天能动力 20250328 摘要 Q&A 请简要介绍一下天能动力 2024 年的整体经营情况。 天能动力成立于 1986 年，2007 年在香港主板上市，2021 年子公司天能股份成 功分拆上市上交所科创板。经过近 40 年的发展，公司以铅蓄电池为主业，聚焦 电动轻型车动力电池市场，同时拓展汽车启动新型系统、通信基站、备用电源 • 天能动力 2024 年营收 766.69 亿元，同比下降 8.61%，归母净利润 11.42 亿元，同比下降 37.29%。铅蓄电池仍是营收主力，占比制造业营收 91%， 但受铅价波动和行业规范影响，下半年经营承压，全年销售电池近 3.8 亿 只，约 106GWh。 • 公司积极拓展多元应用场景，包括汽车启动系统、通信基站、备用电源等， 并布局锂离子电池、氢燃料电池、钠离子电池及固态电池等新能源技术， 以满足不同客户需求。 • 在锂离子电池领域，公司主要应用于低速动力和储能场景，并推出多款矩 阵低速车规级锂电产品，同时设计并制备两款固态电芯产品，实现订单突 破。储能业务从 5G 基站延伸至数据中心及家庭储能，并成功交付多个项目。 • 公司专注于资源高效再生利用，铅蓄电池全产业链布局 ...

Financial Performance - The company's revenue for the fiscal year 2024 was RMB 76,668,813, a decrease of 8.61% compared to RMB 83,890,973 in 2023[6]. - The profit attributable to shareholders for 2024 was RMB 1,142,405, representing a decline of 37.29% from RMB 1,821,836 in 2023[10]. - The net profit margin for 2024 was approximately 1.70%, down from 2.18% in 2023[6]. - The company reported a basic earnings per share of RMB 1.01 for 2024, down from RMB 1.62 in 2023[6]. - The company's consolidated revenue for the year ending December 31, 2024, was approximately RMB 76.669 billion, a decrease of about 8.61% compared to the previous year[19]. - The attributable profit to shareholders was approximately RMB 1.142 billion, down approximately 37.29% year-on-year, with basic earnings per share of RMB 1.01[19]. - Other income increased by approximately 10.73% from RMB 1.897 billion in 2023 to RMB 2.101 billion in 2024, primarily due to an increase in government subsidies[73]. - The company's gross profit decreased by approximately 17.64% from RMB 5.965 billion in 2023 to RMB 4.912 billion in 2024, with the overall gross margin declining by 0.70 percentage points to 6.41%[72]. Assets and Liabilities - Total assets increased to RMB 55,280,555 in 2024, up from RMB 46,750,952 in 2023, marking a growth of 18.76%[7]. - The company's total liabilities rose to RMB 36,371,632 in 2024, compared to RMB 28,306,329 in 2023, reflecting a 28.73% increase[7]. - Cash and cash equivalents increased to approximately RMB 21.410 billion as of December 31, 2024, compared to RMB 15.435 billion as of December 31, 2023[78]. - The net current assets decreased to approximately RMB 3.945 billion as of December 31, 2024, from RMB 6.054 billion as of December 31, 2023, mainly due to increased borrowings[79]. - Total liabilities rose by approximately 28.49% to about RMB 36.372 billion, up from RMB 28.306 billion in the previous year[81]. - The debt-to-asset ratio increased to 33.55% in 2024 from 19.42% in 2023[89]. Market and Product Development - The company is focusing on enhancing its leadership position in the lead-acid battery sector and exploring diverse application scenarios[16]. - The company is advancing solid-state battery technology to prepare for future market demands in power batteries and energy storage[16]. - The company aims to optimize its battery recycling and reuse systems to promote healthy development in the circular economy[16]. - The company is accelerating the research and development of solid-state batteries, hydrogen fuel cells, and sodium-ion batteries to meet market demand[18]. - The company has launched several new power battery products and completed upgrades of multiple champion-level lead-acid battery products[26]. - The company achieved a manufacturing revenue of approximately RMB 43.559 billion during the reporting period[32]. - The high-end eco-friendly battery segment generated revenue of about RMB 39.854 billion, widely used in electric light vehicles and other applications[32]. - The lead-acid power battery segment, a core product, reported revenue of approximately RMB 37.181 billion, benefiting from stable demand in the electric light vehicle market[33]. Global Expansion and Strategy - The company is expanding its overseas sales network and enhancing service systems in key markets to support global market penetration[18]. - The company is accelerating its globalization strategy, achieving market breakthroughs in Vietnam, Indonesia, and Cambodia, with a new factory and offices established[30]. - The overseas revenue in power batteries, backup power, and energy storage has shown significant growth, with local production in Vietnam starting[41]. - The company aims to build a globally competitive brand by collaborating with international partners and integrating high-quality resources[19]. Sustainability and Innovation - The company is committed to sustainable development and environmental responsibility, aiming to strengthen its influence in these areas[29]. - The company has introduced innovative technologies in lithium battery recycling, significantly improving recovery efficiency and resource utilization[29]. - The company achieved a recovery rate of over 98.5% for cobalt, nickel, and manganese from retired lithium batteries, significantly enhancing the recovery of high-value metals[66]. - The company has established four green circular economy industrial parks in Zhejiang, Anhui, Jiangsu, and Henan, with an annual processing capacity of 1.2 million tons of waste lead-acid batteries[61]. Corporate Governance - The company has maintained high standards of corporate governance to enhance investor confidence[122]. - The board consists of nine members, including four independent non-executive directors, ensuring compliance with listing rules[124]. - The company has implemented the corporate governance code as per the Hong Kong Stock Exchange listing rules[123]. - The independent non-executive directors have confirmed their independence according to the listing rules[124]. - The company emphasizes board diversity as a key element for achieving strategic goals, considering factors such as gender, age, and professional experience[130]. Human Resources - The company employed 20,676 staff as of December 31, 2024, down from 25,776 in the previous year, with employee costs amounting to approximately RMB 2.906 billion[93]. - The company plans to enhance automation in production to mitigate rising labor costs and improve efficiency through employee incentive programs[103]. - The company provides adequate resources for training and career development to cultivate a diverse pipeline of potential successors[131]. Shareholder Information - The company plans to declare a cash dividend of HKD 0.17 per share, subject to shareholder approval at the annual general meeting on May 16, 2025[19]. - The board proposed a final dividend of HKD 0.17 per share, down from HKD 0.43 per share in 2023, pending shareholder approval[106]. - The proposed final dividend is expected to be paid on or before June 13, 2025, pending shareholder approval at the annual general meeting[107].

Financial Performance - Revenue decreased by approximately 8.61% to about RMB 76.67 billion[2] - Profit attributable to shareholders decreased by approximately 37.29% to about RMB 1.14 billion[2] - Basic earnings per share decreased to approximately RMB 1.01[2] - Total comprehensive income for the year was RMB 1.23 billion, down from RMB 1.83 billion[5] - The group's profit for the year was RMB 1,297,907 thousand, representing a decrease of 29.3% from RMB 1,835,705 thousand in the prior year[18] - The group's profit for the year ended December 31, 2024, was RMB 1,142,405,000, a decrease from RMB 1,821,836,000 in 2023, reflecting a decline of approximately 37.3%[35] - The group's gross profit for 2023 was approximately RMB 5.965 billion, decreasing by about 17.64% to approximately RMB 4.912 billion in 2024, primarily due to the decline in gross profit from lead-acid and lithium battery businesses[75] - The overall gross margin decreased from approximately 7.11% in 2023 to about 6.41% in 2024, with the manufacturing gross margin at approximately 11.33%, down about 1.42 percentage points from 2023[75] Revenue Breakdown - Manufacturing business external sales amounted to RMB 43,559,147 thousand, down 8.5% from RMB 47,397,428 thousand in the previous year[18] - Trade external sales were RMB 33,109,666 thousand, a decline of 9.5% compared to RMB 36,493,545 thousand in 2023[18] - Revenue from lead-acid battery products was RMB 39,853,742 thousand, down 6.5% from RMB 42,423,301 thousand in 2023[21] - Revenue from renewable resource products decreased by 24.4% to RMB 2,720,533 thousand from RMB 3,600,226 thousand[21] - The revenue from high-end environmentally friendly batteries reached approximately RMB 39,854 million during the reporting period, contributing significantly to the overall sales[48] - The revenue from lead-acid power batteries was approximately RMB 37,181 million, making it the largest revenue and profit contributor for the company[49] - The company's other high-end environmentally friendly battery business achieved revenue of approximately RMB 2.455 billion during the reporting period[56] - The lead-carbon energy storage battery business generated approximately RMB 218 million in revenue, showcasing its advantages in safety, production, and recycling processes[54] - The lithium-ion battery business generated revenue of approximately RMB 478 million, focusing on energy storage and power applications[59] - The lithium-ion battery recycling business achieved revenue of approximately RMB 573 million during the reporting period[70] Costs and Expenses - Research and development costs increased to RMB 2.03 billion, up from RMB 1.93 billion[3] - Total employee costs for the year were RMB 2,910,993,000, down from RMB 3,283,960,000 in the previous year, indicating a reduction of about 11.3%[31] - Financing costs for the year amounted to RMB 546,530,000, compared to RMB 482,780,000 in 2023, representing an increase of approximately 13.2%[28] - Distribution and selling expenses decreased by approximately 9.19% from RMB 1.424 billion in 2023 to RMB 1.293 billion in 2024, attributed to lower transportation and employee salary costs[77] - Administrative expenses decreased by approximately 6.33% from RMB 1.357 billion in 2023 to RMB 1.271 billion in 2024, mainly due to reductions in employee salaries and office expenses[78] Assets and Liabilities - Non-current assets increased to RMB 22.06 billion from RMB 17.41 billion[7] - Current liabilities increased to RMB 29.27 billion from RMB 23.29 billion[8] - The group's total assets increased by approximately 18.24% from RMB 46.751 billion in 2023 to RMB 55.281 billion in 2024, with non-current assets growing by about 26.72%[83] - Total liabilities increased by approximately 28.49% from RMB 28.306 billion in 2023 to RMB 36.372 billion in 2024, with non-current liabilities rising by about 41.41%[84] - The debt-to-asset ratio increased to approximately 33.55% in 2024 from 19.42% in 2023, reflecting a higher level of liabilities relative to assets[96] Dividends and Shareholder Information - Proposed final dividend of HKD 0.17 per share[2] - The company declared a final dividend of HKD 0.17 per share for the year ended December 31, 2024, compared to HKD 0.43 per share in 2023, a reduction of approximately 60.5%[33] - The company will suspend share transfer registration from May 13, 2025, to May 16, 2025, with the record date set for May 16, 2025[110] - A second suspension of share transfer registration will occur from May 23, 2025, to May 26, 2025, with the record date on May 26, 2025, to establish entitlement to the proposed final dividend[111] Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, is responsible for reviewing the financial reporting procedures and internal controls of the group[112] - The company has adopted the corporate governance code as per the listing rules, with the chairman and CEO roles held by the same individual to enhance operational efficiency[114] - Deloitte has agreed to the preliminary financial figures for the year ending December 31, 2024, but has not issued an opinion or assurance on the preliminary announcement[115] - All directors confirmed compliance with the standard code of conduct for securities transactions throughout the reporting period[116] Strategic Developments - The company has accelerated its global strategy, achieving significant breakthroughs in markets such as Vietnam, Indonesia, and Cambodia, with the first batch of batteries rolling off the production line in Vietnam[47] - The company has made significant technological advancements in hydrogen fuel cells, sodium-ion batteries, and solid-state batteries, achieving important breakthroughs in multiple fields[45] - The sodium-ion battery project has been selected for the "Pioneer" technology tackling plan in Zhejiang Province for 2025, solidifying the company's competitive advantage in energy storage scenarios[65] - The company has built four green circular economy industrial parks in Zhejiang, Anhui, Jiangsu, and Henan, promoting sustainable practices in battery recycling and production[68]

2024年上半年，天能动力实现营收499.15亿元，同比增长约20.36%；对应归母净利润9.28亿元，同 比增长1.09%。 拉长时间看，2019-2023年，天能动力的营收规模从406.1亿元翻倍至838.9亿元，五年间营收基本呈 双位数增长，仅2021年出现12.87%的降幅。相比之下，其盈利能力未能跟上营收增长的脚步，2023年 归母净利润18.22亿元，仅较2019年的16.82亿元增长了8.32%，各期同比增速分别为41.53%、 47.28%、-47.52%、38.19%、1.42%。2021年以来，其归母净利润呈现较大波动，增长逐渐趋缓。 | | 二零二三年 | 二零二二年 | 二零二一年 | 一零二零年 | 二零一九年 | | --- | --- | --- | --- | --- | --- | | 臀莫額 | 83,890,973 | 74,598,641 | 85,615,917 | 53,525,039 | 40,613,555 | | 除税前溢利/(虧損) | 2,563,485 | 2,738,841 | 1,836,942 | 2,949,728 | 2,126,041 | | ...

Investment Rating - The report initiates coverage on Tianneng Power (00819) with a "Buy" rating and a target price of HKD 10.02, based on a 2025 PE of 6x [5][68] Core Views - Tianneng Power is a leading player in the lead-acid battery market for electric two-wheelers, with a market share exceeding 40% in China [3][12] - The lead-acid battery market is expected to benefit from the recovery of the electric two-wheeler industry, driven by policies such as the new national standard and trade-in programs [1][12] - The report forecasts that the lead-acid battery market for two- and three-wheelers in China will reach 323GWh by 2030, with a market size of RMB 113.1 billion [2][34] - Tianneng Power's lead-acid battery business has a high ROE, and the company is refocusing on this segment after reducing capital expenditure in the lithium battery business [4][56] Industry Analysis - Lead-acid batteries remain the dominant choice for electric two-wheelers due to their safety, economic value, and mature after-sales service network [2][30] - The penetration rate of lithium batteries in new electric two-wheelers is less than 10%, and lead-acid batteries are expected to maintain their leading position [2][29] - The new national standard for electric bicycles may relax weight limits, potentially increasing the battery capacity of lead-acid batteries [26][34] - Trade-in policies encourage the replacement of lithium batteries with lead-acid batteries, with additional subsidies of RMB 100 for such replacements [27][29] Company Strengths - Tianneng Power has a strong distribution network with over 400,000 terminal stores and partnerships with more than 3,000 distributors [4][51] - The company's lead-acid battery business has a high ROE, with historical ROE levels of 25% and 28% in 2019 and 2020, respectively [4][56] - Tianneng Power's lead-acid battery business has a consumer goods attribute, with 75% of its products sold directly to end consumers [4][51] - The company has a significant cost advantage in lead-acid batteries due to economies of scale and efficient production capabilities [49][54] Financial Projections - Revenue for 2024-2026 is projected to be RMB 88.63 billion, RMB 94.45 billion, and RMB 101.16 billion, with year-on-year growth rates of -12%, 14%, and 12%, respectively [5][64] - Net profit for 2024-2026 is expected to be RMB 1.39 billion, RMB 2 billion, and RMB 2.38 billion, with year-on-year growth rates of -24%, 44%, and 19%, respectively [5][64] - The lead-acid battery business is expected to generate revenue of RMB 37.33 billion, RMB 42.93 billion, and RMB 48.08 billion in 2024-2026, with growth rates of -12%, 15%, and 12%, respectively [66][67] Market Position and Competition - Tianneng Power holds a leading position in the lead-acid battery market for electric two-wheelers, with a market share of over 40% [3][12] - The company's main competitors include Chaowei Power, which has a lower gross margin but higher net margin compared to Tianneng Power [45][46] - Tianneng Power's lead-acid battery business has a higher net margin than Chaowei Power, attributed to better cost control and economies of scale [45][46]

Summary of Conference Call Records Company and Industry Overview - The conference call primarily discusses the **lead-acid battery industry**, focusing on **TianNeng Power** as a leading company in the sector. The industry is undergoing significant changes due to new policies and market dynamics [1][2][3][4]. Key Points and Arguments 1. **Policy Changes and Industry Impact** - The introduction of new national standards (新国标) has shifted market perceptions, moving away from traditional products towards lead-acid batteries as the dominant technology in electric two-wheelers and three-wheelers [1][2][3][4]. - The new standards are expected to positively influence the industry, particularly benefiting leading companies across the supply chain, including battery manufacturers and vehicle producers [5][6]. 2. **Market Demand Dynamics** - The demand for electric two-wheelers and three-wheelers is characterized as **rigid and consumer-driven**, with a significant existing market of approximately **480 million units** and annual new sales around **60 million units** [2][3][4]. - The company reports that **75%** of its sales are driven by replacement demand, indicating a stable market for battery products [2][3][4]. 3. **Current Market Challenges** - The period leading up to the formal release of the new standards has created uncertainty, leading to a cautious market environment where both dealers and consumers are hesitant to make purchases [5][6]. - The company is experiencing **inventory pressure**, with a significant portion of raw materials (70%) affecting production stability [7][8]. 4. **Future Outlook and Strategic Planning** - The company is optimistic about the recovery of demand post-implementation of the new standards, expecting a return to growth by **2025** as market conditions stabilize [9][10]. - Plans for the next five years include expanding into overseas markets and enhancing production capabilities, particularly in lithium battery recycling and lead-acid battery recovery [7][8][9]. 5. **Investment in Emerging Technologies** - The company is also focusing on developing lithium battery technologies and has established a **10 GWh** production capacity, aiming to leverage this for future growth [9][10]. - The strategy includes a cautious approach to new investments while ensuring the sustainability of traditional operations [7][8]. Additional Important Insights - The government has provided a grace period for existing electric two-wheelers produced under old standards, allowing them to remain on the market, which helps alleviate immediate sales pressures [5][6]. - The overall sentiment in the industry reflects a transition towards more sustainable practices, with a focus on recycling and environmental responsibility [9][10]. This summary encapsulates the critical insights from the conference call, highlighting the evolving landscape of the lead-acid battery industry and the strategic direction of TianNeng Power amidst regulatory changes and market challenges.

司 跟踪报 售 yuxiaoli@xyzq.com.cn SFC：AXK331 ＃su我mm们a的ry观＃点：天能动力稳居铅蓄电池龙头，有全国 40 多万家终端门店网络布局，业绩基本盘稳固； 当前股息率已具备吸引力；且后续资本开支有望回落，在铅酸业务强劲现金流带动下，公司整体 现金流有望进一步改善，为回馈投资者腾挪空间。我们预计公司 2024-2026 年归母净利润分别为 19.81、22.30、23.85 亿元，分别同比+8.7%、+12.5%、+7.0%；截至 2024 年 9 月 12 日收盘，公司 股价对应 2024-2026 年 PE 各为 3.5x、3.1x、2.9x，对应 PB 各为 0.4x、0.4x、0.3x；我们维持公司 "增持"评级，建议投资者关注。 2024H1 业绩维持稳健：1）营收：2024H1，公司营收同比+20.4%至 499.1 亿元，其中制造业务、 贸易业务收入各为 212.1、287.0 亿元，分别同比-2.0%、+44.8%。从制造业务内部来看，2024H1 铅酸电池、回收业务、锂电池收入各为 192.5、15.5、1.8 亿元，分别同比-0.3%、-9.8%、-50. ...

Financial Performance - The group’s revenue for the reporting period was approximately RMB 49.915 billion, an increase of about 20.36% compared to the same period last year[36]. - Gross profit for the period was approximately RMB 2.546 billion, a decrease of about 16.08% year-on-year, with a manufacturing gross margin of approximately 12.12%, down about 2.01 percentage points[37]. - Other income increased by approximately 58.29% to RMB 1.242 billion, primarily due to increased government subsidies and interest income[38]. - Revenue for the six months ended June 30, 2024, was RMB 49,914,629 thousand, an increase of 20.3% compared to RMB 41,471,150 thousand in the same period of 2023[63]. - The net profit for the period was RMB 1,065,607 thousand, compared to RMB 1,007,974 thousand for the same period in 2023, reflecting a growth of 5.7%[77]. Revenue Breakdown - The company achieved a manufacturing revenue of approximately RMB 21.211 billion during the reporting period[15]. - Revenue from high-end environmentally friendly batteries reached approximately RMB 19.252 billion[16]. - The lead-acid power battery segment generated revenue of about RMB 18.884 billion, maintaining its strategic focus[17]. - The lead-carbon energy storage battery business generated revenue of approximately RMB 160 million during the reporting period[21]. - Revenue from other high-end environmentally friendly batteries reached approximately RMB 208 million, with significant partnerships established in the automotive start-stop system sector[22]. - The new energy battery business, focusing on lithium-ion, hydrogen fuel, and sodium-ion batteries, achieved revenue of approximately RMB 187 million during the reporting period[23]. Product Development and Innovation - The company launched several new products, including the first electric motorcycle-specific lead-acid battery and the next-generation sodium-ion power battery "TianSodium T2"[13]. - The company launched the OPzV-1000 valve-regulated gel lead-carbon battery, addressing key pain points such as low energy efficiency and short lifespan, and proving its performance in the "Peaceful Co-storage" power station project with approximately 3 million lead-carbon batteries[21]. - The company launched the "Tian Sodium T2" power battery for electric two-wheelers, featuring layered oxide technology with superior performance characteristics[27]. - The first sodium-ion battery cell "Sodium Storage No. 1" was introduced, offering excellent low-temperature discharge performance and ease of maintenance[27]. - The company is committed to technological innovation, focusing on the dual-core development of "power batteries and energy storage systems"[13]. International Expansion - The first overseas smart manufacturing base was established in Vietnam, marking a significant step in expanding into the Southeast Asian market[14]. - The company is actively pursuing international expansion, with partnerships in Southeast Asia, Europe, and Africa[14]. - The company is actively expanding its international strategy, with production base construction in Vietnam and partnerships established in Southeast Asia, Europe, and the Americas[20]. Recycling and Sustainability - The recycling rates for waste lead-acid battery components exceeded 99%, while the recovery rates for lithium-ion battery sulfate and lithium carbonate reached over 98.5% and 90%, respectively[13]. - The company has established a comprehensive recycling industry chain for batteries, integrating production, recycling, smelting, and regeneration[29]. - The lead-acid battery recycling business generated revenue of about RMB 1.286 billion, with a processing capacity of 1 million tons of waste lead-acid batteries annually[30]. - The lithium-ion battery recycling segment reported revenue of approximately RMB 268 million, with a processing capacity of 10,000 tons of waste ternary lithium batteries annually[32]. - The group aims to establish a closed-loop green industry system for the entire lifecycle of lead and lithium batteries as a key development goal[34]. Financial Position - The group's total assets as of June 30, 2024, were approximately RMB 54.288 billion, an increase of about 16.12% from RMB 46.751 billion at the end of 2023[43]. - Total liabilities increased by approximately 25.57% to RMB 35.544 billion, with current liabilities rising by about 21.53% to RMB 28.299 billion[43]. - The group's cash and bank balances amounted to approximately RMB 19.493 billion, up from RMB 15.435 billion at the end of 2023[45]. - The debt-to-asset ratio was approximately 26.40%, compared to 19.42% at the end of 2023[47]. - The company’s total liabilities increased significantly, with borrowings repaid amounting to RMB (5,070,382,000) compared to RMB (3,898,063,000) in the previous year[71]. Employee and Governance - As of June 30, 2024, the total number of employees in the group was 21,929, a decrease from 27,253 as of June 30, 2023[50]. - Employee costs for the reporting period were approximately RMB 1.601 billion, compared to RMB 1.692 billion for the six months ending June 30, 2023[50]. - The company maintained high standards of corporate governance and complied with the relevant listing rules[58]. - The independent auditor reviewed the interim financial statements, confirming no significant issues were found[62]. Shareholder Information - Dr. Zhang Tianren holds 411,355,650 shares, representing 36.53% of the total issued share capital of 1,126,124,500 shares as of June 30, 2024[150][151]. - The company has a 25% equity interest in the joint venture Zhejiang Tianneng New Materials Co., Ltd., with Dr. Zhang Tianren owning 34,314,000 shares[148]. - The company’s total equity remained stable with issued and paid-up shares at 1,126,124,500 as of June 30, 2024, unchanged from previous periods[116].

Financial Performance - Revenue increased by approximately 20.36% to approximately RMB 49.914 billion[2] - Profit attributable to owners increased by approximately 1.09% to approximately RMB 928 million[2] - Basic earnings per share increased by approximately 1.09% to RMB 82.43[6] - The company reported a net profit of RMB 1.066 billion compared to RMB 1.008 billion in the previous year, an increase of approximately 5.7%[4] - The net profit for the six months ended June 30, 2024, reached RMB 928,222,000, a slight increase from RMB 918,209,000 in the same period of 2023, representing a growth of approximately 1.1%[23] - The group achieved a manufacturing revenue of approximately RMB 21.211 billion during the reporting period[41] - The group’s total revenue for the reporting period was approximately RMB 49.915 billion, an increase of about 20.36% year-on-year[58] Cost and Profitability - Gross profit decreased to RMB 2.546 billion from RMB 3.034 billion, a decline of approximately 16.1%[3] - Gross profit for the reporting period was approximately RMB 2.546 billion, a decrease of about 16.08% year-on-year, with a manufacturing gross margin of approximately 12.12%[59] - Other income increased by approximately 58.29% year-on-year to about RMB 1.242 billion, mainly due to increased government subsidies and interest income[60] Assets and Liabilities - Total assets increased to RMB 33.860 billion from RMB 29.340 billion, an increase of approximately 15.5%[7] - Total assets as of June 30, 2024, were approximately RMB 54.288 billion, an increase of about 16.12% compared to December 31, 2023[63] - Current liabilities increased to RMB 28.299 billion from RMB 23.286 billion, an increase of approximately 21.6%[8] - Total liabilities increased by approximately 25.57% to about RMB 35.544 billion as of June 30, 2024[63] - The debt-to-asset ratio as of June 30, 2024, is approximately 26.40%, up from 19.42% as of December 31, 2023[65] Research and Development - Research and development costs increased to RMB 942 million from RMB 829 million, an increase of approximately 13.6%[3] - Research and development costs rose from approximately RMB 829 million to about RMB 942 million, driven by an increase in the number of R&D projects[62] Shareholder Returns - The company declared a final dividend of HKD 0.43 per ordinary share, equivalent to RMB 0.3915, compared to RMB 0.3552 for the final dividend of HKD 0.40 per share in 2023, marking an increase of about 10.4%[22] - The company has not recommended an interim dividend for the six months ended June 30, 2024, and June 30, 2023[22] Employee and Operational Metrics - The total number of employees as of June 30, 2024, is 21,929, a decrease from 27,253 as of June 30, 2023, with employee costs for the reporting period amounting to approximately RMB 1.601 billion[68] International Expansion and Market Strategy - The company is committed to international expansion, with a focus on innovation and adapting battery products and energy solutions for global markets[40] - The group is actively expanding its international strategy, with production base construction in Vietnam and partnerships in Southeast Asia, Europe, and America[44] - The first overseas smart manufacturing base has been established in Vietnam, serving as a foothold for expanding into the Southeast Asian market[40] Product Development and Innovation - The company has developed and launched several new products, including the first electric motorcycle lead-acid battery and the next-generation sodium-ion power battery "TianSodium T2"[39] - The company launched a new generation 5MWh smart liquid cooling storage system, achieving industry-leading levels in adaptability, safety, and cycle life[49] - The company has established a comprehensive hydrogen energy solution covering various applications, including buses and loaders, contributing to local zero-carbon transportation initiatives[50] Environmental and Circular Economy Initiatives - The recycling rate for waste lead-acid battery components exceeds 99%, while the recovery rates for waste lithium-ion battery sulfate and lithium carbonate are over 98.5% and 90%, respectively[39] - The company reported external revenue of approximately RMB 1.554 billion from its circular economy initiatives during the reporting period[52] - The lead-acid battery recycling business generated revenue of approximately RMB 1.286 billion during the reporting period[53] - The group's lithium-ion battery recycling business generated revenue of approximately RMB 268 million during the reporting period[55] - The actual recycling volume of used lithium-ion batteries in 2023 was 623,000 tons, with the group capable of processing 10,000 tons of used ternary lithium-ion batteries annually[55] Governance and Compliance - The company has adopted corporate governance practices in compliance with the listing rules, with the chairman also serving as the CEO to enhance operational efficiency[73] - The financial information disclosed has not been audited but has been prepared in accordance with Hong Kong Accounting Standard 34[74]

Financial Performance - The company's revenue for 2023 was RMB 83,890,973, representing a 12.46% increase from RMB 74,598,641 in 2022[9] - The profit attributable to shareholders for 2023 was RMB 1,821,836, slightly up from RMB 1,796,385 in 2022, indicating a growth of 1.42%[9] - The company reported a basic earnings per share of RMB 1.62 for 2023, compared to RMB 1.60 in 2022[9] - The company's total revenue for the year ended December 31, 2023, was approximately RMB 83.891 billion, an increase of about 12.46% compared to the previous year[24] - The profit attributable to shareholders was approximately RMB 1.822 billion, reflecting a growth of about 1.42% year-on-year[24] - The basic earnings per share for the year were approximately RMB 1.62, with a proposed cash dividend of HKD 0.43 per share[24] - The group's gross profit decreased by approximately 6.65% from RMB 6.389 billion in 2022 to RMB 5.965 billion in 2023, with a gross margin decline of 1.45 percentage points to 7.11%[72] - Other income increased by approximately 71.47% from RMB 1.106 billion in 2022 to RMB 1.897 billion in 2023, primarily due to an increase in government subsidies from RMB 704 million to RMB 1.219 billion[73] Assets and Liabilities - Total assets increased to RMB 46,750,952 in 2023 from RMB 40,135,923 in 2022, reflecting a growth of 16.1%[11] - The total liabilities rose to RMB 28,306,329 in 2023, up from RMB 22,969,749 in 2022, marking a 23.5% increase[11] - Total assets increased by approximately 16.48% from RMB 40.136 billion in 2022 to RMB 46.751 billion in 2023, with non-current assets growing by about 28.05%[81] - Total liabilities rose by approximately 23.23% from RMB 22.970 billion in 2022 to RMB 28.306 billion in 2023, with non-current liabilities increasing by about 93.37%[83] - The net debt ratio improved from -11.00% in 2022 to -2.03% in 2023, indicating a stronger financial position[88] - As of December 31, 2023, the asset-liability ratio was approximately 19.42%, up from 15.47% in 2022[93] Market and Business Strategy - The company is focusing on the electric vehicle market and energy storage systems, with new projects like the South Taihu high-energy lithium battery and Jiangxi Xinfeng new energy manufacturing base being launched[19] - The company aims to enhance its resource recycling capabilities, improving the recycling level of used batteries and reducing energy consumption[19] - The company is actively participating in national strategies such as the "Belt and Road" initiative and "Yangtze River Delta Integration" to strengthen its market position[20] - The company aims to enhance its comprehensive competitiveness by developing diversified products and improving technological content and added value[25] - The company plans to continue its focus on green development and innovation, aiming to create a more attractive industrial ecosystem in the new energy sector[25] - The company is expanding its overseas market presence, having signed cooperation agreements with over 20 international distributors and opened offices in Thailand and the Netherlands[41] - The company is committed to driving the collaborative development of lead-acid batteries and smart energy storage as part of its core business strategy[30] Research and Development - The company has established its first overseas R&D center and completed two national key R&D project acceptances, enhancing its innovation capabilities[21] - The company has developed high-performance lead-carbon batteries, overcoming traditional battery limitations and achieving international leading performance levels[21] - The company launched the "TianNeng Full-Engine Technology Platform," enhancing key technologies across the battery lifecycle, including advanced material formulation and intelligent cloud charging[37] - The company has established a national-level technology center, emphasizing its focus on research and development in battery technology[120] - The company has established a sodium battery industry ecosystem alliance to promote the development and construction of the sodium battery ecosystem[56] Sustainability and Environmental Impact - The company is committed to sustainable development and has upgraded its resource recycling ecosystem to minimize environmental impact[19] - The company has achieved a metal material recovery rate of over 99% in its recycling operations, contributing to both economic and environmental benefits[33] - The recycling rate for metals, sulfuric acid, and plastics from waste lead-acid batteries exceeds 99%, significantly reducing the carbon footprint throughout the battery lifecycle[60] - The company has been recognized as a "Green Industrial Park" and "Green Factory" by the Ministry of Industry and Information Technology of China, showcasing its commitment to sustainable manufacturing[38] Corporate Governance - The company has maintained a high level of corporate governance, which is crucial for enhancing investor confidence[132] - The board consists of eight members, including three independent non-executive directors, ensuring strong independent elements for effective judgment[134] - The independent non-executive directors have confirmed their independence according to the listing rules, ensuring unbiased decision-making[134] - The company has established a system for directors to seek independent professional advice when necessary[136] - The board has mechanisms in place to ensure independent opinions are provided, including resources for directors to fulfill their duties[136] - The company is committed to reviewing its corporate governance structure to assess the need for separating the roles of chairman and CEO[133] Internal Control and Risk Management - The company has established a robust internal control and risk management system, which is reviewed annually to ensure effectiveness[174] - The audit committee will monitor the company's risk management system starting from January 1, 2022[168] - The company has appointed a professional management consulting firm to assess the effectiveness of its internal control system until December 31, 2023, and the board believes the system is adequate and effective[175] - The board has reviewed the effectiveness of the company's accounting and financial reporting functions and believes it has sufficient resources and qualified personnel[177] Employee and Management - Employee costs for the reporting period were approximately RMB 3.280 billion, slightly up from RMB 3.272 billion in 2022, with a total workforce of 25,776 employees[98] - The company has a strong management team with extensive experience in the battery industry, including Dr. Zhang Tianren, who has 38 years of experience in technology research and management[115] - The management team includes several executives with over 30 years of experience in battery enterprise management and sales, indicating a robust leadership structure[119][121] - The management team has undergone advanced training in business management, enhancing their strategic capabilities[121] Shareholder Information - The proposed final dividend is expected to be paid on or before July 8, 2024, pending shareholder approval at the annual general meeting on June 7, 2024[112] - The company has approximately RMB 919 million available for distribution reserves as of December 31, 2023, compared to RMB 909 million in 2022, reflecting a 1.1% increase[190] - The company will suspend share transfer registration from June 4, 2024, to June 7, 2024, and again from June 17, 2024, to June 18, 2024, for the annual general meeting and dividend entitlement respectively[112] - The company encourages effective communication between shareholders and the board, particularly during annual general meetings[152]