Group 1 - The successful commissioning of the 110 kV Dongyuan Substation in Ulanqab City marks a significant breakthrough in optimizing the power grid structure, providing strong and stable power support for high-quality economic and social development in the region [1][4] - The substation was built in response to the increasing demand for electricity due to the rapid growth of the renewable energy industry and the expansion of industrial parks, addressing the challenges faced by the existing power supply infrastructure [3] - The substation features advanced design concepts and intelligent equipment, with transformer capacity planned to accommodate expected load growth over the next 5-10 years, enhancing power supply reliability and operational efficiency [3] Group 2 - The construction of the substation faced challenges such as complex geological conditions and harsh weather, but the company demonstrated high professionalism and teamwork to ensure high-quality completion on schedule [3] - The Ulanqab Power Supply Company will continue to enhance operational maintenance standards and practices to provide reliable power support for the economic and social development of Ulanqab City [4]

Core Viewpoint - YN Power's performance in 2024 shows a decline in revenue and net profit, despite the overall growth potential in the domestic power distribution industry driven by economic development and government policies [1][2] Industry Overview - The domestic power distribution and control equipment industry is experiencing growth due to increasing electricity demand and government initiatives such as the "Belt and Road" initiative and modern infrastructure development [1] - In 2024, the power distribution industry is expected to maintain a good development trend, although performance among listed companies is showing divergence, with some companies performing well while others face significant declines [1] Company Performance - In 2024, YN Power reported revenue of 180 million yuan, a year-on-year decrease of 19.79%, and a net profit of 13.96 million yuan, down 22.25% year-on-year [1] - The company's revenue scale is relatively small, and its gross profit margin and overall performance are at a medium level [1] Business Development - YN Power has achieved a breakthrough in sales related to energy storage, primarily focusing on industrial and commercial energy storage [2] - The company anticipates significant market demand for energy storage due to decreasing battery costs and improved safety technologies, but it acknowledges that this business is heavily influenced by national energy policies [2] - Future growth points for YN Power include strengthening existing product lines such as transformers and reactors, developing new energy storage devices, and expanding smart substation management services [2] - The company aims to deepen its presence in the power distribution market and leverage opportunities in smart power and global energy security to enhance profitability and achieve rapid growth [2]

Core Points - The company reported a net profit attributable to shareholders of RMB -333,002,380.13 for the year 2024, indicating a negative profit distribution situation [80][84][81] - The board of directors approved a profit distribution plan for 2024, which includes no cash dividends, no stock dividends, and no capital reserve transfers [26][60][84] - The company continues to focus on its strategic business areas, including smart power grid equipment, new energy charging and swapping, and energy storage [4][10] Financial Overview - The company has not changed its accounting firm, continuing with Zhongqin Wanxin Accounting Firm, which provided a standard unqualified audit opinion for the financial report [2][32] - The company reported a negative retained earnings of RMB -914,031,312.76 as of December 31, 2024, reflecting ongoing financial challenges [80][84] - The company plans to maintain its internal control systems effectively, as indicated in the internal control self-evaluation report [29][63] Business Operations - The main business segments include smart grid equipment, new energy charging and swapping facilities, and energy storage solutions, with no significant changes in operations during the reporting period [4][10] - The company operates 1,345 charging stations across various regions, with a focus on becoming a leading operator of centralized fast charging networks in China [9][10] - The company has introduced various products in the new energy sector, including electric vehicle charging equipment and intelligent power distribution systems [7][10] Governance and Compliance - The board and supervisory board meetings were conducted in compliance with legal regulations, with all members present [15][52] - The company has established a robust internal control system, ensuring compliance with relevant laws and regulations [29][63] - The independent directors confirmed their independence and lack of conflicts of interest with the company [36][38]