海兴电力(603556) - 2025 Q2 - 季度财报

Important Notes This report is unaudited, proposes no profit distribution for the period, and highlights significant risks in overseas operations and global management - This semi-annual report is unaudited[6] - No profit distribution or capitalization of capital reserves is planned for this reporting period[7] - The company faces significant risks related to overseas market operations, exchange rates, global management, and new business model implementation[9] Section 1 Definitions This section provides definitions for key terms used throughout the report Section 2 Company Profile and Key Financial Indicators This section presents the company's profile and highlights key financial data and indicators for the reporting period Key Accounting Data and Financial Indicators Revenue and profit declined year-over-year, with operating cash flow turning negative due to project delays, demand fluctuations, and increased investments Key Accounting Data (Jan-Jun 2025 vs Prior Year Period) | Indicator | Current Period (Jan-Jun) (CNY) | Prior Year Period (CNY) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,923,978,480.77 | 2,254,754,065.49 | -14.67% | | Total Profit | 425,760,540.15 | 613,707,161.74 | -30.62% | | Net Profit Attributable to Shareholders | 395,934,644.46 | 533,162,470.28 | -25.74% | | Net Cash Flow from Operating Activities | -11,112,067.97 | 339,375,381.38 | -103.27% | Key Financial Indicators (Jan-Jun 2025 vs Prior Year Period) | Indicator | Current Period (Jan-Jun) | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/Share) | 0.82 | 1.10 | -25.45% | | Weighted Average Return on Equity (%) | 5.44% | 7.77% | Decrease of 2.33 percentage points | - The year-over-year decrease in total profit was mainly due to delayed execution of some domestic projects, fluctuating demand in certain overseas countries leading to lower revenue, and increased expenses from proactive counter-cyclical investments[24] - The year-over-year decrease in net cash flow from operating activities was primarily caused by an increase in inventory and operating receivables[24] Non-recurring Profit and Loss Items and Amounts | Non-recurring Profit and Loss Item | Amount (CNY) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 12,067,463.07 | | Government Grants Recognized in Current Profit or Loss | 12,921,409.64 | | Fair Value Changes and Disposal Gains/Losses on Financial Assets/Liabilities | 2,121,055.12 | | Total | 19,482,984.48 | Section 3 Management Discussion and Analysis This section details the company's business environment, operational performance, financial results, and risk management strategies for the reporting period Industry and Core Business Overview The company's core business in smart power and new energy systems benefits from global grid modernization and rapid growth in PV and energy storage installations - The company's products are mainly categorized into smart power distribution and utilization products and systems, and new energy products and system integration[29] Main Product Categories | Product Category | Specific Product Examples | | :--- | :--- | | Smart Power Distribution and Utilization Products & Systems | Smart meters, smart electricity terminals, smart ultrasonic water meters, smart gateways, distribution automation terminals, energy management systems, AI-based big data management and analytics software | | New Energy Products & System Integration | Charging piles, inverters, commercial & industrial energy storage, microgrid EMS, distributed power stations, microgrids, solar-storage-diesel, solar-storage-charging, and integrated energy management solutions | - Smart Power Distribution Industry: Global grid modernization spending is projected to reach $400 billion in 2025, with the smart meter market expected to reach $29-36 billion[32] - New Energy Industry: Global new PV installations are expected to grow from 585GW to 655GW in 2025; global energy storage capacity will reach 449GWh, a year-over-year increase of approximately 31.5%[32] Analysis of Operations The company proactively increased counter-cyclical investments to optimize its product and talent structure while advancing its smart power and new energy businesses Smart Power Distribution and Utilization Business The company solidified its market position through localized overseas operations, a new factory launch, platform upgrades, and significant contract wins at home and abroad - Overseas Market: The South African smart ultrasonic water meter factory officially commenced operations, marking a key step in the localization of the smart water business[34] - Overseas Market: Launched the "Orca" platform 10.0, expanding system capacity from millions to tens of millions of sensor connections and integrating cutting-edge technologies like edge computing and AI[34] - Domestic Market: Won a CNY 140 million bid in the State Grid's centralized procurement for electricity metering products and a total of CNY 149 million for primary-secondary integrated products in the first regional joint tender for distribution networks[35] New Energy Business The company accelerated its global supply chain development and microgrid solution deployment while expanding its new energy channel business - Accelerated the establishment of local operating entities and WMS digital logistics systems in key regions to expand new energy channels in Europe, Asia, Africa, and Latin America[35] - Completed in-house R&D for key equipment and EMS systems for low and medium-voltage microgrid solutions, securing projects in Africa and Latin America for various applications like weak-grid communities and agricultural irrigation[35] Financial Analysis of Key Operations Revenue and costs decreased while operating expenses rose, but financial expenses fell significantly due to exchange gains; cash flows were impacted by working capital changes and investment activities Core Business Financial Analysis Revenue and costs declined, operating expenses increased, and financial expenses decreased significantly due to higher exchange gains, while operating cash flow turned negative Analysis of Financial Statement Item Changes (Jan-Jun 2025 vs Prior Year Period) | Item | Current Period (CNY) | Prior Year Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,923,978,480.77 | 2,254,754,065.49 | -14.67% | | Operating Costs | 1,124,417,324.03 | 1,258,237,236.04 | -10.64% | | Selling Expenses | 218,055,443.21 | 195,344,181.11 | 11.63% | | Financial Expenses | -135,727,398.09 | -53,482,228.53 | N/A (Mainly due to increased exchange gains) | | Net Cash Flow from Operating Activities | -11,112,067.97 | 339,375,381.38 | -103.27% | | Net Cash Flow from Investing Activities | 261,701,312.65 | -1,198,413,878.02 | 121.84% | - The change in financial expenses was primarily due to an increase in foreign exchange gains[38] - The change in net cash flow from operating activities was mainly due to an increase in inventory and operating receivables during the reporting period[38] Analysis of Assets and Liabilities Cash and equivalents decreased significantly due to dividends and share buybacks, while inventories and notes receivable grew; treasury stock increased substantially from repurchases Changes in Assets and Liabilities (Period-End vs Prior Year-End) | Item | Current Period-End (CNY) | Change vs Prior Year-End (%) | Explanation | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 1,292,208,704.13 | -49.93% | Mainly due to dividend payments, share repurchases, and purchase of large-denomination CDs with maturities over one year | | Notes Receivable | 17,364,443.51 | 159.26% | Mainly due to an increase in bank acceptance bills received during the period | | Inventories | 1,224,026,308.79 | 51.71% | Mainly due to increased stock preparation | | Short-term Borrowings | 138,463,888.89 | -34.40% | Mainly due to increased repayments during the period | | Treasury Stock | 100,985,747.40 | 236.56% | Mainly due to an increase in treasury stock from share repurchases | - Overseas assets amounted to CNY 2,086,049,517.54, accounting for 22.14% of total assets[43] Investment Analysis External equity investment surged by 932.05%, driven by the establishment of a private equity fund with a professional investment firm to target strategic technology sectors External Equity Investment (CNY 10,000) | Indicator | Equity Investment in Reporting Period (CNY 10,000) | Equity Investment in Prior Year Period (CNY 10,000) | Change (%) | | :--- | :--- | :--- | :--- | | Equity Investment Amount | 61,879.85 | 5,995.81 | 932.05 | - The significant increase in equity investment was mainly due to the co-establishment of a private equity fund partnership with a professional investment firm, where the company and its wholly-owned subsidiary committed a total of CNY 400 million, representing a 50% stake[45][48] - The fund primarily invests in upstream and downstream sectors of cutting-edge technology industries, including new energy, energy algorithms, IoT technology, and smart manufacturing[46] Analysis of Major Subsidiaries and Investees Ningbo Holley-Meters Co., Ltd. remains a key subsidiary, while several other subsidiaries were disposed of, newly established, or deregistered without material impact on overall operations Financials of Major Subsidiary (Unit: CNY 10,000) | Company Name | Company Type | Main Business | Registered Capital | Operating Revenue | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | | Ningbo Holley-Meters Co., Ltd. | Subsidiary | Smart Power Distribution | 35,000.00 | 40,939.18 | 5,884.54 | - During the reporting period, the company disposed of three subsidiaries (LIVOLTEK POLSKA, AGIL ENERGIA SOLAR SPAIN, HEXING ENERGY Z), established three new ones (HEXING ECO POWER SpA, HEXING ENERGY ZAMBIA, Hangzhou Lanjing Water Technology), and deregistered one (Zhejiang Hexing Supply Chain Management), with no significant impact[49][50][372] Other Disclosures The company actively manages operational risks, maintains a strong commitment to shareholder returns through dividends and buybacks, and upholds high standards of corporate governance Potential Risks and Countermeasures The company faces risks from overseas operations, currency fluctuations, and global management, which it mitigates through localization, financial instruments, and digital systems - Overseas Market Operation Risk: Mitigated by implementing a localization strategy, including building overseas factories, hiring local employees, and deeply integrating into local supply chains to navigate trade protectionism and barriers[15][51] - Exchange Rate Risk: Managed by using financial instruments such as forward contracts, foreign exchange options, and swaps to lock in exchange rates; overseas subsidiaries also use local currency loans for hedging, balance payables and receivables, and timely settlement[16][52] - Global Management Risk: Addressed through cloud-based digital management systems for real-time data sharing and a comprehensive commercial, legal, and financial control platform to enhance compliance and risk management[16][53] Shareholder Returns and Corporate Governance The company demonstrates a strong commitment to shareholder returns through nine consecutive years of cash dividends and a new share repurchase plan, while continuously refining its governance structure - Shareholder Returns: Since its listing in 2016, the company has paid cash dividends for nine consecutive years, with a cumulative total of approximately CNY 2.306 billion (pre-tax)[55] - Shareholder Returns: During the period, the company launched a share repurchase plan with a total amount of CNY 100 million to CNY 200 million, with the repurchased shares intended for employee stock ownership or equity incentive plans[55] - Corporate Governance: The company continuously enhances its governance system based on regulatory requirements, systematically revises internal policies, and refines its governance structure[56] Section 4 Corporate Governance, Environment, and Society This section covers changes in key management personnel, the profit distribution plan, environmental management practices, and the company's social responsibility initiatives Changes in Directors, Supervisors, and Senior Management During the reporting period, Supervisor Mr. Dai Yingpeng resigned for personal reasons and was replaced by Ms. Lou Xiaoli - Former Supervisor Mr. Dai Yingpeng resigned for personal reasons, and Ms. Lou Xiaoli was elected as the shareholder representative supervisor for the fifth session of the Supervisory Committee[58] Profit Distribution Proposal No profit distribution or capitalization of capital reserves is proposed for this semi-annual period - No profit distribution or capitalization of capital reserves is planned for this reporting period[59] Environmental Information The company adheres to environmental regulations, maintains an ISO4001-certified management system, and ensures compliant pollutant discharge through regular monitoring and process upgrades - The company strictly complies with national environmental regulations, fulfills its environmental responsibilities, and has established a standardized environmental management system certified under ISO4001[61] - During the period, the company conducted regular monitoring of wastewater, exhaust gas, and noise, and upgraded its exhaust gas treatment facility from a photo-oxygen catalysis process to an activated carbon process, ensuring all pollutant emissions meet standards[61] Rural Revitalization and Social Responsibility The company supports community development through educational funding and university partnerships domestically, and by providing clean energy and water solutions and job training internationally - Domestically, the company participates in village-twinning programs, establishes educational support funds for rural students, and collaborates with universities on R&D and educational quality improvement[62] - Overseas, the company provides accessible and sustainable distributed energy and clean water solutions for local communities, while also training local youth to create employment opportunities[62] Section 5 Significant Matters This section details the fulfillment of commitments, major related-party transactions, and significant contracts and guarantees during the reporting period Fulfillment of Commitments Mr. Zhou Junhe has strictly adhered to his commitment not to reduce his holdings of company shares acquired through a recent transaction for a period of 12 months - Mr. Zhou Junhe has strictly fulfilled his commitment not to sell any company shares acquired in the transaction for 12 months following the registration transfer on May 5, 2025[64] Major Related-Party Transactions The company's estimated ordinary course related-party transactions for 2025, not exceeding CNY 707 million, have been approved by the Board and shareholders - The company's board approved the "Proposal on Estimated Ordinary Course Related-Party Transactions for 2025" on April 18, 2025, with an estimated total not exceeding CNY 707 million, which was subsequently approved at the 2024 Annual General Meeting[66] Major Contracts and Guarantees The company provided CNY 50 million in new guarantees to subsidiaries during the period, bringing the total outstanding guarantee balance to CNY 165.61 million Company Guarantee Summary (Unit: CNY) | Indicator | Amount | | :--- | :--- | | Guarantees Provided to Subsidiaries During the Period | 50,000,000.00 | | Outstanding Guarantee Balance for Subsidiaries at Period-End (B) | 165,610,200.00 | | Total Guarantees (A+B) | 165,610,200.00 | | Total Guarantees as a Percentage of Net Assets (%) | 2.34% | - All company guarantees are provided to its controlled subsidiaries[71] Section 6 Changes in Share Capital and Shareholders This section outlines changes to the company's share capital due to share cancellations and provides an overview of the shareholder structure at the end of the period Changes in Share Capital The company's total share capital decreased from 488,684,040 to 486,264,170 shares following the cancellation of 2,419,870 repurchased shares Share Capital Change Table (Unit: Shares) | | Shares Before Change | % Before Change | Change (+, -) | Shares After Change | % After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | II. Unrestricted Circulating Shares | 488,684,040 | 100 | -2,419,870 | 486,264,170 | 100 | | III. Total Shares | 488,684,040 | 100 | -2,419,870 | 486,264,170 | 100 | - The company changed the intended use of 2,419,870 shares in its repurchase account from "for equity incentive or employee stock ownership plans" to "for cancellation to reduce registered capital," with the cancellation completed on March 12, 2025[75][76] Shareholder Information As of the period-end, the company had 26,742 shareholders, with Zhejiang Hexing Holding Group Co., Ltd. being the largest shareholder with a 49.30% stake - Total number of common shareholders at the end of the reporting period: 26,742[77] Top Ten Shareholders (at Period-End) | Shareholder Name | Shares Held (Shares) | Percentage (%) | Shareholder Type | | :--- | :--- | :--- | :--- | | Zhejiang Hexing Holding Group Co., Ltd. | 239,713,292 | 49.30 | Domestic Non-State-Owned Legal Entity | | Li Xiaoqing | 42,964,103 | 8.84 | Domestic Natural Person | | Lishui Haiju Equity Investment Co., Ltd. | 33,821,701 | 6.96 | Domestic Non-State-Owned Legal Entity | | Zhou Liangzhang | 11,064,216 | 2.28 | Domestic Natural Person | | Hong Kong Securities Clearing Company Ltd. | 10,425,500 | 2.14 | Unknown | - At the end of the reporting period, the company's special repurchase account held a total of 3,749,780 shares[80] - Hexing Holding is the company's controlling shareholder and also the controlling shareholder of Lishui Haiju; Mr. Zhou Liangzhang is the actual controller of the company[80] Section 7 Bond-related Matters The company has no outstanding corporate bonds, non-financial enterprise debt financing instruments, or convertible bonds - The company has no corporate bonds (including enterprise bonds), non-financial enterprise debt financing instruments, or convertible corporate bonds[83] Section 8 Financial Report This section presents the unaudited financial statements, key accounting policies, and detailed notes on financial items for the semi-annual period ended June 30, 2025 Financial Statements This section provides the consolidated and parent company financial statements for the first half of 2025, reflecting the company's financial position and performance - The consolidated balance sheet shows total assets of CNY 9,423,637,237.31, total liabilities of CNY 2,317,052,561.92, and total equity attributable to parent company shareholders of CNY 7,088,791,268.43[86][88] - The consolidated income statement shows total operating revenue of CNY 1,923,978,480.77, total profit of CNY 425,760,540.15, and net profit attributable to parent company shareholders of CNY 395,934,644.46[93][95] - The consolidated cash flow statement shows net cash flow from operating activities of -CNY 11,112,067.97, from investing activities of CNY 261,701,312.65, and from financing activities of -CNY 602,420,334.64[100] Company Basic Information Hangzhou Hexing Electrical Co., Ltd., established in 2001 and listed on the Shanghai Stock Exchange in 2016, specializes in smart power and new energy products - Hangzhou Hexing Electrical Co., Ltd. was established on July 6, 2001, and its RMB ordinary A-shares were listed on the Shanghai Stock Exchange on November 10, 2016[120] - The company's main business includes the R&D, production, and sales of smart power distribution products and the provision of related system solutions[120] - The group's parent company is Zhejiang Hexing Holding Group Co., Ltd., and the ultimate controller is Mr. Zhou Liangzhang[120] Significant Accounting Policies and Estimates This section details the company's accounting policies and estimates, which are based on enterprise accounting standards and tailored to its specific business operations - These financial statements comply with the requirements of the Enterprise Accounting Standards, providing a true and complete reflection of the company's and the group's financial position as of June 30, 2025, and their operating results and cash flows for the first half of 2025[124] - The group has formulated specific accounting policies and estimates based on its operational characteristics, particularly concerning bad debt provisions for receivables, inventory write-downs, depreciation, amortization, revenue recognition, and deferred tax asset recognition[123] Taxes and Tax Preferences The company is subject to various taxes but benefits from preferential policies, including a reduced income tax rate for high-tech enterprises and VAT refunds for software products Main Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Domestic product sales revenue | 13% | | Corporate Income Tax | Taxable income | Applicable rate | | Overseas Taxes | Tax regulations in various countries and regions | Applicable local rates | Preferential Corporate Income Tax Rates | Company Name | Preferential Rate | Applicable Years | | :--- | :--- | :--- | | Hangzhou Hexing Electrical Co., Ltd. | 15% | 2024-2026 | | Hangzhou Hexing Zeko Information Technology Co., Ltd. | 0% | 2023-2025 | - The Brazilian subsidiary ELETRA enjoys a 75% reduction in corporate income tax, a 75% reduction in the Tax on Circulation of Goods and Services (ICMS), and a 99.25% reduction in the Industrialized Products Tax (IPI)[190][191] Notes to Consolidated Financial Statement Items This section provides detailed disclosures and explanations for major items in the consolidated financial statements, including assets, liabilities, equity, income, and expenses - Cash and cash equivalents at period-end were CNY 1,292,208,704.13, a decrease of 49.93% from the beginning of the period, mainly due to dividend payments, share repurchases, and the purchase of large-denomination CDs with maturities over one year[40][193] - Inventories at period-end were CNY 1,224,026,308.79, an increase of 51.71% from the beginning of the period, primarily due to increased stock preparation[41][236] - Short-term borrowings at period-end were CNY 138,463,888.89, a decrease of 34.40% from the beginning of the period, mainly due to increased repayments[41][286] - Operating revenue was CNY 1,923,978,480.77, a year-over-year decrease of 14.67%; operating costs were CNY 1,124,417,324.03, a year-over-year decrease of 10.64%[38][326] - Financial expenses were -CNY 135,727,398.09, a significant decrease compared to -CNY 53,482,228.53 in the prior year period, mainly due to increased foreign exchange gains[38][338] R&D Expenditures Total R&D expenditure for the period was CNY 164.41 million, a 6.17% increase year-over-year, all of which was expensed R&D Expenditures by Nature | Item | Current Period (CNY) | Prior Period (CNY) | | :--- | :--- | :--- | | Employee Compensation and Benefits | 125,574,613.26 | 115,815,729.91 | | Project Research Fees | 7,004,705.32 | 5,561,762.17 | | Depreciation and Amortization | 6,900,040.33 | 5,502,685.55 | | Total | 164,414,102.83 | 154,852,956.27 | | Of which: Expensed R&D | 164,414,102.83 | 154,852,956.27 | - All R&D expenditures during the reporting period were expensed, with no capitalized R&D expenditures[369] Changes in Consolidation Scope During the period, the company disposed of three subsidiaries, established three new ones, and deregistered one, with no material impact on overall operations - Disposed Subsidiaries: AGIL ENERGIA SOLAR SPAIN, S.L., LIVOLTEK POLSKA SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ, HEXING ENERGY SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ[371] - Newly Established Subsidiaries: HEXING ECO POWER SpA, HEXING ENERGY ZAMBIA LIMITED, Hangzhou Lanjing Water Technology Co., Ltd[372] - Deregistered Subsidiary: Zhejiang Hexing Supply Chain Management Co., Ltd[372] Interests in Other Entities The company holds interests in numerous domestic and international subsidiaries and several associate companies, with the total carrying value of investments in associates at CNY 81.74 million - The company has numerous domestic and international subsidiaries, including Ningbo Holley-Meters, Hexing Indonesia, Hexing Hong Kong, Hexing Brazil, and Nanjing Hexing, with business activities spanning manufacturing, trading, and investment holding[374][375][376][377] Carrying Value of Investments in Key Associates | Item | Period-End Balance (CNY) | | :--- | :--- | | Total Carrying Value of Investments in Associates | 81,744,455.32 | | Of which: Net Profit | 17,453,980.40 | Risks Related to Financial Instruments The company manages credit, liquidity, and market risks through credit reviews, receivables monitoring, and the use of financial instruments like foreign exchange hedging - The company is exposed to credit risk, liquidity risk, and market risk in its daily operations[386] - Credit Risk Management: The company trades with recognized, reputable third parties, conducts credit checks on all customers requiring credit terms, and continuously monitors accounts receivable balances[386] - Market Risk (Exchange Rate Risk): The company faces transactional exchange rate risk and manages it through the use of foreign exchange forward contracts[391] Fair Value Disclosures The company's assets measured at fair value primarily consist of financial assets, which are valued using Level 2 and Level 3 inputs Total Assets Continuously Measured at Fair Value (Unit: CNY) | Item | Level 1 Fair Value | Level 2 Fair Value | Level 3 Fair Value | Total | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | - | 516,980,143.94 | - | 516,980,143.94 | | Other Equity Instrument Investments | - | - | 9,053,797.36 | 9,053,797.36 | | Notes Receivable Financing | 14,553,824.64 | - | - | 14,553,824.64 | | Other Non-current Financial Assets | - | - | 79,670,664.45 | 79,670,664.45 | | Total | 14,553,824.64 | 516,980,143.94 | 88,724,461.81 | 620,258,430.39 | - Unlisted equity instrument investments, classified as other equity instrument investments, are valued using the comparable company analysis method to estimate their fair value[405] - Unlisted debt instrument investments, classified as other non-current financial assets, are valued using the net asset value method of the underlying investment to estimate their fair value[405] Related Parties and Transactions The company engages in ordinary course transactions with related parties, including its parent company and other entities under common control by Mr. Zhou Liangzhang - The ultimate controlling party of the enterprise is Mr. Zhou Liangzhang, and the parent company is Zhejiang Hexing Holding Group Co., Ltd[409] Related-Party Purchases/Services Received (Current Period) | Related Party | Transaction Content | Amount (CNY) | | :--- | :--- | :--- | | Livoltek Power | Purchase of goods/services | 186,140,845.44 | | Ningbo Zelian | Purchase of goods/services | 116,880,481.01 | | Hangzhou Lihe | Purchase of goods/services | 20,199,735.31 | Related-Party Sales/Services Provided (Current Period) | Related Party | Transaction Content | Amount (CNY) | | :--- | :--- | :--- | | Livoltek Power | Sale of goods/services | 22,146,108.08 | | Ningbo Zelian | Sale of goods/services | 15,701,558.28 | | Hangzhou Lihe | Sale of goods/services | 7,510,642.24 | Key Management Personnel Compensation (Unit: CNY 10,000) | Item | Current Period (CNY 10,000) | Prior Period (CNY 10,000) | | :--- | :--- | :--- | | Key Management Personnel Compensation | 830.27 | 518.19 | Commitments and Contingencies As of the period-end, the company had investment and capital commitments totaling CNY 92.76 million and no significant contingencies to disclose Significant Outstanding Commitments at Balance Sheet Date (Unit: CNY) | Item | Period-End Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Investment Commitments | 33,012,236.20 | 33,012,236.20 | | Capital Commitments | 59,746,188.70 | 49,505,819.00 | | Total | 92,758,424.90 | 82,518,055.20 | - The company has no significant contingencies that require disclosure[427] Other Significant Matters The company operates as a single business segment focused on smart meter sales, thus no detailed segment information is presented - For management purposes, the company is organized into a single operating segment focused on the sale of smart meters, and therefore does not present more detailed operating segment information[428] Notes to Parent Company Financial Statement Items This section provides detailed disclosures for major items in the parent company's financial statements, including receivables, long-term investments, revenue, and investment income - The parent company's accounts receivable had a carrying value of CNY 1,362,776,506.77 at period-end, a slight decrease from the beginning of the period[433] - The parent company's long-term equity investments had a carrying value of CNY 1,495,649,188.36 at period-end, an increase of 9.8% from the beginning of the period[456] - The parent company's operating revenue was CNY 1,255,998,063.76, a year-over-year decrease of 25.39%; operating costs were CNY 748,212,226.00, a year-over-year decrease of 21.32%[462] - The parent company's investment income was CNY 74,078,475.41, a significant decrease from CNY 185,935,770.79 in the prior year period[464] Supplementary Information This section provides supplementary details on non-recurring items and key performance metrics like return on equity and earnings per share Detailed Schedule of Non-recurring Profit and Loss (Unit: CNY) | Item | Amount | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 12,067,463.07 | | Government Grants Recognized in Current Profit or Loss | 12,921,409.64 | | Fair Value Changes and Disposal Gains/Losses on Financial Assets/Liabilities | 2,121,055.12 | | Total | 19,482,984.48 | Return on Equity and Earnings Per Share | Profit for the Period | Weighted Average ROE (%) | Basic EPS | Diluted EPS | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders | 5.44 | 0.82 | 0.82 | | Net Profit Attributable to Common Shareholders (Excluding Non-recurring Items) | 5.18 | 0.78 | 0.78 |