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Tianneng Power Announces 2022 Annual Results
Countertrend Growth in Results Performance and Significant Improvement in Profitability
Profit Attributable to Shareholders Increased by 38.19% to approximately RMB1,796 million
HONG KONG, Mar 25, 2023 - (ACN Newswire) - Tianneng Power International Limited ("Tianneng Power" or the "Group", stock code: 819.HK), a leading company in the new energy battery industry in China, announced its annual results for the 12 months ended 31 December 2022 (the "Year") today.
In 2022, Tianneng Power maintained its development strategies of "intelligentisation, platform-building, globalisation", promoted green development through scientific and technological innovation, and focused on the new-generation battery technologies such as lead-acid batteries, lithium-ion ("Li-ion") batteries, fuel cells and sodium-ion batteries, as well as the used battery recycling business. Tianneng Power has been determined to implement the industrial technology development strategy, adjust the business strategy of each business segment in a scientific manner and deploy multiple technologies in a proactive manner, to form a diversified business development model, resulting in the continuous improvement of profitability and comprehensive competitiveness.
In 2022, Tianneng Power's consolidated turnover was approximately RMB74,599 million, of which the turnover of manufacturing business was approximately RMB41,971 million, representing a year-on-year increase of approximately 10.68% and a significant optimization of business structure. The gross profit increased significantly by approximately 38.27% to approximately RMB6,389 million. The gross profit margin increased by 3.16 percentage points as compared with the same period of last year, of which the gross profit margin of manufacturing segment increased by 3.06 percentage points year-on-year to 15.11%, with a significant increase in the proportion of high gross profit businesse. Profit attributable to shareholders was approximately RMB1,796 million, representing a significant increase of 38.19% as compared with the same period of last year. Basic earnings per share was approximately RMB1.60. Also, Tianneng Power proposed to declare a cash dividend of HK 40 cents per ordinary share held by the shareholders of Tianneng Power.
Maintain the Leading Position and Improve Steadily on High-End Eco-Friendly Battery
High-end eco-friendly batteries are a series of sealed maintenance-free lead-acid battery products created by Tianneng Power relying on its research and development ("R&D") and technology innovations, which are advantageous for its cost-effectiveness, safety and stability, and recyclability. During the Year, high-end eco-friendly batteries recorded an operating income of approximately RMB35,747 million, representing an increase of approximately 12.34% as compared with the same period of last year, maintaining the momentum of high-quality and stable development.
In 2022, as a leading enterprise in lead batteries, Tianneng Power strived to improve its ancillary product matrix and made major breakthroughs in the R&D of products in the field of eco-friendly travel, and successively launched a series of products that emphasised battery life and durability, and continued to contribute to the industry upgrade and innovation with safe, durable, high-end core technology products. At the same time, Tianneng Power has collaborated with leading OEMs, including Aima, Yadea, TAILG and Luyuan to carry out multi-dimensional strategic cooperation, releasing entrepreneurial potential and facilitating the industry development. In 2022, the official establishment of the Vietnam representative office of Tianneng Power in Ho Chi Minh City marked a new beginning for the Group to practise localised and platform-based operations in Southeast Asia, which will lay a solid foundation for further expanding the Southeast Asian market and marching towards the world.
In 2022, Tianneng Power continued to make efforts in the field of starter and start-stop batteries by adopting international advanced production technology and production process for start-stop batteries, and achieving the perfect integration of green power and the automobile industry in terms of excellent battery performance, energy saving and consumption reduction, long service life and safety design. The energy density of existing start-stop batteries is 40-50 Wh/kg, while the number of charging cycles reaches more than 80,000 times.
In 2022, Tianneng Power's operating income of lead-carbon batteries for ESS amounted to approximately RMB128 million, representing a significant increase of approximately 225.08% year-on-year. In December 2022, Tianneng Power formed a strategic partnership with Changxing Taihu Electric Co., Ltd. ("Taihu Electric"). Tianneng Battery Group Co., Ltd. (688819.SH), a subsidiary of Tianneng Power listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange, obtained an order for 30GWh lead-carbon batteries for ESS with Taihu Electric. Meanwhile, construction of the 10 GWh lead-carbon batteries-based ESS project in Maanshan City, Anhui Province, has been completed, which encourages the expansion of the new ESS market and promotes the long-term development of the ESS business.
Provide Diversified New Energy Solutions on New Energy Batteries
Tianneng Power's new energy batteries are mainly Li-ion batteries, and also include the R&D and production of next-generation battery products such as hydrogen fuel cells and sodium-ion batteries. Among these, Li-ion batteries achieved a breakthrough in 2022, with an operating income of approximately RMB1,602 million, representing a year-on-year increase of approximately 62.30%.
On the one hand, Tianneng Power actively built an energy storage industry ecosystem and provided customers with multi-scenario diversified system solutions. Li-ion batteries for ESS recorded an operating income of approximately RMB524 million during the Year, representing an increase of approximately 353.51% compared with the same period of last year. On the other hand, Tianneng Power developed its own industrial motive Li-ion battery products with high energy density and security. It has launched a number of products applicable to models such as pallet trucks, forklifts and reach forklifts. Meanwhile, the products also provided customers with customised, safe, reliable and durable product solutions to meet the requirements of the complex application scenarios in the warehousing and logistics industry for Li-ion batteries in terms of charging and discharging rate, energy density and security.
In 2022, Tianneng Power made significant breakthroughs in the R&D of fuel cell stacks, membrane electrodes, bipolar plates and engine systems, as well as the development and demonstration of application scenarios. It has successively developed various stack products, including 100-kW class graphite plate stacks and high-power metal plate reactors with up to 150kW. Such products have gone through verification and procurement by downstream customers, among which, various 70kW-160kW hydrogen fuel cell engine systems were delivered in the Year with overall cost leadership strategy.
In addition, Tianneng Power has taken the lead in planning for the strategy of sodium-ion batteries business, increased R&D investments, accelerated technology breakthroughs, and swiftly built up the first-mover advantage. On 5 September 2022, the Group established a wholly owned subsidiary, which marked the official implementation of the industrialisation of the Group's sodium-ion battery business. In terms of capacity, the Group constructed a production line dedicated to sodium-ion batteries, and it is currently pushing ahead with production. Meanwhile, the Group achieved a series of significant breakthroughs in the R&D of sodium-ion battery technology and product commercial application, and was awarded with the "2022 Industry Top 10 Innovative Brands" and the "Golden Tripod Awards", which is a symbol of technology innovation.
Construct the Ecological System of the Whole Industrial Chain for Recycling Industry
As a practitioner and leader of green recycling industry in China, Tianneng Power has put huge efforts into developing a circular economy, actively looked for industry cooperation, explored green low-carbon technology innovation model, and created a closed-loop green industry chain that integrates "recycling, smelting and reproduction" and comprises "lead recycling + lithium recycling + great recycling". In 2022, the recycling industry recorded an external operating income of approximately RMB3,814 million, representing a year-on-year increase of approximately 42.39%.
Tianneng Power's lead-acid battery recycling business has been deployed since 2009 and the disposal volume for the year has reached 1 million tons. In 2022, the lead-acid batteries recycling business recorded an external income of approximately RMB3,084 million, representing a year-on-year growth of approximately 34.20%. Tianneng Power has profound technical capacity in the field of lead-acid batteries recycling, and the recycling rate of each product exceeds 99%. Taking advantage of the distribution outlets of various distributors and terminal stores, the Group set up more than 600 battery recycling outlets in 15 provinces nationwide, built green circular industry parks in various locations such as Changxing County of Zhejiang Province, Shuyang County of Jiangsu Province, Puyang City of Henan Province, etc., and established battery recycling pilot companies in many cities including Beijing and Shanghai. At present, the new production line has been approved, and the Group's recycling capacity will be further enhanced.
China's mineral resources of Li-ion batteries' core materials are heavily dependent on imports, and the upstream supply is highly uncertain. The recovery and regeneration of lithium resources has become an essential part of the battery industry chain. Currently, Tianneng Power has built the industry's leading Li-ion battery recycling and processing production line, with the recovery rate of lithium increasing to over 88%, and the comprehensive technical index reaching the international advanced level. The Li-ion battery recycling business recorded an operating income of approximately RMB678 million, representing a year-on-year growth of approximately 99.86%.
Focus on Industry Upgrade and Emphasize on Growth Driven by Innovation
Tianneng Power is experiencing a profound transformation from being a product provider which focuses on lead-acid batteries for electric two-wheelers in the past to a green energy solution provider now driven by diversified technologies in respect of lead, lithium, hydrogen and sodium. The Group has concentrated on the related application fields, and established strategies for new-generation technologies such as methanol and ammonia. The Group will focus on the construction of two 100-billion class industry ecosystems for lead and ESS, and it will take the ecosystem as the main body and medium to gradually improve its forward-looking strategy in terms of technology and service, thereby achieving initiatives of the strategy of "business + technology + capital".
In the future, Tianneng Power will focus more on systematic planning of innovation in ESS technology and strengthen its strategic deployment in three aspects including the promotion of diversified technology development, the breakthrough in the whole process of safety technology, and innovation of intelligent adjustment technology, so as to overcome the challenges by focusing on the technology. Meanwhile, it will also take into account the optimal allocation of innovative resources to facilitate the cross-sector development of industry and academia as well as research and application.
Tianneng Power will also be more open and integrated to carry out broader, more precise, and more sustainable international cooperation in respect of energy, and to gather efforts for the construction of a global energy community. Relying on the services and empowering system of the Tianneng Globalization Alliance (TGA), Tianneng Power will continuously strengthen the cooperation with members and achieve the globalisation of markets, R&D, talents, capital, brands, and manufacturing in full force through local operation, sales leadership, capital injection, technological achievement and industrial implementation.
Mr. Zhang Tianren, the Chairman of the Board, said, "Looking forward, the Group will precisely seize China's "Dual Carbon" opportunities and the overall positive trend of the economy, focus on the new energy industry, promote industrial upgrade and structural transformation, strengthen its leading role in terms of technological innovation, and comprehensively promote a new round of high-quality development. The Group will continue to consolidate the leading position of the lead-acid batteries business, adhere to the diverse technical route of lead-lithium-hydrogen-sodium, and upgrade motive batteries and ESS batteries continuously. In 2023, the Group will also make an effort in R&D investment, product implementation and model innovation altogether to accelerate the contribution of strategic businesses, construct a new development pattern with a balanced business structure and efforts made in several areas to maintain a continuous growth trend."
Source: Tianneng Power International Limited
Sectors: Alternative Energy
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