Chengfei's integrated 2017 loss of 100 million yuan, lithium battery business gross profit rate is only 0.69 %

On April 28, Chengfei Integration announced its annual report for 2017, and its annual operating income was 1.943 billion yuan, a year-on-year decrease of 13.47 billion yuan; The net profit was -108 million yuan, a year-on-year decrease of -176.19. Among them, the revenue of the lithium battery business was 935 million yuan, a year-on-year decrease of 33.89 billion yuan, and the gross profit margin was only 0.69 billion yuan.

Chengfei said that the decline in performance was mainly due to the adjustment of the new energy vehicle subsidy policy, the combination of production line transformation, the reaffirmation of supporting models, and the fact that new production capacity has not yet been released. The revenue of the lithium battery business fell 33.89 percent year-on-year. Make the company's combined operating income drop by 13.47; At the same time, due to the significant decline in the downstream new energy passenger car subsidies, resulting in the decline in the price of lithium battery products, the inventory price proposed for this year is prepared to increase from the same period of the previous year, coupled with the large increase in depreciation of fixed assets in the new production line, etc.. The company's lithium battery product gross profit rate has dropped significantly.

Chengfei Integration and its subsidiaries are mainly engaged in the development and production of lithium-ion power batteries and battery management systems. The main products and businesses are lithium-ion power batteries, power supply PACK systems, mid-to-high-end sedan covers, and automotive body parts. Parts, Aircraft parts processing.

Among them, the lithium battery business is mainly developed, produced and sold by the subsidiary China Aviation Lithium. In recent years, with the explosive growth of new energy vehicles and the rapid development of the lithium-ion power battery industry in China, the lithium-ion battery business has become the core business of Chengfei integration. AVIC Lithium is a high-tech enterprise that was established earlier in China and has been engaged in the research and development and production of power batteries. The company's technological level, scale of production capacity, and comprehensive strength rank among the top domestic industries. In addition, as a three-level confidential qualification unit, China Aviation Li-Li has the qualification of a weapons and equipment contractor and a license for research and production of weapons and equipment, and has a unique competitive advantage in the lithium battery military market.

In terms of R&D, in 2017, Chengfei integrated and implemented research and development projects such as "Research and Industrialization of High-Safety High Ratio Lithium-ion Battery System", developed new products, improved product performance, studied cutting-edge technologies, and solved technical problems; At the same time, we will make full use of the R&D platform of the China Aviation Li-Electrotechnical Research Institute and continue to enhance the company's R&D capabilities with the help of R&D resources and R&D team strength. The total amount of R&D investment in the year was 8.7 billion yuan, accounting for 9.63 % of operating income.

For the lithium battery business in 2018, Chengfei Integration will focus on key customers, key projects and key products, and optimize the allocation of resources. In 2018, the company's funds were mainly used for the construction of industrial parks and the transformation of production lines. They mainly included the construction of the second phase of the Li-Jiangsu Industrial Park of China Airlines, the third phase of the Li-Luoyang Industrial Park of China Airlines, and the first phase of the Li-Li-Jiangsu Industrial Park of China Airlines. Production capacity improvement and transformation; At the same time, the company will invest in the mainland 48V power suspension project equity investment in 2018, and acquire minority shareholders 'equity in integrated molds according to the agreement.

Chengfei integrated said that the company has strong solvency, good credit reputation, various financing channels are relatively smooth, and future funding sources are guaranteed.

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