NBSS(SH:600884)2018-08-23 16:00Financial Performance - The company's operating revenue for the first half of 2018 was CNY 4,287,890,060.46, representing an increase of 11.31% compared to CNY 3,852,360,639.50 in the same period last year[16]. - The net profit attributable to shareholders for the first half of 2018 was CNY 465,609,403.84, a 37.33% increase from CNY 339,049,455.12 in the previous year[16]. - The net profit after deducting non-recurring gains and losses was CNY 302,733,278.96, up 18.58% from CNY 255,291,990.88 in the same period last year[16]. - The basic earnings per share for the first half of 2018 was CNY 0.415, a 37.33% increase compared to CNY 0.302 in the same period last year[17]. - The diluted earnings per share also stood at CNY 0.415, reflecting the same growth rate of 37.33%[17]. - The weighted average return on equity for the first half of 2018 was 4.454%, an increase of 0.405 percentage points from 4.049% in the previous year[17]. - The net cash flow from operating activities for the first half of 2018 was negative at CNY -527,417,634.47, compared to CNY -262,380,222.64 in the same period last year, indicating a worsening cash flow situation[16]. - The company achieved a net profit of CNY 28.24 million in the lithium battery materials business, reflecting a year-on-year growth of 6.67%[102]. - The net profit attributable to shareholders for the new energy vehicle business was a loss of 38.4955 million yuan, significantly reduced year-on-year, with investment income of 45.1094 million yuan from the equity method accounting after introducing strategic investors[80]. Assets and Liabilities - The company's total assets at the end of the reporting period were CNY 23,899,911,340.93, an increase of 8.28% from CNY 22,073,190,367.51 at the end of the previous year[16]. - The net asset attributable to shareholders at the end of the reporting period was CNY 10,428,737,201.18, showing a slight decrease of 0.04% from CNY 10,433,229,446.70 at the end of the previous year[16]. - The total amount of guarantees provided by the company, including those to subsidiaries, was RMB 409.67 million, accounting for 39.28% of the company's net assets[172]. - The company has provided debt guarantees of RMB 210.06 million to entities with asset-liability ratios exceeding 70%[172]. Production and Sales - The total production of cathode materials in the first half of 2018 reached 126,600 tons, representing a year-on-year increase of 10%[31]. - The production of anode materials in the same period was 93,000 tons, showing a year-on-year growth of 17%[33]. - The total production of electrolytes remained stable at 48,500 tons, with no significant year-on-year change[34]. - The lithium battery materials business generated a revenue of 334,773.40 million yuan, up 15.00% year-on-year[75]. - The sales volume of cathode materials was 10,057 tons, reflecting a 2% increase year-on-year, with revenue of 243,359.50 million yuan, up 15.34%[76]. - The anode materials business reported a revenue of 77,564.16 million yuan, a year-on-year growth of 11.56%[78]. - The company's electrolyte business achieved a sales volume of 4,170 tons in the first half of 2018, a year-on-year increase of 123%, with main business revenue of 138.4973 million yuan, up 30.87% year-on-year[79]. Market and Industry Trends - The new energy vehicle market saw cumulative sales of 412,000 units in the first half of 2018, a year-on-year increase of 111.6%[30]. - The price of lithium carbonate has dropped to around ¥100,000 per ton, impacting the pricing of cathode materials[32]. - The sales of pure electric vehicles in the first half of 2018 were 313,000 units, a year-on-year increase of 96.0%, while plug-in hybrid vehicle sales surged by 181.6% to 99,000 units[41]. - The new subsidy policy for electric vehicles has reduced subsidies for models with a range of 150-300 km by approximately 20%-50%, while increasing subsidies for models with a range of 300-400 km by 2%-14%[40][41]. - The company faces risks from market competition in the lithium battery materials sector, with increasing entrants and capacity expansion[128]. Research and Development - The company has maintained a leading position in the lithium battery materials sector, focusing on technology innovation and product development to meet global market demands[61]. - The company has developed a unique surface modification technology and high-voltage lithium cobalt oxide products, achieving a global leading position with a voltage of 4.45V[62]. - The company has a strong R&D team with 58 authorized invention patents in the anode materials sector, maintaining a leading position in the industry[63]. - Research and development expenses increased by 33.07% to CNY 26.46 million, driven by the growth in lithium battery materials business[94][96]. Strategic Initiatives - The company aims to enhance its lithium battery materials business, which is the main source of revenue and future development focus[23]. - The company plans to optimize its layout in the new energy vehicle sector by introducing strategic investors and enhancing its business capabilities[35]. - The company is actively reducing low-end product sales to control risks and improve overall product quality and profitability[77]. - The company is enhancing its product competitiveness through technological innovation and increased R&D investment[129]. Environmental and Regulatory Compliance - The company is committed to green operations and has implemented environmental protection measures in its lithium battery materials business, adhering to national regulations[175]. - The company has not reported any significant environmental information as it is not classified as a key pollutant discharge unit[174]. Corporate Governance - The company has not experienced any major litigation or arbitration matters during the reporting period[155]. - The company maintained a good integrity status during the reporting period, with no instances of failing to fulfill court judgments or significant overdue debts[155]. - The company has not made any changes to its accounting firm during the reporting period, continuing with Lixin Certified Public Accountants for the 2018 audit[153].