Financial Performance - The company's operating revenue for 2013 was CNY 440,411,341.70, a decrease of 8.78% compared to CNY 482,816,071.68 in 2012[22] - The net profit attributable to shareholders for 2013 was CNY 21,043,027.87, a significant recovery from a loss of CNY 137,576,958.39 in 2012[22] - The total profit for 2013 was CNY 19,876,305.91, compared to a loss of CNY 152,979,123.55 in 2012[31] - The basic earnings per share for 2013 was CNY 0.0669, compared to a loss of CNY 0.4373 in 2012[22] - The company's total revenue for 2013 was CNY 423,775,819.25, a decrease of 10.65% compared to the previous year[57] - The net profit for the year was CNY 14,495,634.96, a turnaround from a net loss of CNY 153,533,425.77 in the previous year[176] - The total comprehensive income for the year was 7,366,754.59 CNY, recovering from a total comprehensive loss of 105,587,725.96 CNY in the previous year[182] Cash Flow and Assets - The net cash flow from operating activities increased by 379.24% to CNY 28,521,153.23 from CNY 5,951,389.03 in the previous year[22] - The company reported a net cash flow from investment activities of CNY 56,651,084.58, a significant increase from a negative cash flow of CNY -14,826,856.83 in 2012, mainly due to compensation received from relocation[40] - The total assets at the end of 2013 were CNY 722,354,329.16, down 11.38% from CNY 815,158,524.38 in 2012[22] - Cash and cash equivalents increased from CNY 109,304,680.25 to CNY 161,727,535.54, showing a growth of about 47.9%[167] - The company reported a cash inflow from investment activities of 250,301,079.89 CNY, compared to 35,624,184.40 CNY in the previous year[182] Operational Changes and Strategies - The company implemented cost control measures to reduce management expenses and improve overall profitability[32] - The marketing team was optimized, and new marketing policies were introduced to boost sales performance[31] - The company focused on expanding its market presence in electric meters and security inspection equipment, particularly in rail transit and large leasing projects[31] - The company plans to enhance its marketing network and increase market share by optimizing management structures and expanding service systems[75] - The company aims to enhance the competitiveness of electronic energy meters, focusing on high-tech products to meet the increasing market demand, particularly from major power companies[73] Research and Development - Research and development expenses were CNY 26,529,373.83, down 31.07% from the previous year, focusing on improving existing product quality and cost reduction[39] - The company has a strong R&D team with extensive experience, focusing on customer and market needs to ensure sustainable development[63] - The company focused on developing smart energy meters and related testing equipment to maintain market leadership and expand market share[53] Corporate Governance and Management - The board of directors held six meetings in 2013 to oversee company operations and strategic decisions[33] - The company has improved its corporate governance structure in compliance with relevant laws and regulations, ensuring the integrity and diligence of its board members[125] - The board consists of 5 members, including 2 independent directors, and has established four specialized committees to enhance decision-making processes[126] - The company has established a scientific compensation management system based on regional average wages and industry standards, ensuring timely and adequate salary payments to employees[122] Risks and Challenges - There are no significant risk factors adversely affecting the company's production, financial status, or ongoing profitability[13] - The company faces risks from changes in national industrial policies that could slow down demand growth in the electric meter sector[78] - The company recognizes intense competition in the electric meter industry and plans to support marketing teams to develop high-tech smart products[79] Shareholder Information - The company has not distributed dividends for the past three years, with cash dividends consistently at 0% of net profit[86] - The total number of shareholders at the end of the reporting period was 23,052, compared to 23,140 five trading days before the annual report disclosure[102] - The largest shareholder, Henan Zhenghong Real Estate Co., Ltd., holds 29.24% of the shares, amounting to 92,000,000 shares, which are pledged[102] Audit and Compliance - The audit committee confirmed that the financial statements accurately reflect the company's overall situation, leading to a standard unqualified audit opinion for the 2013 annual report[141] - The audit firm Zhongqin Wanxin provided a standard unqualified audit report for the 2013 annual report, ensuring compliance with accounting standards[143] - The company maintains a transparent investor relations management system, ensuring timely and accurate information disclosure to all shareholders[130]