NBSS(SH:600884)2017-08-15 16:00Financial Performance - The company's operating revenue for the first half of 2017 reached ¥3,852,360,639.50, representing a 57.79% increase compared to ¥2,441,430,515.54 in the same period last year[18]. - The net profit attributable to shareholders was ¥339,049,455.12, up 51.49% from ¥223,803,952.23 year-on-year[18]. - The net profit after deducting non-recurring gains and losses was ¥255,291,990.88, which is a 26.56% increase from ¥201,721,330.48 in the previous year[18]. - Basic earnings per share for the first half of 2017 were ¥0.302, a 40.47% increase compared to ¥0.215 in the same period last year[19]. - The weighted average return on net assets increased by 1.06 percentage points to 4.049% from 2.989% year-on-year[19]. - The company reported a net cash flow from operating activities of -¥262,380,222.64, an improvement from -¥594,197,477.41 in the same period last year[18]. - The company achieved operating revenue of 3,852.36 million yuan, a year-on-year increase of 57.79%[67]. - The net profit attributable to shareholders reached 339.05 million yuan, up 51.49% year-on-year[67]. - The company reported a total comprehensive income for the current period was ¥699,071,564.59, compared to ¥165,914,322.26 in the previous period, indicating a substantial increase[195]. Assets and Liabilities - The company's total assets increased by 21.46% to ¥17,717,290,862.95 from ¥14,586,415,932.23 at the end of the previous year[18]. - The net assets attributable to shareholders rose to ¥8,693,317,627.57, reflecting a 6.77% increase from ¥8,142,417,264.34 at the end of the previous year[18]. - Total assets increased to CNY 17.72 billion, up from CNY 14.59 billion, representing a growth of approximately 21.5% year-over-year[187]. - Total liabilities rose to CNY 8.41 billion, compared to CNY 5.94 billion, marking an increase of about 42% year-over-year[187]. - Owner's equity reached CNY 9.30 billion, up from CNY 8.64 billion, reflecting a growth of approximately 7.6% year-over-year[188]. - Current liabilities totaled CNY 6.35 billion, an increase from CNY 3.99 billion, indicating a rise of about 59% year-over-year[187]. - Short-term borrowings surged to CNY 2.89 billion, compared to CNY 1.01 billion, representing a significant increase of approximately 186% year-over-year[187]. Business Operations - The lithium battery materials business is the main revenue source, with significant production increases: positive electrode materials production rose by 44% to 93,870 tons, negative electrode materials by 40% to 66,200 tons, and electrolyte production by 9% to 43,230 tons[32]. - The company has established an automated production line for battery systems with an annual capacity of 700 MWh, producing 18,000 sets of power systems for electric vehicles[35]. - The company is focusing on the development of new energy vehicles, including battery system integration, vehicle design, and charging infrastructure[34]. - The company’s lithium battery cathode material business saw a revenue increase of 88.99% year-on-year[88]. - The company’s new energy vehicle business generated main business revenue of 68.45 million yuan, but reported a net loss of 92.39 million yuan due to high initial investment[73]. Investments and Acquisitions - The company invested 240 million yuan to acquire Huzhou Chuangya Power Battery Materials Co., and capital expenditures on fixed and intangible assets reached 450 million yuan, an increase of 160 million yuan year-on-year[90]. - The company signed a strategic cooperation framework agreement with Luoyang Molybdenum for cobalt product procurement, investing 1.8 billion yuan in a private placement[68]. - The company is actively pursuing the listing of its subsidiary, Shanshan Brand Company, on the Hong Kong Stock Exchange to expand its clothing brand operations[44]. - The company has authorized an investment of up to RMB 2 billion for external investments, with RMB 900 million already allocated to a trust plan for investment in Luoyang Luanchuan Molybdenum Co., Ltd.[109]. - The company subscribed to 471,204,189 shares of Luoyang Molybdenum's non-public offering at a price of RMB 3.82 per share, totaling RMB 1.8 billion[110]. Market Trends and Risks - The electric vehicle market is experiencing rapid growth, with a 42.9% year-on-year increase in China's power lithium battery production to 18.39 GWh in the first half of 2017[32]. - The company has outlined potential risks in its report, advising investors to maintain awareness of investment risks[4]. - The market share of third-party PACK enterprises in the battery supply chain dropped from 30% to below 20% in 2017, indicating a trend of polarization in the industry[39]. - The company is exposed to foreign exchange risks due to a significant portion of its revenue coming from overseas, and it will take measures to mitigate these risks by monitoring exchange rate dynamics[119]. - The company aims to reduce reliance on government subsidies in the electric vehicle sector by innovating business models and integrating the supply chain[114]. Research and Development - The company emphasizes continuous investment in R&D and has established various research platforms to enhance its innovation capabilities[58]. - The company has over 100 authorized patents and has made significant advancements in technology, including the development of silicon-based anode materials[58]. - The company plans to increase R&D investment and improve the configuration of research personnel to enhance its scientific research capabilities in response to technological risks in the new energy vehicle industry[115]. - The company is preparing for potential technological disruptions in the battery industry by investing in research on emerging battery technologies[113]. Corporate Governance - The company held its annual general meeting on May 12, 2017, to elect the ninth board of directors[163]. - The company appointed Yang Feng as the financial director following the resignation of the previous financial director[163]. - The company has undergone changes in its board of directors, with new appointments including Li Fengfeng and Yang Feng[162]. - The company will hold multiple shareholder meetings throughout the year to discuss important matters and decisions[126].