Youfu SHARES 2017 revenue and profit doubled power lithium battery revenue of 1,614 million

On April 28, Youfu released its annual report for 2017. The annual operating income was 5.112 billion yuan, a year-on-year increase of 10.778 million yuan; The net profit was 328 million yuan, a year-on-year increase of 94.24 million yuan. Among them, the operating income of the power lithium battery business was 1.614 billion yuan, and the gross profit margin was 3.154 billion yuan.

Youfu SHARES 2017 revenue and profit doubled lithium battery business gross profit rate of 31.54 %

The main business of Youfu's shares was originally the research and development, production and sales of polyester industrial silk. In the fourth quarter of 2016 and December 2017, Youfu completed the acquisition of new energy 51 shares and 49 shares of Zhihang, and extended into the new energy automotive power battery industry, thus forming the dual main industry development of polyester industrial wire and lithium battery.

Zhihang New Energy specializes in the design, research, and development, production, sales and service of new-energy three-dimensional power lithium batteries. It has 10,000 tons of positive material production capacity and 1 million 18650 lithium battery core production capacity(approximately 3.5 GWh) per day. And the supporting PACK system complete production line, The main customers are FAW passengers, Shuchi passenger cars and so on. Zhihang New Energy has successfully developed 3000mAh lithium battery products(passed the compulsory inspection of the National New Energy Vehicle Product Quality Supervision and Inspection Center), and its performance has been comparable to that of similar foreign products.

Youfu SHARES 2017 revenue and profit doubled lithium battery business gross profit rate of 31.54 %

With regard to the 2018 business plan, the wholly-owned subsidiary, Zhihang New Energy, will further expand its production scale, increase its production capacity, and ensure the progress of technology research and development.

The report also mentioned that in the face of the huge development prospects of hydrogen fuel cells and power vehicles, Youfu completed the acquisition of Wuhan Zhongyu 25 shares in July 2017. The acquisition is the first step in Youfu's "trial water" hydrogen fuel cell field. It will accumulate experience for vigorously expanding the hydrogen fuel cell industry and lay a more solid foundation for the realization of the company's long-term strategy in the future.

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