烟台正海磁性材料股份有限公司 2020 年第一季度报告全文 烟台正海磁性材料股份有限公司 Yantai Zhenghai Magnetic Material Co., Ltd. 2020 年第一季度报告 股票代码：300224 股票简称：正海磁材 披露日期：2020 年 04 月 21 日 1 烟台正海磁性材料股份有限公司 2020 年第一季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人王庆凯、主管会计工作负责人高波及会计机构负责人(会计主管 人员)王珊珊声明：保证季度报告中财务报表的真实、准确、完整。 2 烟台正海磁性材料股份有限公司 2020 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 | --- | --- | --- | --- | |-----------------------------------------------------|- ...

Financial Performance - The company achieved total operating revenue of ¥1,798,558,416.34 in 2019, representing a year-on-year increase of 7.06%[26]. - Net profit attributable to shareholders was ¥93,123,746.43, a significant increase of 214.18% compared to the previous year[26]. - The basic earnings per share rose to ¥0.11, reflecting a growth of 210.00% year-on-year[26]. - The company's cash flow from operating activities decreased by 52.23% to ¥65,112,911.17[26]. - Total assets at the end of 2019 were ¥3,612,025,631.90, a decrease of 3.67% from the previous year[26]. - The company reported a weighted average return on equity of 3.53%, an increase of 6.46% compared to the previous year[26]. - The operating profit for 2019 was CNY 85.16 million, reflecting a significant year-on-year growth of 174.36%[58]. - The revenue from high-performance neodymium-iron-boron permanent magnet materials and components grew by 44.09% year-on-year[58]. - The revenue from the new energy vehicle motor drive system business saw a drastic decline of 68.33% year-on-year[59]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 2.00 per 10 shares (including tax) based on a total of 800,216,477 shares, with no bonus shares issued[10]. - The company reported a net profit attributable to ordinary shareholders of 93.12 million yuan for 2019, with a cash dividend distribution plan of 160.04 million yuan, equating to 2.00 yuan per 10 shares[141]. - The total cash dividend amount (including other methods) for 2019 was 297.88 million yuan, which represented 171.86% of the net profit attributable to ordinary shareholders[143]. - The company did not distribute profits or increase capital reserves in 2018, with profits carried forward to the next year[143]. Business Strategy and Market Position - The company aims to enhance its support for the new energy vehicle motor drive system business to mitigate operational risks associated with the new business segment[8]. - The company emphasizes the importance of strategic cooperation with upstream suppliers to ensure stable raw material supply amidst fluctuations in rare earth material prices[7]. - The company is committed to leveraging its technological advantages and industry position to become a leading supplier in the domestic new energy vehicle motor drive system sector[10]. - The company maintains a dual main business model focusing on high-performance NdFeB permanent magnet materials and new energy vehicle motor drive systems, with no significant adverse changes in core competitiveness[50]. - The company emphasizes a differentiated product strategy, focusing on high-performance, quality-leading, and cost-effective products to meet diverse high-end application market demands[44]. - The company aims to become a strategic partner for world-class customers by focusing on high-end application markets and optimizing its business model to include joint R&D and system services[52]. Operational Risks and Challenges - The company has experienced a decline in gross margin for its new energy vehicle products due to subsidy reductions, highlighting the need for effective market response strategies[8]. - The new energy vehicle market is still in its early stages, with uncertainties in growth speed and scale due to external economic and policy factors[8]. - The company has reported a significant increase in operational risks associated with its dual main business model since 2015, focusing on high-performance neodymium-iron-boron permanent magnet materials and new energy vehicle systems[8]. - The company faces risks related to high customer concentration, with significant revenue dependence on a few key clients[129]. - As of the end of the reporting period, the company's accounts receivable balance was 455.49 million yuan, which puts significant pressure on cash flow due to long payment terms typical in the industry[131]. Investment and Financial Management - The company has engaged in multiple bank wealth management products, with a total investment amount of CNY 3,000 million to CNY 10,000 million across different banks[188]. - The company reported a total investment of 5,000 million in self-owned funds for the year 2019, with a return rate of 2.70%[194]. - The company achieved a return rate of 4.30% on an investment of 3,000 million in self-owned funds on March 11, 2019[194]. - The company has shown a proactive approach in managing its investment portfolio, with regular assessments of return rates and capital allocation[192]. - The company has diversified its investment portfolio with amounts ranging from 500 to 10,000 across various banks, ensuring a balanced risk profile[192]. Research and Development - R&D expenses totaled ¥139,820,446.86, accounting for 7.77% of total revenue, with a 25.79% increase in R&D investment compared to the previous year[79]. - The company has developed three core technologies that have advanced the NdFeB industry, including the TOPS and THRED technologies, which enhance performance while reducing reliance on heavy rare earths[52]. - The company has set a goal to build a world-class R&D platform for permanent magnets, focusing on new technologies and processes[128]. Subsidiaries and International Expansion - The company established a wholly-owned subsidiary in North America during the reporting period, expanding its market presence[75]. - The company has established subsidiaries and offices in Germany, Japan, South Korea, and the USA to enhance international marketing capabilities[54]. - The establishment of a North American subsidiary aims to further advance the company's internationalization strategy[63]. Compliance and Commitments - The company has ensured that all commitments regarding related party transactions are strictly adhered to, with no violations reported[145]. - The management team has signed non-compete agreements to protect the company's interests for two years post-employment[145]. - The company has pledged that all raised funds will be managed in a dedicated account and used for its main business operations[147]. - The company has not reported any issues or other situations regarding the use and disclosure of raised funds[109].

Financial Performance - The company achieved total operating revenue of ¥1,798,558,416.34 in 2019, representing a year-on-year increase of 7.06%[28]. - Net profit attributable to shareholders was ¥93,123,746.43, a significant increase of 214.18% compared to the previous year[28]. - The basic earnings per share rose to ¥0.11, reflecting a growth of 210.00% year-on-year[28]. - The company’s operating profit for 2019 was ¥85,157,400, marking a year-on-year increase of 174.36%[41]. - The company’s net profit after deducting non-recurring gains and losses was ¥84,278,658.93, up 218.50% from the previous year[28]. - The company reported a significant increase in sales revenue and net profit from its high-performance neodymium-iron-boron permanent magnet materials business due to expanded sales in the automotive and home appliance sectors[41]. - The revenue from high-performance neodymium-iron-boron permanent magnet materials and components increased by 44.09% year-on-year, amounting to CNY 1,623.30 million[64]. - The revenue from the new energy vehicle motor drive system business saw a drastic decline of 68.33% year-on-year, totaling CNY 175.26 million[64]. - The company reported a net decrease in cash and cash equivalents of ¥16,237,681.99, a significant decline of 113.23% year-on-year[83]. - The company’s investment income was ¥41,478,385.79, contributing 49.08% to total profit, primarily from bank wealth management products[83]. Dividends and Profit Distribution - The company plans to distribute a cash dividend of CNY 2.00 per 10 shares to all shareholders, based on a total of 800,216,477 shares[10]. - The profit distribution plan for 2019 includes a cash dividend of CNY 2.00 per 10 shares, totaling CNY 160.04 million, with no capital reserve fund increase or stock dividends[134]. - The total cash dividend (including other methods) for 2019 amounted to CNY 297.88 million, representing 100% of the profit distribution total[132]. - The cash dividend amount for 2019 accounted for 171.86% of the net profit attributable to shareholders[136]. - The company reported a distributable profit of CNY 712.60 million as of December 31, 2019[134]. Business Strategy and Market Position - The company is committed to becoming a leading player in the domestic new energy vehicle motor drive system industry and a core supplier in the global new energy vehicle sector[10]. - The company aims to enhance its support for the new energy vehicle motor drive system business to mitigate operational risks associated with the new business segment[8]. - The company maintains a dual main business model focusing on high-performance NdFeB permanent magnet materials and new energy vehicle motor drive systems, with no significant adverse changes in core competitiveness during the reporting period[52]. - The company aims to serve high-end application markets, focusing on high-tech, high-potential segments and optimizing its business model to include joint R&D and strategic partnerships[54]. - The company is focused on expanding its market share in six key sectors, including automotive and home appliances, which have shown steady growth[60]. - The company aims to enhance its investment in the electric drive systems for new energy vehicles, focusing on independent innovation and cost control[119]. - The company is committed to achieving a production capacity of 2 million pure electric and plug-in hybrid vehicles by 2020, with cumulative production and sales exceeding 5 million[116]. Research and Development - The company reported a total R&D expenditure of ¥139,820,446.86, accounting for 7.77% of total revenue, with a 25.79% increase in R&D expenses year-over-year[78][79]. - The company has developed three core technologies that have advanced the NdFeB industry, including the TOPS fine crystal technology and THRED heavy rare earth diffusion technology, enhancing performance and reducing reliance on heavy rare earths[54]. - The company aims to establish a world-class R&D platform for permanent magnet materials, focusing on new technologies and processes[120]. - Research and development expenditures have increased, reflecting a commitment to innovation and product enhancement[196]. Risks and Challenges - The company has identified risks related to fluctuations in rare earth material prices, which could adversely affect production and sales, and is taking measures to optimize inventory management and strengthen supplier relationships[7]. - The competitive landscape in the new energy vehicle market is intensifying, prompting the company to focus on product and technology innovation[128]. - The company has faced delays in project progress due to longer-than-expected approval processes and adverse weather conditions, pushing the project completion date to October 1, 2014[105]. - The company’s accounts receivable balance at the end of the reporting period was CNY 455.49 million, indicating a significant cash flow pressure due to long payment terms typical in the industry[128]. Investments and Financial Management - The company has maintained a consistent approach to cash asset management with a focus on low-risk, principal-protected investments[178]. - The company has established agreements with banks to secure fixed return rates on its investments, enhancing financial stability[190]. - The company has invested in bank wealth management products totaling 77,090 million yuan, with no overdue amounts[178]. - The company has a strategy of diversifying investments across multiple banks to optimize returns while managing risk[190]. - The company has consistently engaged in combination investments with various banks, maintaining a focus on capital preservation[190]. Subsidiaries and International Expansion - The company established a North America subsidiary to further advance its internationalization efforts[65]. - The company has set up subsidiaries and offices in Germany, Japan, South Korea, and the United States to enhance customer service and brand image[60]. - The company aims to enhance its brand image and promote the internationalization of technology, products, and services through the establishment of a new subsidiary in North America[109]. Commitments and Compliance - The company has fulfilled all commitments made by its actual controllers, shareholders, and related parties as of the end of the reporting period[138]. - The management team of Shanghai Dajun has committed to serve until the completion of the profit compensation agreement, ensuring no violations of commitments[138]. - The controlling shareholder has promised to avoid any competitive business activities with the company, ensuring protection of minority shareholders' interests[140]. - The company has committed to manage all raised funds in a dedicated account for its main business operations, with timely disclosures on fund usage[140].

Financial Performance - Operating revenue for the reporting period was CNY 447,049,869.87, an increase of 19.17% year-on-year [11]. - Net profit attributable to shareholders was CNY 35,496,909.67, representing a growth of 57.07% compared to the same period last year [11]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 33,789,538.89, up 53.81% year-on-year [11]. - Basic earnings per share for the reporting period were CNY 0.04, an increase of 33.33% compared to the same period last year [11]. - The weighted average return on net assets was 1.34%, an increase of 0.53 percentage points compared to the previous year [11]. - The company reported a significant increase in construction in progress by 228.22% to ¥109,313,665.13, reflecting higher project payments [23]. - The company reported a decrease in other income by 30.37% to ¥4,738,941.87, mainly due to reduced government subsidies [25]. - The total comprehensive income for Q3 2019 was CNY 36,807,260.22, compared to CNY 21,601,080.00 in the same quarter last year, marking a growth of 70.4% [58]. - The net profit for Q3 2019 reached CNY 36,815,111.54, up 71.2% from CNY 21,515,666.14 in Q3 2018 [56]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 3,740,737,672.43, a decrease of 0.24% compared to the end of the previous year [11]. - Total current assets decreased from CNY 2,849,912,245.19 to CNY 2,742,219,100.24, a decline of approximately 3.77% [42]. - Total non-current assets increased from CNY 899,715,292.08 to CNY 998,518,572.19, an increase of approximately 11.73% [42]. - Total liabilities decreased from CNY 1,047,234,497.72 to CNY 1,039,705,124.39, a decline of approximately 0.23% [44]. - The company's equity attributable to shareholders increased from CNY 2,650,777,632.74 to CNY 2,656,675,222.16, an increase of about 0.22% [46]. - Total liabilities as of Q3 2019 amounted to CNY 829,695,681.24, compared to CNY 624,668,970.08 in the same period last year, reflecting a growth of 32.8% [53]. - The total amount of accounts payable was CNY 133,972,068.98, and notes payable amounted to CNY 432,681,355.48 [95]. Cash Flow - Cash flow from operating activities for the year-to-date was CNY 59,191,739.95, a decrease of 38.18% compared to the same period last year [11]. - The net cash flow from operating activities decreased by 38.18% to ¥59,191,739.95, mainly due to reduced tax refunds and increased cash payments to employees [28]. - The cash flow from sales of goods and services reached ¥1,061,882,808.24, an increase of 30.9% compared to ¥810,394,035.80 in the previous year [82]. - The total cash inflow from operating activities was ¥1,461,265,415.93, compared to ¥1,252,579,772.88 in the previous period, reflecting a growth of 16.7% [78]. - The cash flow from operating activities amounted to ¥59,191,739.95, a decrease of 38.0% from ¥95,742,137.06 in the previous period [78]. Shareholder Information - The total number of shareholders at the end of the reporting period was 49,413 [15]. - The largest shareholder, Zhenghai Group Co., Ltd., held 51.08% of the shares, totaling 418,943,148 shares [15]. - As of September 30, 2019, the company repurchased 12,471,379 shares, accounting for 1.52% of total equity, with a total expenditure of ¥82,884,581.59 [32]. Research and Development - Research and development expenses increased to CNY 33,591,272.10, a rise of 53.6% compared to CNY 21,890,559.13 in the previous year [54]. - Research and development expenses increased significantly to ¥21,491,878.96, up 82.5% from ¥11,788,469.29 in the previous year [61]. - Research and development expenses rose to ¥52,331,679.00, a 54.8% increase from ¥33,798,214.64 in the previous period, indicating a strong focus on innovation [71]. Government Subsidies - The company received government subsidies amounting to CNY 4,817,077.46 during the reporting period [11]. - The company’s other income decreased by 30.37% to ¥4,738,941.87, mainly due to reduced government subsidies [25].

Financial Performance - Total operating revenue for the first half of 2019 was ¥811,908,857.52, representing a 2.70% increase compared to ¥790,527,729.83 in the same period last year[24]. - Net profit attributable to shareholders of the listed company reached ¥48,502,908.17, a significant increase of 38.79% from ¥34,947,347.80 in the previous year[24]. - The net profit after deducting non-recurring gains and losses was ¥46,549,309.87, showing a decrease of 6.09% compared to ¥49,569,461.78 in the same period last year[24]. - Basic earnings per share increased by 50.00% to ¥0.06 from ¥0.04 in the same period last year[24]. - Total operating revenue for the reporting period was 811,908,857.52 RMB, a 2.70% increase from the previous year, while operating profit rose by 29.18%[53]. Cash Flow and Assets - The net cash flow from operating activities was -¥42,093,819.08, a decline of 141.30% from ¥101,909,801.03 in the previous year[24]. - Total assets at the end of the reporting period were ¥3,688,008,633.83, a decrease of 1.64% from ¥3,749,627,537.27 at the end of the previous year[24]. - Cash and cash equivalents amounted to ¥473,086,007.61, representing 12.83% of total assets, a decrease of 4.32% compared to the previous year[61]. - Accounts receivable stood at ¥541,701,652.92, accounting for 14.69% of total assets, down by 1.94% year-on-year[61]. - Inventory increased to ¥622,991,240.09, which is 16.89% of total assets, reflecting a rise of 1.64% compared to the same period last year[61]. Investment and R&D - The company invested 60,998,811.82 RMB in R&D, reflecting a 9.22% increase compared to the previous year[54]. - The company has ongoing construction projects with an investment of ¥93,853,042.37, which is 2.54% of total assets, reflecting a significant increase due to progress payments[61]. - The company has invested a total of 131,445.88 million CNY in fundraising projects, with 126,069.88 million CNY utilized by the end of the reporting period[70]. Market Position and Strategy - The company maintains a leading position in the high-performance neodymium-iron-boron permanent magnet materials industry, with no significant changes in market status during the reporting period[38]. - The company focuses on high-end application markets, optimizing its business model to enhance customer collaboration and development efficiency[44]. - The company’s strategic vision is to become a leader in the global permanent magnet materials industry, emphasizing innovation and sustainable development[38]. Risks and Challenges - The company faces risks related to fluctuations in rare earth raw material prices and potential goodwill impairment[7]. - Revenue from the new energy vehicle motor drive system decreased by 60.57% year-on-year, with net profit declining by 6.42% due to changes in the sales structure and increased competition[52]. - The expected benefits from the high-performance NdFeB permanent magnet material post-processing upgrade project were lower than anticipated due to intensified market competition and declining product margins[72]. Shareholder Information - The largest shareholder, Zhenghai Group Co., Ltd., holds 51.08% of the shares, totaling 418,943,148 shares, with 79,000,000 shares pledged[142]. - The total number of common shareholders at the end of the reporting period is 52,742[142]. - As of June 30, 2019, the company repurchased a total of 10,692,380 shares, accounting for 1.30% of the total share capital, with a total expenditure of approximately ¥69.24 million[139]. Environmental and Social Responsibility - The company has not reported any major environmental issues or violations during the reporting period, adhering to national environmental protection standards[127]. - The company has established an emergency response plan for environmental incidents, which has been filed with local environmental authorities[128]. - The company has not engaged in any poverty alleviation initiatives during the reporting period and has no plans for future initiatives[130].

Financial Performance - Total revenue for Q1 2019 was CNY 361,045,187.70, representing a 17.55% increase compared to CNY 307,137,981.00 in the same period last year[8] - Net profit attributable to shareholders was CNY 6,909,940.66, a decrease of 72.44% from CNY 25,071,490.20 year-on-year[8] - Basic earnings per share decreased by 66.67% to CNY 0.01 from CNY 0.03 in the same period last year[8] - The total comprehensive income for Q1 2019 was CNY 5,249,807.53, a decrease of 77.7% compared to CNY 23,579,087.51 in Q1 2018[71] - Net profit for Q1 2019 was CNY 5,340,206.47, a decrease of 77.4% compared to CNY 23,584,209.39 in Q1 2018[69] - The total operating profit for the current period is 29,563,448.18, compared to 47,029,205.82 in the previous period, reflecting a decrease of approximately 37.2%[76] - The net profit for the current period is 26,700,680.51, down from 40,629,118.62 in the previous period, indicating a decline of about 34.3%[76] Cash Flow - Net cash flow from operating activities was negative CNY 79,390,245.49, a decline of 956.85% compared to negative CNY 7,511,960.93 in the previous year[8] - The company's cash flow from operating activities showed a drastic decline of 956.85%, from CNY -7,511,960.93 to CNY -79,390,245.49, primarily due to increased cash payments for purchased goods[25] - The total cash inflow from operating activities is 413,276,483.12, an increase from 336,425,468.68 in the previous period, representing a growth of approximately 22.8%[80] - The cash outflow from operating activities totals 492,666,728.61, compared to 343,937,429.61 in the previous period, showing an increase of about 43.3%[80] - The net cash flow from operating activities is -79,390,245.49, worsening from -7,511,960.93 in the previous period[80] - The ending cash and cash equivalents balance is 249,266,837.29, down from 452,558,000.06 in the previous period, reflecting a decrease of approximately 44.9%[82] Assets and Liabilities - Total assets at the end of the reporting period were CNY 3,691,426,144.39, down 1.55% from CNY 3,749,627,537.27 at the end of the previous year[8] - Total current assets decreased from CNY 2,849,912,245.19 to CNY 2,750,056,938.46, a decline of approximately 3.5%[55] - Total liabilities decreased from CNY 1,047,234,497.72 to CNY 1,007,199,769.97, a reduction of approximately 3.8%[57] - Total current liabilities decreased from CNY 982,789,591.94 to CNY 942,594,326.38, a decline of about 4.1%[57] - Owner's equity decreased from CNY 2,702,393,039.55 to CNY 2,684,226,374.42, a decline of about 0.7%[59] Research and Development - The company's R&D expenditure totaled CNY 27,247,904.79, accounting for 7.55% of operating revenue, with 9.84% of R&D expenses being capitalized[27] - Research and development expenses for Q1 2019 were CNY 24,565,620.06, an increase of 13.3% from CNY 21,646,049.89 in Q1 2018[67] - The company plans to continue focusing on R&D and market expansion strategies to enhance future growth prospects[74] Customer and Supplier Concentration - The company reported a significant customer concentration risk, with the sales revenue from the top five customers in the high-performance NdFeB permanent magnet materials business accounting for 46.72% of the total revenue in the reporting period[33] - The total revenue from the top five customers in Q1 2019 was ¥154,387,646.21, accounting for 42.76% of the company's total revenue, a decrease of 4.90% compared to the previous year[30] - The company's procurement from the top five suppliers accounted for 63.08% of total procurement, an increase of 15.33% compared to the previous year, which is not expected to impact future operations[29] Strategic Initiatives - The company plans to expand its customer base and reduce customer concentration to mitigate risks associated with high customer dependency[34] - The company is focusing on enhancing product and technology innovation to address intensified market competition in the electric vehicle sector[34] - The company has established a stable strategic partnership with core customers, which is crucial for maintaining revenue stability[31] Operational Challenges - The company experienced a significant decline in net profit and cash flow, indicating potential challenges in operational efficiency[8] - The company has not disclosed any new product developments or market expansion strategies in this report[8] - The company has not experienced any significant changes in its annual business plan during the reporting period[31]

Financial Performance - The company achieved total operating revenue of CNY 1,679,955,420.97 in 2018, representing a year-on-year increase of 40.89%[27]. - The net profit attributable to shareholders was CNY -81,560,746.82, a decline of 180.28% compared to the previous year[27]. - The net cash flow from operating activities was CNY 136,308,463.37, an increase of 146.54% year-on-year[27]. - The total assets at the end of 2018 were CNY 3,749,627,537.27, a decrease of 2.52% from the end of 2017[27]. - The company reported a significant decline in basic and diluted earnings per share, both at CNY -0.10, down 183.33% from the previous year[27]. - The company's net profit decreased by 180.28% year-on-year, resulting in a loss of CNY 8,156.07 million[57]. - The total distributable profit for the year was 470,797,886.11 yuan, with no cash dividends distributed, resulting in a cash dividend ratio of 0.00%[143]. - The profit distribution plan for 2018 proposed no profit distribution or capital reserve increase, with undistributed profits carried forward to the next year[143]. Goodwill and Impairment - The goodwill from the acquisition of 81.5321% of Shanghai Dajun amounted to CNY 26,884.27 million, with impairment provisions of CNY 14,866.81 million recorded in 2018, leaving a remaining book value of CNY 1,822.95 million[10]. - The company recognized goodwill impairment losses of CNY 14,866.81 million, which reduced the net profit for the period by CNY 12,636.78 million[41]. - The company plans to enhance support for its new energy vehicle motor drive system business to mitigate the risk of goodwill impairment and aims to become a leading supplier in the global new energy vehicle industry[10]. Market and Industry Position - The new energy vehicle industry is recognized as a strategic emerging industry in China, with long-term government support expected, although short-term uncertainties remain[8]. - The company aims to maintain a stable supply of raw materials through strategic cooperation with upstream suppliers and flexible pricing mechanisms with downstream customers[7]. - The company is focused on leveraging its technological advantages and industry position to support the growth of Shanghai Dajun and improve its competitive capabilities in the market[8]. - The company plans to continue expanding its market presence in the new energy vehicle sector, leveraging its technological capabilities and partnerships with major automotive manufacturers[40]. - The company is focusing on seven strategic markets, including automotive EPS and new energy vehicles, to strengthen its market position and expand internationally[56]. - The company aims to establish itself as a leading supplier in the domestic electric vehicle motor drive system industry while enhancing its market competitiveness globally[130]. Research and Development - The company’s R&D capabilities are recognized as a national-level enterprise technology center, focusing on continuous innovation and market expansion[49]. - The total R&D expenditure for the year was 111,690,609.77 CNY, accounting for 6.65% of operating revenue, a decrease from 8.11% in the previous year[79]. - The company has added 32 new patents in 2018, bringing the total to 233 patents by the end of the year[58]. Production and Sales - The company reported a significant increase in sales volume for its new energy vehicle motor drive system, with a substantial growth compared to 2017, although the gross profit margin faced a sharp decline due to subsidy cuts and rising raw material prices[8]. - The sales volume of new energy vehicle motor drive systems was 123,160 units, representing a year-on-year growth of 99.18%[68]. - The company achieved a significant increase in the production of pure electric vehicles, with production and sales reaching 986,000 units, reflecting a year-on-year growth of 47.9% and 50.8%[44]. - Revenue from high-performance NdFeB permanent magnet materials and components increased by 47.86% year-on-year, totaling CNY 1,126,557,859.18, accounting for 67.06% of total revenue[64]. - Revenue from the new energy vehicle motor drive system grew by 28.55% year-on-year, amounting to CNY 553,397,561.79, which represents 32.94% of total revenue[64]. Financial Management and Strategy - The company’s financial report emphasizes the importance of accurate and complete financial disclosures, ensuring accountability from its management team[5]. - The company has implemented strategies to manage the risks associated with fluctuations in rare earth material prices, including optimizing inventory management and strengthening strategic partnerships with suppliers[7]. - The company’s cash dividend policy has been transparent and compliant with regulations, ensuring the protection of minority shareholders' rights[140]. - The company has committed to using all raised funds for its main business operations, with a plan to disclose the usage within 6 months of fund receipt[148]. - The company has not reported any issues or other situations regarding the use and disclosure of raised funds[116]. Subsidiaries and International Expansion - The company established a wholly-owned subsidiary in South Korea to enhance customer response and optimize market development[61]. - The company has set up a new subsidiary, Jeonghai Magnetic Materials Korea Co., Ltd., to enhance its overseas market presence and promote internationalization of technology and products[123]. - The company is set to accelerate its market expansion efforts, particularly in the international market, by establishing a North American subsidiary[132]. Compliance and Governance - The company has maintained compliance with all regulatory commitments without any violations reported[152]. - The company has not faced any penalties or rectification issues during the reporting period, reflecting compliance with regulations[163]. - The company’s management team has committed to serving until the completion of the profit compensation obligations as per the agreement[147]. - All commitments made by the company’s shareholders and management regarding share transfer restrictions and competitive activities have been strictly adhered to, with no violations reported[148].

烟台正海磁性材料股份有限公司 2018 年第三季度报告全文 烟台正海磁性材料股份有限公司 Yantai Zhenghai Magnetic Material Co., Ltd. 2018 年第三季度报告 股票代码：300224 股票简称：正海磁材 披露日期：2018 年 10 月 23 日 1 烟台正海磁性材料股份有限公司 2018 年第三季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 除下列董事外，其他董事亲自出席了审议本次季报的董事会会议 √ 适用 □ 不适用 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 3,860,489,757.45 | | 3,846,530,748.85 | 0.36% | | 归属于上市公司股东的净资产 | 2,789,690 ...

Financial Performance - Total revenue for the first half of 2018 reached ¥790,527,729.83, representing a 96.01% increase compared to ¥403,312,814.64 in the same period last year[22]. - Net profit attributable to shareholders was ¥34,947,347.80, a significant turnaround from a loss of ¥14,969,354.80, marking a 333.46% increase[22]. - The net profit after deducting non-recurring gains and losses was ¥49,569,461.78, compared to a loss of ¥18,507,618.58, reflecting a 367.83% improvement[22]. - Basic earnings per share increased to ¥0.04 from a loss of ¥0.02, representing a 300.00% growth[22]. - The weighted average return on net assets improved to 1.19%, up from -0.53%[22]. - The operating profit was 33.11 million yuan, reflecting a significant increase of 179.13% from the previous year[29]. - The company reported a net profit margin of 4.85%, indicating strong operational efficiency[79]. - The total comprehensive income for the first half of 2018 was CNY 30.96 million, recovering from a loss of CNY 19.66 million in the same period of 2017[167]. Revenue Sources - Revenue from high-performance NdFeB permanent magnet materials rose by 83.50% year-on-year, while revenue from the new energy vehicle motor drive system increased by 126.52%[49]. - The company achieved operating revenue of 790.53 million yuan, an increase of 96.01% compared to the same period last year[29]. - The company is focusing on expanding its market presence in the automotive and home appliance sectors to enhance future growth potential[30]. - The high-performance NdFeB permanent magnet materials business saw substantial growth in sales, particularly in automotive EPS and new energy vehicles[29]. Cash Flow and Assets - The net cash flow from operating activities was ¥101,909,801.03, down 39.36% from ¥168,049,907.81 in the previous year[22]. - Cash and cash equivalents increased to 665,159,241.74, representing 17.15% of total assets, up from 8.16% in the previous year, attributed to the maturity of bank wealth management products[54]. - Accounts receivable rose to 645,165,115.93, accounting for 16.63% of total assets, an increase due to higher operating income[54]. - Inventory increased to 591,644,365.54, making up 15.25% of total assets, primarily due to increased stocking[54]. - The total assets at the end of the reporting period were ¥3,878,905,193.70, a slight increase of 0.84% from ¥3,846,530,748.85 at the end of the previous year[22]. Investment and R&D - Research and development expenses amounted to ¥55.85 million, representing a 24.46% increase compared to the previous year[47]. - Investment in new product development reached 5,000 million CNY, with a focus on enhancing technology and product offerings[80]. - The company is committed to technological innovation and has established a national-level enterprise technology center recognized by multiple government departments[36]. - The company plans to expand its production capacity for high-performance neodymium iron boron permanent magnet materials by 2,000 tons/year, with a total investment of 15,580.7 million RMB[69]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares for this period[9]. - The company completed the repurchase and cancellation of 14,899,805 shares as part of the performance commitment from the original shareholders of Shanghai Dajun[44]. - The total number of shares after the repurchase is 820,216,556, with 10.26% being limited shares and 89.74% being unrestricted shares[138]. - The largest shareholder, Zhenghai Group Co., Ltd., holds 51.08% of shares, totaling 418,943,148 shares[142]. Risks and Challenges - The company faces risks related to fluctuations in rare earth material prices and operational risks from new business ventures[8]. - The company has identified risks related to fluctuations in rare earth material prices, which could adversely affect production and sales, and is taking measures to optimize inventory management and supplier communication[88]. - Non-recurring losses impacted net profit by 14.62 million yuan due to fair value changes related to performance compensation shares[29]. Compliance and Governance - The half-year financial report for 2018 has not been audited[97]. - There were no major litigation or arbitration matters during the reporting period[99]. - The company has implemented an employee stock ownership plan and stock incentive plan, which was approved by the board and communicated with the regulatory authority[101]. - The company has established an emergency response plan for environmental incidents, which has been filed with local authorities[125].

Financial Performance - The company reported a significant decline in sales revenue and net profit for Shanghai Dajun due to policy impacts on the NEV market[8]. - The company's total revenue for 2017 was CNY 1,192,388,541.63, representing a decrease of 24.89% compared to 2016[22]. - The net profit attributable to shareholders for 2017 was CNY 101,596,591.33, down 46.78% year-on-year[22]. - The net profit after deducting non-recurring gains and losses was CNY -27,144,292.17, a decline of 115.83% compared to the previous year[22]. - The operating cash flow for 2017 was CNY 55,287,714.97, a significant improvement from CNY -51,994,602.45 in 2016[22]. - The company reported a net profit of CNY 101,596,591.33 for the year 2017, with the parent company achieving a net profit of CNY 159,942,209.63[122]. - The company reported a significant decline in sales revenue and net profit for its subsidiary, Shanghai Dajun Power Control Technology Co., Ltd., due to the dual impact of subsidy reductions and policy changes in the new energy vehicle sector, with actual performance at -6,670.42 million yuan against a forecast of 5,000 million yuan[129]. Goodwill and Impairment - The company reported a goodwill of 26,884.27 million CNY from the acquisition of 81.5321% of Shanghai Dajun, with a remaining goodwill value of 16,689.76 million CNY after impairment testing[10]. - The company reported a goodwill impairment loss of CNY 10,194.51 million related to the acquisition of 81.5321% of Shanghai Dajun[35]. - The company will conduct regular impairment tests on goodwill to ensure financial accuracy and mitigate risks associated with future earnings[10]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of 1.20 CNY per 10 shares to all shareholders, based on a total of 835,116,361 shares[10]. - The profit distribution plan for 2017 includes a cash dividend of CNY 1.20 per 10 shares, totaling CNY 100,213,963.32, which represents 98.64% of the net profit attributable to shareholders[124]. - The cash dividend payout ratio for 2017 was 100% of the profit distribution total[121]. Market and Operational Risks - The company faces risks from fluctuations in rare earth material prices, which are critical for its high-performance NdFeB permanent magnet materials[7]. - The new energy vehicle (NEV) market is still in its early stages, and the company acknowledges potential operational risks due to external economic and policy factors affecting sales and profits[8]. - The company aims to enhance its support for Shanghai Dajun to mitigate operational risks in the NEV motor drive system business[8]. - The company will continue to optimize raw material inventory management and strengthen procurement risk control measures[7]. Research and Development - The company has established a national-level enterprise technology center recognized by multiple government departments, enhancing its research and development capabilities[44]. - The company applied for and obtained 34 new patents in 2017, including 12 invention patents, bringing the total number of patents to 189 by the end of the year[53]. - Total R&D expenditure was CNY 96.70 million, accounting for 8.11% of revenue, with a significant increase in capitalized R&D expenditures[69]. Strategic Initiatives - The company is committed to becoming a leading player in the domestic NEV motor drive system industry and a core supplier in the global NEV sector[10]. - The company emphasizes the importance of continuous innovation and effective market strategies to adapt to changing external environments[8]. - The company has implemented a differentiated product strategy focusing on high performance, quality, and cost-effectiveness, aiming to become an international leader in the industry[37]. - The company has strategically adjusted its market structure to enhance penetration in the automotive and home appliance sectors, responding to declining demand in traditional industries[37]. Subsidiaries and Acquisitions - The company established three subsidiaries in 2017 to enhance its core competitiveness in the new energy vehicle sector, including Yantai Zhenghai Magnetic Materials Co., Ltd.[54]. - The company acquired an additional 2.36% equity stake in its subsidiary Shanghai Dajun, increasing its ownership to 91.03%[175]. Customer and Supplier Relationships - The top five customers accounted for 25.39% of total annual sales, with no related party transactions reported[66]. - The top five suppliers accounted for 42.22% of total annual purchases, with no related party transactions reported[66]. - The sales revenue from the top five customers accounted for 36.32% of the total revenue from neodymium iron boron permanent magnet materials in the reporting period, indicating a high customer concentration risk[111]. Environmental and Social Responsibility - The company has implemented environmental protection measures and has not faced any major environmental issues or pollution incidents during the reporting period[173]. - The company has submitted an environmental impact assessment report for its existing plant expansion project and received approval from local environmental authorities[173]. - The company has established an emergency response plan for environmental incidents and conducts annual drills[173]. Financial Management and Investments - The company has a total of 405.35 million yuan in entrusted wealth management, with an outstanding balance of 98.25 million yuan[159]. - The company has engaged in multiple wealth management products with annualized returns ranging from 1.24% to 4.40%[161]. - The company has consistently utilized self-owned funds for its wealth management activities, ensuring control over investment decisions[161]. - The company reported a total investment of 20,000 million with a return rate of 4.60% in April 2017[162]. Corporate Governance - The company has committed to using all raised funds for its main business operations, ensuring proper management of funds within six months of receipt[126]. - The controlling shareholder has pledged to avoid any competitive activities with the company, ensuring no direct or indirect competition exists[126]. - The company has implemented strict measures to ensure that its directors and senior management do not misuse company assets for personal investments or expenses[128].