Desay Battery(SZ:000049)2022-12-04 08:20Group 1: Company Overview - Desay Battery Technology Co., Ltd. is a holding company with a 75% stake in two subsidiaries: Huizhou Battery and Huizhou Blue Micro [2][3] - The largest shareholder is Huizhou Desay Industrial Development Co., Ltd., with a controlling stake of 45.23% held by Huizhou State-owned Assets Supervision and Administration Commission [3] Group 2: Financial Performance - In the first three quarters of 2017, the company achieved a revenue of CNY 7.785 billion, a year-on-year increase of 45.06% [3] - The net profit attributable to shareholders was CNY 186 million, up 39.67% year-on-year, with basic earnings per share of CNY 0.9075 [3] - In Q3 2017, revenue reached CNY 3.117 billion, a year-on-year increase of 31.88%, while net profit was CNY 71.78 million, up 18.09% [3] Group 3: Asset and Inventory Management - Fixed assets increased by over CNY 400 million due to the completion of a new factory and increased investment in automation equipment [4] - Inventory rose by nearly CNY 500 million, attributed to increased stocking in response to orders [4] Group 4: Business Challenges and Developments - The lower profit growth compared to revenue is primarily due to the low gross margin of domestic smartphone packaging business and ongoing losses in the power battery segment [4] - Huizhou New Source's power battery business has not met expectations, resulting in a loss of nearly CNY 70 million in the first three quarters [4] Group 5: Market Position and Client Structure - The business structure remains focused on smartphone battery services, with single client business proportion decreasing from 60% in 2016 to approximately 40% [5] - The notebook battery business is currently small but expected to grow as client projects expand [5] - The power tool and smart control business is a key area of development, with good overall performance and major clients including well-known brands [5]