CREAT(SZ:002350)2022-08-19 16:00Financial Performance - The company's operating revenue for the first half of 2022 was approximately ¥954.92 million, representing a 5.22% increase compared to ¥907.53 million in the same period last year [23]. - The net profit attributable to shareholders was a loss of approximately ¥37.64 million, a significant decline of 578.58% from a loss of ¥5.55 million in the previous year [23]. - The net cash flow from operating activities improved to a negative ¥22.11 million, a 77.35% increase compared to a negative ¥97.62 million in the same period last year [23]. - Total assets at the end of the reporting period were approximately ¥3.68 billion, reflecting a 6.63% increase from ¥3.45 billion at the end of the previous year [23]. - The company reported a basic earnings per share of -¥0.0697, a decrease of 583.33% from -¥0.0102 in the same period last year [23]. - The weighted average return on net assets was -1.97%, a decline of 1.67% compared to -0.30% in the previous year [23]. - The company's operating costs rose to ¥801,778,046.36, an increase of 11.35% from ¥720,054,583.29 in the same period last year [58]. - The gross profit margin was 16.04%, down 4.92% year-on-year, primarily due to delays in raw material procurement and product delivery caused by the COVID-19 pandemic [50]. Strategic Initiatives - The company is focused on enhancing its product offerings, including smart distribution automation solutions [12]. - The company is exploring market expansion opportunities and potential mergers and acquisitions to drive growth [12]. - The company is actively exploring new energy business and integrated energy services, focusing on IGBT, solar storage, and hydrogen technology [30]. - The company has established three main business systems: distribution equipment R&D and manufacturing, new energy investment and construction, and smart energy management [35]. - The company aims to achieve a hydrogen production capacity of 100,000 to 200,000 tons per year by 2025 as part of the hydrogen industry development plan [33]. - The company is expanding its market presence beyond the power grid sector into industries such as solar thermal, chemicals, metallurgy, and municipal services [47]. Risk Management and Compliance - The report outlines risk factors and management's strategies to address these risks, emphasizing the importance of investor awareness [5]. - The report emphasizes the importance of accurate financial data and compliance with regulatory requirements [4]. - The company is committed to compliance with regulatory requirements for its business operations, ensuring sustainable growth [76]. - The company has established a risk management system for hedging operations, focusing on matching the scale of hedging with actual production needs to avoid speculative trading [83]. Research and Development - The company is engaged in the manufacturing of power distribution and control equipment, with a focus on 12kV and below distribution and control devices [30]. - The company is advancing R&D projects, including a new generation of energy-efficient transformers and low-voltage photovoltaic micro-inverters, with various stages of development completed [52]. - The company has upgraded its EMS technology for smart distribution networks and virtual power plants, incorporating deep learning and edge computing technologies [53]. - Research and development expenses increased by 18.27% to ¥57,774,941.70, up from ¥48,851,722.56 in the previous year [58]. Environmental and Social Responsibility - The company is committed to environmental and social responsibility, as detailed in the report [28]. - The company has established a comprehensive environmental management system, ensuring compliance with standards for wastewater and emissions treatment [113]. - The company has introduced advanced equipment for the recovery and treatment of SF6 gas, ensuring compliance with environmental regulations [113]. Shareholder Engagement and Corporate Governance - The financial report is guaranteed to be true, accurate, and complete by the company's management, including the CEO and accounting head [4]. - All directors attended the board meeting to review the report, ensuring comprehensive oversight [5]. - The company held three shareholder meetings during the reporting period, with participation rates of 40.26% for the first extraordinary meeting and 37.52% for the annual meeting [100]. - The company plans not to distribute cash dividends or issue bonus shares for the half-year period [102]. - The employee stock ownership plan saw an increase in total shares held from 18.7 million to 20.57 million, representing 3.7926% of the total equity [104]. Market Trends and Economic Environment - In the first half of 2022, the total electricity consumption in China reached 4.10 trillion kWh, representing a year-on-year growth of 2.9% [32]. - As of June 2022, electricity investment increased by 12.0% year-on-year, with non-fossil energy generation investment accounting for 84.7% of total power investment [32]. - From January to July 2022, the State Grid Corporation completed grid investment of 236.4 billion yuan, a year-on-year increase of 19% [33]. Financial Position and Assets - The total assets as of June 30, 2022, amounted to ¥3,681,778,282.81, an increase from ¥3,452,723,120.48 on January 1, 2022 [166]. - Current assets totaled ¥2,246,462,328.89 as of June 30, 2022, compared to ¥2,054,965,427.25 at the beginning of the year, reflecting an increase of approximately 9.3% [165]. - The company's cash and cash equivalents decreased to ¥358,874,974.95 from ¥368,851,099.81, a decline of about 1.3% [165]. - Total liabilities rose to ¥1,642,994,320.40 as of June 30, 2022, compared to ¥1,363,675,752.77 at the start of the year, indicating an increase of about 20.5% [167]. Acquisitions and Investments - The company has completed the acquisition of Sichuan Yangming Shengwei Construction Engineering Co., Ltd., enhancing its operational capabilities [143]. - The company has also acquired all equity of Sichuan Qutang Construction Engineering Co., Ltd., further strengthening its portfolio [144]. - The company has invested 1,000,000 in the establishment of a new subsidiary focused on solar energy technology and services, holding a 100% stake [75]. - The company is planning to invest in photovoltaic power station operations and maintenance services [75]. Employee and Operational Management - The company emphasizes employee rights protection and has implemented various welfare measures, including annual health check-ups and supplementary medical insurance [109]. - The marketing team consists of over 200 personnel, with more than 90% holding a college degree, enhancing the company's contract acquisition capabilities [46]. - The company has successfully implemented measures to protect supplier rights, fostering a mutually beneficial relationship with suppliers [111].