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Tianneng Power's Operating Performance Achieved Steady Growth and Various Businesses Expanded in an Orderly Manner in 1H2023
Profit Attributable to Owners of the Company Increased 20.86% to RMB918 million
Adhered to the Green, Innovative and Open Approach, Promote Industry Upgrade and Digital Transformation
HONG KONG, Aug 29, 2023 - (ACN Newswire) - Tianneng Power International Limited (stock code: 819.HK) ("Tianneng Power" or the "Company", together with its subsidiaries, the "Group"), a leading company in the sector of batteries for new-energy vehicles in China, announced its interim results for the 6 months ended 30 June 2023 (the "Reporting Period") today.
In the first half of 2023, Tianneng Power adhered to the green, innovative and open approach, as well as promoted industry upgrade and digital transformation, thereby facilitating high-quality sustainable development of the Group. During the Reporting Period, the Group recorded turnover of approx. RMB41,471 million, representing a year-on-year increase of approx 33.66%. Gross profit increased by approx. 27.49% to approx. RMB3,034 million, Profit for the period increased by approx. 11.88% to approx. to RMB1,008 million, and profit attributable to owners of the Company increased by approx. 20.86% to approx. RMB918 million. Basic earnings per share increased by approx. 20.85% to RMB81.54 cents. Net cash from operating activities turned positive from negative to RMB1,531 million from approx. RMB468 million in the same period last year.
High-end eco-friendly batteries grew steadily, energy storage business grew over 2 times
In the arena of its main business of motive batteries, Tianneng Power has mastered the management system of the wholelife cycle of batteries, the cores of which are the technologies of extremely stable battery cells processing, intelligent assembly and charging as well as green resources regeneration. These constructed a technological foundation for an in-depth empowering product and service system. In addition, the Group actively expanded new arena, deployed multi-technology course of "lead-lithium-hydrogen-sodium", and engaged in the research and development ("R&D") and manufacturing of high-end application products for aviation, ships and energy storage systems ("ESS"). Tianneng Power's new lead-acid battery industry ranks the first in China, and the battery recycling industry has achieved a leading position in China.
High-end eco-friendly batteries are a series of sealed maintenance-free lead-acid battery products created by the Group relying on its R&D and technology innovations, which include motive batteries, ESS batteries as well as starter and start-stop batteries for automobiles. During the Reporting Period, the high-end eco-friendly batteries business recorded an operating income of RMB19,306 million, representing an increase of 35.83% as compared to the same period of last year.
According to the statistics set out in the White Paper for the Development of the Chinese Two-wheeled Electric Vehicles Industry (2023) jointly published by EVTank, a research institute and China YiWei Institute of Economics, China produced a total of 59.04 million two-wheeled electric vehicles in 2022, recording a year-on-year rise of approx. 8.5%. Driven by various factors like favorable market policy, continuous urbanization, and development of online shopping, catering and logistics, Tianneng motive lead-acid batteries business recorded an operating income of approx. RMB18,867 million, representing an increase of approx. 35.73% as compared to the same period of last year.
With the development of lead-carbon battery technology, lead-carbon ESS is gradually becoming one of the mainstream options for energy storage. In March 2023, the first phrase of "Peaceful Co-storage", the world's largest lead-carbon intelligent power factory jointly constructed by the Group and the State Power Investment Corporation Limited ("SPIC"), has officially commenced operation. It is currently the world's largest lead-carbon ESS power station, the first user-side 110KV ESS battery system and the first GWh-level shared ESS power station. During the Reporting Period, the Group's lead-carbon batteries for ESS business recorded an operating income of approx. RMB226 million, representing a year-on-year increase of approx. 208.50% as compared with the same period of last year.
Tianneng Power is one of the few enterprises that uphold the multi-technology development route of "Lead and Lithium going together", and has successfully launched a range of ESS battery cells with capacities of 100Ah, 180Ah and 280Ah, as well as introduced various ESS plug-in units including air-cooled and liquid-cooled types, which have been successfully delivered and commercialized.
Actively promote R&D of new energy batteries, and the expected optimistic recycling industry
Tianneng Power actively promotes production of lithium-ion ("Li-ion") batteries, and the production, R&D and sales of next-generation battery products such as hydrogen fuel cells and sodium-ion batteries. During the Reporting Period, Li-ion battery business recorded an operating income of approx. RMB369 million, and hydrogen fuel cells business recorded an operating income of approx. RMB4.5459 million.
In the first half of 2023, Tianneng Power officially launched the new manganese iron lithium battery. The quality certification work has progressed smoothly, and the completion of ISO9001 certification and IATF16949 system certification have solidified the foundation of quality management. At the same time, Tianneng Power released a new generation of sodium-ion battery, "Tianna T1", which is designed for light electric vehicles. In May 2023, Tianneng Power was selected as "China Sodium Power Quality Enterprise" by the 8th China International New Energy Conference and Industry Expo hosted by Shanghai Metals Network.
In addition, by leveraging the benefits of technology, production and market in the Li-ion battery business, the Group aims to address key core technical problems, promote transformation of research breakthroughs in next-generation lithium battery technology (such as solid-state batteries), and deliver green and intelligent energy system solutions for global customers.
The green Tianneng has taken a new step forward in high-quality development. It focuses on building two circular economic ecosystems of lead batteries and Li-ion batteries, exploring green technology innovation models, and forming a closed-loop green industrial chain for batteries. During the Reporting Period, the Group recorded an operating income from the recycling industry of approx. RMB1,723 million.
Currently, Tianneng Power has established four major lead-acid battery recycling economy industrial parks in China, with an annual disposal capacity of approx. 1 million tons for used lead-acid batteries. In May 2023, the Group was awarded with the certificate of "National Circular Economy Technology Center" by China Circular Economy Association. In June 2023, the Group has signed a strategic cooperation agreement with BASF (China) Company Limited and Central South University, to jointly promote the establishment of the Institute of Cyclic Economy Technology.
In terms of recycling Li-ion batteries , Tianneng Power possesses an annual disposal capacity of 10,000 tons for used Li-ion batteries. Gaogong Industry Institute predicts that by 2025, China's decommissioned motive batteries will accumulate to a total of 137.4GWh, resulting in a demand for the recycling of approx. 960,000 tons of used batteries. The Group possesses a planned disposal capacity of approx. 100,000 tons under construction at the base located in Binhai County, Jiangsu Province, to cater for the disposal needs of the substantial volume of used batteries.
Proactively expand the international market and respond to the national "Belt and Road" initiative
During the Reporting Period, Tianneng Power is also proactively exploring the development opportunities for international markets and construction of an industrial ecology that has international competitive advantages with a global perspective. Tianneng Power proactively responded to the PRC's "Belt and Road Initiative", With the Southeast Asia market as an entry point, Tianneng Power has entered into cooperation with dozens of overseas distributors and has made progress in promoting the establishment of overseas service systems, and gradually improved the process of overseas after-sale services and established a global call centre. In the first half of 2023, the Group established the first oversea independent R&D centre in response to the personalized and systematic demands of global customers and fully met the requirements of international market access certification. Moreover, the Group successfully initiated and organized the second Tianneng Global Alliance Partner Conference (TGA 2023), and strategic partnerships with enterprises from 13 countries and regions were established.
Since 2023, Tianneng Power has been making progress in globalization and achieved a series of major breakthroughs in the R&D, products and market areas: the establishment of a global R&D centre and a global resources integration centre, which actively explore technology directions and deploy cutting-edge products; and the establishment of our offices in various countries like Vietnam and Thailand, which accelerates the implementation of localized operations and fully enhances the Group's local products, services and channels. Tianneng Power's industrial bases are located in seven provinces across the PRC, with more than 130 subsidiaries and an overseas sales coverage of nearly 50 countries and regions.
Tianneng Power has always been bold in innovations and seeks to proactively improve the internal management process and business model on a continuing basis. In the first half of 2023, Tianneng Power launched the Tianneng Battery Manufacturing Operation Management project to help speed up the digital transformation of new-energy batteries, tapped into the market growth of different regions with digital marketing tools, and increased service efficiency for each region with professional service operation capabilities. The Group aimed to achieve the goal of maximum optimization in comprehensive cost, production efficiency and operating benefits, as well as further expand its market share and strengthen its position in the industry.
Focusing on technological innovation, the Group vigorously promoted the digital intelligence project and built the whole industry chain smart factory and the first "industry brain" of the battery industry, continued to promote R&D, innovation and transformation of technological achievements. Through commencement of the "National Talent Introduction" and "Global Intelligence Introduction" programs, a scientific innovation platform and R&D system with national enterprise technology centre, national post-doctoral scientific research workstations and national model academician expert workstations as cores will be established. As at the end of June 2023, the Group has led and participated in the revision of more than 170 domestic and international standards, and owned more than 4,800 patents of various types. It has undertaken more than 20 national and provincial key projects such as major R&D projects for intelligent manufacturing. Our technological innovation capabilities and core competitiveness will continue to improve.
Looking to the future, Tianneng Power committed to efficiently conducting R&D on cutting-edge technologies, key technologies and new products, thereby enhancing the contribution of scientific and technological innovation to the enterprise's high-quality development. We aim to consistently deliver efficient, safe and environmentally friendly products that cater to the users' needs. Tianneng will continue to promote the greening, high-end and intelligence of new energy batteries, and will deepen the technological innovation and scene exploration for new energy batteries, gradually form the brand competitiveness based on "Safe Core Technology + Whole Scenario Coverage + System Solutions".
Mr. Zhang Tianren, the Chairman of the Board, said, "Looking ahead, the Group will continue to uphold the development principles of greenness, innovation and openness. We adhere to the guidance of technological innovation, persist in openness and sharing, and greatly promote the planning and development of new energy. The Group is enhancing the energy usage efficiency by accelerating the industry structure adjustment through digitalization and intelligence strategies. Thus, we aim to guide and propel the entire industry chain, both upstream and downstream, towards sustainable development."
Source: Tianneng Power International Limited
Sectors: Alternative Energy
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