Shanshan Stock: Substantial Increase In Investment Income

In 2014, the income of Chinese fir was 3 billion 659 million yuan, down 9.61% compared with the same period last year. The net profit of shareholders attributable to shareholders of listed companies was 348 million yuan, an increase of 89.58% compared with the same period last year.

129 million yuan, down 11.32% compared with the same period last year, and realized earnings per share of 0.85 yuan.

The company's net profit increased substantially last year, mainly due to the sale of some shares of Ningbo bank during the period, resulting in an investment income of 226 million yuan.

Overall, the company's performance is basically in line with expectations.

During the reporting period, the total revenue of Shanshan battery materials business was 2 billion 399 million yuan, up 10.86% from the same period last year, and the gross profit margin dropped 1.03 percentage points to 18.18%.

According to the products, the income of cathode materials has increased steadily, but the profit rate has declined; the performance of negative materials is still stable; the electrolyte business is lower than expected due to the sharp decline in prices and the new Langfang electrolyte project being put into production less than expected.

During the reporting period,

In Changsha Ningxiang County, the annual output of 15 thousand tons of positive materials has been started. The battery manufacturers at the international level, with high automation level and advanced technology, are expected to be put into production in the first half of 2015.

In order to accelerate the development, application and promotion of products in the field of power batteries, a variety of three yuan and manganese products developed by the company have entered the stage of testing and popularization.

In terms of market development, the company continued to consolidate its domestic market and actively explore it.

Following the batch supply to ATL, BYD and LISHEN, the company has successfully established a cooperative relationship with LG.

During the period, the main business income of Shanshan clothing business was 1 billion 147 million yuan, down 33.53% from the same period last year, mainly due to the withdrawal of the knitting business from the merger scope. The net profit of attributing to shareholders of listed companies was -417.39 million, mainly due to the loss of multi brand business.

The company's clothing business is still in the process of structural adjustment.

It is estimated that the EPS in 2015, 2016 and 2017 is 1.18, 0.97 and 1.19 yuan respectively.

As a leader in battery materials, the company will benefit from the development of new energy vehicles, thus maintaining the rating of the company's holdings.

Risk: the company's reduction to Ningbo bank may bring greater volatility risk to its performance.