Event: The company announced the 2019 annual report and the 2020 quarterly report. It achieved revenue of 2.99 billion yuan (-15.7% yoy), net profit of 24 million yuan (-89.1% yoy), net profit of 424 million yuan (-89.1% yoy), and net profit of 8.384 million yuan (+109.9% yoy) in Q1 in 2020. The results for the first quarter were mainly affected by the pandemic, and are expected to improve month-on-month. Comment: 1. Quarterly report situation: Revenue and profit: Q1 achieved revenue of 460 million yuan, -40.6% year-on-year, -15.3% month-on-month; Q1 achieved net profit of 5,517,000 yuan, 106.4% year-on-year, -74.6% month-on-month, mainly due to the impact of the epidemic; gross profit margin: Q1 gross profit margin 23.9%, up 1.0pct year on year, down 32.8pct month-on-month; third rate aspect: Q1 sales expenses ratio 2.7%, down 2.6pct month-on-year, mainly due to an increase of 0.2 pct over the previous year As the scale of revenue changes Changes; The management expense ratio was 8.0%, down 0.8 pct from month on month, 2.5 pct year on year; financial expense ratio was 3.1%, down 1.5 pct from month to month, and 1.0 pct year over year, mainly due to a decrease in interest-bearing debt for the reporting period compared to the same period last year, a decrease in interest expenses compared to the same period last year, and an increase in exchange earnings; in terms of R&D expenses: the company invested a total of 19.9 million yuan in R&D expenses in Q1 in 2020, -85.3% year-on-year, +23.6% month-on-month, accounting for 4.4% of operating income. 2. The company strategically positions new materials and focuses on developing the fields of lithium battery materials+hydrogen energy materials. a. Jiana Energy has advanced hydrosmelting and precursor preparation technology, and has a cobalt ore-hydrometal-refining - precursor preparation industry chain. Precursors will be the focus of the business. Gana Energy has completed the main construction of a ternary precursor project with a production capacity of 22,000 tons, and its share of revenue is expected to gradually increase in the future. b. In terms of graphene conductive agents, Qingdao Haoxin is the top two leading graphene conductive agents and is deeply connected to downstream customers. As a conductive agent, graphene is superior to carbon black, and it is expected that usage will increase in the future as the performance requirements of lithium batteries improve. Qingdao Haoxin is the world's leading graphene conductive agent, leading in technology, and deeply connected to downstream customers such as BYD and Guoxuan Hi-Tech. It is expected to expand rapidly as the NEV market recovers. c. In the field of hydrogen energy materials, the company jointly reinvents technology and Ma Dongsheng to establish Dow's Spruce, with the aim of developing membrane electrode components, which are the core components of hydrogen energy. The R&D personnel come from world-class research institutions, and it is expected that they will take the lead in achieving technological breakthroughs in the future. Risk warning: Macroeconomic downturn, NEV sales volume falls short of expectations, and upstream raw material prices fluctuate.