Financial Performance - The company's operating revenue for the reporting period was ¥191,414,319.32, a decrease of 7.82% compared to ¥207,646,924.84 in the same period last year[18]. - The net profit attributable to shareholders was ¥33,174,115.01, down 27.76% from ¥45,922,499.31 year-on-year[18]. - Basic earnings per share decreased by 28.41% to ¥0.063 from ¥0.088 in the same period last year[18]. - The company reported a revenue of 191.41 million yuan for the period, a decrease of 7.82% compared to the previous year[25]. - Net profit attributable to the parent company was 33.17 million yuan, down 27.76% year-on-year[25]. - The company's gross profit margin for high voltage switches was 42.08%, reflecting a slight decrease of 1.31% year-on-year[30]. - The total profit for the first half of 2015 was CNY 38.17 million, down from CNY 53.53 million in the same period of 2014, reflecting a decline of 28.7%[123]. - The company reported a significant decrease in cash and cash equivalents, with a balance of ¥259,797,238.81 at the end of the period, down from ¥444,343,676.60 at the beginning, representing a decline of approximately 41.5%[113]. Cash Flow and Investments - The net cash flow from operating activities was -¥46,962,264.87, representing a 75.07% increase in cash outflow compared to -¥26,825,132.70 in the previous year[18]. - Operating cash flow showed a net outflow of 46.96 million yuan, a 75.07% increase in outflow compared to the previous year[28]. - Investment activities resulted in a net cash outflow of 115.87 million yuan, a 199.18% decrease compared to the previous year[28]. - The total cash outflow from investing activities was 123,083,355.00 yuan, while cash inflow was only 2,491,048.12 yuan, resulting in a net cash flow of -120,592,306.88 yuan[135]. - The company received 4,699,961.65 yuan from investment activities, which is a new inflow compared to the previous period[135]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,407,332,938.17, a slight increase of 0.49% from ¥1,400,418,045.85 at the end of the previous year[18]. - Current liabilities decreased to CNY 200,200,867.89 from CNY 208,402,702.41, a reduction of about 3.3%[115]. - The company’s total liabilities decreased to CNY 212,891,775.89 from CNY 220,899,404.89, a reduction of about 3.6%[115]. - The total owner's equity at the end of the period was 525,04 yuan, with a significant increase in capital reserves[138]. - The total assets at the end of the period were 1,179,518,640.00 CNY, with a significant portion allocated to cash and cash equivalents[142]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares for this reporting period[5]. - The total number of shareholders at the end of the reporting period was 50,358[100]. - The company distributed a cash dividend of 1.00 yuan per 10 shares to all shareholders as part of the 2014 annual profit distribution plan[97]. - The company executed a stock option incentive plan, leading to an increase of 2,579,200 shares through self-exercise by incentive recipients[97]. Strategic Initiatives - The company has confirmed that there are no changes in accounting policies or significant errors that would require restating previous financial data[18]. - The company has not disclosed any new strategies or future development plans during the reporting period[29]. - The company is focusing on the research and development of high-pressure switch products to drive business growth[48]. - The company aims to strengthen its competitive position through potential mergers and acquisitions in the future[137]. Governance and Compliance - The governance structure of the company complies with relevant laws and regulations, ensuring effective management and information disclosure[64]. - The company has not experienced any major media scrutiny during the reporting period[65]. - The financial report for the first half of 2015 was not audited[111]. - The company follows the accounting standards set by the Ministry of Finance, ensuring accurate financial reporting[155]. Operational Challenges - Research and development expenses increased year-on-year, contributing to the overall decline in performance[25]. - The decline in performance is attributed to delayed delivery due to project progress issues from clients, despite a significant increase in orders[56]. - The company experienced delays in project construction due to rising material costs and changes in key equipment, affecting expected benefits[47]. Financial Management - The company’s financial expenses increased significantly due to higher interest income from bank deposits[27]. - The company reported a financial expense of CNY -5.04 million, compared to CNY -1.40 million in the previous year, indicating improved financial management[123]. - The company has not engaged in any securities investments, entrusted financial management, derivative investments, or entrusted loans during the reporting period[36][38][39][40].

湖南长高高压开关集团股份公司 2015 年第一季度报告正文 证券代码：002452 证券简称：长高集团 公告编号：2015-023 湖南长高高压开关集团股份公司 2015 年第一季度报告正文 1 湖南长高高压开关集团股份公司 2015 年第一季度报告正文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人马孝武、主管会计工作负责人林林及会计机构负责人(会计主管 人员)刘云强声明：保证季度报告中财务报表的真实、准确、完整。 2 湖南长高高压开关集团股份公司 2015 年第一季度报告正文 第二节 主要财务数据及股东变化 一、主要会计数据和财务指标 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业收入（元） | 91,348,669.06 | 87,494,588.16 | 4.40% | | 归属于上市公司股东的净利润（元） | 19,556,249.01 | 1 ...

Financial Performance - The company reported a revenue of CNY 478.37 million in 2014, a decrease of 3.61% compared to 2013[29]. - Net profit attributable to shareholders was CNY 90.41 million, reflecting an increase of 18.03% year-over-year[29]. - The company achieved an operating profit of CNY 97.03 million, marking a 13.72% increase from the previous year[29]. - The company's total revenue for 2014 was CNY 451,432,789.83, a decrease of 0.76% compared to the previous year[50]. - The company reported a significant increase in investment activity cash flow, netting CNY 98,713,175.12, compared to a negative cash flow in the previous year[48]. - The company reported a net profit of -8,065,035 for the period, indicating a significant loss[84]. - The company aims to achieve a revenue target of 75,000,000 for 2015, representing a growth of 56.78%[89]. - The net profit target for 2015 is set at 10,000,000, reflecting a growth of 10.6%[89]. Dividend and Share Capital - The company plans to distribute a cash dividend of 1.00 RMB per 10 shares (including tax) based on a total share capital of 261,232,000 shares as of December 31, 2014[4]. - The proposed profit distribution plan includes a cash dividend of 1 yuan per 10 shares, totaling 26.12 million yuan, and a capital reserve increase of 10 shares for every 10 shares held, doubling the total share capital to 522.46 million shares[103][104]. - The cash dividend for 2014 represents 28.89% of the net profit attributable to shareholders, compared to 33.94% in 2013[101]. - The company plans to increase its total share capital from 26.12 million shares to 52.25 million shares through a capital reserve transfer of 10 shares for every 10 shares held[100]. Research and Development - Research and development investment rose by 11.92% to CNY 20.25 million, focusing on new products like 220kV switchgear and ultra-high voltage DC isolators[31]. - The company completed 30 R&D project applications during the reporting period, with several projects already in progress[46]. - The company aims to focus on the research and development of high-voltage switch products to enhance its business growth[81]. - The company intends to enhance its product development in high-voltage switchgear, including GIS and circuit breakers, to strengthen its market position[88]. Market Expansion and Contracts - The company expanded its market presence, securing contracts for projects in Ecuador, Zambia, Nepal, and Nigeria, indicating significant growth in overseas markets[34]. - The company has expanded its business scope to include the production and sales of high-voltage electrical equipment up to 1100kV and power engineering construction[19]. - The company maintained a strong market presence, providing equipment for major national projects such as the first 1100kV ultra-high voltage AC transmission project in China[60]. Inventory and Production - The company reported a significant increase in real estate inventory by 99.40% to 56,114.19 square meters[36]. - The production volume of new materials decreased by 48.65% to 1,409.37 tons in 2014 compared to 2,095 tons in 2013[36]. - The company has implemented strict inventory control measures, ensuring that production aligns with orders to mitigate risks associated with raw material price fluctuations[91]. Financial Position and Assets - Total assets increased by 6.76% to CNY 1.40 billion by the end of 2014, while net assets attributable to shareholders rose by 7.95% to CNY 1.17 billion[31]. - The total assets of the company stand at 7,001,293, with net assets of 2,912,355[84]. - The company's inventory increased to CNY 307,708,232.20, representing 21.97% of total assets, up from 19.83% in 2013[53]. Governance and Compliance - The company has established a comprehensive corporate governance structure and internal control system to ensure fair and transparent information disclosure to all shareholders[106]. - The company strictly adheres to corporate governance regulations and has no unresolved governance issues as of the reporting period[178]. - The audit committee confirmed that the financial statements accurately reflect the company's financial status, with no significant discrepancies found during the audit process[186]. Employee and Management - The total number of employees at the company is 720, with production personnel accounting for 51.67% (372 employees) of the workforce[168]. - The company plans to enhance training for frontline employees, focusing on professional skills and management communication in 2015[173]. - The company’s board of directors includes independent directors who have served for various terms, ensuring governance and oversight[167]. Strategic Initiatives - The company initiated a strategic move into the electric vehicle sector by announcing the acquisition of Hangzhou Fute Technology Co., focusing on battery charging systems[35]. - The company is actively seeking acquisition opportunities to expand its product range and market share, particularly in the electric vehicle sector[88]. - The company aims to focus on building a high-pressure transmission network to address air pollution issues and improve energy efficiency[87]. Risks and Challenges - The company has identified risks related to industry policy changes and raw material price fluctuations that could impact profitability[90]. - The company’s management acknowledges the increasing complexity of operations due to rapid growth, emphasizing the need for enhanced management capabilities[91].

[Important Notice](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's management collectively assures the truthfulness, accuracy, and completeness of this quarterly report and its financial statements - The company's management collectively declares that this quarterly report and financial statements are true, accurate, and complete, with no false information or significant omissions[4](index=4&type=chunk) - All directors attended the board meeting that reviewed this quarterly report[4](index=4&type=chunk) [Key Financial Data and Shareholder Changes](index=3&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE%E5%8F%8A%E8%82%A1%E4%B8%9C%E5%8F%98%E5%8C%96) As of Q3 2014, total assets reached **RMB 1.337 billion**, with year-to-date revenue at **RMB 318 million** and net profit attributable to shareholders at **RMB 68.42 million** [Core Financial Data and Indicators](index=3&type=section&id=%E4%BA%8C.%E4%B8%80%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In Q3, revenue grew **20.39%** to **RMB 111 million**, with net profit attributable to shareholders increasing **9.15%** to **RMB 22.5 million** Key Accounting Data and Financial Indicators | Indicator | Year-to-Date | YoY Change | Current Period (Q3) | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 318,375,670.41 | -4.24% | 110,728,745.57 | 20.39% | | Net Profit Attributable to Shareholders (RMB) | 68,423,439.73 | 7.15% | 22,500,940.42 | 9.15% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (RMB) | 61,158,122.49 | -2.35% | 21,360,504.89 | 7.10% | | Net Cash Flow from Operating Activities (RMB) | 5,342,732.87 | 35.02% | -- | -- | | Basic Earnings Per Share (RMB/share) | 0.263 | 7.79% | 0.086 | 8.86% | | Total Assets (RMB) | 1,336,548,100.74 | 1.89% (vs. end of prior year) | | | | Net Assets Attributable to Shareholders (RMB) | 1,148,329,429.47 | 5.74% (vs. end of prior year) | | | Non-recurring Gains and Losses | Item | Amount Year-to-Date (RMB) | | :--- | :--- | | Government Grants | 7,445,400.00 | | Gains/Losses from Disposal of Non-current Assets | 237,040.98 | | Other Non-operating Income and Expenses | 908,222.07 | | **Total** | **7,265,317.24** | [Shareholder Ownership](index=4&type=section&id=%E4%BA%8C.%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the reporting period, the company had **11,611** common shareholders, with the top three being domestic natural persons - As of the end of the reporting period, the company had **11,611** common shareholders[11](index=11&type=chunk) Top Five Common Shareholders | Shareholder Name | Shareholder Type | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Ma Xiaowu | Domestic Natural Person | 21.18% | 55,319,620 | | Lin Lin | Domestic Natural Person | 7.14% | 18,640,000 | | Liao Junde | Domestic Natural Person | 7.14% | 18,640,000 | | Ma Xiao | Domestic Natural Person | 2.96% | 7,735,000 | | China Post Core Growth Stock Investment Fund | Other | 2.83% | 7,387,663 | - The company disclosed that among the top ten shareholders, Ma Xiaowu and Ma Xiao are father and son[12](index=12&type=chunk) [Significant Matters](index=6&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) Several financial items saw significant changes due to matured wealth management products, tax payments, and capital reserve capitalization, with **1.23 million** stock options exercised [Analysis of Major Financial Item Changes](index=6&type=section&id=%E4%B8%89.%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Investment income surged **1653.14%** due to matured wealth management products, while share capital increased **100.95%** from capital reserve capitalization Major Financial Item Changes and Reasons | Financial Statement Item | Change Percentage | Primary Reason for Change | | :--- | :--- | :--- | | Investment Income | 1653.14% | Increased income from matured bank wealth management products | | Non-operating Income | 416.77% | Deferred income recognized as non-operating income after project completion | | Share Capital | 100.95% | Capital reserve capitalization at 1:1 and partial option exercise | | Taxes Payable | -77.99% | Payment of prior year's corporate income tax and VAT in current period | | Financial Assets Held for Trading | -74.11% | Decrease due to disposal of futures purchased for hedging | | Other Current Assets | -48.31% | Decrease due to matured bank wealth management products | [Progress of Significant Matters](index=7&type=section&id=%E4%B8%89.%E4%BA%8C%E3%80%81%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D%E5%92%8C%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88%E7%9A%84%E5%88%86%E6%9E%90%E8%AF%B4%E6%98%8E) The company's first equity incentive plan is underway, with **1.23 million** options exercised by beneficiaries in the first exercise period - Beneficiaries successfully exercised **1.23 million** options during the first exercise period of the initial equity incentive plan[17](index=17&type=chunk) [Shareholder Commitments](index=7&type=section&id=%E4%B8%89.%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E6%88%96%E6%8C%81%E8%82%A1%205%25%E4%BB%A5%E4%B8%8A%E8%82%A1%E4%B8%9C%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%8F%91%E7%94%9F%E6%88%96%E4%BB%A5%E5%89%8D%E6%9C%9F%E9%97%B4%E5%8F%91%E7%94%9F%E4%BD%86%E6%8C%81%E7%BB%AD%E5%88%B0%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) Major shareholders, including Ma Xiaowu, Lin Lin, and Liao Junde, continue to fulfill their share lock-up commitments made during the IPO - Key shareholders Ma Xiaowu, Lin Lin, and Liao Junde strictly adhered to their share lock-up and reduction commitments made during the IPO[20](index=20&type=chunk) [2014 Annual Performance Forecast](index=8&type=section&id=%E4%B8%89.%E5%9B%9B%E3%80%81%E5%AF%B9%202014%20%E5%B9%B4%E5%BA%A6%E7%BB%8F%E8%90%A5%E4%B8%9A%E7%BB%A9%E7%9A%84%E9%A2%84%E8%AE%A1) The company forecasts a **10% to 30%** year-on-year increase in 2014 net profit attributable to shareholders, driven by increased orders and reduced subsidiary losses 2014 Annual Performance Forecast | Item | Content | | :--- | :--- | | Net Profit Change Percentage | 10.00% to 30.00% | | Net Profit Change Range (RMB million) | 84.26 to 99.58 | | 2013 Net Profit (RMB million) | 76.60 | | Reasons for Performance Change | Increased orders for high-voltage switch products, reduced subsidiary losses | [Securities Investment Status](index=8&type=section&id=%E4%B8%89.%E4%BA%94%E3%80%81%E8%AF%81%E5%88%B8%E6%8A%95%E8%B5%84%E6%83%85%E5%86%B5) The company did not engage in any securities investments or hold equity in other listed companies during the reporting period - The company had no securities investment activities during the reporting period[22](index=22&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2014 was ¥207,646,924.84, a decrease of 13.66% compared to ¥240,491,374.95 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was ¥45,922,499.31, an increase of 6.19% from ¥43,245,032.01 in the previous year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥39,797,617.60, down 6.76% from ¥42,685,217.05 in the same period last year[18]. - The basic earnings per share increased by 6.63% to ¥0.177 from ¥0.166 in the previous year[18]. - Operating profit was 46.25 million yuan, down 9.3% year-on-year, while net profit attributable to shareholders increased by 6.19% to 45.92 million yuan[26]. - The expected net profit attributable to shareholders for the period from January to September 2014 is projected to be between 57.4733 million yuan and 76.631 million yuan, representing a change of -10.00% to 20.00% compared to the same period in 2013[61]. - The company reported a net profit of 6.38592 million yuan for the same period in 2013, indicating stable operational performance[61]. - The company’s comprehensive income for the period was CNY 72.57 million, reflecting a decrease from the previous period[143]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,311,134,933.55, a slight decrease of 0.05% compared to ¥1,311,775,359.28 at the end of the previous year[18]. - The total amount of raised funds is 60,934.92 million CNY, with 1,038.98 million CNY invested during the reporting period[47]. - The total actual guarantee amount at the end of the reporting period accounted for 0.00% of the company's net assets[91]. - The company’s total liabilities at the end of the reporting period were CNY 603.34 million, compared to CNY 601.00 million at the beginning of the year[144]. - Total liabilities decreased to ¥180,204,010.09 from ¥216,224,877.75, a reduction of approximately 16.7%[121]. Cash Flow - The net cash flow from operating activities was negative at -¥26,825,132.70, an improvement of 4.31% compared to -¥28,032,323.16 in the previous year[18]. - The company reported a net cash flow from operating activities of -26.83 million yuan, an improvement of 4.31% compared to the previous year[29]. - The cash inflow from investment activities was 337,480,855.97 CNY, significantly higher than 35,150,415.96 CNY in the previous period, showing a strong performance in investment recovery[137]. - The net cash flow from investment activities was 116,905,340.97 CNY, compared to 28,025,175.39 CNY in the previous period, highlighting a significant improvement in investment returns[137]. Investments and R&D - Research and development investment increased by 15.63% to 6.02 million yuan, reflecting the company's commitment to innovation[29]. - The company successfully completed type tests for outdoor UHV DC isolating switches, enhancing its product range in ultra and extra high voltage equipment[26]. - The company won a significant contract for a 500kV UHV project in Ecuador, marking a breakthrough in its overseas market expansion[27]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares for this period[5]. - The company distributed a cash dividend of 1 yuan per 10 shares, totaling 13 million yuan, based on the share capital as of December 31, 2013[62]. - The total number of ordinary shareholders at the end of the reporting period was 16,823[108]. - The largest shareholder, Ma Xiaowu, held 21.24% of the shares, amounting to 55,319,620 shares[108]. Corporate Governance - The company has no significant litigation, arbitration, or media inquiries during the reporting period, indicating stable governance and operational integrity[69][70]. - The company has established a robust corporate governance structure, aligning with the requirements set by the China Securities Regulatory Commission and the Shenzhen Stock Exchange[68]. - The company has not engaged in any major related party transactions, ensuring transparency and compliance with regulatory standards[81][82]. Accounting Policies - The financial statements are prepared in accordance with the Chinese Accounting Standards, reflecting the company's financial position and operating results accurately[154]. - The company follows specific accounting policies for mergers and acquisitions, ensuring accurate valuation of assets and liabilities during such transactions[157]. - The company will not include subsidiaries that have been declared bankrupt or under liquidation in the consolidated financial statements[164]. Stock Options and Incentives - The stock option incentive plan involves a total of 3.8 million shares, with 3.42 million shares granted initially and 380,000 shares reserved for future grants, targeting 69 core technical and business personnel[76]. - During the reporting period, the company executed 473,400 stock options through the incentive plan, reflecting the plan's positive impact on employee motivation and operational efficiency[80]. - The company’s stock option incentive plan was approved and implemented, allowing for the exercise of options during the reporting period[103].

[Important Notice](index=2&type=section&id=Item%201.%20Important%20Notice) This section provides a crucial declaration from the company's management and board, affirming the accuracy and completeness of the quarterly report [Board of Directors' Statement](index=2&type=section&id=Item%201.%20Important%20Notice) The company's management and board collectively guarantee the truthfulness and completeness of this quarterly report, with all directors having participated in its review - The company's Board of Directors, Supervisory Board, and all senior management ensure the truthfulness, accuracy, and completeness of this report[4](index=4&type=chunk) - Company Person in Charge Ma Xiaowu, Head of Accounting Lin Lin, and Head of Accounting Department Liu Yunqiang jointly guarantee the truthfulness, accuracy, and completeness of the financial statements[5](index=5&type=chunk) [Key Financial Data and Shareholder Changes](index=3&type=section&id=Item%202.%20Key%20Financial%20Data%20and%20Shareholder%20Changes) This section details the company's financial performance and key shareholder information for the reporting period [Key Accounting Data and Financial Indicators](index=3&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q1 2014, the company reported increased revenue and net profit, despite a significant decrease in net cash flow from operating activities Key Financial Indicators for Q1 2014 | Indicator | Current Period | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue (RMB)** | 87,494,588.16 | 80,348,220.86 | 8.89% | | **Net Profit Attributable to Shareholders (RMB)** | 15,695,441.16 | 11,878,957.92 | 32.13% | | **Net Cash Flow from Operating Activities (RMB)** | -17,316,699.75 | 670,941.02 | -2,680.96% | | **Basic Earnings Per Share (RMB/share)** | 0.121 | 0.091 | 32.97% | | **Weighted Average Return on Net Assets (%)** | 1.43% | 1.12% | 0.31% | | **Total Assets (RMB)** | 1,312,237,555.05 | 1,311,775,359.28 | 0.04% (vs. end of prior year) | | **Net Assets Attributable to Shareholders (RMB)** | 1,101,656,623.84 | 1,085,961,182.68 | 1.45% (vs. end of prior year) | Details of Non-Recurring Gains and Losses | Item | Amount (RMB) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | 237,040.98 | | Government Grants Included in Current Profit/Loss | 300,000.00 | | Other Non-Operating Income and Expenses | 1,142,028.42 | | **Total** | **1,336,684.55** | [Shareholder Information](index=4&type=section&id=II.%20Total%20Shareholders%20and%20Top%20Ten%20Shareholders%27%20Holdings%20at%20Period%20End) As of the reporting period end, the company had 15,252 shareholders, with the top ten primarily individuals, including the largest shareholder Ma Xiaowu and his son Ma Xiao - Total shareholders at the end of the reporting period were **15,252** households[12](index=12&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Holding Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | | Ma Xiaowu | 21.28% | Domestic Natural Person | | Lin Lin | 7.17% | Domestic Natural Person | | Liao Junde | 7.17% | Domestic Natural Person | | Ma Xiao | 2.98% | Domestic Natural Person | | Chen Yizhi | 1.35% | Domestic Natural Person | | Huang Yinxiang | 1.32% | Domestic Natural Person | | Zhang Changwu | 1.3% | Overseas Natural Person | | Wu Xiaomao | 0.91% | Domestic Natural Person | | Liu Jiayu | 0.91% | Domestic Natural Person | | Shi Yuqing | 0.85% | Domestic Natural Person | - Among the major shareholders, Mr. Ma Xiaowu and Mr. Ma Xiao are father and son[12](index=12&type=chunk) [Significant Matters](index=5&type=section&id=Item%203.%20Significant%20Matters) This section analyzes major changes in financial statement items, updates on significant ongoing matters, and outlines key commitments and performance forecasts [Analysis of Significant Accounting Item Changes](index=5&type=section&id=I.%20Significant%20Changes%20in%20Key%20Financial%20Statement%20Items%20and%20Indicators%20During%20the%20Reporting%20Period%20and%20Their%20Reasons) Significant changes across the balance sheet, income statement, and cash flow statement were primarily driven by wealth management product purchases, revenue growth, and non-operating gains [Balance Sheet Item Changes](index=5&type=section&id=(I)%20Balance%20Sheet%20Changes%20and%20Reasons) Key balance sheet changes include a 42.16% decrease in monetary funds and a 75% increase in other current assets due to wealth management product purchases, alongside a 100% reduction in notes payable from repayment - Monetary funds decreased by **42.16%** from the beginning of the year, primarily due to the purchase of bank wealth management products[15](index=15&type=chunk) - Other current assets increased by **75%** from the beginning of the year, due to the purchase of bank wealth management products[15](index=15&type=chunk) - Notes payable decreased by **100%** from the beginning of the year, as all matured notes were repaid[15](index=15&type=chunk) [Income Statement Item Changes](index=5&type=section&id=(II)%20Income%20Statement%20Changes%20and%20Reasons) Net profit attributable to the parent company increased by 32.13% driven by revenue growth and subsidiary profitability, while non-operating income surged, partially offset by fair value losses from futures hedging - Net profit attributable to the parent company increased by **32.13%** year-over-year, primarily due to increased operating revenue and subsidiary profitability[15](index=15&type=chunk) - Non-operating income increased by **541.29%** year-over-year, mainly due to increased government subsidies received by the parent company and debt restructuring gains from a controlled subsidiary[15](index=15&type=chunk) - Fair value change income decreased by **157.5%** year-over-year, primarily due to increased unrealized losses from futures hedging[15](index=15&type=chunk) [Cash Flow Statement Item Changes](index=5&type=section&id=(III)%20Cash%20Flow%20Statement%20Changes%20and%20Reasons) Operating cash flow significantly decreased due to increased outflows, while investing cash outflows surged primarily from purchasing wealth management products, impacting period-end cash and equivalents - Net cash flow from operating activities decreased by **2680.96%** year-over-year, primarily due to increased operating cash outflows[15](index=15&type=chunk) - Cash outflow from investing activities increased by **4611.01%** year-over-year, mainly due to the purchase of **RMB 210 million** in bank wealth management products during the reporting period[15](index=15&type=chunk) - Period-end cash and cash equivalents decreased by **63.53%** year-over-year, also impacted by the purchase of **RMB 210 million** in wealth management products[15](index=15&type=chunk) [Progress of Significant Matters](index=5&type=section&id=II.%20Analysis%20of%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Matters) The company continued to advance its equity incentive plan initiated in late 2012, completing key steps such as draft revisions, grants, and registrations - The company's equity incentive plan, launched in December 2012, continued to progress during the reporting period, with grant and registration procedures completed[15](index=15&type=chunk)[16](index=16&type=chunk) [Commitments](index=6&type=section&id=III.%20Commitments%20Made%20by%20the%20Company%20or%20Shareholders%20Holding%205%25%20or%20More%20During%20or%20Prior%20to%20the%20Reporting%20Period%20and%20Continuing%20Therein) Commitments made by controlling shareholders during the IPO, including a 36-month lock-up period from the 2010 listing date, were strictly fulfilled during the reporting period - Major shareholders Ma Xiaowu, Lin Lin, and Liao Junde committed not to transfer their company shares for 36 months from the listing date (June 29, 2010), a commitment strictly fulfilled during the reporting period[17](index=17&type=chunk) [Performance Forecast](index=6&type=section&id=IV.%20Forecast%20of%20Operating%20Performance%20for%20January-June%202014) The company forecasts a year-over-year increase in net profit attributable to shareholders for H1 2014, with a growth range of 0% to 30%, driven by increased operating revenue and reduced subsidiary losses Operating Performance Forecast for January-June 2014 | Item | Forecast Data | | :--- | :--- | | Net Profit Change Range (%) | 0% to 30% | | Net Profit Change Range (RMB millions) | 43.245 to 56.2185 | | Net Profit for Same Period in 2013 (RMB millions) | 43.245 | - Key reasons for performance change include increased operating revenue and reduced subsidiary losses[20](index=20&type=chunk)

Financial Performance - The company reported a total revenue of 1.2 billion CNY for the year 2013, representing a year-on-year increase of 15%[24]. - The net profit attributable to shareholders was 150 million CNY, reflecting a growth of 20% compared to the previous year[24]. - The company achieved operating revenue of CNY 496,291,188.81 in 2013, representing a year-on-year increase of 20.88%[35]. - Net profit attributable to shareholders reached CNY 76,600,392.36, up 39.64% compared to the previous year[35]. - The company reported a net profit of 76.60 million yuan for the year 2013, with a parent company net profit of 50.03 million yuan[118]. - The company achieved a net profit of 54.86 million yuan in 2012, with a cash dividend of 1.3 yuan per 10 shares distributed[116]. Profit Distribution - The company proposed a profit distribution plan to distribute a cash dividend of 1.00 CNY (including tax) for every 10 shares, with no bonus shares issued, and a capital reserve increase of 10 shares for every 10 shares held[6]. - The profit distribution plan for 2013 includes a cash dividend of 1 yuan per 10 shares, totaling 13 million yuan, and a capital reserve increase of 10 shares for every 10 shares held, doubling the total share capital to 260 million shares[121]. - The total undistributed profits at the end of 2013 amounted to 29.31 million yuan, with a cash dividend payout ratio of 33.94% of the net profit[119]. - The company has a cash dividend policy that mandates a minimum of 20% of profits to be distributed as cash dividends during growth phases[119]. Market Expansion and Strategy - The company plans to expand its market presence by increasing its production capacity for high-voltage switchgear, targeting a 25% increase in output by 2015[24]. - The company aims to enhance its international market share, particularly in Southeast Asia, with a projected growth rate of 30% in exports over the next three years[24]. - The company plans to invest 100 million CNY in upgrading its manufacturing facilities to improve production efficiency and product quality[24]. - The company plans to continue investing in high-voltage switch projects and expand its market presence through acquisitions[87]. - The company is focusing on expanding its product range in high-voltage switches and enhancing market competitiveness through R&D of new products[107]. Research and Development - Research and development expenses accounted for 5% of total revenue, with a focus on developing new high-voltage products and technologies[24]. - Research and development expenses rose by 56.44% to CNY 18,092,205.87, focusing on new products like high-voltage direct current isolating switches[37]. - Research and development expenditure reached CNY 18,092,205.87, a significant increase of 56.44% compared to 2012, accounting for 3.65% of total revenue[56]. - The company developed new products including outdoor ultra-high voltage DC isolating switches and circuit breakers, which are expected to meet national energy demands[56]. Acquisitions and Investments - The company has completed the acquisition of Hunan Changgao Electric Co., which is expected to contribute an additional 200 million CNY in annual revenue[24]. - The acquisition of Changgao Switch Electric Company resulted in a profit of 246.15 million yuan in 2013[92]. - The company plans to invest approximately 39.76 million CNY in the high-voltage switch expansion project in 2014, with an additional 10 million CNY cash requirement for potential investment or acquisition projects[112]. Risks and Challenges - The company is facing potential risks related to raw material price fluctuations, which could impact profit margins by up to 10%[14]. - The company aims to mitigate customer concentration risk by expanding into the medium and low voltage product sectors and exploring overseas markets[113]. - The company plans to enhance management capabilities in response to the risks associated with increased production capacity from fundraising projects[113]. Financial Management and Governance - The company has not faced any significant litigation or media scrutiny during the reporting period[126][127]. - The company has maintained a zero balance for non-operating fund occupation by controlling shareholders during the reporting period[129]. - The company has established a strict internal control system and has not encountered any violations during the reporting period[189]. - The company appointed Zhongshun Huayin Wuzhou Accounting Firm as its auditor for the 2013 financial report, with an audit fee of 350,000 CNY[156]. Shareholder Dynamics - The largest shareholder, Ma Xiaowu, holds 21.28% of the shares, totaling 27,659,819 shares, with a decrease of 4,100,000 shares during the reporting period[163]. - The total number of shares before the change was 130,000,000, with 62.45% (81,189,940 shares) being restricted shares and 37.55% (48,810,060 shares) being unrestricted shares[161]. - The total number of shares held by directors and senior management decreased from 61,783,111 to 53,278,172, representing a reduction of approximately 13.8%[170]. Employee and Management Structure - The company employed a total of 616 staff members, with 43% being production personnel and 36% being technical personnel[180]. - Among the employees, 60% held a college diploma or above, while 27% had a secondary vocational education or lower[181]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 1.17 million yuan[178]. - The company has maintained a stable management team with key personnel serving since 2006[173].