Core Viewpoint - The company is actively exploring new models of cooperation between banks and enterprises, focusing on deep integration through party building and tailored financial services to support the real economy [1] Group 1: Party Building and Financial Solutions - The company utilizes party building as a bridge to enhance trust and cooperation between banks and enterprises, creating a dual-driven approach of "Party Building + Business" [2] - A customized "full-cycle" financial solution is developed, moving away from traditional product-centric models to a layered and scenario-based service system tailored to the characteristics of the TianNeng battery industry [2] - The company offers flexible credit solutions, such as a 6-month seasonal inventory loan for upstream distributors, addressing short-term liquidity challenges [2] Group 2: Interactive Engagement and Experience - The company enhances communication efficiency by designing immersive interaction scenarios, resulting in the collection of 45 effective financing needs, with 32 converting into actual business [3] - Informal social settings, such as self-service tea breaks, are created to facilitate comfortable communication between account managers and distributors, capturing potential needs [3] - One-on-one consultations are conducted to address specific pain points of distributors, leading to tailored financial solutions [3] Group 3: Long-term Service and Support - A "closed-loop service" system is established to ensure that cooperation is sustained beyond initial engagements, with 15 distributors already completing loan approvals through dedicated teams [4] - Physical touchpoints are utilized to maintain relationships, inviting distributors to local branches and establishing direct communication channels [4] - A dedicated service team is formed to oversee the entire loan process, promising feedback within 3 working days and loan disbursement within 7 working days, thereby building trust through efficiency [4]

Core Insights - The 2025 Indonesia Asia Bike Exhibition was held in Jakarta, showcasing TianNeng Battery's diverse power solutions for various applications, including transportation and industrial logistics [1] - TianNeng highlighted its high-temperature lead-acid batteries, lithium battery solutions, and traction batteries, demonstrating its capabilities in the power energy sector and technological innovation [1] - The company introduced its high-temperature battery technology at a concurrent technology development forum, addressing the unique climate conditions in Indonesia and the high-frequency usage scenarios of electric two-wheelers and three-wheelers [1] Group 1 - TianNeng's high-temperature batteries significantly improve heat resistance, cycle life, and voltage stability compared to standard batteries, enhancing user experience in Indonesia's high-temperature environment [1] - The company plans to increase product investment and channel development in Southeast Asia, launching customized solutions tailored to local conditions [1] Group 2 - In addition to optimizing lead-acid batteries, TianNeng is actively promoting the commercialization and large-scale application of lithium battery technology, which offers high energy density, lightweight design, fast charging, and high safety [2] - The lithium battery solutions have been customized for the Indonesian market, focusing on high-temperature resistance, BMS management systems, and modular structures, supporting a dual approach of lead and lithium battery technologies [2] - Since entering the Indonesian market in 2023, TianNeng has been advancing its localization strategy, establishing an office in Indonesia in 2024 to build a local support system for channels, services, and brand operations [2]

Core Insights - The company is leveraging an "AI + ecosystem" strategy to transform its manufacturing processes and create a comprehensive ecosystem that integrates smart manufacturing, supply chain collaboration, and digital marketing [1][2] - The focus on "green development" and "intelligent efficiency" is driving significant changes in production processes, leading to reduced energy consumption and costs while exploring new digital applications [1] - The establishment of the "Future Factory" project in 2019 has enabled the company to implement advanced automation and digital technologies, enhancing sustainability and operational efficiency [1] Manufacturing Innovations - The company has developed an industrial internet platform that connects core enterprises in the supply chain, enhancing collaboration and efficiency [2] - The implementation of a Manufacturing Execution System (MES) has improved raw material inventory turnover rates and accelerated product development cycles through an "AI + expert" model [2] - The Wu Mountain Smart Factory, launched in 2022, serves as a model for replicating smart manufacturing practices across various core production bases [2] Technological Advancements - The company is advancing 5G applications in logistics, predictive maintenance, and production monitoring, with the Puyang Company achieving over 98% 5G network coverage [2] - The integration of 5G technology has led to a 20% reduction in delivery times, a 20% increase in production capacity, and a 30% rise in output [2] Market and Customer Engagement - Real-time data visualization across thousands of terminal points has improved market identification efficiency by five times, enabling grid-based market management [3] - The use of user profile data has driven personalized marketing efforts, resulting in a continuous increase in the sales proportion of high-value products [3] - The company has developed a community marketing engine utilizing AI technologies to generate personalized marketing content, enhancing conversion rates and customer retention [3]

Summary of TianNeng Power's Conference Call Company Overview - TianNeng Power was established in 1986 and listed on the Hong Kong main board in 2007. In 2021, its subsidiary TianNeng Co. successfully spun off and listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board [3][4]. Financial Performance - In 2024, TianNeng Power reported a revenue of 76.669 billion yuan, a year-on-year decrease of 8.61%. The net profit attributable to shareholders was 1.142 billion yuan, down 37.29% [3][4]. - The manufacturing revenue reached 43.059 billion yuan, with lead-acid batteries accounting for approximately 39.854 billion yuan, representing 91% of manufacturing revenue [4]. - The lithium-ion battery segment generated about 0.478 billion yuan in revenue, while the recycling industry contributed over 2.721 billion yuan [4]. Business Developments - The company is actively expanding into diverse application scenarios, including automotive starting systems, communication base stations, and backup power sources. It is also investing in lithium-ion, hydrogen fuel, sodium-ion, and solid-state battery technologies to meet various customer needs [3][4]. - In the lithium-ion battery sector, the focus is on low-speed power and energy storage applications, with successful product launches in low-speed vehicle-grade lithium batteries and solid-state battery cells [3][6]. - The recycling business has a capacity of 1.2 million tons for waste disposal, with a material recovery rate exceeding 99.5%. The recycling industry value reached 12.9 billion yuan, generating over 2.7 billion yuan in external revenue [7][4]. International Expansion - The company has seen rapid growth in overseas markets, with a manufacturing base in Vietnam that is currently under construction, contributing to an overseas revenue of 0.31 billion yuan, a year-on-year increase of 28% [3][4]. Market Outlook - The first quarter of 2025 shows signs of industry recovery, particularly in the two-wheeler market. The company remains optimistic about the lead-acid battery market and is focused on international expansion [9][10]. - The management expects to see improvements in financial performance as lead prices return to normal levels, alleviating cost pressures [15][14]. Challenges and Adjustments - The lead-acid battery market faced challenges due to price volatility and regulatory changes, impacting demand in the second half of 2024. However, the company anticipates growth opportunities from the old-for-new policy [5][12]. - The lithium battery segment reported a revenue of approximately 0.5 billion yuan but incurred a loss of 0.86 billion yuan. Adjustments in product offerings and sales strategies are expected to lead to a positive contribution within 1 to 2 years [24][25]. Strategic Focus - The company aims to solidify its core business while expanding into various application markets, enhancing channel development, and accelerating new commercialization efforts [8]. - Future capital expenditures will focus on smart upgrades in the lead-acid battery sector, new product development, and investments in lithium battery projects, with a significant reduction expected in the coming years [19][27]. Recycling and Sustainability - The company emphasizes resource recycling and regeneration, with a focus on lead-acid and lithium battery recycling. The management believes that the circular economy will have a positive outlook under national policy guidance [18][17]. Conclusion - TianNeng Power is navigating a challenging market environment with strategic adjustments and a focus on innovation and international expansion. The company is well-positioned to leverage its strengths in the lead-acid battery market while exploring new opportunities in lithium and other emerging technologies [16][34].

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.

Investment Rating - The report maintains an "Accumulate" rating for the company, suggesting investors pay attention to its performance [2][3]. Core Views - The company, Tianneng Power, remains a leader in the lead-acid battery sector with a robust network of over 400,000 retail outlets nationwide, ensuring a solid performance base [1][3]. - The current dividend yield is attractive, and future capital expenditures are expected to decrease, which, combined with strong cash flow from lead-acid operations, will improve overall cash flow and provide room for shareholder returns [1][3]. - The projected net profits for the company from 2024 to 2026 are estimated at 1.981 billion, 2.230 billion, and 2.385 billion RMB, reflecting year-on-year growth rates of 8.7%, 12.5%, and 7.0% respectively [1][4]. Summary by Sections Financial Performance - In H1 2024, the company's revenue increased by 20.4% year-on-year to 49.91 billion RMB, with manufacturing and trading revenues at 21.21 billion and 28.70 billion RMB, respectively [1]. - The gross profit for H1 2024 was 2.55 billion RMB, down 16.1% year-on-year, with a gross margin of 5.1%, a decline attributed to rising lead prices and an increase in lower-margin trading business [1][4]. - The net profit attributable to shareholders for H1 2024 was 0.93 billion RMB, a slight increase of 1.1% year-on-year, supported by government subsidies and derivative contract gains [1]. Competitive Advantages - The company has a strong market position in lead-acid batteries, particularly for two-wheeled vehicles, with a production capacity of 130 GWh [1]. - Tianneng Power's channel advantage and production efficiency contribute to its growing market share, with minimal impact from competitors like Yadea [1]. - The company is expanding its overseas operations, with a factory planned in Vietnam, which is expected to enhance revenue growth in Southeast Asia [1]. Capital Expenditure and Cash Flow - Capital expenditures have been high from 2021 to 2023, but are expected to decrease as the company pauses lithium battery expansion and optimizes its recycling operations [1][3]. - The company reported a dividend of 0.43 HKD per share in 2023, with a payout ratio of approximately 22%, translating to a dividend yield of 6.5% based on the closing price on September 12, 2024 [1][2].