灿能电力(870299) - 2024 Q2 - 季度财报

Company's Semi-Annual Highlights This section outlines Nanjing Canneng Electric Power Automation Co., Ltd.'s major achievements and significant events in the first half of 2024, including patent acquisitions, a science and technology progress award, CNAS accreditation for a subsidiary, and completion of annual cash dividends - The company obtained a total of 5 patents, including invention patents for "A Power Quality Analysis Method and Device", "A Wind Power Quality Evaluation Method and Device", and a utility model patent for "An Active Power Filter Wiring Device"[1] - In April 2024, the company was awarded the "Zhejiang Electric Power Science and Technology Progress Award"[1] - In May 2024, the wholly-owned subsidiary Nanjing Zhiyou Electric Power Testing Co., Ltd. successfully passed the CNAS re-accreditation[1] 2023 Annual Equity Distribution | Metric | Amount (RMB) | | :--- | :--- | | Total Cash Dividend Distributed | 20,000,006.11 | | Cash Dividend Per 10 Shares | 2.219528 | | Implementation Date | May 30, 2024 | Section I Important Notes, Table of Contents, and Definitions This section includes important notes, the table of contents, and definitions of key terms for the company's semi-annual report, emphasizing the report's truthfulness, accuracy, and completeness, and alerting investors to significant risks Important Notes The company's directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of this report, while the company's head, chief accountant, and head of accounting department ensure the financial report's authenticity, accuracy, and completeness. This report is unaudited and contains forward-looking statements, which do not constitute a substantive commitment - The company's directors, supervisors, and senior management guarantee that the information contained in this report contains no false records, misleading statements, or major omissions, and assume individual and joint liability for its truthfulness, accuracy, and completeness[3] - Company head Zhang Xiaomin, chief accountant Liu Jing, and head of accounting department Wu Xiumei guarantee the truthfulness, accuracy, and completeness of the financial report in the semi-annual report[3] - This semi-annual report has not been audited by an accounting firm[3] - This report contains forward-looking statements regarding future plans, which do not constitute a substantive commitment by the company to investors, who should maintain sufficient awareness of risks[3] - There are no instances where directors, supervisors, or senior management have objections to the content of the semi-annual report or cannot guarantee its truthfulness, accuracy, and completeness[4] Significant Risk Warning This section indicates that the company has no delisting risk and directs investors to "Section III Accounting Data and Operating Performance" for a detailed analysis of significant risk factors and corresponding countermeasures - The company has no delisting risk[5] - The company has analyzed its significant risk factors in "Section III Accounting Data and Operating Performance", "XIV. Risks Faced by the Company and Countermeasures" of this report, and investors are advised to read it carefully[5] Definitions This section provides definitions for common terms used in the report, including company names, subsidiaries, regulatory bodies, exchanges, corporate governance stakeholders, and core businesses such as system software, power quality monitoring, and power quality management, clarifying time concepts like reporting period and period-end Section II Company Profile This section provides an overview of the company's operations and governance, detailing its basic information, contact methods, information disclosure channels, corporate profile, registration changes, intermediary agencies, and post-reporting period updates I. Basic Information This section lists the company's core identification information, including its stock abbreviation, stock code, full Chinese name, English name, and legal representative - Company stock abbreviation: Canneng Electric Power, stock code: 870299[7] - Full Chinese name: Nanjing Canneng Electric Power Automation Co., Ltd., Legal Representative: Zhang Xiaomin[7] II. Contact Information This section provides key contact details for the company, including the name, address, phone, fax, and email of the Board Secretary, as well as the company's website and office address - Board Secretary: Zhai Ning, Contact Address: No. 201 Lanxia Road, Moling Street, Jiangning District, Nanjing City[8] - Company Website: http://www.shining-electric.com, Board Secretary Email: 544360853@qq.com[8] III. Information Disclosure and Document Availability This section specifies the company's interim report disclosure platform (Beijing Stock Exchange website) and designated media (Shanghai Securities News), along with the location where the report is available for inspection - Securities exchange website for interim report disclosure: www.bse.cn[9](index=9&type=chunk) - Media name and website for interim report disclosure: Shanghai Securities News (www.cnstock.com)[9](index=9&type=chunk) - Location for interim report availability: Board Secretary's Office[9] IV. Corporate Information This section details the company's listing information, industry classification, main products and services, total share capital, and information on its controlling shareholders and actual controllers - The company's shares are listed on the Beijing Stock Exchange, with a listing date of June 10, 2022[10] - The company's industry classification is Manufacturing C - Instrument Manufacturing C40 - General Instrument Manufacturing C401 - Electrical Instrument Manufacturing C4012[10] - The company primarily engages in the R&D, production, and sales of power quality monitoring equipment and systems, provides technical services such as power quality testing and evaluation, and is committed to offering comprehensive power quality management solutions to customers[10] - The company's total ordinary share capital is 90,109,276 shares[11] - The controlling shareholders are Nanjing Canneng Enterprise Management Consulting Co., Ltd., Zhang Xiaomin, Lin Yu, and Jin Yunling, with Zhang Xiaomin, Lin Yu, and Jin Yunling as the actual controllers[11] V. Registration Changes This section states that there were no registration changes for the company during the reporting period - There were no registration changes for the company during the reporting period[12] VI. Intermediary Agencies This section discloses the sponsor institution and its representatives responsible for continuous supervision during the reporting period, along with the duration of their supervision - The sponsor institution responsible for continuous supervision during the reporting period was Shenwan Hongyuan Underwriting & Sponsorship Co., Ltd[12] - The sponsor representatives were Wang Peng and Liu Cheng, with the continuous supervision period from June 10, 2022, to December 31, 2025[12] VII. Voluntary Disclosure This section states that there were no voluntary disclosure matters for the company during the reporting period - There were no voluntary disclosure matters for the company during the reporting period[12] VIII. Post-Reporting Period Updates This section states that there were no updates for the company after the reporting period - There were no updates for the company after the reporting period[12] Section III Accounting Data and Operating Performance This section comprehensively reviews the company's accounting data and operating performance for the first half of the year, including key financial indicators, non-recurring gains and losses, accounting policy changes, business model, operating results, industry developments, financial analysis, status of controlled and invested companies, social responsibility fulfillment, and risks faced with countermeasures I. Key Accounting Data and Financial Indicators This section summarizes the company's key accounting data and financial indicators in terms of profitability, solvency, operating efficiency, and growth, providing investors with a quick overview of its financial performance (1) Profitability The company's operating revenue increased by 10.91% year-on-year, but net profit attributable to shareholders of the listed company and basic earnings per share both decreased due to market competition and increased costs Profitability Indicators | Metric | Current Period (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 44,505,248.44 | 40,125,681.39 | 10.91% | | Gross Margin % | 52.45% | 58.27% | - | | Net Profit Attributable to Shareholders of Listed Company | 7,380,835.28 | 7,672,039.15 | -3.80% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-recurring Gains and Losses | 6,563,923.37 | 7,136,512.26 | -8.02% | | Weighted Average Return on Net Assets % (based on Net Profit Attributable to Shareholders of Listed Company) | 2.54% | 2.76% | - | | Weighted Average Return on Net Assets % (based on Net Profit Attributable to Shareholders of Listed Company After Deducting Non-recurring Gains and Losses) | 2.26% | 2.57% | - | | Basic Earnings Per Share | 0.08 | 0.09 | -11.11% | (2) Solvency The company's total assets and total liabilities both decreased, but the current ratio improved, indicating stable solvency Solvency Indicators | Metric | Period-end (RMB) | Prior Year-end (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 306,399,962.03 | 326,798,269.73 | -6.24% | | Total Liabilities | 28,983,431.03 | 36,762,591.25 | -21.16% | | Net Assets Attributable to Shareholders of Listed Company | 277,416,531.00 | 290,035,678.48 | -4.35% | | Net Assets Per Share Attributable to Shareholders of Listed Company | 3.08 | 3.22 | -4.35% | | Asset-Liability Ratio % (Parent Company) | 9.55% | 11.74% | - | | Asset-Liability Ratio % (Consolidated) | 9.46% | 11.25% | - | | Current Ratio | 9.12 | 7.82 | - | (3) Operating Performance The company's net cash flow from operating activities significantly increased, and both accounts receivable turnover and inventory turnover ratios improved, indicating enhanced operating efficiency Operating Performance Indicators | Metric | Current Period (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 8,211,229.80 | -2,830,616.19 | 390.09% | | Accounts Receivable Turnover Ratio | 1.51 | 1.17 | - | | Inventory Turnover Ratio | 0.78 | 0.68 | - | (4) Growth Performance The company maintained operating revenue growth, but the growth rates of total assets and net profit decreased, indicating a slowdown in growth Growth Performance Indicators | Metric | Current Period | Prior Period | Change | | :--- | :--- | :--- | :--- | | Total Asset Growth Rate % | -6.24% | -4.52% | - | | Operating Revenue Growth Rate % | 10.91% | 17.80% | - | | Net Profit Growth Rate % | -3.80% | 5.11% | - | II. Non-recurring Gains and Losses Items and Amounts This section lists the company's non-recurring gains and losses items and their amounts for the reporting period, primarily including government grants and entrusted investment income, with a net non-recurring gain of RMB 816,911.91 Non-recurring Gains and Losses Items and Amounts | Item | Amount (RMB) | | :--- | :--- | | Government Grants Recognized in Current Period Profit/Loss | 826,377.00 | | Gains/Losses from Entrusted Investments or Asset Management | 100,627.00 | | Other Non-operating Income and Expenses Apart from the Above | 8,990.44 | | Other Items Meeting the Definition of Non-recurring Gains and Losses | 24,937.66 | | Total Non-recurring Gains and Losses | 960,932.10 | | Less: Income Tax Impact | 144,020.19 | | Net Non-recurring Gains and Losses | 816,911.91 | III. Supplementary Financial Indicators This section states that the company had no supplementary financial indicators requiring disclosure during the reporting period - There were no supplementary financial indicators requiring disclosure for the company during the reporting period[20] IV. Changes in Accounting Policies, Accounting Estimates, or Significant Error Corrections This section discloses that the company adopted "Interpretation No. 17 of Accounting Standards for Business Enterprises" effective January 1, 2024, but this change did not have a significant impact on the company's financial position and operating results - The company adopted "Interpretation No. 17 of Accounting Standards for Business Enterprises", which standardizes the classification of current and non-current liabilities, disclosure of supplier financing arrangements, and accounting treatment of sale-and-leaseback transactions, effective January 1, 2024[20] - This change in accounting policy did not have a significant impact on the company's financial position and operating results[20] - There were no significant changes in accounting estimates requiring disclosure for the company during this period[20] V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards This section states that there were no differences in accounting data under domestic and overseas accounting standards for the company during the reporting period - There were no differences in accounting data under domestic and overseas accounting standards for the company during the reporting period[21] VI. Business Overview This section outlines the company's business model, primarily focusing on the R&D, production, sales, and technical services of power quality monitoring equipment and systems, with profitability mainly derived from product sales and technical service revenue. Through continuous R&D and market expansion, the company has established a nationwide sales network and obtained multiple certifications, with no changes to its business model during the reporting period - The company specializes in the R&D, production, and sales of power quality monitoring equipment and systems, provides technical services such as power quality testing and evaluation, and is committed to offering comprehensive power quality management solutions to customers[21] - The company's products are widely used in industries such as State Grid, China Southern Power Grid, various local grid companies, new energy, metallurgy, petrochemicals, rail transit, and electric vehicle charging stations[21] - During the reporting period, the company's profitability primarily stemmed from the difference between sales revenue and cost of sales generated by businesses such as power quality monitoring devices, power quality monitoring systems, and technical services[21] - Through continuous R&D and technological innovation, the company continuously upgrades its products, and its sales network now covers over 30 provinces and cities nationwide[22] - The company has passed four major management system certifications: ISO9001, ISO14001, ISO45001, and ISO/IEC27001, and possesses multiple independent intellectual property rights, invention patents, and relevant qualifications[22] - During the reporting period, the company's business model remained unchanged, and it was recognized as a "High-tech Enterprise" and a "Provincial (Municipal) Specialized, Refined, Unique, and New" enterprise[22] VII. Review of Operating Performance This section reviews the company's operational plan execution, industry development trends, and detailed financial analysis for the first half of the year, including asset-liability structure, operating performance, and cash flow status (1) Operating Plan The company's management actively pursued market expansion and optimized management, achieving a 10.91% year-on-year increase in operating revenue, though net profit decreased by 3.80% due to market competition and rising costs. Net cash flow from operating activities significantly increased, and R&D investment exceeded 10% of revenue - The company's management actively pursued market expansion and continuously refined its management system and internal control processes, aligning with the annual operating goals[22] - As of the end of the reporting period, the company's total assets were RMB 306,399,962.03, a 6.24% decrease from the beginning of the period, primarily due to a reduction in cash dividends[22] - During the reporting period, the company achieved operating revenue of RMB 44,505,248.44, a 10.91% increase year-on-year, with significant growth in testing and evaluation services[22] - Net profit reached RMB 7,380,835.28, a 3.80% decrease year-on-year, influenced by intense market competition, increased labor costs, and a decline in gross margin[22] - Net cash flow from operating activities was RMB 8,211,229.80, a 390.09% increase year-on-year, primarily due to increased sales collections[22] - During the reporting period, the company's R&D investment was RMB 4,692,337.75, accounting for 10.54% of operating revenue, with substantial progress made in the power quality big data comprehensive service platform software development project[22] - As of the end of the reporting period, the company held 25 patents, including 10 invention patents[22] (2) Industry Overview The first half of 2024 saw positive development in China's power industry, with significant growth in new energy (wind and solar power) and continuous technological innovation. The implementation of the "Interim Measures for Power Quality Management" brought substantial benefits to the power quality monitoring, technical services, and management industries, particularly boosting grid companies' capacity building and market growth in power quality management (1) Power Quality Monitoring The "Interim Measures for Power Quality Management" clarified grid companies' responsibilities in transmission and distribution power quality management, requiring enhanced information collection and problem analysis capabilities, which spurred growth in the power quality monitoring market across grid, generation, and consumption sectors - The "Interim Measures for Power Quality Management" further clarified the responsibilities of grid companies in transmission and distribution power quality management, proposing that grid companies should undertake information collection and problem analysis and management capability building related to power quality management[24] - Driven by policy requirements, in the first half of 2024, management requirements for power quality monitoring by grid companies themselves and at grid connection points of power generation enterprises and public connection points of power users under their management were further strengthened, leading to growth in the power quality monitoring market across grid, generation, and consumption sectors[24] (2) Power Quality Technical Services Power quality assessment, a crucial part of technical services, experienced rapid development in the first half of 2024, driven by grid companies' strengthened supervision of power quality during the planning and feasibility study stages for new energy stations and power users, intensifying market competition where experienced and qualified enterprises hold an advantage - In the first half of 2024, power quality assessment services experienced rapid development, driven by grid companies' strengthened supervision of power quality during the planning and feasibility study stages for new (rebuilt, expanded) new energy stations and new (capacity-increased) power users[25] - The power quality assessment market saw unprecedented prosperity, with many new enterprises emerging, leading to intensified market competition[25] - Only enterprises that started power quality technical service businesses earlier, accumulated extensive engineering experience in power quality assessment, and possess relevant qualifications can stand out in the fierce market competition[25] (3) Power Quality Management In the first half of 2024, the power quality management industry market remained generally stable but showed some weakness due to the prolonged sluggishness of the real economy. Despite this, the market share is substantial, with numerous product categories and participating enterprises, maintaining an active market - In the first half of 2024, the power quality management industry market showed a relatively stable overall development trend but was somewhat weaker compared to the power quality monitoring and technical service markets, with the prolonged sluggishness of the real economy being the main factor[25] - The power quality management market share is relatively large within the overall power quality industry, with numerous product categories and participating enterprises, maintaining a relatively active market[25] (3) Financial Analysis This section provides a detailed analysis of the company's asset-liability structure, operating performance, and cash flow. In terms of assets and liabilities, cash and accounts receivable decreased, while trading financial assets increased; operating performance saw revenue growth but a decline in gross margin, with significant growth in technical service revenue; cash flow from operating activities significantly improved, while cash outflows from investing and financing activities increased 1. Asset-Liability Structure Analysis At period-end, the company's cash, notes receivable, accounts receivable, accounts receivable financing, accounts payable, employee compensation payable, taxes payable, and estimated liabilities all decreased, while inventories, trading financial assets, other receivables, and other current liabilities increased Changes in Asset and Liability Items | Item | Period-end Amount (RMB) | Proportion of Total Assets (%) | Prior Year-end Amount (RMB) | Proportion of Total Assets (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash | 168,564,362.90 | 55.01% | 212,404,116.41 | 65.00% | -20.64% | | Notes Receivable | 2,656,997.78 | 0.87% | 4,054,647.43 | 1.24% | -34.47% | | Accounts Receivable | 23,876,737.81 | 7.79% | 29,727,892.30 | 9.10% | -19.68% | | Inventories | 28,164,349.32 | 9.19% | 25,672,187.69 | 7.86% | 9.71% | | Trading Financial Assets | 30,000,000.00 | 9.79% | - | - | - | | Accounts Receivable Financing | 1,648,836.60 | 0.54% | 2,977,743.83 | 0.91% | -44.63% | | Accounts Payable | 9,758,682.70 | 3.18% | 14,366,801.13 | 4.40% | -32.07% | | Employee Compensation Payable | 1,640,217.05 | 0.54% | 4,252,795.16 | 1.30% | -61.43% | | Taxes Payable | 2,017,931.00 | 0.66% | 3,544,680.85 | 1.08% | -43.07% | | Other Current Liabilities | 1,058,599.23 | 0.35% | 582,543.23 | 0.18% | 81.72% | | Estimated Liabilities | 602,760.34 | 0.20% | 1,191,833.24 | 0.36% | -49.43% | - Trading financial assets increased by RMB 30,000,000.00, primarily due to wealth management products purchased during the reporting period that have not yet matured and been redeemed[29] - Employee compensation payable decreased by RMB 2,612,578.11, primarily due to the payment of 2023 annual bonuses during the reporting period[29] - Other current liabilities increased by RMB 476,056.00, primarily due to an increase in endorsed and transferred notes receivable that have not been derecognized[29] 2. Operating Performance Analysis The company's operating revenue increased by 10.91%, mainly driven by higher testing and evaluation service income. However, operating costs grew by 26.37%, leading to a 5.82 percentage point decrease in gross margin, primarily due to intense market competition and increased labor costs. Technical service revenue significantly increased by 138.39%, but its gross margin declined Profit Composition Analysis | Item | Current Period Amount (RMB) | Proportion of Operating Revenue (%) | Prior Period Amount (RMB) | Proportion of Operating Revenue (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 44,505,248.44 | - | 40,125,681.39 | - | 10.91% | | Operating Cost | 21,161,078.81 | 47.55% | 16,744,786.43 | 41.73% | 26.37% | | Gross Margin | 52.45% | - | 58.27% | - | - | | Selling Expenses | 9,943,432.03 | 22.34% | 9,071,269.54 | 22.61% | 9.61% | | Administrative Expenses | 4,319,209.11 | 9.70% | 4,687,318.07 | 11.68% | -7.85% | | R&D Expenses | 4,692,337.75 | 10.54% | 4,804,830.60 | 11.97% | -2.34% | | Financial Expenses | -1,347,221.00 | -3.03% | -1,739,617.31 | -4.34% | 22.56% | | Credit Impairment Losses | 284,579.17 | 0.64% | -40,105.70 | -0.10% | -809.57% | | Asset Impairment Losses | -38,193.25 | -0.09% | 28,430.73 | 0.07% | 234.34% | | Other Income | 2,587,857.71 | 5.81% | 2,460,916.82 | 6.13% | 5.16% | | Investment Income | 100,627.00 | 0.23% | - | - | - | | Operating Profit | 8,005,924.59 | 17.99% | 8,341,603.14 | 20.79% | -4.02% | | Net Profit | 7,380,835.28 | - | 7,672,039.15 | - | -3.80% | - Operating revenue increased by RMB 4,379,567.05 year-on-year, a 10.91% growth rate, primarily due to increased income from testing and evaluation services[32] - Changes in operating cost and gross margin: Operating cost increased by RMB 4,416,292.38 year-on-year, and gross margin decreased by 5.82 percentage points, mainly due to intense market competition, increased labor costs, and higher technical service fees[32] Changes in Operating Revenue and Gross Margin by Product Category | Category/Item | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin (%) | Change in Operating Revenue Year-on-Year (%) | Change in Operating Cost Year-on-Year (%) | Change in Gross Margin Year-on-Year (Percentage Points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Product Sales Revenue | 28,732,769.52 | 14,704,076.12 | 48.82% | -14.25% | 2.24% | Decreased by 8.26 percentage points | | Power Quality Monitoring Devices | 25,176,819.97 | 11,668,776.99 | 53.65% | -18.33% | -9.91% | Decreased by 4.34 percentage points | | Power Quality Monitoring Systems | 241,592.93 | 67,976.64 | 71.86% | -76.23% | -51.99% | Decreased by 14.21 percentage points | | Others | 3,314,356.62 | 2,967,322.49 | 10.47% | 99.21% | 130.38% | Decreased by 12.12 percentage points | | Technical Service Revenue | 15,772,478.92 | 6,457,002.69 | 59.06% | 138.39% | 173.26% | Decreased by 5.23 percentage points | - Technical service revenue grew by 138.39%, primarily due to the increase in testing and evaluation service income, but gross margin decreased by 5.23 percentage points, affected by intense market competition, increased outsourced service costs, and labor costs[36] - Revenue from other domestic regions increased by 28.11% year-on-year, primarily due to the rapid growth of testing and evaluation services[36] 3. Cash Flow Status The company's net cash flow from operating activities significantly increased by 390.09%, primarily due to improved sales collections. Net cash flow from investing activities substantially decreased, mainly due to wealth management products purchased that have not yet matured and been redeemed. Net cash flow from financing activities decreased, primarily due to increased cash dividends distributed Changes in Net Cash Flow | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 8,211,229.80 | -2,830,616.19 | 390.09% | | Net Cash Flow from Investing Activities | -31,292,165.02 | -1,758,445.86 | -1,679.54% | | Net Cash Flow from Financing Activities | -19,999,982.76 | -10,000,931.32 | -99.98% | - Net cash flow from operating activities increased by RMB 11,041,845.99 year-on-year, primarily due to the company's strengthened management of accounts receivable and increased cash received from sales of goods and provision of services[36] - Net cash flow from investing activities decreased by RMB 29,533,719.16 year-on-year, primarily due to increased cash paid for investments during the reporting period and structured deposits purchased that have not yet matured and been redeemed[36] - Net cash flow from financing activities decreased by RMB 9,999,051.44 year-on-year, primarily due to increased cash dividends distributed during the reporting period compared to the prior period[38] IV. Investment in Wealth Management Products During the reporting period, the company invested a total of RMB 134,990,000.00 in bank wealth management products and time deposits using raised funds and own funds, with an outstanding balance of RMB 95,000,000.00 at period-end. The company previously exceeded its authorized cash management limit for idle raised funds due to a misunderstanding, which has since been rectified with enhanced training Wealth Management Product Investment Status | Wealth Management Product Type | Source of Funds | Amount Incurred (RMB) | Unmatured Balance (RMB) | Overdue Unrecovered Amount (RMB) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Raised Funds | 30,000,000.00 | 30,000,000.00 | 0.00 | | Time Deposits | Raised Funds | 65,000,000.00 | 65,000,000.00 | 0.00 | | Bank Wealth Management Products | Own Funds | 10,000,000.00 | 0.00 | 0.00 | | Bank Wealth Management Products | Own Funds | 29,990,000.00 | 0.00 | 0.00 | | Total | | 134,990,000.00 | 95,000,000.00 | 0.00 | - The company previously exceeded its board-authorized cash management limit for idle raised funds, reaching RMB 95 million, due to a misunderstanding by the operating department regarding the scope of cash management[53] - The company immediately reviewed and investigated the issue, organized training for relevant personnel, and strictly implemented the "Raised Funds Management System" to prevent similar incidents in the future[53] VIII. Analysis of Major Controlled and Invested Companies This section analyzes the operating performance of the company's major wholly-owned subsidiaries, Nanjing Youyou Software Technology Co., Ltd. and Nanjing Zhiyou Electric Power Testing Co., Ltd., and confirms that