NBSS(SH:600884)2018-04-17 16:00Financial Performance - The net profit of the parent company for 2017 was CNY 409,539,168.22, with a total distributable profit of CNY 1,437,677,041.37 after accounting for the statutory surplus reserve and dividends payable[5]. - The company plans to distribute a cash dividend of CNY 0.60 per 10 shares to all shareholders, amounting to CNY 67,365,899.16 in total dividends payable[5]. - The company has reported an unallocated profit of CNY 1,158,912,988.85 at the beginning of the year, which contributes to the total distributable profit[5]. - The company's operating revenue for 2017 reached ¥8,270,540,870.17, representing a 51.07% increase compared to ¥5,474,769,408.25 in 2016[23]. - Net profit attributable to shareholders was ¥896,115,128.08, a significant increase of 171.42% from ¥330,163,058.79 in the previous year[23]. - The basic earnings per share (EPS) for 2017 was ¥0.798, up 97.52% from ¥0.404 in 2016[24]. - The total assets of the company increased by 51.33% to ¥22,073,190,367.51 at the end of 2017, compared to ¥14,586,415,932.23 at the end of 2016[23]. - The company reported a net cash flow from operating activities of -¥381,380,586.68, an improvement from -¥577,945,858.73 in 2016[23]. - The company’s weighted average return on equity increased to 9.66% in 2017, up 5.49 percentage points from 4.17% in 2016[24]. - The company’s total net assets attributable to shareholders increased by 28.13% to ¥10,433,229,446.70 at the end of 2017[23]. Business Operations - The company has not proposed any capital reserve transfer to increase share capital for the year[5]. - The company has outlined potential risks in its future development, which investors should be aware of[6]. - The company emphasizes the accuracy and completeness of the financial report, with all board members present at the meeting[7]. - The company has not disclosed any significant changes in its operational strategies or market expansion plans in the report[6]. - The report includes a detailed discussion of the company's future development and potential risks[6]. - The company’s lithium battery materials business is a key revenue driver, supplying major manufacturers in China, Korea, and Japan[32]. - The company plans to expand its market presence in the lithium battery materials sector, focusing on R&D and production capabilities[33]. - The company is focusing on the integration of battery systems for new energy vehicles, with production lines for cylindrical and square batteries targeting different market segments[43]. - The company is developing a comprehensive intelligent service platform for charging stations, integrating charging networks, vehicle networks, and parking spaces[44]. - The company aims to provide energy management solutions through lithium battery energy storage systems, targeting large industrial and commercial enterprises[49]. Market Trends - In 2017, the global lithium battery demand reached 160.9 GWh, a year-on-year increase of 24%, with the demand for power batteries at 71 GWh, up 34% year-on-year[40]. - The demand for power batteries accounted for 44% of the total lithium battery demand, an increase of 3 percentage points compared to the previous year[40]. - In 2017, China's new energy vehicle production reached 794,000 units, a year-on-year increase of 53.8%, while sales reached 777,000 units, up 53.3% year-on-year[46]. - The new energy vehicle market is expected to exceed 1 million units in sales in 2018, continuing its rapid growth trajectory[48]. - The global photovoltaic market saw a strong growth in 2017, with newly installed capacity reaching 102 GW, a year-on-year increase of over 37%[52]. - In 2017, China's newly installed photovoltaic capacity was 53 GW, representing a year-on-year growth of over 53.6%, maintaining its position as the world's largest market for five consecutive years[52]. Research and Development - The company maintains a strong focus on technological innovation in the lithium battery sector, aiming to become a global leader and industry standard setter[65]. - The company has invested over 4% of its sales revenue annually in R&D, reinforcing its leadership position in the lithium cobalt oxide market[71]. - The company has established a production capacity of 43,000 tons for cathode materials, 60,000 tons for anode materials, and 30,000 tons for electrolytes as of the end of 2017[73]. - The company is expanding its production capabilities with new projects, including a 100,000-ton integrated anode materials project in Baotou and a 100,000-ton cathode materials project in Changsha[73]. - The company applied for a total of 154 patents in the new energy vehicle sector, with 67 granted, indicating a strong focus on innovation and technology development[137]. Financial Strategy - The company’s cash and cash equivalents decreased by 31.66% to approximately CNY 1.67 billion, primarily due to strategic cash management and procurement in the lithium battery materials business[63]. - Accounts receivable increased by 50.18% to approximately CNY 2.71 billion, driven by rapid sales growth in the lithium battery materials segment[63]. - Inventory surged by 93.26% to approximately CNY 2.33 billion, attributed to rising material prices and increased quantities[63]. - Available-for-sale financial assets rose by 140.57% to approximately CNY 6.40 billion, influenced by the acquisition of 470 million shares of Luoyang Molybdenum Co., Ltd.[63]. - Fixed assets increased by 41.88% to approximately CNY 2.65 billion, due to the expansion of equipment in the lithium battery materials and photovoltaic sectors[63]. - The company’s total liabilities increased significantly, with accounts payable rising by 51.39% to 1,409,019,628.91 yuan, reflecting increased material and goods purchases[142]. Strategic Investments - The company is actively promoting the listing of its subsidiary, Shanshan Brand Company, on the Hong Kong Stock Exchange[53]. - The company aims to invest in projects related to its new energy business, focusing on lithium battery materials and new technology fields[59]. - The company has authorized a maximum investment of RMB 20 billion for external investments, with RMB 9 billion already allocated to a trust plan for investment in Luoyang Molybdenum Co., Ltd.[198]. - The company plans to optimize project design and control investment costs to maintain project profitability in light of policy changes[174]. - The company is focused on expanding its research and development capabilities in lithium-ion battery materials, which is critical for future growth in the energy technology sector[197].