Corporate Governance - The financial report is guaranteed to be true, accurate, and complete by the company's board and management[4]. - The company’s legal representative is Zhang Xinyu, who oversees the overall operations[13]. - The company’s contact information includes a dedicated email for investor relations: IR@creat-da.com.cn[14]. - The company has not reported any significant changes in shareholder structure or stock movements in the first half of 2014[8]. - The company has maintained a consistent dividend policy, as indicated by the announcement of the 2013 annual equity distribution[135]. - The company’s shareholder structure remains stable, with no new significant shareholders added in the latest report[140]. - The company confirmed that there were no significant related party transactions outside of daily operations[113]. - The company did not engage in any asset acquisitions or sales during the reporting period[115]. - The company did not experience any changes in its controlling shareholder or actual controller during the reporting period[142]. Financial Performance - The company achieved operating revenue of CNY 522,990,736.86, representing a year-on-year increase of 27.38%[20]. - The net profit attributable to shareholders was CNY 22,373,088.96, up 22.01% compared to the same period last year[20]. - The net profit after deducting non-recurring gains and losses was CNY 20,650,541.70, reflecting a significant increase of 35.74% year-on-year[20]. - The basic earnings per share increased to CNY 0.10, a rise of 25.00% compared to the previous year[20]. - The company reported a net profit for the first half of 2014 reached CNY 24,267,063.26, representing a 23.5% increase from CNY 19,597,659.48 in the previous year[160]. - The total assets at the end of the reporting period were CNY 1,591,247,697.40, an increase of 9.44% from the previous year[20]. - The company’s total equity increased from ¥1.04 billion to ¥1.07 billion, representing a growth of about 2.6%[154]. - The company’s total equity decreased slightly to CNY 889,428,377.13 from CNY 893,912,474.27, a decline of 0.5%[158]. - The company reported a decrease in retained earnings of 39,891,490.00 CNY due to profit distribution[175]. Research and Development - The company focuses on the development of smart distribution automation products, including solid insulated ring network cabinets and intelligent modular substations[11]. - The company is committed to research in self-healing control technology for distribution networks, focusing on optimization, prevention, and emergency control[11]. - The company invested CNY 27.41 million in R&D during the reporting period, focusing on projects such as "environmentally friendly composite insulated ring network cabinets" and "smart medium-voltage switchgear" among others[31]. - The company applied for 11 new patents during the reporting period, including 5 invention patents and 6 utility model patents, bringing the total authorized patents to 107[32]. - The company continued to improve its R&D management system and completed the configuration of the PLM system product module[30]. Cash Flow and Investments - The net cash flow from operating activities was negative at CNY -155,117,087.64, a decline of 135.99% year-on-year[20]. - The cash flow from operating activities was negative CNY 155.12 million, a decrease of 135.99% year-on-year, primarily due to increased cash payments for goods and taxes[38]. - The company made substantial investments totaling ¥82,892,070.00, a 1,843.00% increase compared to the previous year, indicating aggressive expansion strategies[46]. - The company temporarily supplemented working capital with 80 million yuan from over-raised funds, which was fully returned to the special account by November 29, 2012[70]. - The company reported a net loss of 118,626,551.99 CNY from operating activities, compared to a loss of 53,667,217.32 CNY in the previous period[170]. Market and Sales - The company signed new contracts worth CNY 790 million during the reporting period, contributing to revenue growth[28]. - The company enhanced its marketing system and sales capabilities, leading to significant contract wins in traditional and new markets[29]. - The company reported a significant increase in sales expenses by 34.92% to ¥63,212,863.81, attributed to the expansion of sales scale and the addition of a new subsidiary[40]. - The company confirmed sales revenue of CNY 5,610.65 million from a contract with Shandong Electric Power Group, with accounts receivable of CNY 441.12 million and cash received of CNY 6,123.33 million as of June 30, 2014[125]. Acquisitions and Subsidiaries - The company completed the acquisition of 100% equity in Beijing Boshihua Electric Technology Co., Ltd., enhancing its product line and integrated management capabilities[34]. - The company completed the acquisition of 66.33% of Beijing Borun New Energy Electric Power Technology Co., Ltd. for a total investment of 59.7 million yuan, finalized on January 23, 2014[105]. - The company also acquired 100% of Beijing Boshihua Electric Equipment Co., Ltd. for 86.5 million yuan, with the transaction completed on July 2, 2014[106]. - The company has a total of 11 subsidiaries, including 6 wholly-owned and 5 controlled subsidiaries[74]. Financial Management - The company has established strict approval processes for the use of raised funds to ensure dedicated usage[63]. - The company has signed a tripartite supervision agreement with its sponsor and banks to manage the raised funds[62]. - The company has returned all temporarily used over-raised funds to the special account as of the specified dates[59]. - The company has effectively reduced procurement and construction costs, improving the efficiency of raised fund utilization[66]. Future Outlook - The company expects a net profit for the first nine months of 2014 to range between CNY 3,838.59 million and CNY 4,187.56 million, representing a growth of 10% to 20% compared to the same period in 2013[91]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[1].

Financial Performance - The company's operating revenue for Q1 2014 was CNY 194,112,420.51, representing a 30.47% increase compared to CNY 148,774,862.09 in the same period last year[7]. - Net profit attributable to shareholders for Q1 2014 was CNY 1,805,617.68, a significant increase of 294.45% from CNY 457,753.35 in the previous year[7]. - The net profit after deducting non-recurring gains and losses was CNY 86,831.12, recovering from a loss of CNY 1,067,298.47 in the same period last year, marking a 108.14% improvement[7]. - The company's basic and diluted earnings per share for Q1 2014 were both CNY 0.0083, up 295.24% from CNY 0.0021 in the previous year[7]. - Operating revenue and operating costs increased by CNY 45.34 million and CNY 31.29 million, representing growth rates of 30.47% and 28.90%, respectively, primarily due to an increase in contracts that met execution conditions compared to the same period last year[13]. - Operating profit and total profit increased by CNY 0.35 million and CNY 0.97 million, with growth rates of 168.90% and 46.39%, respectively, primarily due to the increase in operating revenue[13]. - The company reported a total profit of CNY 3,051,893.65 for Q1 2014, an increase of 46.5% from CNY 2,084,779.12 in the previous year[32]. - Net profit for Q1 2014 reached CNY 2,114,730.37, a significant increase from CNY 727,996.75 in Q1 2013, representing a growth of 189.5%[32]. Cash Flow - The company reported a net cash flow from operating activities of CNY -149,067,299.94, which is a decline of 196.43% compared to CNY -50,286,748.22 in the same period last year[7]. - The net cash flow from operating activities decreased by CNY 98.78 million, a decline of 196.43%, mainly due to increased cash payments for goods and taxes, as well as a decrease in cash collections[14]. - Cash flow from operating activities for Q1 2014 was negative CNY 149,067,299.94, worsening from negative CNY 50,286,748.22 in Q1 2013[37]. - Total cash inflow from operating activities was 169,400,900.28 CNY, down from 205,304,514.89 CNY, reflecting a decline of approximately 17.4%[38]. - Cash outflow from operating activities increased to 295,038,567.75 CNY from 228,862,913.66 CNY, representing an increase of about 29%[38]. - The net cash flow from investing activities decreased by CNY 35.50 million, a decline of 936.72%, primarily due to the purchase of part of the equity of the controlled subsidiary Beijing Keri Borun Power Electronics Co., Ltd. for CNY 29.70 million[14]. - The net cash flow from investing activities was -71,834,320.14 CNY, worsening from -5,817,679.17 CNY in the previous period[39]. - Cash outflow from investing activities rose significantly to 71,849,320.14 CNY from 17,489,913.62 CNY, indicating a substantial increase in investment expenditures[39]. - The net cash flow from financing activities increased by CNY 46.68 million, a growth of 261.98%, mainly due to the addition of bank loans amounting to CNY 30.00 million[14]. - Cash inflow from financing activities was 30,000,000.00 CNY, with a net cash flow of 29,109,625.00 CNY after accounting for cash outflows[39]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,474,436,362.97, reflecting a 1.41% increase from CNY 1,453,979,525.68 at the end of the previous year[7]. - The net assets attributable to shareholders at the end of the reporting period were CNY 1,020,469,428.10, a slight increase of 0.18% from CNY 1,018,663,810.42 at the end of the previous year[7]. - Total liabilities increased to CNY 413,225,333.03 from CNY 412,130,223.42, a slight increase of about 0.3%[27]. - Total equity increased to CNY 1,061,211,029.94 from CNY 1,041,849,302.26, reflecting a growth of approximately 1.8%[27]. - Current assets decreased to CNY 1,109,863,584.62 from CNY 1,127,840,797.12, a decline of about 1.6%[25]. - Cash and cash equivalents decreased to CNY 390,557,685.87 from CNY 553,918,321.87, a drop of approximately 29.4%[25]. - Accounts receivable increased to CNY 371,532,005.22 from CNY 307,039,174.71, representing a growth of about 21.0%[25]. - Inventory rose to CNY 261,325,756.78 from CNY 216,213,413.20, an increase of approximately 20.9%[25]. - Short-term borrowings increased to CNY 75,000,000.00 from CNY 45,000,000.00, a rise of about 66.7%[27]. - Accounts payable decreased to CNY 264,465,710.81 from CNY 225,218,628.20, a decline of approximately 17.4%[27]. Shareholder Information - The number of shareholders at the end of the reporting period was 15,219, with the top ten shareholders holding a combined 66.69% of the shares[9]. - The minority shareholders' equity increased by CNY 17.56 million, a growth of 75.72%, mainly due to the addition of minority shareholders' equity from the newly controlled subsidiary Beijing Keri Borun Power Electronics Co., Ltd.[13]. Future Outlook - The company plans to focus on expanding its market presence and enhancing product development in the upcoming quarters[36].

Financial Performance - The company's operating revenue for 2013 was approximately ¥993.43 million, a decrease of 11.63% compared to ¥1,124.12 million in 2012[24]. - The net profit attributable to shareholders for 2013 was approximately ¥61.45 million, down 25.2% from ¥80.15 million in 2012[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥56.55 million, a decline of 26.48% from ¥74.92 million in 2012[24]. - Cash flow from operating activities increased by 47.16% to approximately ¥104.55 million in 2013, compared to ¥71.05 million in 2012[24]. - The total assets at the end of 2013 were approximately ¥1,453.98 million, a decrease of 2.33% from ¥1,488.76 million at the end of 2012[24]. - The net assets attributable to shareholders at the end of 2013 were approximately ¥1,018.66 million, an increase of 1.77% from ¥998.92 million at the end of 2012[24]. - The company achieved operating revenue of 993.43 million yuan, a year-on-year decrease of 11.63%[37]. - Net profit was 64.91 million yuan, a decline of 24.74% compared to the previous year, with net profit attributable to the parent company at 61.45 million yuan, down 25.20%[40][41]. - The company’s cash flow from operating activities increased by 47.16% to 104.55 million yuan, primarily due to reduced tax payments and the use of notes payable for procurement[40][41]. - The company achieved a net increase in cash and cash equivalents of -59.15 million yuan in 2013, a decline of 145.31% from -24.11 million yuan in 2012[58]. Research and Development - The company emphasizes the importance of increasing R&D investment to maintain competitive advantages in the face of intensifying market competition in the 12kV distribution and control equipment sector[13]. - Continuous innovation and talent expansion are emphasized to maintain the company's core competitiveness in technology and product development[14]. - The company continued to enhance its research and development capabilities, with several products recognized as new technologies in the Zhongguancun National Independent Innovation Demonstration Zone[32]. - In 2013, the company's R&D investment amounted to 57.15 million yuan, representing an 18.69% increase compared to 48.15 million yuan in 2012, and accounting for 5.75% of operating revenue[51]. - Research and development expenses rose by 31.91% to 43.65 million yuan, contributing to an increase in the period expense ratio to 21.37%, up 3.01 percentage points[37][41]. - The company applied for 24 new patents during the reporting period, including 5 invention patents and 19 utility model patents[34]. Market Strategy and Competition - The company aims to enhance product technology content and expand production scale to adapt to the rapidly increasing demand in the power industry[13]. - The company acknowledges the risk of losing competitive advantage if it fails to innovate in products, sales network construction, and management[13]. - The company recognizes the growing number of competitors in the distribution equipment market due to increased investment in the power sector[13]. - The company plans to expand its market beyond the power grid system and explore new technologies and business areas to reduce customer concentration risk[14]. - The company will continue to enrich marketing methods to better position itself in the competitive landscape[13]. - The company aims to diversify its customer base to mitigate risks associated with high customer concentration, particularly with major clients like State Grid Corporation and Southern Power Grid[129]. - Continuous innovation and timely adaptation to market trends are critical for maintaining the company's competitive edge in the power distribution equipment sector[130]. Acquisitions and Investments - The acquisition of Beijing Borun New Energy Power Technology Co., Ltd. aims to enhance the company's R&D capabilities in power electronics technology[15]. - The company acknowledges the risk of new business developments not meeting expectations and plans to strengthen management and control risks from the acquisition stage[15]. - The company is acquiring a 66.33% stake in Beijing Keri Borun Power Electronics Co., enhancing its R&D capabilities in power electronics technology[36]. - The company completed the acquisition of a 35% stake in Henan Keri Jingneng, raising its ownership from 65% to 100% on August 27, 2013[162]. - The company invested 59.7 million yuan to acquire 66.33% equity in Keri Borun Electric Technology Co., Ltd., with the transaction completed on January 23, 2014[163]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of 0.6 RMB per 10 shares to all shareholders based on the total share capital as of December 31, 2013[5]. - The cash dividend policy remains unchanged, with a proposed cash dividend of CNY 0.6 per 10 shares for the 2013 fiscal year, totaling CNY 13,096,800, which accounts for 77% of the distributable profit[140]. - The cumulative cash dividend from 2010 to 2012 amounted to CNY 10,349,040, exceeding 143.70% of the average net profit attributable to shareholders during that period[140]. - The cash dividend payout ratio for 2013 was 21.31% of the net profit attributable to shareholders, while it was 47.82% for 2012 and 44.67% for 2011[146]. Corporate Governance and Compliance - The company assures that the financial report is accurate and complete, with all board members present during the meeting[4]. - The company’s financial report is subject to legal responsibility for any false or misleading statements[4]. - The company has established a comprehensive investor relations management system to protect the rights of shareholders and ensure effective communication[149]. - The company maintains a AAA credit rating, reflecting its strong financial policies and asset security[150]. - The company has implemented strict environmental management practices, including waste treatment and pollution control measures[154]. - The company has not reported any significant reliance on related parties for its operations[168]. Future Outlook - The company’s operating revenue for 2014 is projected to be CNY 125,000,000, representing a 25.83% increase from the 2013 actual revenue of CNY 99,343,000[127]. - The net profit for 2014 is expected to reach CNY 8,420,000, which is a 29.72% increase compared to the 2013 net profit of CNY 6,491,000[127]. - The company plans to invest CNY 775 million in smart grid construction in 2014, with a focus on standardizing distribution network construction[118]. - The company emphasizes the importance of innovation in technology and business models to adapt to changes in the operating environment[126].