Smarter Energy(SH:600869)2017-04-27 16:00Financial Performance - The company's market value increased from 8.1 billion RMB in 2011 to 17.2 billion RMB in 2016, with a compound annual growth rate of over 16%[2]. - The net profit attributable to the parent company for 2016 was 286,722,917.50 RMB, with a total distributable profit of 1,155,322,383.82 RMB at year-end[11]. - The company's operating revenue for 2016 was CNY 12,242,764,616.49, representing a 4.54% increase compared to CNY 11,710,997,672.40 in 2015[28]. - The net profit attributable to shareholders for 2016 decreased by 32.10% to CNY 286,722,917.50 from CNY 422,276,884.65 in 2015[28]. - The net cash flow from operating activities for 2016 was negative CNY 215,878,002.34, a significant decline of 115.63% compared to CNY 1,381,505,511.88 in 2015[28]. - The total assets at the end of 2016 were CNY 13,610,364,332.20, a 3.40% increase from CNY 13,162,423,371.11 at the end of 2015[28]. - The net assets attributable to shareholders increased by 35.31% to CNY 5,626,988,323.11 at the end of 2016 from CNY 4,158,507,261.29 at the end of 2015[28]. - The basic earnings per share for 2016 was CNY 0.1333, down 37.21% from CNY 0.2123 in 2015[29]. - The weighted average return on net assets for 2016 was 5.86%, a decrease of 6.94 percentage points from 12.80% in 2015[29]. - The company achieved operating revenue of 12.243 billion yuan, a year-on-year increase of 4.54%, with cable revenue at 10.246 billion yuan, a decline of 4.66%[55]. Revenue Segments - In 2016, the revenue from the clean energy system segment grew by 107.22% year-on-year[5]. - The revenue from the smart energy system segment was 195,993.24 million, with a significant year-on-year increase of 196.90%[71]. - In the new energy vehicle power system and energy storage equipment sector, revenue reached 1.011 billion yuan, with a 40% year-on-year increase in lithium battery production capacity[57]. - The clean/new energy system sector generated revenue of 709 million yuan, with the company recognized as a top service provider in the photovoltaic power station EPC sector[58]. Production and Capacity - The company plans to expand its lithium battery production capacity to approximately 12GWh by 2017, up from the current capacity of about 6GWh[5]. - The company is ranked first in China and third globally in the production of ternary 18650 lithium-ion batteries, which are used by Tesla[4]. - The production volume of electric cables was 1,602,900.08 thousand meters, showing a year-on-year increase of 23.59%[72]. - The company has completed 347 clean energy design projects with a total capacity exceeding 5GW, showcasing its expertise in the clean energy engineering sector[46]. Research and Development - The company holds 63 industry patents, reflecting its strong technical capabilities and commitment to innovation in the energy sector[46]. - The company’s R&D expenditure increased by 36.46% to 187 million RMB, reflecting its commitment to innovation[68]. - The company has established long-term partnerships with institutions like Tsinghua University and the Chinese Academy of Sciences to enhance its R&D in smart grid technologies[52]. - The company has developed 24 new products, including high-strength aluminum alloy stranded wire and low-smoke halogen-free thin-walled cables, with six products reaching international advanced levels[62]. Strategic Initiatives - The company aims to establish a complete energy internet closed loop, integrating power generation, storage, transmission, distribution, and end-user energy management[5]. - The company aims to enhance its market position through strategic mergers and acquisitions, focusing on smart energy and smart city solutions[47]. - The company is actively developing a comprehensive "Internet+" smart energy system and ecological service system, integrating various energy solutions[47]. - The company plans to enhance its investment in smart grid construction, with a projected investment of no less than 2 trillion in distribution network construction and renovation from 2015 to 2020[87]. Market Outlook - The company anticipates that by 2020, the solar power generation scale will exceed 110 million kilowatts, with distributed photovoltaic systems reaching 60 million kilowatts[83]. - The global energy storage market is expected to reach a scale of approximately 50 billion by 2017, with cumulative market size projected to reach 500 billion from 2015 to 2020[86]. - The company aims to capitalize on the growing demand for new energy vehicles, with a target of producing 2 million units by 2020 and achieving over 20% market share by 2025[95]. Corporate Governance and Compliance - The company is committed to ensuring independence in personnel, finance, assets, and operations between Far East Smart Energy and Far East Holdings Group[121]. - The company ensures the independent operation of Far East Smart Energy to protect the interests of minority shareholders, committing to personnel independence, asset integrity, business independence, financial independence, and institutional independence[122]. - The company has committed to transparency in its operations and will adhere to legal procedures for any necessary related party transactions[124]. - The company has established a comprehensive ethical behavior monitoring system to ensure integrity in dealings with stakeholders[165]. Social Responsibility - The company has maintained a commitment to social responsibility, ensuring compliance with labor laws and providing a safe working environment for employees[164]. - The company has invested RMB 30.58 million in support of disabled individuals, benefiting 870 people[160]. - The company has employed over 2,000 disabled individuals, with 870 currently employed as of the end of the reporting period[168]. - The company plans to add over 200 new job placements for disabled individuals in 2017[161].