Financial Performance - The company's operating revenue for 2020 was ¥8,161,806,164.32, representing a 27.30% increase compared to ¥6,411,641,552.23 in 2019[14]. - The net profit attributable to shareholders for 2020 was ¥1,652,034,439.41, an increase of 8.54% from ¥1,522,008,065.91 in 2019[14]. - The net cash flow from operating activities reached ¥1,547,616,814.41, marking a 35.92% increase from ¥1,138,632,495.87 in the previous year[14]. - The total assets at the end of 2020 amounted to ¥25,700,202,987.26, a 57.72% increase from ¥16,294,548,765.32 at the end of 2019[14]. - The net assets attributable to shareholders increased by 90.33% to ¥14,376,022,480.48 from ¥7,553,096,789.69 in 2019[14]. - The company reported a basic earnings per share of ¥0.89 for 2020, up 3.49% from ¥0.86 in 2019[14]. - The company experienced a quarterly revenue increase, with Q4 2020 revenue reaching ¥2,822,113,059.70, up from ¥1,308,721,332.76 in Q1 2020[15]. - Non-operating income from government subsidies in 2020 was ¥126,947,490.64, significantly higher than ¥27,873,092.00 in 2019[19]. - The company reported a weighted average return on equity of 18.97% for 2020, down from 25.49% in 2019[14]. - The net profit after deducting non-recurring gains and losses for 2020 was ¥1,525,614,839.73, a 2.30% increase from ¥1,491,258,052.70 in 2019[14]. Production and Capacity Expansion - The company plans to improve production efficiency and capacity to dilute fixed costs and enhance product profitability[5]. - The company is expanding its production capacity and adopting high-level automation to increase product yield and lower costs[3]. - The company plans to continue expanding its production capacity for power batteries in 2021 to meet the growing demand in passenger vehicles, special vehicles, and energy storage markets[28]. - The production capacity for lithium-ion batteries was 43,507 million units, with a capacity utilization rate of 98.75% and an output of 42,966 million units[43]. Research and Development - The company has applied for 2,369 national patents, with 1,097 patents granted, showcasing its strong commitment to R&D and innovation in lithium battery technology[27]. - The company aims to enhance its R&D efforts in new technologies and products for power batteries to support rapid business growth in this sector[22]. - Research and development expenses increased by 49.21% to ¥684.36 million, driven by growth in material consumption and employee compensation[51]. - The company is investing in research and development, allocating 10% of its revenue towards innovation in battery technology[155]. Market Trends and Strategic Focus - The global trend towards electrification in the automotive industry is accelerating, with a forecast that by 2025, new energy vehicles will account for about 25% of new car sales in China[24]. - The company is focusing on strategic supply chain development to reduce risks associated with raw material price fluctuations[5]. - The company is actively pursuing partnerships with major clients in the electric vehicle market to drive rapid growth in performance[79]. - The market for small lithium-ion batteries is expanding rapidly, driven by the growth of TWS (True Wireless Stereo) earphones, which are expected to become a major interaction point in the Internet of Things[23]. Financial Management and Investments - The company raised 2.477 billion yuan through a private placement to fund projects related to TWS applications and high-temperature lithium manganese batteries, enhancing its competitive edge[35]. - The company's long-term equity investments surged by 560.69% compared to the beginning of the period, attributed to the recognition of profits from joint ventures and other equity changes[26]. - The company has temporarily used CNY 50,000 million of idle raised funds to supplement working capital[68]. - The total amount of raised funds for the projects is CNY 494,410.63 million, with a cumulative investment of CNY 251,411.24 million[69]. Profit Distribution - The profit distribution plan approved by the board is to distribute a cash dividend of 0.25 RMB per 10 shares (tax included) based on a total of 1,887,493,029 shares[5]. - The cash dividend accounted for 100% of the total profit distribution for the year[85]. - The cash dividend amount for 2020 was CNY 47,187,325.73, representing 2.86% of the net profit attributable to the company's ordinary shareholders[89]. - The company did not issue any bonus shares or increase capital from reserves in the 2020 profit distribution plan[88]. Corporate Governance - The company has a transparent information disclosure system, ensuring timely and accurate communication with investors[168]. - The governance structure complies with the requirements set forth by the China Securities Regulatory Commission and relevant regulations[169]. - The company maintains independence from its controlling shareholder in business, personnel, assets, institutions, and finance, ensuring autonomous operations[170]. - Independent directors attended all 18 board meetings via remote participation, with no instances of absence reported[173]. Environmental and Social Responsibility - During the pandemic, the company donated a total of 16,000 medical masks, 2,000 N95 masks, and 8,414 KF94 masks, among other supplies[121]. - The company constructed a 20MW photovoltaic project, expected to reduce CO2 emissions by 16,734 tons[121]. - The company reduced fresh water resource consumption by 78,000 m³/a through wastewater recycling[121]. - The company has been recognized as a "National Green Factory" and is committed to green manufacturing practices[80].

Financial Performance - Net profit attributable to shareholders decreased by 11.44% to ¥582,940,747.09 for the reporting period[3] - Operating revenue for the period was ¥2,163,742,272.10, reflecting a growth of 5.68% year-on-year[3] - Basic earnings per share decreased by 11.11% to ¥0.32[3] - The weighted average return on equity was 7.25%, down by 2.15% compared to the previous year[3] - Net profit attributable to shareholders decreased by 18.35% to CNY 94,617.84 million, but increased by 23.88% to CNY 143,549.69 million when excluding non-recurring items[12] - The company reported a net profit for Q3 2020 of CNY 588,374,753.39, down 11.3% from CNY 663,444,690.12 in Q3 2019[34] - Net profit for the current period was ¥966,652,873.67, down 17.53% from ¥1,172,698,877.41 in the previous period[38] - Total comprehensive income for the current period was ¥966,652,873.67, down from ¥1,172,698,877.41 in the previous period[40] Revenue and Costs - Total operating revenue for the current period reached ¥5,339,693,104.62, an increase of 16.67% compared to ¥4,577,189,580.17 in the previous period[37] - Total operating costs increased to ¥4,763,377,260.10, up 21.43% from ¥3,923,101,729.82 in the previous period[37] - The total operating revenue for Q3 2020 was CNY 1,544,367,048.52, a decrease of 25.7% compared to CNY 2,076,126,200.74 in the same period last year[35] - The total operating costs for Q3 2020 were CNY 1,892,411,373.47, an increase of 17.5% from CNY 1,609,943,137.09 in the previous year[32] Assets and Liabilities - Total assets increased by 12.04% to ¥18,256,040,234.77 compared to the end of the previous year[3] - The company's total assets reached CNY 11,256,364,793.76, up from CNY 10,884,451,988.19 at the end of the previous year, indicating a growth of about 3.4%[30] - The total liabilities increased to CNY 5,356,229,368.70 from CNY 5,112,547,204.57, reflecting a rise of approximately 4.8%[30] - The company's total current liabilities amounted to CNY 4,319,541,264.20, a decrease from CNY 4,695,126,097.45, indicating a reduction of approximately 8.0%[30] - The total non-current liabilities increased to CNY 1,036,688,104.50 from CNY 417,421,107.12, representing a growth of about 148.0%[30] Cash Flow - The net cash flow from operating activities increased by 23.95% to ¥455,551,001.49[3] - The cash inflow from operating activities for the period reached CNY 5,104,150,090.89, an increase of 30.1% compared to CNY 3,916,075,530.60 in the previous period[43] - The net cash flow from operating activities was CNY 967,126,251.64, up 14.0% from CNY 848,554,319.87 year-on-year[43] - The total cash inflow from investment activities was CNY 40,419,460.18, significantly lower than CNY 2,083,587,024.40 in the previous year, reflecting a decrease of 98.1%[44] - The net cash flow from investment activities was -CNY 1,208,609,073.56, compared to -CNY 1,872,387,345.75 in the previous period, indicating a reduction in cash outflow[44] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 113,766[6] - The largest shareholder, Tibet Yiwei Holdings Co., Ltd., held 33.00% of the shares[6] - No repurchase transactions were conducted by the top 10 shareholders during the reporting period[9] Research and Development - Research and development expenses increased by 47.15% to CNY 494,453,141.37, reflecting growth in material consumption and employee compensation[15] - Research and development expenses increased to CNY 219,433,392.13, up 70.5% from CNY 128,668,897.85 year-over-year[32] Strategic Initiatives - The company has signed a supply agreement with Daimler AG to provide lithium-ion battery components until December 31, 2027, indicating a long-term partnership in the automotive sector[20] - The company is actively collaborating with StoreDot Ltd. on the mass production of ultra-fast charging batteries, with the partnership extended until March 31, 2021[19] - The company has established a strategic cooperation framework with Jiangsu Linyang Energy Co., Ltd. to develop smart distributed energy storage solutions, which is currently in progress[19] - The company has entered into a cooperation agreement with Shanghai Hanshun Shipping Co., Ltd. to promote the development of electric vessels, highlighting its commitment to renewable energy technologies[19] Future Outlook - The company plans to raise up to CNY 2.5 billion through a private placement of A-shares, with proceeds allocated to various battery projects and working capital[20] - Future guidance indicates a commitment to innovation and strategic investments to drive growth in the upcoming quarters[48]

Financial Performance - The company's operating revenue for the first half of 2020 was approximately ¥3.18 billion, representing a 25.55% increase compared to ¥2.53 billion in the same period last year[14]. - The net profit attributable to shareholders of the listed company was approximately ¥363.24 million, a decrease of 27.43% from ¥500.51 million in the previous year[14]. - The net profit after deducting non-recurring gains and losses was approximately ¥270.20 million, down 44.93% from ¥490.64 million in the same period last year[14]. - The net cash flow from operating activities was approximately ¥511.58 million, an increase of 6.35% compared to ¥481.01 million in the previous year[14]. - The basic earnings per share were ¥0.20, a decrease of 33.33% from ¥0.30 in the same period last year[14]. - The diluted earnings per share were also ¥0.20, reflecting a 33.33% decrease from ¥0.30 in the previous year[14]. - The weighted average return on equity was 4.71%, down 6.09% from 10.80% in the previous year[14]. - The company reported a non-recurring loss of approximately ¥3.67 million from the disposal of non-current assets and recognized government subsidies totaling ¥100.33 million[18]. - The company reported a total of 1,285.39 million CNY in procurement transactions with related parties, accounting for 0.67% of similar transaction amounts[77]. - The sales of lithium-ion batteries to related parties amounted to 7,242.08 million CNY, representing 2.28% of the total sales[78]. Assets and Liabilities - Total assets at the end of the reporting period were approximately ¥17.44 billion, a 7.05% increase from ¥16.29 billion at the end of the previous year[14]. - The net assets attributable to shareholders of the listed company were approximately ¥7.74 billion, up 2.53% from ¥7.55 billion at the end of the previous year[14]. - The company's fixed assets increased by 161.07% compared to the beginning of the period due to the arrival of equipment purchased by subsidiaries[24]. - The company's cash and cash equivalents grew by 41.69% compared to the beginning of the period, primarily due to the redemption of maturing financial products[24]. - The total liabilities of the company were CNY 1,000.00 million, showing a decrease from CNY 1,200.00 million in the previous period[140]. - Total liabilities increased to CNY 9,524,730,019.88, up from CNY 8,582,789,117.05, representing a growth of approximately 11% year-over-year[120]. Revenue Segments - The consumer battery business generated revenue of CNY 181,538.84 million, growing by 7.24% compared to the previous year[31]. - The power battery business reported revenue of CNY 136,056.25 million, a significant increase of 62.59% year-on-year, driven by rapid growth in overseas sales of soft-pack ternary batteries[32]. - The company's total revenue for the first half of 2020 reached CNY 4,548.45 million, marking a substantial growth compared to the same period last year[143]. Research and Development - Research and development expenses rose to ¥275,019,749.24, marking a 31.80% increase from ¥208,667,182.71 year-on-year[35]. - The company emphasizes technology innovation and has built a high-level research institute to enhance its R&D capabilities[26]. - The company is focusing on research and development of new technologies to improve battery efficiency and sustainability[138]. - The company plans to enhance its research and development efforts in new battery technologies to maintain competitive advantage[146]. Market Position and Strategy - The company has established deep partnerships with leading companies in the electronic vaporizer and wearable device markets, enhancing its market position[21]. - The demand for lithium batteries is driven by the rapid development of IoT applications and the commercial rollout of 5G technology, leading to a stable growth in the company's business[20]. - The company is actively expanding its power battery business, benefiting from supportive government policies for new energy vehicles and the growing demand for energy storage solutions[23]. - The company has formed long-term stable partnerships with top domestic and international automotive manufacturers, driving rapid growth in its power battery business[24]. - The company plans to raise up to CNY 2.5 billion through a non-public offering of A-shares to fund various battery projects and supplement working capital[93]. Shareholder Information - The first temporary shareholders' meeting in 2020 had an investor participation rate of 43.37%[64]. - The second temporary shareholders' meeting in 2020 had an investor participation rate of 9.34%[64]. - The company did not distribute cash dividends or bonus shares for the half-year period[65]. - The total number of shareholders holding common stock at the end of the reporting period is 81,347[104]. - The largest shareholder, Tibet Yiwei Holdings Co., Ltd., holds 607,407,917 shares, accounting for 33.00% of total shares[104]. Financial Management and Compliance - The half-year financial report was not audited[70]. - All commitments made by the company were strictly adhered to without any violations as of the reporting period[68]. - The company has not faced any penalties or rectification issues during the reporting period[72]. - The financial statements prepared by the company comply with the requirements of the accounting standards, reflecting a true and complete picture of its financial status and operating results[150]. Risks and Challenges - The company faces risks from US-China trade tensions, which may affect exports of lithium-ion batteries, and plans to enhance product uniqueness and explore overseas markets[58]. - The company is exposed to exchange rate fluctuation risks due to the need for imported equipment in its expansion efforts[59]. - The company implemented a foreign exchange hedging management system to mitigate exchange rate risks and reduce financial losses from currency fluctuations[60]. Investment and Capital Expenditure - The total investment amount during the reporting period was ¥379,813,669.16, a decrease of 20.12% from ¥475,454,520.04 in the same period last year[44]. - The investment progress for the Jingmen Yiwei Energy Storage Lithium-ion Battery Project is 31.57%, with a total commitment of CNY 191,497.55 million[48]. - The investment progress for the high-performance lithium-ion battery project for IoT applications is 80.93%, with a total commitment of CNY 55,227.40 million[50]. Corporate Governance - The company has not experienced any major litigation or arbitration matters during the reporting period[71]. - The company has no significant changes in the management structure or personnel during the reporting period[82]. - The company has no significant legal proceedings or disputes during the reporting period[82].

Financial Performance - Total revenue for Q1 2020 was CNY 1,308,721,332.76, representing a 19.20% increase compared to CNY 1,097,919,522.96 in the same period last year[3] - Net profit attributable to shareholders was CNY 252,459,523.53, up 26.05% from CNY 200,279,267.38 year-on-year[3] - Net profit excluding non-recurring gains and losses was CNY 213,036,628.39, an increase of 8.97% from CNY 195,507,503.83 in the previous year[3] - Basic earnings per share were CNY 0.26, up 13.04% from CNY 0.23 in the previous year[3] - The company achieved operating revenue of 1,308.72 million RMB, a year-on-year increase of 19.20%[16] - Net profit attributable to shareholders reached 252.46 million RMB, up 26.05% compared to the same period last year[16] - The company reported a net profit increase, with undistributed profits rising to CNY 3,212,957,345.02 from CNY 2,960,497,821.49, a growth of approximately 8.5%[29] - The total comprehensive income for Q1 2020 was CNY 257,112,237.43, an increase of 27.24% from CNY 201,974,130.75 in the previous year[35] Cash Flow - Net cash flow from operating activities reached CNY 415,454,136.77, a significant increase of 130.68% compared to CNY 180,096,209.62 in the same period last year[3] - The cash inflow from operating activities amounted to CNY 1,546,538,154.26, an increase of 38.3% compared to CNY 1,119,150,397.77 in the previous period[38] - The net cash flow from operating activities was CNY 415,454,136.77, up from CNY 180,096,209.62, representing a growth of 130.6%[39] - The cash outflow for investing activities totaled CNY 656,960,728.12, compared to CNY 322,146,926.20 in the previous period, indicating a significant increase of 104.5%[40] - The net cash flow from investing activities was -CNY 643,348,053.11, worsening from -CNY 128,263,841.70 in the previous period[39] - The cash inflow from financing activities was CNY 70,000,000.00, a decrease of 87.8% from CNY 533,050,000.00 in the previous period[40] - The net cash flow from financing activities was -CNY 438,940,028.40, compared to a positive CNY 7,246,469.33 in the previous period[40] - The company experienced a net increase in cash and cash equivalents of -CNY 672,469,884.94, contrasting with a positive increase of CNY 57,954,185.39 in the previous period[40] Assets and Liabilities - Total assets at the end of the reporting period were CNY 16,422,726,003.58, a 0.79% increase from CNY 16,294,548,765.32 at the end of the previous year[3] - The total liabilities decreased from CNY 8,582,789,117.05 in 2019 to CNY 8,453,854,117.88 in 2020, reflecting a reduction of approximately 1.5%[29] - The total equity attributable to shareholders of the parent company increased to CNY 7,805,556,313.22, up from CNY 7,553,096,789.69, representing a growth of about 3.3%[29] - Cash and cash equivalents decreased from CNY 2,097,325,100.79 to CNY 1,462,455,379.58 due to increased investment activities[11] - Accounts receivable notes decreased by 30.87% from CNY 1,244,070,371.13 to CNY 859,966,264.20 as a result of maturing notes[11] - Other current assets increased by 79.03% from CNY 148,820,205.30 to CNY 266,437,137.05 due to increased VAT credits from ongoing production line investments[11] - Construction in progress rose by 138.07% from CNY 970,594,022.98 to CNY 2,310,679,113.53 as equipment purchased last year began to arrive[11] - Short-term borrowings decreased by 44.03% from CNY 518,797,480.54 to CNY 290,349,706.95 as the company repaid part of its loans[11] Shareholder Information - The largest shareholder, Tibet Yiwei Holdings Co., Ltd., holds 32.97% of the shares, totaling 319,541,422 shares[6] - The top ten shareholders collectively hold significant stakes, with the second-largest shareholder holding 4.75%[6] Government Subsidies and Taxation - The company reported a government subsidy of CNY 41,885,136.88 during the reporting period[4] - The company's other income surged by 644.14% from CNY 5,628,691.02 to CNY 41,885,136.88 due to government subsidies received[13] - The company's income tax expense increased by 842.91% from a negative CNY 1,071,233.43 to CNY 7,958,325.98 as operating profits rose[13] Investment and R&D - The company plans to raise up to 2.5 billion RMB through a non-public offering of A-shares to fund new battery projects and supplement working capital[20] - The company has signed a supply agreement with Daimler AG to provide lithium-ion battery components until December 31, 2027[18] - R&D expenses increased to CNY 121,913,809.22, a rise of 16.77% from CNY 104,482,521.06 year-over-year[36] Operational Challenges - The company experienced delays in the delivery of lithium-ion power batteries due to a factory shutdown exceeding 40 days, impacting sales and profits[16] - The company has no significant reliance on a single supplier or customer, with changes in the top five suppliers and customers being normal and not materially affecting operations[17]

Profit Distribution - The company reported a profit distribution plan to distribute a cash dividend of 1.70 RMB per 10 shares and a stock bonus of 0 shares, based on a total of 969,139,695 shares[6]. - The total amount of cash dividends distributed for 2019 was RMB 164,753,748.15, which represents 10.82% of the net profit attributable to shareholders[86]. - The company plans to distribute cash dividends at RMB 1.70 per 10 shares, totaling 164,753,748.15 RMB, and to increase capital by issuing 9 additional shares for every 10 shares held, resulting in a total of 872,225,725 new shares[85]. - The company reported a net profit attributable to shareholders of RMB 1,522,008,065.91 for the year 2019, after deducting a 10% statutory surplus reserve of RMB 66,261,313.37[85]. - The total undistributed profits at the end of 2019 amounted to RMB 2,960,497,821.49, with a capital reserve balance of RMB 3,376,301,100.92[85]. - In 2018, the company did not distribute any cash dividends, despite a net profit of RMB 570,707,025.25[86]. Financial Performance - The company's operating revenue for 2019 was CNY 6,411,641,552.23, representing a 47.35% increase compared to 2018[16]. - Net profit attributable to shareholders for 2019 reached CNY 1,522,008,065.91, a significant increase of 166.69% year-over-year[16]. - The net cash flow from operating activities for 2019 was CNY 1,138,632,495.87, up 162.06% from the previous year[16]. - The total assets at the end of 2019 amounted to CNY 16,294,548,765.32, reflecting a 62.43% increase compared to the end of 2018[16]. - The company reported a basic earnings per share of CNY 1.64 for 2019, which is a 144.78% increase from CNY 0.67 in 2018[16]. - The company achieved total operating revenue of CNY 641,164.16 million, a year-on-year increase of 47.35%[34]. - Net profit attributable to shareholders reached CNY 152,200.81 million, up 166.69% compared to the previous year, with a net profit excluding non-recurring gains and losses of CNY 149,125.81 million, reflecting a growth of 200.55%[34]. Market Strategy and Expansion - The company is focusing on developing high-value-added new products and expanding its business in overseas markets[4]. - The company plans to continue expanding its market presence and enhancing its product offerings in the lithium battery sector[24]. - The company is actively pursuing opportunities in the energy storage market, focusing on communication storage, household storage, and smart microgrids, leading to increased market share[38]. - The company has identified strategic opportunities in the rapidly developing battery industry, which is transforming production and lifestyle[23]. - The company is committed to achieving a leading position in the lithium battery industry through continuous innovation and market expansion strategies[78]. - The company is expanding its production capacity for power batteries to meet the needs of the passenger vehicle, commercial vehicle, and energy storage markets in 2020[34]. Research and Development - The company has applied for 1,374 national patents, with 809 granted, showcasing its strong focus on R&D and innovation[30]. - The company’s R&D investment amounted to ¥476,790,603.93, representing 7.44% of operating revenue[56]. - The company has invested 200 million RMB in R&D for new technologies, focusing on safety and efficiency improvements in battery production[157]. - The company is committed to technological innovation and product development, ensuring a steady growth in market share across various applications, including IoT and automotive electronics[36]. Supply Chain Management - The company has implemented a foreign exchange hedging management system to lock in exchange costs and reduce risks associated with currency fluctuations[4]. - The company is committed to strategic supply chain development to minimize risks from raw material price fluctuations[6]. - The company will strengthen supply chain management to mitigate raw material market fluctuations and reduce product costs[79]. - The company is considering overseas factory investments to establish a global supply chain[4]. Production and Capacity - The company has expanded its production capacity with new factories in Guangdong and Hubei, ensuring sufficient capacity and product quality[31]. - The company is expanding its capacity to meet the growing market demand for high-performance lithium-ion batteries[40]. - The company plans to enhance its supply chain efficiency, targeting a reduction in production costs by 5% over the next year[158]. Environmental and Social Responsibility - The company is committed to environmental protection, reducing VOC emissions by 2.052 tons per annum and decreasing material scrap rate by 43%[120]. - The company has been recognized for its contributions to social responsibility, including donations to educational initiatives and environmental projects[122]. - The company is not classified as a key pollutant discharge unit by environmental protection authorities[124]. Corporate Governance - The company has maintained compliance with all commitments made to minority shareholders, with no violations reported[89]. - The company has a transparent information disclosure system, ensuring timely and accurate communication with investors[176]. - The independent directors did not raise any objections to the company's matters during the reporting period[182]. - The company has implemented measures to protect the rights of all shareholders, ensuring equal treatment and participation in meetings[170]. Employee Management - The total remuneration paid to the board of directors, supervisors, and senior management during the reporting period was CNY 9.6865 million[161]. - The company employed a total of 9,104 staff, with 6,278 in production, 1,443 in technical roles, and 277 in sales[165]. - The company has 34 employees with a doctoral degree and 356 with a master's degree, indicating a strong educational background among staff[165]. - The company’s remuneration policy is based on responsibility, performance, and market competitiveness, ensuring it attracts and retains talent[166]. Related Party Transactions - The company’s related party transactions are subject to market pricing principles, ensuring compliance with regulatory standards[103]. - The company reported a total of ¥12,109.35 million in related party transactions during the reporting period[105]. - The company has not engaged in any joint external investment related party transactions during the reporting period[107]. Audit and Internal Control - The audit opinion issued by the accounting firm was a standard unqualified opinion, confirming the fair presentation of the financial statements[198]. - The internal control verification report confirmed that the company maintained effective internal controls as of December 31, 2019[195]. - The company reported zero significant defects in financial reporting controls for the year 2019[194].

Financial Performance - The company's operating revenue for 2018 was CNY 4,351,190,559.63, representing a 45.90% increase compared to the previous year[12]. - The net profit attributable to shareholders for 2018 was CNY 570,707,025.25, reflecting a growth of 41.49% year-over-year[12]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 496,171,980.85, which is an 81.02% increase from the previous year[12]. - The net cash flow from operating activities for 2018 was CNY 434,494,746.67, a significant increase of 436.48% compared to the previous year[12]. - The total assets at the end of 2018 amounted to CNY 10,031,920,312.64, marking a 34.47% increase from the end of 2017[12]. - The net assets attributable to shareholders at the end of 2018 were CNY 3,561,962,361.79, which is a 15.57% increase compared to the end of 2017[12]. - The company reported a basic earnings per share of CNY 0.67 for 2018, up 42.55% from CNY 0.47 in 2017[12]. - The company achieved total revenue of CNY 4,351,190,559.63, representing a 45.90% increase compared to the previous year[31]. - The lithium-ion battery business generated revenue of CNY 3,150,738,427.54, marking a significant growth of 126.61% year-on-year[33]. - The revenue from lithium primary battery business was CNY 1,200,443,123.08, with a growth of 10.01% year-on-year[32]. - Domestic revenue accounted for 80.91% of total revenue, amounting to CNY 3,520,550,094.08, which is a 71.06% increase compared to the previous year[38]. Research and Development - The company is focusing on lithium battery products and aims to become a leading enterprise in the industry by combining Western innovation with Chinese manufacturing advantages[19]. - The company plans to strengthen its research and development efforts to promote rapid growth in its power battery and energy storage battery businesses[19]. - The company increased its R&D investment, particularly in the development of new battery technologies and products[35]. - The R&D investment reached 394,833,104.35 CNY in 2018, accounting for 9.07% of the operating revenue[51]. - The company has applied for a total of 1,083 patents, with 645 patents granted, showcasing its commitment to technological innovation and R&D[27]. - The company achieved breakthroughs in new products, including lithium-ion battery capacitors, which have been mass-produced and sold, significantly enhancing competitiveness[49]. - The company has established a comprehensive intellectual property system and has been recognized as a national model enterprise for intellectual property[48]. Strategic Initiatives - The company plans to enhance battery performance through technological innovation to meet national subsidy policies for electric vehicle batteries[1]. - The company aims to improve production efficiency and capacity to mitigate the impact of raw material price fluctuations, particularly for lithium and cobalt[2]. - The company is focusing on developing high-value-added new products to counteract the effects of US tariffs on Chinese goods[3]. - The company is expanding its overseas business to reduce reliance on the US market amid ongoing trade tensions[3]. - The company is implementing strategic supply chain initiatives to collaborate deeply with various industry players to minimize raw material cost risks[2]. - The company emphasizes the importance of product uniqueness and non-replaceability through technological advancements[3]. - The company is committed to high-level automation in production to enhance product yield and reduce costs[1]. - The company plans to strengthen supply chain management to mitigate raw material market fluctuations and reduce product costs[67]. Corporate Governance - The company’s financial report is guaranteed to be true, accurate, and complete by its management team[1]. - The company has maintained compliance with all commitments made, with no violations reported[86]. - The company has not faced any regulatory penalties in the past three years, indicating compliance with securities regulations[156]. - The governance structure includes a shareholders' meeting, board of directors, supervisory board, and management team, complying with relevant laws and regulations[166]. - The company has established a performance evaluation and incentive system for directors, supervisors, and senior management, ensuring compliance with legal regulations[172]. - The board of directors consists of specialized committees, with independent directors making up two-thirds of the members in most committees[170]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate communication with investors[173]. Market Position and Partnerships - The company has established strategic partnerships with well-known automotive manufacturers such as Nanjing Jinlong and Zhengzhou Yutong in the electric vehicle sector, enhancing its market position[22]. - The company's lithium-ion batteries for consumer electronics are performing well in the wearable and electronic vaporizer markets, maintaining a leading position domestically[23]. - The company’s lithium-ion power storage batteries are gaining market share rapidly, supported by strategic collaborations in the energy storage business[22]. - The company signed a strategic cooperation agreement with Nanjing Jinlong Bus Manufacturing Co., Ltd. to jointly develop the market for power battery products suitable for new energy vehicles, effective from January 7, 2017, to December 31, 2018[117]. - The company signed a supply agreement with Daimler AG to provide lithium-ion battery components until December 31, 2027[123]. Financial Management - The company will not distribute cash dividends or issue bonus shares for the reporting period[3]. - The company will not distribute profits or increase capital reserves for the 2018 fiscal year, with a total undistributed profit of RMB 1,504,751,068.95 at year-end[74]. - The cash dividend policy for 2017 was approved, with a total cash dividend of RMB 85,636,622.60 distributed to shareholders[70]. - The company’s capital reserve at the end of 2018 was RMB 1,021,162,377.93, reflecting a stable financial position despite the lack of profit distribution[80]. - The company is currently in the process of a non-public offering of A shares, which may influence future profit distribution decisions[80]. - The company plans to issue super short-term financing bonds totaling no more than RMB 1.5 billion to meet funding needs for rapid development[120]. - The company reported a total financing cash inflow of ¥2,929,055,597.11, which is a 29.95% increase compared to the previous year[53]. Social Responsibility - The company actively contributed to social responsibility by providing free electric buses to the community and donating CNY 100,000 to support a local school's girls' football team[113][114]. - The company provided a total of CNY 120,000 in scholarships to support outstanding impoverished university students[114]. Employee and Management Structure - The company employed a total of 7,050 staff, with 4,928 in production, 208 in sales, 1,178 in technical roles, and 670 in administration[161]. - The company has a total of 26 employees with a doctoral degree, 229 with a master's degree, and 1,042 with a bachelor's degree[161]. - The total remuneration paid to the board of directors, supervisors, and senior management during the reporting period was CNY 8.1184 million[157]. - The company has a strong academic presence on its board, with several members holding professorships at prominent universities, which may influence its R&D strategies[156]. - The company has a diverse board with members holding advanced degrees in engineering, chemistry, and business administration, enhancing its strategic decision-making capabilities[153]. Compliance and Audit - The company received a standard unqualified audit opinion for its financial statements as of December 31, 2018[196]. - The internal control evaluation report indicated that there were no significant defects in internal controls during the reporting period[191]. - The company has established quantitative standards for evaluating internal control defects, with significant defects defined as misstatements greater than 5% of total profit[193]. - The audit report highlighted revenue recognition as a key audit matter due to the inherent risk of management manipulating revenue recognition timing[199].

Financial Performance - The net profit attributable to shareholders is expected to increase by 33.00% to 45.00%, with an estimated profit range of 536.48 million to 584.88 million CNY compared to 403.36 million CNY in the previous year[3] - The expected impact of non-recurring gains and losses on net profit for 2018 is estimated to be between 70 million and 80 million CNY[5] Business Growth Drivers - The growth in annual performance is primarily due to the expansion into the emerging IoT market and stable lithium primary battery business[5] - The consumer lithium-ion battery business has formed solid strategic partnerships with well-known domestic and international brands, contributing to overall business growth[5] - The performance of power batteries and energy storage batteries has also seen an increase[5] Investment Income - The investment income from the associated company, Shenzhen Microwell Co., Ltd., exceeded expectations, further boosting the company's profits[5]