Financial Performance - Revenue for the first quarter reached CNY 4,078,760,337.43, a 120.08% increase year-on-year [18]. - Net profit attributable to shareholders rose by 72.22% to CNY 451,297,424.24 compared to the same period last year [18]. - The net profit after deducting non-recurring gains and losses increased by 78.02% to CNY 430,218,766.40 [18]. - Basic earnings per share increased by 75.47% to CNY 0.93 [18]. - The company reported a significant increase in the number of shareholders, reaching 12,998 [24]. - The company’s net profit for Q1 2022 was approximately ¥448.66 million, a significant increase from ¥262.05 million in Q1 2021, representing a growth of 71.3% [79]. - Total operating revenue for Q1 2022 reached ¥4,078,760,337.43, a significant increase from ¥1,853,334,464.79 in Q1 2021, representing a growth of approximately 120.0% [78]. - Total operating costs for Q1 2022 were ¥3,595,704,168.70, compared to ¥1,550,959,877.39 in Q1 2021, indicating an increase of about 131.5% [78]. Assets and Liabilities - Total assets increased by 21.84% to CNY 20,043,919,994.42 compared to the end of the previous year [17]. - The company's total liabilities to assets ratio (consolidated) was 57.71%, up from 51.86% at the end of the previous year [17]. - Total liabilities increased to approximately 9.12 billion RMB from 6.56 billion RMB, reflecting a growth of about 39% [70]. - The company's long-term borrowings rose to approximately 1.63 billion RMB from 1.15 billion RMB, an increase of about 41.3% [70]. - The total current assets increased to approximately 11.59 billion RMB as of March 31, 2022, compared to 8.80 billion RMB at the end of 2021, reflecting a growth of about 31.5% [69]. Cash Flow - The cash flow from operating activities decreased by 233.44% to -CNY 287,242,829.01, primarily due to increased payments for raw materials and outsourcing [18]. - The company reported a net cash outflow from operating activities of approximately ¥287.24 million in Q1 2022, compared to a net inflow of ¥215.26 million in Q1 2021 [85]. - Cash inflow from financing activities in Q1 2022 was CNY 1,294,577,663.99, compared to CNY 260,000,000.00 in Q1 2021, marking a growth of about 397.5% [88]. - Total cash inflow from operating activities was CNY 1,728,823,714.30, while total cash outflow was CNY 1,917,102,391.45, resulting in a net cash flow of negative CNY 188,278,677.15 [88]. Shareholder Information - Major shareholders include China Baoan Group Holding Co., Ltd. with a 43.92% stake and China Baoan Group Co., Ltd. with a 24.44% stake [27]. - The total number of ordinary shares increased from 485,386,150 to 485,386,150, with the proportion of unrestricted shares rising to 98.37% [24]. - The company has no outstanding preferred shares as of the reporting period [28]. Legal and Compliance - There were no significant legal disputes or external guarantees reported during the period [30]. - The company has fulfilled all disclosure obligations regarding major transactions and commitments [30]. - The company is actively working to fulfill its commitments regarding competitive business practices and share management [39]. - The company has ongoing guarantees and commitments related to its financial obligations and corporate governance [38][39]. Inventory and Operating Costs - Operating costs decreased to CNY 1,306,978,069.31 from CNY 1,345,558,589.82 year-over-year, reflecting a reduction of approximately 2.5% [22]. - The company reported a significant increase in inventory, which rose to ¥1,369,215,516.84 from ¥950,772,327.25, reflecting an increase of about 43.9% [74]. Debt Recovery and Litigation - The company is pursuing legal actions to recover debts totaling ¥220.16 million from Shenzhen and Shaanxi Watma due to unpaid obligations [44]. - The company has engaged in a tripartite agreement to offset debts with Tenyi Maozhu, but has only received partial fulfillment of the agreement [43]. - Bettery Nano has a claim against Henan Guoneng for 198.352 million RMB in unpaid goods, with a court ruling confirming the debt [52].

Business Development and Expansion - The company successfully launched the SAP ERP project in January, promoting standardized and refined development[3]. - In June, a joint venture was established to invest in a project with an annual production capacity of 50,000 tons of high-nickel ternary cathode materials for lithium batteries[4]. - The company established joint ventures in multiple locations for the integrated production line of anode materials from September to November[5]. - The company became one of the first listed companies on the Beijing Stock Exchange on November 15, marking a new chapter in its development[7]. - The company is expanding rapidly, necessitating improvements in resource integration, talent development, and operational management[16]. - The company plans to expand its market presence and invest in new product development to enhance competitiveness[24]. - The company is focused on the production and operation of lithium-ion battery anode and cathode materials, indicating a strategic emphasis on the energy sector[28]. - The company is actively monitoring the impact of government policies on the electric vehicle industry, which could influence market dynamics[18]. - The company aims to establish overseas production bases to achieve global operations and strengthen its position in the lithium battery materials market[154]. Financial Performance - The company's operating revenue for 2021 reached ¥10,491,350,091.12, representing a 135.67% increase compared to ¥4,451,752,877.06 in 2020[35]. - The net profit attributable to shareholders for 2021 was ¥1,440,985,383.11, a significant increase of 191.39% from ¥494,513,815.31 in the previous year[35]. - The net profit after deducting non-recurring gains and losses was ¥1,119,873,557.94, up 238.17% from ¥331,160,491.14 in 2020[35]. - The gross profit margin for 2021 was 25.02%, down from 26.91% in 2020[35]. - The basic earnings per share increased to 2.97, reflecting a 175.00% rise from 1.08 in 2020[35]. - The weighted average return on equity based on net profit attributable to shareholders was 20.98%, compared to 9.82% in 2020[35]. - Total assets increased by 54.39% from CNY 10,655,831,580.50 at the end of 2020 to CNY 16,451,507,336.30 at the end of 2021[37]. - Total liabilities rose by 100.51% from CNY 4,255,092,715.60 at the end of 2020 to CNY 8,531,892,929.61 at the end of 2021[37]. - Operating cash flow turned negative at CNY -881,465,375.38, a decrease of 230.23% from CNY 676,846,030.64 in 2020[40]. - Revenue growth rate was 135.67%, indicating a substantial increase in sales compared to the previous year[41]. Research and Development - The company has invested significantly in R&D, establishing multiple research centers and leading in independent innovation capabilities[16]. - Research and development expenses grew by 136.66% to ¥591,447,874.24, reflecting increased investment in innovation[71]. - The total number of R&D personnel increased from 489 to 619, with the proportion of R&D staff in total employees rising from 12.33% to 13.34%[101]. - Key R&D projects include the development of new battery material recycling technology and ultra-high nickel cathode materials, aimed at reducing production costs and enhancing product performance[105][104]. - The company is actively expanding into advanced technologies such as all-solid-state electrolytes and battery recycling technologies to maintain its competitive edge in the materials sector[104]. Market and Industry Challenges - The lithium-ion battery industry is experiencing intensified competition, leading to potential price declines and limited profitability due to increased market participants and capacity expansion[17]. - Raw material costs significantly impact the company's operating costs, with price fluctuations expected to continue due to tight supply and high demand in 2022[17]. - The company faces risks related to accounts receivable, currency fluctuations, and R&D uncertainties, which could impact its operational performance[15]. - International trade disputes, particularly between the US and China, may create barriers that negatively affect the company's operations in the global market[19]. - The rapid expansion of the lithium-ion battery market could lead to overcapacity and increased pressure on pricing if demand does not meet expectations[17]. - The company faces risks from potential technological shifts, as advancements in alternative battery technologies could threaten the market share of lithium-ion batteries[18]. - The concentration of new production capacity in specific regions may lead to energy bottlenecks and increased operational costs[17]. Environmental and Social Responsibility - The company has achieved compliance with environmental standards, with no exceedances reported in wastewater and waste gas treatment facilities[134]. - The company is committed to sustainable practices and has implemented monitoring systems to track emissions and discharges effectively[137]. - The company conducted quarterly third-party monitoring of wastewater and annual monitoring of waste gas to ensure compliance with environmental regulations[137]. - The company actively engaged in social responsibility initiatives, including donations to local charities and support for rural revitalization projects[128]. Risk Management - The company is focused on risk control, particularly regarding funding, project quality, and compliance, to mitigate potential impacts on operations[157]. - The company acknowledges the risk of intensified market competition in the lithium battery sector, with a strategy to enhance product value and reduce production costs[159]. - Fluctuations in raw material prices, including natural graphite and lithium salts, pose a significant risk to the company's operating costs and profitability[159]. - The company has established a credit management system to mitigate accounts receivable risks, focusing on maintaining relationships with reputable clients[161]. Stock Options and Incentives - The company implemented the second phase of the stock option incentive plan, granting a total of 24.83 million stock options, with 440,000 options becoming invalid during the reporting period[194]. - The fair value of the granted stock options is estimated at CNY 363.90 million, based on the Black-Scholes model[196]. - The incentive plan is expected to have a minor negative impact on net profit growth rate due to expense amortization, but the overall performance improvement is anticipated to outweigh these costs[198]. - The company is committed to attracting and retaining talent through its long-term incentive mechanisms[194].