CREAT(SZ:002350)2024-08-14 09:14Financial Performance - The company's operating revenue for the first half of 2024 was ¥761,840,572.53, a decrease of 10.11% compared to ¥847,515,207.51 in the same period last year[10]. - The net profit attributable to shareholders was -¥11,843,960.30, showing an improvement of 61.08% from -¥30,431,775.99 in the previous year[10]. - The net cash flow from operating activities improved by 62.23%, reaching -¥12,792,058.99 compared to -¥33,872,509.19 in the same period last year[10]. - The total assets at the end of the reporting period were ¥2,631,363,600.58, a decrease of 4.69% from ¥2,760,914,172.69 at the end of the previous year[10]. - The net assets attributable to shareholders were ¥1,684,509,747.65, down 0.70% from ¥1,696,378,822.97 at the end of the previous year[10]. - The basic earnings per share improved by 61.04%, reaching -¥0.0224 compared to -¥0.0575 in the same period last year[10]. - The weighted average return on net assets was -0.70%, an improvement of 0.94% from -1.64% in the previous year[10]. - The company achieved operating revenue of CNY 761.84 million, a year-on-year decrease of 10.11%[25]. - The net profit attributable to shareholders was CNY -11.84 million, an improvement with a year-on-year reduction in losses of 61.08%[25]. - Revenue from electrical products decreased by 11.22% to CNY 719.68 million, while revenue from new energy engineering services increased by 25.10% to CNY 30.99 million[25]. Governance and Compliance - The financial report is guaranteed to be true, accurate, and complete by the company's management, including the CEO and accounting head[1]. - All board members attended the meeting to review the semi-annual report[1]. - The report includes a section on risk factors that investors should be aware of[1]. - The company emphasizes that forward-looking statements do not constitute a commitment to investors and should be understood with caution regarding risks[1]. - The company is subject to regulations from the China Securities Regulatory Commission and the Beijing Regulatory Bureau[3]. - The report outlines the company's governance structure, including the board of directors and supervisory board[2]. - The company has maintained strict compliance with information disclosure regulations, ensuring the accuracy and timeliness of disclosures[58]. - The company has revised 18 corporate governance-related systems to enhance governance levels and standardize operations[58]. Risk Management - The report includes a section on risk factors that investors should be aware of[1]. - The company emphasizes that forward-looking statements do not constitute a commitment to investors and should be understood with caution regarding risks[1]. - The company has established a risk assessment report for environmental incidents and developed emergency response plans[59]. - The company is facing increasing market competition due to rapid growth in the power industry, necessitating enhanced R&D investment and product innovation to maintain competitive advantage[48]. - Fluctuations in raw material prices, particularly copper and steel, directly impact procurement and operating costs, prompting the company to implement hedging strategies to mitigate these risks[50]. Research and Development - The company has a strong emphasis on R&D, with significant investments leading to a robust portfolio of patented technologies and products[22]. - The company received 56 test reports and was granted 17 patents during the reporting period, bringing the total to 151 effective patents[25]. - Research and development expenses decreased by 30.57% to CNY 33.54 million due to the completion of several R&D projects[28]. - The company is actively expanding into IGBT and energy storage technologies, collaborating with leading industry players to develop integrated solutions for renewable energy generation, storage, and management[16]. - The company’s new energy business focuses on investment, engineering contracting, and intelligent operation of distributed photovoltaic power stations, with a strong emphasis on technology services[16]. Market and Industry Trends - The company operates in the power distribution and control equipment manufacturing industry, focusing on R&D, production, and sales of equipment rated 12kV and below, with a market growth rate of 5.4% in 2023[14]. - National grid investment in 2023 reached CNY 527.7 billion, with a year-on-year increase of 5.4%, while investment in AC projects grew by 10.7% to CNY 498.7 billion, accounting for 94.5% of total grid investment[14]. - The national grid company plans to invest over CNY 600 billion in 2024, marking an increase of CNY 71.1 billion from the previous year, primarily for ultra-high voltage projects and digital upgrades[14]. - The company aims to expand its market presence in sectors such as rail transit, metallurgy, petrochemicals, and renewable energy projects[22]. Subsidiaries and Investments - The subsidiary Beijing Keri Bohua Electric Equipment Co., Ltd. reported a net loss of 505.48 million CNY, impacting the overall profitability of the company[45]. - The subsidiary Zhengzhou Airport Keri Electric Equipment Co., Ltd. achieved a revenue of 48,056.21 million, with a net profit of 170.65 million, indicating strong growth in the power distribution equipment sector[46]. - The subsidiary Beijing Keri Energy Management Co., Ltd. reported a revenue of 9,988.87 million with a net profit of 63.46 million, showcasing its stable performance in energy management services[46]. - The company made a significant equity investment of ¥6,000,000.00 in Gu'an Keri New Energy Technology Co., acquiring a 100% stake[37]. Financial Position and Cash Flow - Cash and cash equivalents decreased to ¥222,854,779.11, accounting for 8.47% of total assets, down from 10.14% last year, a decrease of 1.67%[32]. - Accounts receivable amounted to ¥538,998,483.71, representing 20.48% of total assets, a decrease of 0.98% from the previous year[32]. - Fixed assets increased to ¥664,325,166.52, making up 25.25% of total assets, an increase of 3.39% compared to last year[32]. - Short-term borrowings decreased to ¥71,059,471.33, which is 2.70% of total liabilities, down by 1.90% due to repayment during the reporting period[32]. - The company reported a total of 133.38万元 in related party transactions during the reporting period, with specific transactions including 127.24万元 for technical performance testing and 5.28万元 for property leasing[62]. Shareholder Information - The company held two shareholder meetings during the reporting period, with participation rates of 41.01% and 40.86% respectively[52]. - A total of 56 employees, including directors and senior management, hold 5,000,000 shares, representing 0.92% of the company's total equity[54]. - The total number of ordinary shareholders at the end of the reporting period was 54,350, with a significant shareholder, Beijing Keri North Technology Development Co., holding 27.11% of shares, equating to 147,045,953 shares[92]. - The largest shareholder, Fu Xiaodong, holds 11,652,610 shares, which remain locked under executive restrictions[91]. Legal and Compliance Matters - The company has conducted 33 lawsuits during the reporting period, primarily related to debt collection, with a total amount involved of 25.57 million yuan[61]. - The company has not faced any significant lawsuits or arbitration matters during the reporting period[60]. - The company has no significant penalties or rectifications during the reporting period, indicating a stable compliance status[62]. Future Outlook - The company did not provide specific future guidance or performance outlook in the current report[93]. - The company plans to expand its market presence beyond the power grid system to mitigate risks associated with customer concentration and procurement changes[49]. - The company is actively pursuing new business areas such as renewable energy, hydrogen energy, and energy storage, but faces uncertainties in market demand and profitability models for these new ventures[50].