DMEGC(SZ:002056)2022-12-06 08:10Group 1: Financial Performance - The gross profit margin for the solar industry in 2016 was approximately 5 percentage points higher than in 2015, while the soft magnetic ferrite industry saw an increase of about 2 percentage points [3] - In Q1 2017, the company's performance declined by 35% year-on-year, primarily due to the significant price increase of polysilicon materials and a decrease in terminal prices [4] - The solar photovoltaic industry experienced a substantial increase in shipment volume in Q1 2017 compared to 2016, but overall profitability was lower due to rising raw material costs and market price declines [12] Group 2: Market Development - The company has launched a project to produce 100 million units of 18650 high-capacity lithium-ion batteries, which is currently in production. However, it is facing monthly losses while actively seeking market opportunities [5] - The demand for 18650 batteries is significant, with companies like Black & Decker using approximately 250 million units annually in power tools, indicating a potential market gap [6] - The company is focusing on expanding its wireless charging products, recognizing the trend and actively engaging with domestic and international manufacturers [7] Group 3: Product Advantages - The company's lithium battery capacity density can reach 2600mAH with an internal resistance below 20, outperforming the market average of 2400mAH and an internal resistance of around 25 [10] - The company emphasizes cost control and product performance, aiming to maintain safety and consistency while excelling in energy density and internal resistance compared to competitors [10] Group 4: Strategic Acquisitions - The company is considering acquiring Zhaojing Co., which specializes in iron-based amorphous alloy materials, but has received warnings regarding potential patent infringement issues from competitors [9] Group 5: Industry Trends - The company sees growth potential in both neodymium-iron-boron and ferrite materials, with applications in electric vehicles, robotics, and home appliances [6] - The solar industry is expected to have cyclical profitability, influenced by market attention and raw material availability, with the company aiming to leverage its production advantages [11]