The traditional power communication backup battery business remained stable, and the revenue of lithium battery business increased significantly. The company is the leader of domestic power communication backup battery. Since this year, the communication backup battery industry has developed steadily. In the first half of the year, the revenue of related products of the company increased by 6.06% year-on-year, and the gross profit rate was 16.3%, with a year-on-year decline of 0.43%. It is expected that the communication backup battery business will continue to maintain a steady growth trend in the third quarter. At the same time, with the gradual acceleration of the upgrading and upgrading of the global communication network, the demand for new communication backup lithium batteries has increased rapidly. In the first half of the year, the company's lithium battery business revenue increased by 326.6% year-on-year, with a large growth rate. However, due to the low base, it is expected that the profit contribution of lithium battery business is not significant.

The power battery market is highly competitive, and the decline of gross profit rate affects the profit growth of the company. Another major product of the company is power battery. Affected by the fierce competition of domestic power battery and the continuous fermentation of price war among leading enterprises, the profitability of the company's power battery is lower than expected. In the first half of the year, the revenue of power battery business increased by 23.87% year-on-year, and the gross profit margin decreased by 3.19% to 9.99% year-on-year; After the seasonal price increase of power batteries in the third quarter, the profitability of the business is expected to improve month on month.

Overseas market development has achieved remarkable results. During the reporting period, taking advantage of the good brand effect, the company achieved remarkable results in overseas market development. In the first half of the year, the overseas revenue increased by 54.79% year-on-year, and the proportion of revenue increased from 19% in 2012 to 25.7%. In the third quarter, overseas sales continued to grow significantly year-on-year, and the proportion is expected to further increase.

The domestic 4G construction is about to start, which is expected to drive the subsequent profit growth of the company. At present, the construction of domestic 4G network is about to start, and China Mobile's 20billion 4G base station investment has been implemented. Chinatelecom and China Unicom actively follow up, and 4G construction is expected to provide subsequent performance increment for the company's profits. In terms of products, although lithium batteries for communication backup are developing rapidly, lead-acid batteries are expected to maintain a leading position in the field of communication backup due to their stable performance, low price and other advantages.