Ningde Times 2018 Results Bulletin: Revenue Increased to 29.611 Billion Net Profit Declined 7.71%

On the evening of February 27, Ningde Times (300,750) announced the 2018 Results Bulletin: The total operating income of the whole year was 29.611 billion yuan, up 48.08% year-on-year; The net profit attributable to the shareholders of the listed company was RMB 3.579 billion yuan, down 7.71% year-on-year; After deducting the non-recurring profits and losses, the net profit attributable to the listed company was RMB 3.111 billion yuan, up 30.95% year-on-year. Ningde Times said in its results bulletin that total profits in 2018 were down from a year earlier, mainly due to the impact of disposal gains from the transfer of its stake in Beijing Pride New Energy Battery Technology Co. Ltd. In the same period last year. At that time, Ningde Times transferred a 23% stake in its subsidiary, Pride, and recognized an investment return of 1.034 billion yuan. In 2018, the Company's total operating income and non-net profit increased compared with the same period of last year, mainly due to the following four reasons: First, the rapid growth of the new energy vehicle market and the growth of domestic power battery market demand compared with the same period of last year; 2. In the environment of adjustment of subsidies, improvement of technical standards and further standardization of the new energy automobile industry, the Company strengthens market development, maintains leading advantages in technology, scale, supply chain and customers in the field of power lithium batteries for new energy automobiles, continuously increases sales volume and further enhances market share; 3. The Company releases the pre-investment cable production capacity and increases the output accordingly; Fourth, the company expense management and control reasonable optimization, expense accounts for the income the proportion to reduce. According to the Power Battery Innovation Alliance and SNE statistics, the installed capacity of Ningde Times will reach 23.5 G in 2018 Wh, leading Panasonic again, the world power battery shipment champion; Its share in the domestic power battery market reached 41.3%. From its founding in 2011 to 2017, Ningde Times was the world's largest supplier of power batteries in just seven years. According to the data, from 2015 to 2017, the operating income of the Company was 5.703 billion yuan, 14.879 billion yuan and 1.997 billion yuan, respectively, with an average compound annual growth rate of 87.26%; Net profits were 951 million yuan, 2.918 billion yuan and 4.194 billion yuan respectively, with an average compound annual growth rate of 110.05%. Among them, the sales of power battery system is the most important revenue source of the Company. From 2015 to 2017, the sales revenue of power battery system was 4,981 million yuan, 13,976 million yuan and 16,657 million yuan, accounting for 87.98%, 95.55% and 87.01% of the main business revenue, respectively. Especially in 2018, the Division as a "super unicorn" landed on the Growth Enterprise Market, the highest market capitalization exceeded 200 billion yuan. As the only enterprise that is regarded as competitor by Japanese and Korean enterprises, Ningde era is a good time and place for people to grow up. More importantly, it has realized the integration of the whole industrial chain by means of capital and other means in the upstream resources, the midstream materials, the downstream vehicle and recycling and other links. It is understood that including SAIC, Dongfeng, Chang'an, BAIC, Geely, Guangzhou Automobile, Chery, Hagrid, Yutong, and other traditional car companies, as well as Weilai, Aichi, Bateng, Dianca , Yundu, Weimar and other new car-building forces, all gathered in the "circle of friends" of the Ningde era, and into 2019, the "circle of friends" size is still expanding. According to Tianyancha, the new joint venture company jointly funded by Ningde Times and FAW Group--Times FAW Power Battery Co., Ltd.--was registered on January 31 this year, with legal representative Qu Tao and registered capital of 2 billion yuan. Of which, 1.02 billion yuan was invested by Ningde Times, accounting for 51% of the total shares. FAW Group contributed RMB 980 million yuan, accounting for 49% of the total shares. The registered address is No.5 Changfu Road, Xiapu Economic Development Zone. It is reported that the project is expected to more than one thousand acres of land, the project put into production, FAW will be in Xiapu, Ningde, power battery production, while layout of unmanned technology. This means that the Ningde era has reached a more in-depth cooperation relationship with the three major central enterprises in the automobile industry and the three major state-owned enterprises in Beijing and Guangzhou. On Feb. 25, Ningde Times announced that it had signed a five-year long-term strategic cooperation agreement with Beijing Automotive New Energy, Beijing Pride New Energy Battery Technology Co. Ltd. According to the latest GGII data, Ningde Times achieved 2.17 Gwh of installed capacity in January 2019, approaching the cumulative installed capacity of the Company in the first quarter of 2018, with a domestic market share of 43.6%. In 2019, before the national subsidy policy is implemented, the product price stabilization period power battery installed capacity explosive growth, the Division's first quarter results are still expected to usher in rapid growth. Shares in Ningde Times rose 1.92 percent to close at 87.7 yuan on Feb. 28, with a total market value of 1,925 yuan Billion yuan.