Financial Performance - The company reported a total revenue of 1.5 billion CNY for the first half of 2022, representing a year-on-year increase of 25%[6]. - The company achieved operating revenue of CNY 1,853,618,308.04, representing a year-on-year increase of 171.94%[15]. - Net profit attributable to shareholders reached CNY 263,645,028.59, up 70.02% compared to the same period last year[15]. - The net profit after deducting non-recurring gains and losses was CNY 265,237,233.84, reflecting a growth of 79.01% year-on-year[15]. - Basic earnings per share were CNY 1.70, a 70.00% increase compared to CNY 1.00 in the same period last year[16]. - The total comprehensive income for the first half of 2022 was CNY 263,645,028.59[173]. - The company reported a significant performance summary for the first half of 2022, with a focus on maintaining stock price stability measures if the stock price falls below the audited net asset value per share for 20 consecutive trading days[103]. Research and Development - The company is investing 200 million CNY in R&D for new battery technologies, focusing on lithium iron phosphate batteries[6]. - Research and development expenses accounted for 6.99% of operating revenue, a decrease of 1.19 percentage points year-on-year[16]. - Research and development investment reached approximately ¥129.65 million, a significant increase of 132.40% compared to the previous year, accounting for 6.99% of operating revenue[30][31]. - The company has obtained 23 authorized invention patents, 139 utility model patents, and 5 software copyrights as of June 30, 2022[21]. - The company has developed a modular battery system that can adapt to various energy storage needs, ranging from household kWh levels to grid MWh levels[26]. - The company has achieved a significant technological breakthrough in battery life extension, with a focus on factors affecting life decay and the development of a life cycle decay model[28]. - The first-generation sodium-ion battery product has met key technical targets for energy density and cycle life, entering the pilot testing phase[28]. - The company is actively engaged in the development of high-capacity lithium iron phosphate batteries, targeting energy densities of 175-185 Wh/kg with a cycle life of at least 4,000 times[32]. Market Expansion - Future guidance indicates an expected revenue growth of 20% for the second half of 2022, targeting 1.8 billion CNY[6]. - Market expansion plans include entering two new international markets by the end of 2022, aiming for a 10% market share in each[6]. - The company focused on the energy storage market, enhancing its market position and expanding sales volume significantly[17]. - The global household energy storage market is expected to grow by over 134% in 2022, driven by increased demand for renewable energy solutions[20]. - The company is recognized as a national-level "Little Giant" enterprise, highlighting its innovation and specialization in the industry[27]. - The company has established long-term stable partnerships with major international solar system providers, enhancing its brand recognition in the global energy storage market[40]. - The company has strengthened its brand presence in international markets, achieving leading market shares in countries like Italy, Spain, and the UK[42]. Production Capacity and Operations - The company has completed the acquisition of a local battery manufacturer, which is expected to increase production capacity by 30%[6]. - A new energy management system is set to launch in Q4 2022, anticipated to enhance efficiency by 15%[6]. - The company has established a strict supplier management system to ensure the quality of materials and components used in production[24]. - The company’s energy storage systems are designed to cover a range from Wh to MWh, with the capability to expand to hundreds of MWh through container systems[40]. - The company has initiated refinancing to support the establishment of a 10GWh lithium battery R&D and manufacturing base, enhancing production capacity and market position[43]. Financial Position - The company's total assets reached CNY 5,480,636,281.74, marking a 28.46% increase from the end of the previous year[15]. - The company's net assets attributable to shareholders were CNY 3,218,513,478.06, up 8.37% from the previous year[15]. - The company's total liabilities reached ¥1,366,954,455.02, up from ¥538,104,219.80 in the previous year, indicating an increase of about 154.5%[159]. - The company's equity attributable to shareholders increased to ¥3,218,513,478.06 from ¥2,969,981,071.82, a rise of approximately 8.4%[156]. Risks and Challenges - The company has identified potential risks related to supply chain disruptions, which may impact production timelines[6]. - The company faces risks related to raw material supply, particularly for lithium and electronic components, which could impact production and costs[48]. - The company’s market expansion is challenged by intensified competition and potential fluctuations in global demand for energy storage solutions[55]. - The company faces risks from potential changes in tax policies affecting high-tech enterprises, which could increase tax burdens[51]. Environmental and Social Responsibility - The company has established an environmental management system based on ISO14001:2015 standards to enhance environmental performance and resource utilization[86]. - The company has implemented measures to manage and control greenhouse gas emissions, including the use of clean energy and improving production efficiency[87]. - The company’s wastewater treatment capacity is currently 10 tons per day, and wastewater discharge complies with the battery industry pollutant discharge standards[83]. - The company has not faced any environmental pollution incidents or administrative penalties during the reporting period[84]. Shareholder and Governance Matters - The company held its first extraordinary shareholders' meeting on June 6, 2022, where all proposals were approved without any dissenting votes[73]. - The company did not distribute profits or increase capital reserves during the reporting period[76]. - The company has committed to protecting investor interests and will take remedial measures if obligations are not met[99]. - The company guarantees the authenticity and completeness of its IPO prospectus, taking legal responsibility for any misleading statements or omissions[106].

Financial Performance - The company achieved total operating revenue of CNY 2,062,515,046.35 in 2021, representing a year-on-year growth of 84.14%[21]. - The net profit attributable to shareholders was CNY 316,180,053.78, an increase of 15.19% compared to the previous year[21]. - The company's total assets reached CNY 4,266,257,620.92, reflecting a year-on-year increase of 32.75%[21]. - The total profit for the year was CNY 356.1062 million, an increase of 14.16% compared to the previous year[36]. - The company reported a net profit attributable to the parent company of CNY 31,618.01 million, up 15.19% from the previous year[90]. - The company reported a total revenue of 21,400 million RMB for the year, with a net profit of 8,872.82 million RMB, reflecting a significant growth in performance[70]. - The company reported a revenue increase of 15% year-over-year, reaching $500 million in Q3 2023[160]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB, representing a year-over-year growth of 25%[165]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 6.20 per 10 shares, totaling RMB 96,003,610.46 (including tax) based on a total share capital of 154,844,533 shares as of December 31, 2021, resulting in a cash dividend payout ratio of 30.36%[6]. - The company does not plan to issue bonus shares or convert capital reserves into share capital in the current profit distribution plan[6]. - The cash dividend policy stipulates that the annual cash dividend amount should not be less than 10% of the distributable profit for the year, provided that the company meets its operational funding needs[190]. - The company’s cash flow from operating activities must be positive to proceed with cash dividends; otherwise, the distribution may be reconsidered[190]. - The company’s cash dividend distribution plan has been approved by the board and is pending approval from the annual general meeting of shareholders[191]. Research and Development - Research and development expenses accounted for 7.55% of operating revenue, an increase of 1.07 percentage points from the previous year[22]. - Research and development investment increased significantly by 114.30% year-on-year, totaling approximately ¥155.63 million, which represents 7.55% of total revenue[63][64]. - The company has expanded its research team to 365 members, a 56.65% increase from the previous year, contributing to the rise in R&D expenses[64]. - The company received 34 new patents during the reporting period, bringing the total to 161 patents[61]. - The company is actively exploring new energy storage technologies, including liquid flow, hydrogen (ammonia) storage, and metal-air batteries[39]. - The R&D department is expected to play a crucial role in driving innovation and supporting new product launches in the next quarter[155]. - The company is investing 50 million in R&D for new technologies aimed at enhancing product efficiency[157]. Market Expansion and Strategy - The company operates in the lithium-ion battery sector, focusing on energy storage solutions, which are critical for renewable energy applications[12]. - The company maintained its competitive advantage in the existing energy storage market while accelerating the expansion into new regions and markets[23]. - The company expanded its market presence in regions such as Belgium, Luxembourg, and Eastern Europe, achieving significant progress in the US and Japan[36]. - The company is actively expanding into the Americas and Asia-Pacific regions while maintaining its competitive position in the household energy storage market[4]. - The company aims to achieve an annual production capacity of 7GWh for battery cells and 8GWh for systems after the completion of its lithium-ion battery production base project[141]. - Market expansion plans include entering two new international markets by Q2 2024, projected to increase market share by 5%[157]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025[162]. Operational Risks and Challenges - The company has detailed various operational risks in the report, which investors should review in the "Management Discussion and Analysis" section[4]. - The company faces risks related to raw material supply, particularly for lithium iron phosphate and electronic components, which could impact production and operational performance[82]. - The company is exposed to risks from fluctuating raw material prices and international shipping costs, impacting operating costs[94]. - The ongoing COVID-19 pandemic has affected global operations, with potential implications for future business performance if the situation does not improve[84]. Corporate Governance - The board of directors operated in accordance with the Company Law and the Articles of Association, with no violations reported[144]. - Independent directors account for over one-third of the board, with four out of eleven members being independent directors, in compliance with regulations[145]. - The company has established a supervisory board consisting of three members, including one employee representative, with a term of three years[144]. - The company has maintained a good operational status for its board committees since their establishment[146]. - The company has not faced any significant issues regarding independence from its controlling shareholders or related parties[146]. Product Development and Innovation - The company successfully developed mobile energy storage solutions, leading to large-scale shipments in the commercial and microgrid storage markets[37]. - The company launched new energy storage products, including a 5 kWh home storage product and a 100 kWh commercial storage product, with energy density improved by 10% and power performance enhanced by 20%[38]. - The company is developing a low-cost, environmentally friendly water-based lithium iron phosphate battery with a total investment of $300 million, having invested $231.71 million to date, targeting an energy density of no less than 130 Wh/kg[68]. - The new sodium-ion battery technology shows strong cost competitiveness and long cycle life, positioning the company favorably in the battery market[13]. - The company is focusing on integrating energy storage solutions for various applications, including residential, commercial, and grid systems[59]. Awards and Recognition - The company received multiple awards, including "Top Ten Energy Storage Battery Enterprises in China" and "Best Energy Storage Battery Supplier in China" in 2021[41]. - The company has established a strong brand presence and market competitiveness in the global electrochemical energy storage market[55]. - The company’s products have passed major international safety certifications, including IEC, CE, UL, and others, significantly boosting market credibility[3]. Financial Management - The company has implemented a strict supplier management program to ensure the quality and reliability of materials used in production[47]. - The company has increased its raw material inventory to a safety stock of 1-3 months in response to supply chain constraints[48]. - The company is currently investing in a lithium-ion battery production base project with a budget of ¥150 million, of which ¥44,094.26 has been invested, representing 29.40% of the total budget[124]. - The company has established a competitive compensation and benefits management system, linking employee salaries to job responsibilities and performance[183].

[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) This section confirms the accuracy and completeness of the quarterly report by the company's management and notes its unaudited status - The company's board of directors, supervisory board, and senior management ensure the truthfulness, accuracy, and completeness of this quarterly report, free from false records, misleading statements, or major omissions, and bear corresponding legal responsibilities[3](index=3&type=chunk) - This company's Q1 2021 report has not been audited[3](index=3&type=chunk) [Company Overview](index=3&type=section&id=Item%20II.%20Company%20Overview) This section provides an overview of the company's key financial performance for Q1 2021 and details its shareholder structure [Key Financial Data](index=3&type=section&id=Item%202.1%20Key%20Financial%20Data) In Q1 2021, the company achieved operating revenue of **RMB 258 million**, a **51.69%** year-on-year increase; net profit attributable to shareholders was **RMB 59.44 million**, up **43.47%**; net cash flow from operating activities surged by **1977.44%**, driven by strong sales growth and enhanced collection management 2021 Q1 Key Financial Indicators | Indicator | Current Period | Prior Year Period | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 257,509,227.67 | 169,760,496.11 | 51.69% | | Net Profit Attributable to Shareholders (RMB) | 59,444,815.51 | 41,432,424.97 | 43.47% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (RMB) | 57,345,989.83 | 40,720,623.28 | 40.83% | | Basic Earnings Per Share (RMB/share) | 0.38 | 0.36 | 5.56% | | Net Cash Flow from Operating Activities (RMB) | 69,291,462.28 | 3,335,421.81 | 1,977.44% | | R&D Investment as % of Operating Revenue (%) | 9.65% | 5.76% | Increased by 3.88 percentage points | - Non-recurring gains and losses totaled **RMB 2.0988 million**, primarily including **RMB 1.4486 million** in government subsidies and **RMB 1.2650 million** in fair value changes of financial assets held for trading[6](index=6&type=chunk)[7](index=7&type=chunk) [Shareholder Information](index=5&type=section&id=Item%202.2%20Total%20Shareholders%2C%20Top%20Ten%20Shareholders%2C%20and%20Top%20Ten%20Shareholders%20with%20Unrestricted%20Shares%20at%20Period-End) As of the end of the reporting period, the company had **16,891** shareholders; the top two shareholders, ZTE New Communications Co., Ltd. and Huangshi Rongke Innovation Investment Fund Center (Limited Partnership), held **27.91%** and **14.13%** respectively, both being restricted shares - As of the end of the reporting period, the company had **16,891** common stock shareholders[8](index=8&type=chunk) Top Ten Shareholders' Shareholding | Shareholder Name | Shareholding (%) | Number of Shares Held (shares) | | :--- | :--- | :--- | | ZTE New Communications Co., Ltd. | 27.91 | 43,218,677 | | Huangshi Rongke Innovation Investment Fund Center (Limited Partnership) | 14.13 | 21,873,364 | | Beijing Rongtong Gaoke Capital Management Center (Limited Partnership) | 7.03 | 10,887,050 | | Shenzhen Jinghedao Investment Management Partnership (Limited Partnership) | 3.49 | 5,399,448 | | Yue Hongwei | 3.32 | 5,140,869 | [Significant Events](index=7&type=section&id=Item%20III.%20Significant%20Events) This section analyzes major changes in the company's financial statement items and key indicators during the reporting period [Analysis of Significant Changes in Key Financial Statement Items and Indicators](index=7&type=section&id=Item%203.1%20Analysis%20of%20Significant%20Changes%20in%20Key%20Financial%20Statement%20Items%20and%20Indicators) During the reporting period, several financial indicators changed significantly; inventory increased by **37.92%** due to business expansion; short-term borrowings were cleared and notes payable decreased by **83.66%** due to loan repayment; revenue growth led to increased costs and expenses, with sales and R&D expenses surging by **185.22%** and **153.81%** respectively; operating cash flow soared by **1977.44%** due to increased sales collection, while investing cash flow saw significant outflow from wealth management purchases and expansion investments Balance Sheet Key Item Changes and Reasons | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Financial Assets Held for Trading | Not applicable | Primarily due to an increase in bank structured deposits | | Notes Receivable | 95.03% | Primarily due to increased sales business, leading to a corresponding increase in notes receivable | | Prepayments | 178.24% | Primarily due to increased business, leading to a corresponding increase in prepayments | | Inventory | 37.92% | Primarily due to increased production capacity, leading to the company increasing its stock | | Short-term Borrowings | -100.00% | Primarily due to the company repaying loans | | Notes Payable | -83.66% | Primarily due to notes maturing | | Contract Liabilities | 64.74% | Primarily due to increased sales business, leading to a corresponding increase in contract liabilities | Income Statement Key Item Changes and Reasons | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Operating Revenue | 51.69% | Primarily due to sales business growth | | Sales Expenses | 185.22% | Primarily due to increased sales revenue, leading to a corresponding increase in sales expenses | | Administrative Expenses | 129.29% | Primarily due to increased intermediary fees, maintenance fees, and other administrative expenses | | R&D Expenses | 153.81% | Primarily due to an increase in R&D personnel and direct R&D investment | | Financial Expenses | 222.25% | Primarily due to increased interest income from purchasing time deposits with idle raised funds | Cash Flow Statement Key Item Changes and Reasons | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 1,977.44% | Primarily due to increased sales collection | | Net Cash Flow from Investing Activities | 15,075.18% | Primarily due to purchasing structured deposits with idle raised funds and increased investment in expansion | | Net Cash Flow from Financing Activities | -479.19% | Primarily due to increased repayment of short-term borrowings | [Appendix](index=10&type=section&id=Item%20IV.%20Appendix) This section includes the company's unaudited financial statements, details on the first-time adoption of new lease standards, and the audit report status [Financial Statements](index=10&type=section&id=Item%204.1%20Financial%20Statements) This section provides the company's unaudited detailed financial statements for Q1 2021, including consolidated and parent company balance sheets, income statements, and cash flow statements - The appendix includes consolidated and parent company balance sheets as of March 31, 2021[18](index=18&type=chunk)[20](index=20&type=chunk) - The appendix includes consolidated and parent company income statements for Q1 2021[23](index=23&type=chunk)[27](index=27&type=chunk) - The appendix includes consolidated and parent company cash flow statements for Q1 2021[28](index=28&type=chunk)[32](index=32&type=chunk) [Adjustments for First-time Adoption of New Lease Standards from 2021](index=22&type=section&id=Item%204.2%20Adjustments%20to%20Opening%20Financial%20Statements%20for%20First-time%20Adoption%20of%20New%20Lease%20Standards%20from%202021) Effective January 1, 2021, the company adopted new lease standards; this accounting policy change resulted in adjustments to the opening financial statements, primarily recognizing **RMB 27.48 million** in right-of-use assets and corresponding **RMB 10.89 million** in non-current liabilities due within one year and **RMB 16.58 million** in lease liabilities in the consolidated balance sheet - The company first adopted the new lease standards on January 1, 2021, and adjusted relevant items in the opening financial statements for the year[35](index=35&type=chunk) Impact of New Lease Standards on Consolidated Balance Sheet as of January 1, 2021 | Statement Item | Adjustment Amount (RMB) | Impact | | :--- | :--- | :--- | | Right-of-use Assets | +27,476,960.36 | Asset increase | | Non-current Liabilities Due Within One Year | +10,894,541.96 | Liability increase | | Lease Liabilities | +16,582,418.40 | Liability increase | [Audit Report](index=27&type=section&id=Item%204.4%20Audit%20Report) This quarterly report is unaudited - This quarterly financial report is unaudited[42](index=42&type=chunk)

Financial Performance - The company achieved total operating revenue of CNY 1,120,070,051.43 in 2020, representing a year-on-year increase of 36.62%[18]. - Net profit attributable to shareholders reached CNY 274,485,010.11, a significant increase of 90.46% compared to the previous year[18]. - The company's total assets grew to CNY 3,213,764,109.01, marking a 303.26% increase year-on-year[18]. - The net assets attributable to shareholders increased by 515.03% to CNY 2,733,523,311.97 by the end of 2020[18]. - The gross profit margin for the year was 43.52%, an increase of 6.49 percentage points compared to the previous year[63]. - Revenue from energy storage products reached CNY 1,044,627,376.19, with a year-on-year increase of 40.31%[64]. - The total profit for the year was CNY 311.94 million, with a year-on-year increase of 89.82%[52]. - The company reported a net profit attributable to the parent company of CNY 27,448.50 million, up 90.46% year-on-year[60]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion in 2020, representing a year-over-year growth of 25%[177]. Dividend Policy - The company plans to distribute a cash dividend of RMB 5.50 per 10 shares, totaling approximately RMB 85.16 million, representing a cash dividend payout ratio of 31.03%[4]. - For the fiscal year 2020, the company proposed a cash dividend of RMB 5.50 per 10 shares, totaling RMB 85,164,493.15, which represents 31.03% of the net profit attributable to shareholders[92]. - The company has not distributed dividends in the years 2018 and 2019, indicating a focus on reinvestment during those periods[92]. - The company has a stable profit distribution policy, prioritizing cash dividends, with a minimum cash dividend amounting to 10% of the distributable profit[90]. Risk Management - The company has faced various operational risks, which are detailed in the report's section on "Risk Factors"[3]. - The company has a comprehensive risk management strategy outlined in the report[3]. - The company emphasizes that forward-looking statements in the report do not constitute substantive commitments to investors[5]. - The company has implemented measures to mitigate risks related to core technology leakage through confidentiality agreements and patent applications[54]. - The company faces risks related to the supply of key raw materials, with a notable increase in prices expected in Q1 2021 due to tight supply-demand conditions in the lithium battery industry[55]. - The company is exposed to risks from potential changes in industry policies, particularly regarding energy storage subsidies in key markets[57]. Research and Development - Research and development expenses accounted for 6.48% of operating revenue, a decrease of 0.86 percentage points from the previous year[20]. - The company has engaged Tianjian Accounting Firm for auditing services, ensuring compliance and accuracy in financial reporting[17]. - The company has invested significantly in R&D to enhance its core technologies, including battery management systems and energy storage system integration[38]. - The company has 233 R&D personnel, which constitutes 29.68% of the total workforce, an increase from 24.41% in the previous year[46]. - Research and development (R&D) expenses amounted to ¥72,623,204.71, representing a 20.65% increase compared to the previous year, while the R&D expenses as a percentage of operating income decreased from 7.34% to 6.48%[50]. - The company has received multiple awards in 2020, including the "Best Energy Storage Battery Supplier" at the China International Energy Storage Conference[29]. Market Expansion and Strategy - The company plans to continue expanding its market presence both domestically and internationally, leveraging the positive trends in the global energy storage market[21]. - The global energy storage market is projected to grow at a compound annual growth rate (CAGR) of 37%, with installed capacity expected to reach 13.8 GW/29.4 GWh by 2023[37]. - The company aims to provide integrated energy storage solutions for various applications, including residential, commercial, and grid-level storage[30]. - The company plans to enhance its lithium battery storage products focusing on safety, longevity, and reliability, aiming to become a leading provider of lithium-ion battery storage systems globally[87]. - The company is currently developing a high-capacity lithium battery system for data centers, with an investment of ¥609.70 million, which is in the testing phase[44]. Corporate Governance - The company has established a comprehensive governance structure to protect the rights of shareholders and creditors, ensuring timely and accurate information disclosure[131]. - The company has implemented a training management system to improve employee quality and organizational efficiency[194]. - The board of directors consists of 11 members, including 4 independent directors, which complies with relevant regulations[197]. - The company has established specialized committees within the board, including a strategy committee and an audit committee, which operate effectively[198]. - The company has a robust employee rights protection system, including comprehensive social insurance coverage and regular health check-ups[132]. Environmental Compliance - The company has successfully implemented an environmental management system that meets the ISO14001:2015 standard, ensuring compliance with national environmental laws and regulations[139]. - The company’s wastewater treatment capacity is currently 10 tons per day, and wastewater discharge complies with the "Battery Industry Pollutant Discharge Standards" (GB30484-2013) requirements[137]. - The company has not experienced any environmental pollution incidents during the reporting period and has not faced penalties for violating environmental laws[139]. - The company’s solid waste is fully utilized or properly disposed of, adhering to relevant pollution control standards[139]. Shareholder Information - The company has a total of 14,707 ordinary shareholders at the end of the reporting period, down from 16,891 at the end of the previous month[154]. - Major shareholders include ZTE Communications Co., Ltd. with 27.91% and Huangshi Rongke Innovation Investment Fund Center with 14.13%[155]. - The company reported a total of 43,218,677 restricted shares held by ZTE New Communications Co., Ltd., which will be tradable on January 2, 2024[159]. - The company has a significant investment in ZTE Corporation, holding 22.44% of its shares as of the report date[164]. Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[3]. - The company has no major litigation or arbitration matters during the reporting period, indicating a stable legal standing[119]. - The company has no major accounting errors or changes in accounting policies that would affect the financial statements significantly[117]. - The company assumes legal responsibility for the accuracy and completeness of the IPO prospectus and related documents[96].