The annual report turned a loss into a profit, and both revenue and net profit increased. The company achieved operating income of 1,124 billion yuan (+31.60%) and net profit of 7.46 million yuan in net profit in 2015. Compared with a loss of 45.93 million yuan in the same period last year, it turned a loss into a profit; and achieved cash flow from operating activities of 139 million yuan (+49.62%). Benefiting from the industrialization of the domestic hybrid vehicle industry, the company's domestic power battery business revenue grew rapidly, achieving revenue of 162 million yuan, an increase of 10 times over the previous year. The industrial upgrade was fully achieved. In 2015, the company's industrial transformation and upgrading was fully achieved, production and sales were fully launched, and the company went from being a battery supplier to the core link in the energy-saving and new energy vehicle industry chain. In 2015, the order production and sales of 30,000 sets of power battery electrodes was fully completed, a new intelligent HEV nickel foam mass production workshop was built, and all plant construction of Kailimei Automobile Power Battery Co., Ltd. was completed. NiMH automotive power batteries ranked among the first batch of countries that “meet the regulatory requirements of the automobile power battery industry” and product catalogs. The fuel consumption credit policy is expected to be introduced, driving hybrid power into the first year of its explosion. In 2014, the company established a joint venture with Geely to establish CHS to jointly develop hybrid technology. We believe that the introduction of fuel consumption points is expected to drive the rapid growth of hybrid products: from the supply side, after the introduction of fuel consumption points, automakers are expected to accelerate the layout of hybrid models to meet fuel consumption standards; from the demand side, compared to pure electric vehicles, ordinary hybrids have no mileage limit, are the most compatible with traditional internal combustion engine vehicles in terms of usage habits, and are easily accepted by consumers; judging from supporting facilities, ordinary hybrids do not need to be charged, do not need to establish charging facilities, and can develop relatively quickly in a short period of time. We are optimistic about the oil-electric hybrid technology route and give a buying rating. After our intensive industry research in the early stages, we believe that the oil-electric hybrid technology route will definitely be a very market-valuable technology route that will exist in parallel in the future market. CHS's products will also gradually be highly recognized by downstream customers. In the future, with the gradual expansion of the system, performance will also gradually be reflected. We judge that the company's profit forecasts for 16-18 are 0.11, 0.16, and 0.32 yuan, giving it a “buy” rating. The risk warning policy falls short of expectations, and costs account for a relatively high proportion.