Tianneng Power International Limited Archives

Pioneering Green Growth with Technological Innovation and Accelerating Global Strategy

Tianneng Power International Company Limited (the Company, together with its subsidiaries, collectively the Group or Tianneng) (HKG: 0819.HK), a leading company in China’s new energy battery industry, announced its interim results for the six months ended 30 June 2024 (the Reporting Period).

In the first half of 2024, Tianneng focused on building new quality productivity by utilizing the three driving forces of “industry, technology and capital” and the three interlinked transformations of “digitalization, platform-based operation and internationalization” to form a new development pattern. The Group adhered to the concept that “technological innovation is the core element of developing new quality productivity”, further upgraded and optimized the production processes of lead-acid batteries, and actively expanded the layout and applications of emerging batteries such as lithium, hydrogen, sodium, and solid-state batteries. In addition, it strived to address global climate change challenges by enhancing efficiency and environmental protection through green and intelligent manufacturing, developing a circular economy, and building a sustainable supply chain that aligns with a series of development goals such as high-quality development and modern governance of China.

During the reporting period, the Group achieved revenue of approximately RMB 49.915 billion, representing an increase of approximately 20.36% compared to the same period last year. Profit attributable to owners of the Company was approximately RMB 928 million, representing a growth of approximately 1.09% compared to the same period last year. While actively exploring the development of emerging businesses, Tianneng invested significant effort in consolidating and strengthening its leading position in its core business. The cornerstone business of lead-acid batteries generated revenue of approximately RMB19.252 billion. In the field of new energy batteries, Tianneng accelerated the development of lithium-ion battery for ESS, facilitated the iteration of hydrogen fuel cells and sodium-ion batteries, and achieved breakthroughs in key technologies and applications in diverse scenarios. In the field of circular economy, Tianneng established a battery recycling green industry chain integrating production, recycling, smelting, and reproduction, with the circular industry generating revenue from external customers of approximately RMB1.554 billion.

Breaking Barriers through Continuous Technological Innovation
The Group has established a dual-core strategy in “motive batteries and energy storage systems”, achieved a parallel development in the traditional track with both lead and lithium technologies, and accelerated the development of hydrogen fuel cells, sodium-ion batteries, and solid-state batteries in emerging tracks. In terms of motive batteries, Tianneng has successively launched the first dedicated lead-acid motive battery for electric motorcycles, the new generation sodium-ion motive battery “Tianna T2” and colloidal batteries for forklifts, catering to a more diverse range of applications. For energy storage, successful developments included the OPzV-1000 valve-regulated colloidal lead-carbon battery, the “Sodium Storage No.1” suitable for energy storage scenarios, and a new generation 5MWh lithium-ion intelligent liquid-cooled energy storage system. These advancements help systems unleash greater value and provide stable and reliable power support for various application scenarios.

Upholding Sustainable Development Strategy for Green Industry
As one of the world’s largest lead-acid battery manufacturers, Tianneng utilizes over 90% of its battery products in electric light vehicles, possessing an inherent low-carbon advantage in the transportation industry. Tianneng incorporates green and intelligent manufacturing into its corporate development strategy by optimizing production processes, enhancing automation coverage, and improving production efficiency. By developing and integrating multiple digital management systems, Tianneng elevates the digitalization level of production management, thereby continuously driving the Company towards a more efficient and environmentally friendly future.

While focusing on the battery industry, Tianneng is also committed to achieving more efficient resource recovery and recycling. It has established four lead-acid battery circular economy industrial parks and two lithium-ion battery circular economy industrial parks in China. The recovery rates of various materials from waste lead-acid batteries exceed 99%, while the recovery rate of sulfate from waste lithium-ion batteries exceeds 98.5%, and the lithium carbonate recovery rate reaches 90%. For lead-acid battery recycling, Tianneng continuously enhances the capabilities of recovery and disposal and establishes a stable and sustainable supply chain to improve production capacity utilization. The Company now has the capacity to dispose of 1 million tons of waste lead-acid batteries annually. For lithium battery recycling, Tianneng has the capacity to dispose of 10,000 tons of waste ternary lithium-ion batteries annually, with an additional 60,000 tons of new capacity to be put into operation this year. Tianneng consistently innovates battery recycling technologies, and possesses various lithium-ion battery recycling technologies, including intelligent crushing and sorting without discharge, targeted thermal decomposition of dismantled materials, simultaneous disposal of ternary lithium iron phosphate, and lithium extraction through freezing.

During the Reporting Period, the Group undertook a waste lead-acid battery recycling and treatment project at the Circular Economy Industrial Park in Changxing County, Huzhou, Zhejiang Province, becoming the first “National Circular Economy Standardization Demonstration Project” in Zhejiang Province. By transforming typical models into national standards, this project has led the development direction of the industry. The Ministry of Industry and Information Technology announced the list of Green Manufacturing for 2023, with Tianneng New Materials Co., Ltd., a subsidiary of the Group specializing in lithium battery recycling, being selected as a national-level “Green Factory”.

Keeping Up with the Times to Strengthen Brand Promotion
In terms of the marketing, the Group has established an extensive distribution and after-sales service network and has over 3,000 distribution and after-sales service points in China, covering more than 400,000 terminal stores. This network provides replacement and repair services to 400 million users of electric light vehicles, making it one of the most well-known battery brands in the market.

Tianneng actively embraces big data technology and the emerging internet market, utilizing digital means to empower marketing efforts and support partners in refined operations and management. During the Reporting Period, the Group deepened the advancement of digital marketing models and upgraded the Tianneng innovative cloud commerce model, significantly optimizing the Group’s flexible production. This allows for faster and more accurate responses to changes in market demand, adjustments to production plans, and a notable increase in operational efficiency. It has also established dozens of online and offline integrated service experience centers, which promoted the growth of customized product sales, significantly enhanced the quality and effectiveness of the distribution channels and further strengthened its competitiveness.

Marching Forward with Determination to Expand International Operations
While consolidating its industry-leading position in China, Tianneng, based on local conditions, has rapidly pushed its battery products and energy solutions into the global market. Tianneng’s overseas business layout covers various countries and regions such as Southeast Asia, Europe, and Africa. Dr. Zhang Tianren, Chairman of the Board, was invited to participate in the “China-Vietnam Trade and Investment Cooperation Promotion Forum” in April 2024, and the first overseas intelligent manufacturing base was established in Vietnam, serving as a bridgehead for expanding the Southeast Asian market. The Company successfully contracted with dozens of Tianneng brand overseas partners for overseas terminal distribution and after-sales service network development. It also made frequent appearances at international exhibitions such as the EV TREND KOREA in Seoul and the EES Europe in Munich, Germany, receiving recognition from customers worldwide.

Leveraging the technological innovation achievements in green energy products and the industry experience accumulated over the years, Tianneng has set the international market as the new stage for its future development. Following the establishment of local offices, the development of overseas sales channels, and the Vietnam factory construction project, Tianneng will continue to explore overseas markets, actively respond to China’s “Belt and Road” initiative, use the Southeast Asian market as an entry point, and collaborate with more like-minded partners to enhance its influence in overseas markets and seize the initiative in international competition.

Future Outlook
Tianneng will adhere to the development direction of “focusing on high-quality development and enhancing sustainability” to accelerate the creation of new quality productivity with Tianneng’s characteristics. With technological innovation as the driving force and structural adjustment as the main theme, the Company will promote the transformation and upgrading of the new energy industry with a focus on nurturing the two major industrial ecosystems of motive batteries and energy storage systems. Meanwhile, based on the entire lifecycle of the battery industry, the Company will utilize the scale advantages of the circular economy to enhance efficiency. Based on its own technological advantages and fully leveraging the supporting and leading role of technological innovation, Tianneng will contribute more clean energy system solutions to the “carbon peaking and carbon neutrality” strategy and make greater contributions to the ecological civilization construction of China.

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Issued by Porda Havas International Finance Communications Group for and on behalf of Tianneng Power International Limited. For further information, please contact:

Kelly Fung
Tel: +852 3150 6788
Email: tianneng.hk@pordahavas.com

Tianneng Power’s 2020 Interim Results Scaled the Heights Again

Profit Attributable to the Owners of the Company Increased Substantially by 40.42% to RMB837 Million
Basic EPS Increased by 40.42%

Tianneng Power International Limited (“Tianneng Power” or the “Company”), together with its subsidiaries, (the “Group”; stock code: 819.HK), today announced its interim results for the 6 months ended 30 June 2020 (“During the reporting period”).

In the first half of the 2020, despite a complex and unpredictable external environment, the Group’s main businesses maintained stable growth momentum with steady progress and improvement of quality. During the reporting period, the Group’s sales revenue amounted to approximately RMB22,635 million, representing an increase of 14.26% year-on-year. The gross profit was approximately RMB2,116 million, representing an increase of 14.23% as compared with the same period last year. It was mainly attributable to an increase in sales volume and a growth in the battery gross profit margin. The gross profit margin was approximately 9.35%, which remained stable as compared with the same period last year. The net profit was approximately RMB860 million, representing an increase of 45.57% year-on-year.

Strives for Progress on High-end Eco-friendly Batteries Business

High-end eco-friendly batteries are one of the Group’s main businesses, providing the Group with a solid cash flow. During the reporting period, the sales revenue of high-end eco-friendly batteries was approximately RMB11,641 million. The Company has now formed a product system based on lead batteries and supplemented by lithium batteries that includes motive, start-stop and energy storage batteries. Among these types of batteries, lead batteries have a history of more than 160 years. Characterised by their high safety, high recyclability, high price-performance ratio, mature technology and excellent performance in high and low temperature environment, lead batteries enjoy a sharp competitive edge. As a result, lead batteries occupy a leading position in the global market of rechargeable batteries and are currently the most commonly used batteries in vehicles and equipment such as light electric vehicles, special electric vehicles and start-stop systems in automobiles. The overall market demand for them will continue to grow steadily.

In the future, the fields of application for lead batteries will continue to grow and expand, and the related technologies and processes will continue to develop with the aim of achieving higher energy densities, higher price-performance ratio and higher safety. With the in-depth application of the 5th generation mobile network (5G), lead batteries will also go “smart” with features like identifiability and traceability, remote controllability and connectivity to the Internet of things.

Rapid Development of New Energy Batteries Business

As one of the new energy batteries, the lithium-ion battery is an important strategic segment of the Group. During the reporting period, the Group’s operating revenue in the new energy battery business was approximately RMB403 million, representing an increase of 58.08% year-on-year. In November 2019, Tianneng signed a cooperation agreement with SAFT, a subsidiary of the French company Total S.A., one of the world’s top 500 enterprises, to form a joint venture that focuses on the development, manufacture and sale of advanced lithium-ion batteries for the Chinese and global markets. The cooperation with SAFT will allow the Group to share the world-leading lithium battery company’s rich experience in the construction and management of R&D systems and technological reserve to enhance the Group’s global competitiveness. Over the years, the Group has continued to expand its product line of lithium-ion batteries. In addition to the sector of motive batteries, the Group’s lithium battery business has also gained a foothold in smart energy storage, 3C and backup battery industries. The Company won the awards of “Best Provider of Systems Integration Solutions” and “Best Demonstration Project for Energy Storage” at the 7th Global Solar+Energy Storage Conference & Expo (2020) July this year.

The Company will further increase its cooperation with renowned battery companies in and outside China, deepen its distribution in the sectors of lithium-ion motive batteries for special vehicles and lithium-ion batteries for smart energy storage, and pay close attention to the technological trends and market developments of automobile start-stop lithium batteries, lithium-sulfur batteries and solid-state batteries, so as to make the lithium-ion battery business one of the Company’s core segments and enhance the market competitiveness of the Company’s lithium battery business.

Green New Materials Business Scudding along before the Wind

The Company is the first enterprise to develop circular business. After over ten years of technology accumulation and scientific operations, green new materials segment has become one of the three major businesses of the Company, and has had an important position in the Company’s future development plan. In the first half of this year, the Group accelerated the industry distribution, and focused on the development of circular business. During the reporting period, the Group’s external operating revenue in green new materials business recorded approximately RMB397 million. The Group will continue to put much effort in the circular business, gradually expand the categories of renewable materials for recycling, and at the same time extend to the up and down streams in the industry, thus steadily progress towards the goal of setting up large circular industry clusters.

Strategic Blueprint for Global Presence, Market Share Expansion
During the first half of this year, the Group leveraged on its overseas offices as the “bridgehead”, deeply explored the market potentials in regions such as Southeast Asia, South Asia, Europe as well as Central and East Africa, constantly developed new markets and sectors, and used its overseas business division as platforms, thereby enhancing international communications and cooperation. The Group will continue to strengthen cooperation with scientific research platforms overseas, integrate world’s top technological resources, thus foster core technological advantages for the entire industrial chain. At the same time, the Group continues to seek mergers and acquisitions opportunities for upstream and downstream products, and establishes research and development production bases overseas in due time while creating a global supply chain network, with the Group striving to become the “world’s leading green energy solution provider”.

Capital Development
In accordance with the results of the 51st review meeting of the Listing Committee for Science and Technology Innovation Board of the Shanghai Stock Exchange in 2020 that was held on 6 July 2020, the issue of A shares by Tianneng Battery Group Co., Ltd. and the listing of the A shares of the Spin-off Company on the Science and Technology Innovation Board of the Shanghai Stock Exchange has been approved by the Listing Committee.

Looking to the future, Mr. Zhang Tianren, the Chairman of the Board, said, “The Group will adhere to the sustainable development strategy of “new materials, new structures, new technologies, new sectors”, follow the strategic direction of “artificial intelligent, globalization, platform-building”, strive to seek after diversified fund raising channels to assist businesses with sufficient fundings for future development, as well as fully promote reforms in quality, efficiency and driving forces. Leveraging on its advantages in technology, production framework, market channels, brands and information technology system which have been accumulated in the battery industry for many years, Tianneng will strengthen the international leading position of its high-end eco-friendly batteries, enhance the product competitiveness of new energy batteries, create closed-loop green smart industry chain, construct a smart energy service system, build a logistics supply chain platform, actively expand businesses such as start-stop batteries and energy storage systems, and continue with the technological development of fuel cells and new-generation batteries, with the aim of becoming the most respected first-tier new energy enterprise across the globe.”

About Tianneng Power International Limited
Tianneng Power International Co., Ltd. (“Tianneng Power”) is a leading company in the new energy power battery industry in China, which was founded in 1986. In 2007, Tianneng Power was listed on the Main Board of The Stock Exchange of Hong Kong Limited as the “First China Company of Power Battery.” After more than 30 years of development, it has become a large high-tech energy group focusing on the manufacturing and provision of services of environmentally friendly power batteries for electric vehicles, while offering integrated power storage ancillary services, and integrating the R&D, production and sale of lithium batteries for new energy vehicles, start-stop batteries for vehicles and wind power and solar power storage batteries; the recycling and cyclic utilization of waste batteries; the construction of smart micro-grids in cities; as well as the building of green and smart industrial parks. In July 2020, Tianneng Power won the awards of “Best Provider of Systems Integration Solutions” and “Best Demonstration Project for Energy Storage” at the 7th Global Solar+Energy Storage Conference & Expo (2020).