CREAT(SZ:002350)2014-08-15 16:00Corporate 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].