from equipment update policies, and its semiconductor business is expanding its market share. The forecast for net profit attributable to shareholders for 2024-2026 is 3.6 billion, 4.0 billion, and 4.5 billion RMB, corresponding to year-on-year growth rates of 15%, 11%, and 13% respectively. The current stock price of 30.15 HKD corresponds to P/E ratios of 11.0, 10.0, and 8.8 for 2024-2026 [2] - In Q1 2024, the company's rail transit revenue grew by 44% year-on-year, primarily due to the delivery of train orders at the end of 2023. The traditional rail transit equipment business achieved revenue of 2.1 billion RMB, with a gross margin improvement driven by new train manufacturing and maintenance business growth [2] - The new equipment business's revenue in Q1 2024 was 1.8 billion RMB, with a year-on-year growth of 13%. The power semiconductor segment saw a 22% increase in revenue, while sensor revenue declined by 49% due to decreased demand in the photovoltaic sector [3] Summary by Sections Rail Transit Business - The rail transit business is expected to benefit from equipment update policies, with Q1 2024 revenue showing a significant increase of 44% year-on-year, mainly from the delivery of 55 new trains [2] - Maintenance revenue continued to grow rapidly, with a 50% increase in 2023 and a 30% increase in Q1 2024, driven by the trend of replacing old equipment [2] - The company conservatively guides for a slight increase in rail transit revenue for 2024 due to the unclear implementation of the old-for-new policy and the lack of new locomotive tenders [2] New Equipment Business - The new equipment business's revenue in Q1 2024 was 1.8 billion RMB, with a year-on-year growth of 13%, although the growth rate was below expectations [3] - The power semiconductor segment's revenue grew by 22%, with the IGBT production line expected to contribute to revenue in 2024 [3] - The sensor segment experienced a significant decline in revenue, primarily due to reduced demand in the photovoltaic sector, but recovery is anticipated in Q2 2024 [3] Financial Metrics - The company's projected revenue for 2024 is 25.602 billion RMB, with a year-on-year growth of 17.4%. Net profit is expected to reach 3.579 billion RMB, reflecting a 15.2% year-on-year increase [4] - The gross margin is projected to be 34.1% in 2024, with a net margin of 14.0% [4] - The company's P/E ratio is expected to decrease from 11.0 in 2024 to 8.8 in 2026, indicating a potentially attractive valuation [4]

Financial Performance - The company's operating revenue for Q1 2024 reached CNY 3,924,623,207, representing a year-on-year increase of 27.20%[10] - Net profit attributable to shareholders for the same period was CNY 567,547,208, marking a growth of 30.44% compared to the previous year[10] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 460,999,116, which is an increase of 44.85% year-on-year[10] - Basic earnings per share for Q1 2024 were CNY 0.40, reflecting a 29.03% increase from the same period last year[10] - Operating profit for Q1 2024 was ¥616,035,912, up 31.6% from ¥467,783,206 in Q1 2023[49] - Net profit for Q1 2024 increased to ¥577,497,281, compared to ¥447,445,309 in Q1 2023, representing a growth of 29.1%[49] - Total comprehensive income for Q1 2024 was ¥592,674,740, compared to ¥461,958,859 in Q1 2023, reflecting a growth of 28.3%[53] Revenue Breakdown - The rail transportation business generated RMB 21.20 billion, up 43.74% from RMB 14.75 billion year-over-year, with the rail engineering machinery segment seeing a significant increase of 468.37%[32] - The emerging equipment business reported revenue of RMB 17.69 billion, a growth of 13.18% from RMB 15.63 billion, driven by power semiconductor devices which grew by 22.44%[32] - Total revenue for Q1 2024 reached ¥3,924,623,207, a 27.1% increase from ¥3,085,430,376 in Q1 2023[48] - Sales revenue from goods and services received cash of ¥2,917,791,196 in Q1 2024, an increase from ¥2,361,292,538 in Q1 2023[57] Assets and Liabilities - The total assets at the end of the reporting period amounted to CNY 55,106,878,479, a 3.19% increase from the end of the previous year[12] - Current assets totaled RMB 39.86 billion as of March 31, 2024, compared to RMB 37.51 billion at the end of 2023, reflecting a solid liquidity position[35] - Total liabilities rose to RMB 16.87 billion as of March 31, 2024, compared to RMB 15.69 billion at the end of 2023, primarily due to an increase in short-term borrowings[41] - The company's total assets increased to RMB 55.11 billion from RMB 53.40 billion, showcasing growth in both current and non-current assets[43] Shareholder Information - The company reported a total of 18,421 common shareholders at the end of the reporting period[18] - The total equity attributable to shareholders was CNY 37,373,161,487, reflecting a 1.38% increase from the previous year-end[12] - The largest shareholder, CRRC Zhuzhou Electric Locomotive Research Institute, holds 591,000,716 shares, accounting for 41.73% of the total shares[21] - HKSCC Nominees Limited, an overseas entity, holds 546,012,266 shares, representing 38.55% of the total shares[24] - The top ten unrestricted shareholders collectively hold 610,381,485 shares, which is 47.72% of the company's total equity[26] Cash Flow - The net cash flow from operating activities was negative at CNY -482,272,409, indicating a significant cash outflow during the quarter[10] - Cash flow from operating activities for Q1 2024 was negative at -¥482,272,409, an improvement from -¥1,272,174,259 in Q1 2023[59] - The company's cash and cash equivalents increased to RMB 8.28 billion from RMB 7.90 billion, indicating improved cash flow management[35] - The ending balance of cash and cash equivalents as of Q1 2024 was $7.13 billion, compared to $6.01 billion at the end of Q1 2023, reflecting a year-over-year increase of 18.6%[63] Research and Development - Research and development expenses totaled CNY 466,397,177, which is 11.88% of operating revenue, although this represents a decrease of 0.71 percentage points compared to the previous year[10] - Research and development expenses rose to ¥457,338,479, a 23.2% increase from ¥371,341,436 in Q1 2023[48] - The development expenditure for new technologies reached RMB 282.12 million, reflecting the company's commitment to innovation[37] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[32]

Financial Performance - The company's operating revenue for Q1 2024 reached CNY 3,924,623,207, representing a year-on-year increase of 27.20%[4] - Net profit attributable to shareholders was CNY 567,547,208, up 30.44% compared to the same period last year[4] - The net profit after deducting non-recurring gains and losses was CNY 460,999,116, reflecting a significant increase of 44.85% year-on-year[4] - The basic earnings per share for the quarter was CNY 0.40, an increase of 29.03%[5] - In Q1 2024, the company reported a net profit of CNY 577,497,281, an increase of 29.1% compared to CNY 447,445,309 in Q1 2023[20] - The company's operating profit reached CNY 616,035,912, up 31.6% from CNY 467,783,206 in the same period last year[20] - The company reported a total comprehensive income of CNY 592,674,740, an increase of 28.3% from CNY 461,958,859 in the previous year[21] Revenue Breakdown - The rail transit business generated RMB 2.120 billion, up 43.74% from RMB 1.475 billion year-on-year, with significant growth in rail engineering machinery by 468.37%[15] - The emerging equipment business reported revenue of RMB 1.769 billion, a 13.18% increase from RMB 1.563 billion, driven by power semiconductor devices growing by 22.44%[15] - The company’s revenue from rail transit electrical equipment was RMB 1.617 billion, reflecting a 28.95% increase year-on-year[15] - The company’s revenue from communication signal systems was RMB 143 million, a 42.00% increase compared to the previous year[15] - The company’s revenue from other rail transit equipment decreased by 4.51% to RMB 65 million[15] - The company’s revenue from other businesses fell by 24.86% to RMB 36 million[15] - Total operating revenue for Q1 2024 reached RMB 3,924,623,207, an increase of 27.2% compared to RMB 3,085,430,376 in Q1 2023[19] Costs and Expenses - Total operating costs for Q1 2024 were RMB 3,442,861,527, up 25.0% from RMB 2,753,153,062 in Q1 2023[19] - Research and development expenses totaled CNY 466,397,177, accounting for 11.88% of operating revenue, a decrease of 0.71 percentage points[5] - Research and development expenses increased to CNY 457,338,479, representing a rise of 23.2% from CNY 371,341,436 in Q1 2023[20] - The company's tax expenses for Q1 2024 were CNY 45,066,278, up from CNY 23,303,260 in Q1 2023, reflecting a growth of 93.5%[20] Cash Flow and Assets - The net cash flow from operating activities was negative CNY 482,272,409, indicating a cash outflow[5] - The company generated a net cash flow from operating activities of CNY -482,272,409, an improvement from CNY -1,272,174,259 in Q1 2023[23] - Cash and cash equivalents as of March 31, 2024, amounted to RMB 8,280,216,480, compared to RMB 7,903,177,340 at the end of 2023, reflecting a growth of 4.8%[16] - Cash and cash equivalents at the end of Q1 2024 amounted to CNY 7,134,783,664, up from CNY 6,014,183,114 at the end of Q1 2023[23] - Accounts receivable increased to RMB 10,707,530,139 as of March 31, 2024, from RMB 9,635,843,983 at the end of 2023, representing a rise of 11.1%[16] - Inventory as of March 31, 2024, was RMB 6,069,913,338, up 11.5% from RMB 5,442,956,796 at the end of 2023[16] - Total assets at the end of the reporting period were CNY 55,106,878,479, an increase of 3.19% from the end of the previous year[5] - Total assets increased to RMB 55,106,878,479 as of March 31, 2024, compared to RMB 53,404,847,387 at the end of 2023, marking a growth of 3.2%[18] - Total liabilities as of March 31, 2024, were RMB 16,871,994,328, an increase from RMB 15,688,316,505 at the end of 2023, reflecting a rise of 7.6%[18] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 18,421[8] - The number of A-share shareholders reached 17,361, while H-share shareholders totaled 1,060 as of the report date[11] - The company’s major shareholder, CRRC Corporation Limited, indirectly holds 47.72% of the company's shares[11] - The top 10 shareholders participated in securities lending, with the highest lending volume from China Merchants Bank at 457,500 shares[11] Future Outlook - The company continues to invest in new technologies and market expansion, although specific figures are not provided in the report[19] - Future outlook remains positive with expectations of continued growth in revenue and market presence[19]

Financial Performance - The company's operating revenue for 2023 reached RMB 21.80 billion, a year-on-year increase of 20.88% compared to RMB 18.03 billion in 2022[14]. - Net profit attributable to shareholders for 2023 was RMB 3.11 billion, reflecting a growth of 21.51% from RMB 2.56 billion in 2022[14]. - The net cash flow from operating activities was RMB 2.78 billion, up 36.28% from RMB 2.04 billion in the previous year[14][18]. - The total assets at the end of 2023 amounted to RMB 53.40 billion, a 10.09% increase from RMB 48.51 billion at the end of 2022[15]. - The net assets attributable to shareholders increased to RMB 36.87 billion, representing a growth of 6.76% from RMB 34.53 billion in 2022[15]. - Basic earnings per share for 2023 were RMB 2.19, up 21.67% from RMB 1.80 in 2022[17]. - The company's operating revenue reached a historic milestone of 20 billion yuan, achieving a new high in profitability[7]. - The company's operating revenue was RMB 21.7999 billion in 2023, representing a year-on-year increase of 20.88% compared to RMB 18.034 billion in the same period last year[116]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 7.8 per 10 shares, totaling approximately RMB 1.1 billion, which represents 35.45% of the net profit attributable to shareholders for the year 2023[1]. - The company will withhold a 10% corporate income tax on dividends distributed to non-resident corporate shareholders[187]. - Foreign individuals receiving dividends from the company are exempt from personal income tax under Chinese regulations[188]. Governance and Compliance - There are no significant risks related to the company's governance or financial practices reported[2]. - The company has confirmed that it has not been profitable since its listing[1]. - The report indicates that there are no special arrangements for corporate governance[2]. - The company has received a standard unqualified audit opinion from its auditing firm[1]. - The company has confirmed that there are no violations of decision-making procedures regarding external guarantees[2]. - The independent non-executive directors confirmed that CRRC Zhuzhou has adhered to the Non-Competition Agreement in 2023, with no competitive overlap in business operations[185]. - The audit committee reviewed the company's annual performance and annual report for 2023, including the audited consolidated financial statements as of December 31, 2023[198]. Research and Development - The company achieved a total R&D investment of CNY 2,145,457,133 in the reporting period, representing a 16.18% increase compared to the previous year[63]. - The company's R&D expenditure accounted for 9.84% of operating revenue, a decrease of 0.40 percentage points from 10.24% in 2022[17]. - A total of 229 new invention patents were granted in 2023, bringing the total number of effective patents to 3,558, with over 50% being invention patents[61]. - The company holds 3,558 patents, including 2,174 invention patents, and has participated in the formulation of 50 international standards[92]. - The R&D team consists of 3,180 engineering technicians, accounting for 38.03% of the workforce, with over 43% holding postgraduate degrees, ensuring a strong foundation for core technology development[97]. Market Position and Strategy - The company maintained a leading market share in rail transit traction systems, with continuous improvement in industry rankings for power supply and signaling systems[7]. - The company aims to strengthen its dual-track industry development strategy, focusing on transportation and new energy sectors[9]. - The company is actively expanding into industries outside rail transit, including power semiconductors, industrial conversion products, and new energy vehicle drive systems[29]. - The company is committed to deepening market-oriented reforms, optimizing organizational structure, and enhancing operational efficiency[8]. - The company is focusing on market expansion through innovative product offerings and strategic partnerships in the rail transportation sector[66]. Risks and Challenges - The company faces risks related to unprofitable operations and potential significant declines in performance, necessitating ongoing investment in new technologies and products[101]. - The company is facing risks from international trade protectionism and fluctuating foreign exchange rates impacting overseas operations[107][104]. - The overall trend of urban rail transit construction is slowing down, with local government debt rates high and significant tightening of fiscal policies, leading to a year-on-year decrease in urban rail construction investment[152]. Investments and Financial Management - The company plans to invest approximately RMB 110,799,000 in the manufacturing base for new energy passenger vehicle electric drive systems and key components[140]. - The company’s total liabilities at the end of the reporting period were RMB 25.4 billion, with long-term borrowings increasing by 769.39% to RMB 631.94 million[134]. - The company’s cash flow from financing activities showed a net outflow of RMB 589 million, which was stable compared to the same period last year[133]. - The company has engaged in derivative investments for hedging purposes, with a total initial investment amount of RMB 8,490.90[142]. Operational Efficiency - The company implemented a digital-driven management approach, enhancing profitability through precise management and real-time monitoring of financial performance[8]. - The company has established a comprehensive quality management system, achieving multiple international certifications including ISO9001 and IATF16949, ensuring high reliability and efficiency of products[93]. - The company is focusing on digital transformation and improving management efficiency to adapt to the complexities of its diversified business[109]. Product Development and Innovation - The company has developed a comprehensive independent intellectual property system, enhancing its capabilities in various high-tech fields such as electrical systems and control technology[29]. - The company has successfully developed a series of traction converters that meet the application needs of high-power locomotives and urban rail vehicles[44]. - The company has achieved breakthroughs in advanced motor control technology based on direct torque control, enhancing the reliability and performance of electric drive systems[44]. - The company is focusing on enhancing system availability and reducing the impact of failures through advanced technology integration[73].

Investment Rating - The report maintains a "Buy" rating for CRRC Times Electric (3898) with a target price of HKD 38.1, indicating a potential upside of 53.6% from the current price [2]. Core Views - The report highlights a recovery in rail transit and rapid growth in new equipment, with a net profit growth of 21.5% in 2023, driven by a revenue increase of 20.9% to RMB 21.8 billion [2]. - The rail transit business is showing signs of recovery, with a significant increase in national railway passenger volume, which rose by 128.8% year-on-year, surpassing pre-pandemic levels [2]. - The emerging equipment business is experiencing high growth rates, particularly in power semiconductor devices and new energy vehicle components, with some segments growing over 69% [2]. Financial Summary - In 2023, the company reported revenues of RMB 21.8 billion, with a net profit of RMB 3.1 billion, translating to an earnings per share (EPS) of RMB 2.19 [2][7]. - The revenue breakdown shows rail transit business revenue at RMB 12.9 billion (up 2%) and emerging equipment business revenue at RMB 8.7 billion (up 69.6%) [2]. - The forecast for 2024-2026 projects revenues of RMB 24.5 billion, RMB 27.8 billion, and RMB 30.6 billion, with respective growth rates of 12.4%, 13.6%, and 10.0% [2][7]. Business Segments - The rail transit business is expected to benefit from ongoing demand for locomotive and train replacements, with a total of 22,400 locomotives and 4,427 standard train sets in operation by the end of 2023 [2]. - The emerging equipment segment focuses on two main areas: transportation and energy, with significant investments in research and development, amounting to RMB 2.02 billion in 2023, representing 9.3% of total revenue [2]. - The company has secured new orders for photovoltaic inverters totaling 18.6 GW, ranking among the top three in the industry [2].

机械设备/轨交设备Ⅱ 公 司 研 时代电气（03898.HK） 受益轨交设备更新以及电网积极规划 究 2024年04月01日 ——港股公司信息更新报告 投资评级：买入（维持） 吴柳燕（分析师） wuliuyan@kysec.cn 证 书编号：S0790521110001 日期 2024/3/28  主业受益设备更新政策，半导体业务份额扩张，维持“买入”评级 港 当前股价(港元) 24.800 考虑到公司功率产品产能利用率和良率提升带来利润率提升，我们将 2024年归 股 一年最高最低(港元) 35.300/18.100 公 母净利润预测由33亿人民币上调至36亿人民币，维持2025年归母净利润预测 司 总市值(亿港元) 351.23 40亿人民币，新增2026年归母净利润预测45亿人民币，对应2024-2026年同比 信 流通市值(亿港元) 135.74 息 增速分别为 15%/11%/13%，当前股价 24.8 港币对应 2024-2025 年 PE 分别为 总股本(亿股) 14.16 更 8.9/8.0/7.1倍。公司轨交设备业务有望受益设备更新政策，新兴装备业务构筑第 新 流通港股(亿股) 5.47 ...

Financial Performance - The company achieved a historic revenue milestone of 20 billion CNY in 2023, marking a significant increase in profitability[9]. - The company's operating revenue for 2023 reached ¥21,798,940,776, representing a 20.88% increase compared to ¥18,033,778,561 in the same period last year[14]. - Net profit attributable to shareholders was ¥3,105,703,645, up 21.51% from ¥2,555,823,375 in the previous year[14]. - The net profit after deducting non-recurring gains and losses was ¥2,595,354,684, reflecting a 29.89% increase from ¥1,998,118,899 year-on-year[14]. - The net cash flow from operating activities was ¥2,781,885,557, a 36.28% increase compared to ¥2,041,235,459 in the same period last year[14]. - Basic earnings per share for 2023 were ¥2.19, up 21.67% from ¥1.80 in 2022[15]. - The weighted average return on net assets increased to 8.70%, up 1.09 percentage points from 7.61% in the previous year[16]. - The total assets at the end of 2023 were ¥53,404,847,387, a 10.09% increase from ¥48,509,554,784 at the end of the previous year[14]. - The net assets attributable to shareholders increased by 6.76% to ¥36,865,956,579 compared to ¥34,530,700,003 at the end of 2022[14]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 7.8 per 10 shares to all shareholders, totaling approximately RMB 1,101,001,287.36, which accounts for 35.45% of the net profit attributable to shareholders for the year 2023[3]. - The board of directors has approved the profit distribution plan, which is subject to approval at the annual general meeting[3]. - The cash dividend proposal for 2023 is subject to approval at the annual general meeting[161]. Corporate Governance - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[5]. - The company has not violated any regulatory decision-making procedures for providing guarantees[5]. - The company has not disclosed any special arrangements for corporate governance[4]. - The company has not experienced any situation where more than half of the directors cannot guarantee the authenticity, accuracy, and completeness of the annual report[5]. - The company has received a standard unqualified audit report from KPMG Huazhen[2]. - The company has established a comprehensive internal control system to monitor financial, operational, compliance, and risk management aspects[163]. - KPMG Huazhen has issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting[165]. - The company emphasizes the importance of shareholder returns while maintaining sustainable development[158]. Research and Development - The company has filed over 440 patents and received 11 international, national, and industry standards, enhancing its industry influence[9]. - The company achieved a total R&D investment of ¥2,145,457,133, representing a 16.18% increase compared to the previous year[42]. - Research and development expenses accounted for 9.84% of operating revenue, a decrease of 0.40 percentage points from 10.24% in 2022[16]. - The company has established a comprehensive R&D system with over 20 laboratories, including electrical systems and reliability labs, enhancing its innovation capabilities in product design and testing[57]. - The company holds a total of 3,558 patents, including 2,174 invention patents, and has participated in the formulation of 50 international standards and 174 domestic standards[57]. Market Position and Strategy - The company maintained over 50% market share in the domestic urban rail traction system market for 12 consecutive years[22]. - The company delivered 100.55 million sets of power modules for new energy passenger vehicles, achieving a market share of 12.5% and ranking third in the industry[22]. - The company secured new orders for 18.6 GW of photovoltaic inverters, ranking among the top three for the first time[22]. - The company is committed to deepening market-oriented reforms and optimizing organizational structure to enhance operational efficiency[9]. - The company aims to leverage high-quality development opportunities and challenges, focusing on its core rail transit sector and expanding into semiconductor and electric vehicle markets[9]. Environmental and Social Responsibility - The company invested ¥8.7539 million in environmental protection during the reporting period[167]. - The subsidiary Zhuzhou CRRC Times Semiconductor Co., Ltd. achieved 100% compliance in wastewater, waste gas, and noise emissions according to national standards in 2023[169]. - The company was recognized as a water-saving enterprise in Hunan Province in 2023[177]. - The company has committed to adhering to the TCFD recommendations for climate-related financial disclosures, analyzing risks and opportunities related to climate change[175]. - The company actively promotes environmental protection initiatives, integrating green concepts into market expansion and product development[187]. Talent Management and Workforce - The total number of employees in the parent company and major subsidiaries is 8,362, with 3,975 in the parent company and 4,387 in major subsidiaries[153]. - The company has a total of 1,502 production staff, 505 sales staff, and 4,841 technical staff, including 1,967 with a master's degree or higher[153]. - The company has implemented a comprehensive compensation policy focusing on talent incentives, performance management, and competitive salary structures[155]. - The company has conducted 12 empowerment sessions involving over 2,000 employees, focusing on enhancing profitability and performance[156]. - The company has established a training brand and developed a multi-level training system to enhance employee skills and align with strategic goals[156]. Risk Management - The company faces risks related to international operations, including currency fluctuations and project execution challenges, and has implemented measures to mitigate these risks[61][62]. - The company has implemented strict risk management measures for its foreign exchange derivative transactions to mitigate market and liquidity risks[96]. - The company has established a robust internal control and risk management system, as overseen by the Audit and Risk Control Committees[141]. Future Outlook - The company plans to strengthen its technological innovation, market expansion, and digital transformation strategies to achieve stable growth[9]. - The management indicated a positive outlook for future performance, expecting growth in user data and market share[111]. - The company has set ambitious performance guidance for the next fiscal year, aiming for a significant increase in revenue[111]. - The company is exploring potential acquisitions to enhance its technology portfolio, with a budget of ¥1 billion allocated for this purpose[115].