The company achieved operating income of 2,656 billion yuan in 2017, an increase of 6.22% over the previous year; net profit attributable to shareholders of listed companies was 36.3228 million yuan, a year-on-year decrease of 69.74%. The basic profit per share is 0.10 yuan, and the weighted average return on net assets is 1.64%. The rise in lead prices led to a decline in gross margin, and exchange losses and capacity transfers together dragged down performance: during the reporting period, the company's battery sales volume was 3.805 million KVAH, a year-on-year decrease of 8.41%, mainly due to waste of production capacity caused by the relocation of the company's Shenzhen lead-acid battery production base to Hubei and Vietnam. The battery business achieved a total revenue of 2,351 billion yuan, an increase of 12.88% over the previous year, accounting for 88.52% of total revenue. Due to rising raw material lead prices, the gross margin of the battery business decreased by 2.14 percentage points over the same period last year. Due to fluctuations in the RMB exchange rate, the company's exchange losses have increased dramatically, leading to a sharp increase in financial expenses. The company's sales expense ratio and management expense ratio were 4.03% and 4.67%, respectively, an increase of 0.14 and 0.43 percentage points, respectively. On a quarterly basis, gross margin for the fourth quarter fell 5.57 percentage points month-on-month, with a loss of 33.8959 million yuan in a single quarter. Lead-acid batteries are developing steadily, and the lithium battery business focuses on differentiation: the company is one of the leading companies in the lead-acid battery field, with overseas market revenue accounting for nearly 60%. Driven by the rapid development of IDC data centers at home and abroad and the demand for base station construction in emerging overseas markets, the company's traditional lead-acid battery business is expected to develop steadily. The company's lithium battery business is based on blue ocean markets such as energy storage and hierarchical utilization of power batteries. The company's differentiated competitive strategy will benefit from the rapid development of the industry. The fuel cell industry card layout, and the company's long-term growth space is worth looking forward to: the company takes hydrogen fuel cells as its main development direction in the future. By investing in hydrogen production equipment manufacturer Hydrogen Puchuang Energy and investing in the construction of the Wuhan Hydrogen Energy Industrial Park, etc., the hydrogen energy industry chain has formed a card layout in key links such as hydrogen production, membrane electrodes, fuel cell power stacks, fuel cell engine systems, and vehicle operation. The company plans to build a hydrogen energy industry platform with a clear strategic path. While meeting the basic requirements of clean, environmentally friendly, and no emissions for new energy vehicles, fuel cell vehicles also have the core advantages of short charging times and high energy density. They complement lithium-powered new energy vehicles in situations such as anxiety about charging time and long-distance driving. Combined with policy-level support, the industry market prospects are broad, the company's leading layout, and long-term growth space is worth looking forward to. Profit forecast: The company's EPS for 2018-2020 is expected to be 0.39, 0.64, and 0.91 yuan, respectively, corresponding to PE 32.34, 19.94, and 14.01 times, respectively, giving it an “increase in holdings” rating. Risk warning: raw material prices are rising; new business development such as fuel cells falls short of expectations