Smart Energy Release Midterm Performance Development Prospects for 2018

On June 9th, Smart Energy released a preliminary announcement of its mid-term performance in 2018. Smart Energy is expected to achieve net profit of about 180 million yuan to 230 million yuan in the first half of the year, an increase of about 67 % -113 % over the same period last year.; The non-net profit of the mother's deduction was between 170 million yuan and 210 million yuan, an increase of about 105 % -153 % year-on-year.

The announcement showed that the significant growth in smart energy performance was mainly due to the quality and brand dividend brought about by the country's strategic transformation. Mr Dongmi said the smart energy champion, the industry's only "National quality award" and "top 100 Chinese brands" of Far East cable, had a brand effect favored by customers inside and outside the industry.

In addition to the continued market recognition of smart energy quality and brands, the performance has increased significantly. The main reasons are as follows:

In terms of increasing market share, smart energy continuously practices customer-centered values, attaches great importance to strategic partners, and continuously expands strategic cooperation to achieve greater market coverage.

In terms of stabilizing profits, we will further strengthen cost control, improve the budget management system, reduce the operating costs of smart energy, and increase the proportion of open contracts to avoid price fluctuations affecting corporate profits.

Improving profitability is mainly through integrating supply chain management, setting up a centralized procurement platform, and reducing procurement costs; And further improve the production process, reduce the consumption of primary and secondary materials, improve the superior product rate and other methods to achieve.

During the reporting period, smart energy actively deployed the smart energy system and ecological service system centered on the "energy Internet leader", adhering to endogenous growth, extension of mergers and acquisitions, continuous business reinforcement, and building an industry-wide chain system service model.

In the new energy battery business sector, this year's industry concentration trend gradually obvious, market share will also tend to concentrate. This year, smart energy said it would continue to build a battery industry with a total capacity of over 12GWh, including cylindrical batteries, soft package cores and square aluminum shell lithium batteries, in Yichun, Jiangsu province.

At the same time, smart energy will expand its development in the digital, two-wheeled, low-speed four-wheeler market, especially the first-line brand car enterprise market. Mr Dongmi said smart energy had increased its influence on quality and brands and its business scale had grown steadily in the power product smart manufacturing industry. In maintaining the future business order profitability level, he said that in the future will strengthen internal cost control, pay attention to raw material price trend analysis, timely response measures.

In terms of smart airport construction, after smart energy acquired Beijing Jinghang An Airport Engineering Co., Ltd., the results of the merger and acquisition were significant and reflected in the first quarter statement. According to the first quarter statement, smart energy achieved operating income of 174 million yuan, an increase of 88.44 % year-on-year; The net profit was 26.5658 million yuan, an increase of 86.32 % year-on-year. Beijing Jinghang An Airport Engineering Co., Ltd. committed 143 million yuan in 2018 and is expected to make a net profit of not less than 150 million yuan in 2018.

Judging from the inherent growth of industry space and smart energy, the main business sectors of smart energy will maintain sustained and steady growth in 2018. Each single point business will connect other sectors of business to carry out a multi-product collaborative sales model, driving the growth of smart energy business scale and profitability. Smart Energy plans to achieve revenue of more than 20 billion yuan in 2018, and achieve a net profit target of 600 million yuan or more.

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