各位投资者上午好 谨代表李氏国际欢迎各位参加公司2024全年业绩投资者发布会会议开始前 让我为各位介绍今天出席会议的管理层分别是执行董事兼首席投资官洪云女士 大家好首席财务官黄一良先生 大家好公司秘书明嘉楠女士Doris 大家好 随其后的是汽车启动启停电池板块该板块的2024年度营收占比为36.8%与去年同期的27.4%相比增长了将近有10个百分点主要服务的对象包括新能源车燃油车摩托车重型卡车等 然后排名第三的是动力电池业务该业务板块2017年度的营收是营收占比为8.9%与去年同期占比持平主要服务的对象包括像高尔夫球车、物料运输车、产车、清扫机等等那么最后是我们的回收签业务板块该板块的营收占比为10.1%与去年的15%相比有点的下降 那么看到我们的主营业务增长情况那么我们的主营业务继我们的电源解决方案业务2024年实现了大幅增长从2023年的114.5亿元增长了26.7%至2024年度的145亿元这主要得益于我们售后渠道市场的布局的加强以及在千三基础业务板块上又加强了理电的业务发展布局同时以及公司整体运营的一个极致增效 今天的发布会分为两个部分首先管理层会就2024全年业绩投资亮点以及发展策略为我们做深入讲解 ...

Financial Performance - Revenue for the year ended December 31, 2024, reached RMB 16,126.5 million, representing a 19.7% increase compared to RMB 13,471.2 million in 2023[2] - Gross profit for the same period was RMB 2,266.8 million, up 16.6% from RMB 1,943.7 million in the previous year[2] - Profit attributable to equity holders of the parent company increased by 5.8% to RMB 566.4 million, compared to RMB 535.4 million in 2023[2] - Basic earnings per share rose to RMB 0.41 from RMB 0.39, reflecting a positive trend in profitability[4] - Total comprehensive income for the year was RMB 519.1 million, slightly down from RMB 542.2 million in 2023[5] - Total other income and gains for 2024 reached RMB 240,876 thousand, an increase of 5.2% from RMB 227,894 thousand in 2023[29] - Pre-tax profit for 2024 was RMB 694,329 thousand, up from RMB 643,854 thousand in 2023, reflecting a growth of 7.8%[40] - The total income tax expense for 2024 was RMB 130,827 thousand, significantly higher than RMB 76,018 thousand in 2023, indicating a rise of 72.0%[39] - The net profit for the period was RMB 563.5 million, slightly down from RMB 567.8 million for the year ended December 31, 2023, with profit attributable to equity holders of the parent at RMB 566.4 million compared to RMB 535.4 million in the same period last year[99] Revenue Breakdown - Revenue from the power solutions business was RMB 14,503,819 thousand in 2024, up 26.5% from RMB 11,447,457 thousand in 2023[23] - Revenue from lead recycling business decreased to RMB 1,622,658 thousand in 2024, down 19.8% from RMB 2,023,778 thousand in 2023[23] - Revenue from mainland China was RMB 9,474,381 thousand in 2024, representing a 16.1% increase from RMB 8,157,704 thousand in 2023[24] - Revenue from Europe, the Middle East, and Africa increased to RMB 2,753,830 thousand in 2024, a 42.3% rise from RMB 1,935,577 thousand in 2023[24] - Revenue from data center and network batteries amounted to RMB 6,852.8 million, with a year-on-year increase of 9.0%[69] - The revenue from starting batteries reached RMB 5,931.6 million, representing a year-on-year growth of 60.9%[70] - The revenue from power batteries was RMB 1,442.0 million, with a year-on-year increase of 19.2%[71] - The revenue in the Americas was RMB 2,571.3 million, with a year-on-year increase of 20.1%[78] - The revenue in the Asia-Pacific region (excluding mainland China) reached RMB 1,327.0 million, representing a year-on-year growth of 7.2%[82] Assets and Liabilities - Non-current assets increased to RMB 5,199.9 million from RMB 4,724.5 million, indicating growth in long-term investments[6] - Current liabilities decreased to RMB 8,027.8 million from RMB 8,210.0 million, improving the company's short-term financial position[6] - The total trade receivables increased to RMB 3,836,188,000 in 2024 from RMB 3,320,369,000 in 2023, representing a growth of approximately 15.5%[49] - The provision for trade receivables increased to RMB 131,910,000 in 2024 from RMB 73,128,000 in 2023, marking an increase of approximately 80.5%[51] - The total inventory rose to RMB 3,365,229,000 in 2024 from RMB 2,748,720,000 in 2023, reflecting an increase of approximately 22.4%[47] - The net asset value of the group decreased to RMB 49,500,000 in 2024 from RMB 100,000,000 in 2023, a decline of approximately 50.5%[48] - The total amount of payables as of December 31, 2024, was RMB 2,603,037, down from RMB 3,003,992 in 2023, indicating a decrease of 13.3%[61] - The group had no significant contingent liabilities as of December 31, 2024[122] Cash Flow and Financing - Cash and bank balances decreased significantly to RMB 743,975 in 2024 from RMB 1,563,343 in 2023, representing a decline of 52.5%[59] - Total bank borrowings increased from RMB 4,518,495 thousand in 2023 to RMB 5,190,491 thousand in 2024, reflecting a growth of approximately 14.9%[65] - The current portion of bank loans and advances due within one year rose to RMB 4,005,321 thousand in 2024, up from RMB 3,501,194 thousand in 2023[65] - The company has a total of RMB 1,204,966 thousand in assets pledged as collateral for bank loans[67] - The capital-to-debt ratio increased to 35.3% as of December 31, 2024, from 31.6% in 2023[121] Research and Development - Research and development expenses were reduced to RMB 342.6 million from RMB 371.9 million, indicating a focus on cost management[4] - Research and development costs for 2024 amounted to RMB 602,538 thousand, slightly up from RMB 597,014 thousand in 2023[30] - The company plans to increase R&D investment to improve the performance of core products such as high-power lead-acid batteries and intelligent power management systems[85] - The company is increasing R&D investment to develop high-performance battery products for new intelligent start-stop systems and hybrid vehicles[91] Strategic Initiatives - The company has launched modular and scalable energy storage system (ESS) solutions to meet diverse customer needs, driven by increased investment in renewable energy projects[69] - The company is enhancing its production facilities and distribution networks in the Asia-Pacific region to capitalize on government incentives for green energy and electric vehicle infrastructure[82] - The company is focusing on strategic partnerships with local EV manufacturers and renewable energy projects to strengthen its market position[82] - The company plans to spin off its wholly-owned subsidiary Leoch Energy Inc. for a separate listing in the United States, aiming to enhance operational efficiency and market value[98] Market Outlook - The company anticipates that by 2025, the global energy storage market will exceed USD 500 billion, with lithium battery systems expected to account for over 80%[87] - The global data center market is projected to surpass USD 300 billion by 2025, with an annual growth rate of over 15%[85] - The global starter battery market is expected to exceed USD 22 billion by 2024, with a compound annual growth rate of 4.5% projected for 2025[90] - The lithium battery market is projected to grow from approximately USD 60 billion in 2024 to USD 150 billion by 2030, indicating explosive growth opportunities for the company[94] Corporate Governance - The company was established on April 27, 2010, and has been listed on the Hong Kong Stock Exchange since November 16, 2010[8] - The executive directors include Dr. Dong Li and Ms. Hong Yu, with independent non-executive directors Mr. Cao Yixiong, Mr. Liu Zhijie, and Mr. Lu Zhiqiang[138] - The annual general meeting is scheduled for May 16, 2025, where shareholders can vote on the proposed dividend[135] - The board expresses gratitude to shareholders, customers, suppliers, and employees for their unwavering support[136]

Group 1 - The stock of Li Shi International (00842) rose over 10% during trading, reflecting a significant increase in demand for lead-acid backup power supply due to supply tightness [1] - The company is the largest exporter of lead-acid batteries in China, with a global operational advantage and a product line covering over 100 countries and regions [1] - Institutional research indicates that the supply of lead-acid backup power is becoming increasingly tight, with orders scheduled into September and October [1] Group 2 - Current backup power systems primarily rely on lead-acid batteries, but there is a trend towards lithium batteries in overseas markets due to advancements in technology [2] - The domestic lithium battery supply chain in China is relatively mature, with strong advantages in lithium iron phosphate technology, cost, and product solutions [2] - The slowdown in overseas lead-acid supply investment and the potential for domestic industry to meet incremental demand is viewed positively for the domestic battery industry [2]

Investment Rating - The report assigns a positive investment rating to the company, indicating a favorable outlook for future performance [1]. Core Insights - The company is a leading player in the communication backup lead-acid battery market, with a diverse product range and significant market share in various downstream sectors [4][6]. - The company plans to split and list in the US, which is expected to enhance operational efficiency and unlock value for both the parent and the spun-off company [2]. - The company has established strategic partnerships, including one with Amazon, to meet the growing demand for backup batteries in data centers, particularly driven by AI [9]. Company Overview - The company was founded in 1999 and operates over 80 factories globally, employing around 14,000 people [4]. - It offers more than 3,000 battery models, with revenue composition as follows: backup batteries (42%), start-stop batteries (38%), power batteries (9%), and lead recycling (10%) as of mid-2024 [4]. - Geographically, the revenue distribution is: China (58%), EMEA (15%), Americas (18%), and Asia-Pacific (8.8%) excluding mainland China [4]. Financial Performance - For the first half of 2024, the company reported revenue of 7.543 billion yuan, a year-on-year increase of 25.6%, with a gross profit of 1.062 billion yuan, up 29.8% [17]. - The net profit attributable to the parent company was 245 million yuan, reflecting a growth of 5.6% [17]. - The start-stop battery segment saw a remarkable revenue growth of 93.4%, with an organic growth rate of 57.1% [17]. Market Position - The company holds a significant position in the lead-acid battery market, ranking first in the shipment volume of communication base station storage batteries in China as of 2022 [12]. - The company is actively expanding its lithium battery segment, which currently accounts for less than 10% of total revenue, indicating substantial growth potential [11]. Strategic Initiatives - The company aims to enhance its market share in both original equipment manufacturers (OEM) and aftermarket channels, targeting a shift from a 3:1 ratio to an industry average of 1:3 [11]. - It is also exploring new battery technologies, including sodium batteries, vanadium flow batteries, and lithium-sulfur batteries, to align with market trends [11].

Investment Rating - The report assigns a positive investment rating to the company, indicating a favorable outlook for future performance [1]. Core Insights - The company is a leading player in the communication backup lead-acid battery market, with a diverse product range and significant market share in various downstream sectors [4][6]. - The company plans to split and list in the US, which is expected to enhance operational efficiency and unlock value for both the parent and the spun-off company [2]. - The company has established strategic partnerships, including one with Amazon, to meet the growing demand for backup batteries in data centers, particularly driven by AI [9]. Company Overview - The company was founded in 1999 and operates over 80 factories and sales offices globally, employing around 14,000 people [4]. - It offers more than 3,000 battery models, with revenue composition as follows: backup batteries (42%), start-stop batteries (38%), power batteries (9%), and lead recycling (10%) as of mid-2024 [4]. - Geographically, the revenue distribution is 58% from China, 15% from EMEA, 18% from the Americas, and 8.8% from the Asia-Pacific region (excluding mainland China) [4]. Financial Performance - For the first half of 2024, the company reported revenue of 7.543 billion yuan, a year-on-year increase of 25.6%, with a gross profit of 1.062 billion yuan, up 29.8% [17]. - The net profit attributable to the parent company was 245 million yuan, reflecting a growth of 5.6% [17]. - The start-stop battery business saw a remarkable revenue growth of 93.4%, with an organic growth rate of 57.1% [17]. Market Position - The company holds a significant position in the lead-acid battery market, ranking first in the shipment volume of communication base station storage batteries in China as of 2022 [12]. - The company is actively expanding its lithium battery segment, which currently accounts for less than 10% of total revenue, indicating substantial growth potential [11]. Strategic Initiatives - The company aims to enhance its market share in the aftermarket for start-stop batteries, targeting a shift from a current ratio of 3:1 in favor of OEMs to an industry average of 1:3 [11]. - It is also exploring new battery technologies, including sodium batteries, vanadium flow batteries, and lithium-sulfur batteries, to align with market trends [11].

Investment Rating - The report does not explicitly state an investment rating for the company [2]. Core Insights - The company, Leoch International, plans to spin off its subsidiary Leoch Energy Inc. and pursue an independent listing in the United States, which is expected to enhance its internationalization strategy [5][9]. - Leoch International is the largest exporter of lead-acid batteries in China, with a significant global operational presence, covering over 100 countries and regions [6]. - The company has diversified its product development, focusing on lithium and lead-carbon batteries, with expectations that lithium products will account for 50% of its revenue in the next five years [7]. Summary by Sections Company Overview - Leoch International operates in the energy storage equipment industry, with a current stock price of HKD 1.90 and a market capitalization of HKD 26.28 billion [4]. Business Strategy - The spin-off and listing will allow Leoch International to concentrate on domestic market growth while Leoch Energy Inc. will handle overseas expansion, particularly in North America [5][9]. - The company has established a balanced revenue distribution between domestic (57.9%) and overseas markets (42.1%), indicating strong competitiveness in both areas [6]. Financial Performance - For the first half of 2024, Leoch International reported total revenue of RMB 7.54 billion, reflecting a year-on-year growth of 25.6% [6]. Product Development - The company is expanding its product lines beyond lead-acid batteries, with ongoing research and production of lithium and lead-carbon batteries [7]. - The company has successfully entered the Japanese automotive market through acquisitions, enhancing its overseas business prospects [9].

Financial Performance - For the six months ended June 30, 2024, the Group's turnover was RMB 7,542.9 million, representing a year-on-year increase of 25.6%[9] - Gross profit for the same period was RMB 1,061.8 million, with a gross margin of 14.1%, up from 13.6% in 2023, reflecting a growth of 29.9%[9] - Profit attributable to owners of the parent increased by 5.6% to RMB 244.8 million, while the basic earnings per share was RMB 0.18[10] - The Group's revenue for the period reached RMB 7,542.9 million, a 25.6% increase compared to RMB 6,003.4 million in the same period of 2023[38] - Profit for the period was RMB 241.7 million, representing a decrease of 5.3% from the previous year, while profit attributable to owners of the parent increased by 5.6% to RMB 244.8 million[38] - The Group's gross profit increased by 29.8% to RMB 1,061.8 million, with an overall gross profit margin rising from 13.6% to 14.1%[46] - Total comprehensive income for the period was RMB 233,041, a decrease of 25.4% from RMB 312,402 in 2023[118] - Basic earnings per share increased to RMB 0.18, compared to RMB 0.17 for the same period in 2023[116] Revenue Breakdown - The reserve power battery business accounted for 41.6% of total sales, generating RMB3,135.4 million, a year-on-year growth of 9.9%[16] - The SLI battery business contributed 37.7% of total sales, with revenue of RMB2,841.1 million, representing a significant year-on-year growth of 93.4%[17] - The motive power battery segment accounted for 9.1% of total sales, achieving revenue of RMB686.8 million, reflecting a year-on-year growth of 10.5%[19] - Sales revenue in the Chinese Mainland reached RMB4,363.9 million, marking a year-on-year growth of 19.2% driven by strong demand in the automotive sector and UPS systems[23] - The America Region recorded revenue of RMB1,349.5 million, representing a year-on-year growth of 67.6%, driven by demand in the automotive sector and industrial applications[24] - EMEA region sales revenue amounted to RMB 1,165.2 million, representing a year-on-year growth of 18.5% from RMB 983.4 million[26] - Asia-Pacific region (excluding Mainland China) recorded sales revenue of RMB 664.4 million, reflecting a year-on-year growth of 20.2% from RMB 552.6 million[27] Cost and Expenses - Operating costs increased by 1.8%, while gross margin improved by 0.5% due to reduced activities in joint ventures[15] - The cost of sales increased by 25.0% to RMB 6,481.1 million, in line with the increase in sales[45] - Selling and distribution expenses rose by 14.9% from RMB 214.3 million for the six months ended June 30, 2023, to RMB 246.3 million for the period, driven by increased import/export fees and sales commissions[50] - Administrative expenses increased by 14.0% from RMB 195.0 million for the six months ended June 30, 2023, to RMB 222.3 million for the period, mainly due to higher staff costs and office depreciation from business acquisitions[51] - Research and development costs grew by 13.0% from RMB 160.7 million for the six months ended June 30, 2023, to RMB 181.5 million for the period, attributed to performance enhancement and new product development[52] Supply Chain and Market Challenges - The Group faced supply chain challenges, particularly with lead availability, which impacted production costs and battery prices[14] - Shipping costs escalated due to geopolitical tensions, affecting overall profitability[14] - The appreciation of the RMB against the USD has negatively impacted profitability due to increased international activities denominated in USD[14] - The company faces supply chain challenges related to raw materials, particularly lead, impacting production costs and battery pricing[15] Research and Development - The company is investing in R&D to enhance battery life, efficiency, and safety, maintaining a leading role in the market[23] - The Group is focusing on R&D for new battery technologies, including lithium, lead-carbon, and sodium-ion batteries, to improve product differentiation and market competitiveness[35] - The company aims to expand its market presence and enhance product offerings through ongoing research and development initiatives[116] Corporate Governance and Shareholder Information - The Board recommended an interim dividend of HK 4 cents per share for the period[10] - The Group encourages employee training and development, providing workshops to enhance work safety knowledge and team spirit[62] - The Company is committed to high standards of corporate governance, although there were deviations from certain code provisions during the annual general meeting[98] - The Company has maintained compliance with the Corporate Governance Code, except for specific deviations noted during the reporting period[99] Financial Position and Assets - As of June 30, 2024, the group's net current assets amounted to RMB 1,473.7 million, with bank borrowings increasing to RMB 4,947.3 million[58] - Total non-current assets increased to RMB 4,984,285, up 5.5% from RMB 4,724,538 as of December 31, 2023[120] - Current assets decreased to RMB 9,069,829, down 3.2% from RMB 9,370,706 as of December 31, 2023[120] - Total equity attributable to owners of the parent increased to RMB 4,447,242, up from RMB 4,199,162 as of December 31, 2023[122] Borrowings and Financing - The Group has secured term loan facilities of HK$231,075,000 and US$70,375,000 for working capital financing[91] - The total amount repayable within one year is RMB 3,689,369,000, compared to RMB 3,501,194,000 in the previous period, indicating a rise of about 5.4%[197] - The total non-current borrowings, including convertible bonds, reached RMB 1,322,673,000, an increase from RMB 1,017,301,000[196] Market Outlook - The automotive industry remains the major consumer of lead-acid batteries, particularly for traditional internal combustion engine vehicles and backup power systems[12] - The lead-acid battery market is expected to grow steadily, particularly in auxiliary functions for electric vehicles[17] - Future growth is anticipated in the reserve power battery business, supported by ongoing technological advancements and market development trends[29]

Revenue and Profitability - Revenue for the six months ended June 30, 2024, was RMB 7,542.9 million, representing a 25.6% increase from RMB 6,003.4 million in the same period of 2023[1] - Profit attributable to equity holders of the parent rose by 5.6% to RMB 244.8 million, compared to RMB 231.8 million in the prior year[1] - The company reported a decrease in net profit for the period of 5.3%, down to RMB 241.7 million from RMB 255.3 million in the previous year[1] - Basic earnings per share for the period was RMB 0.18, compared to RMB 0.17 in the same period last year[3] - The company reported a pre-tax profit of RMB 5,614,959 thousand for the first half of 2024, compared to RMB 4,539,577 thousand in 2023, reflecting a growth of 23.7%[23] - The profit for the period was RMB 241.7 million, a decrease of 5.3% year-on-year, while the profit attributable to the parent company increased by 5.6% to RMB 244.8 million[54] Gross Profit and Margins - Gross profit increased by 29.8% to RMB 1,061.8 million, with a gross margin of 14.1%, up from 13.6% in the previous year[1] - The gross profit rose by 29.8% to RMB 1,061.8 million, with an overall gross margin increasing from 13.6% to 14.1%[58] Revenue Breakdown by Segment - The backup battery segment accounted for 41.6% of total sales, generating RMB 3,135.4 million in revenue, a 9.9% increase compared to the same period in 2023[43] - The starter battery segment contributed 37.7% to total sales, with revenue of RMB 2,841.1 million, marking a significant year-on-year growth of 93.4%[44] - The power battery segment represented 9.1% of total sales, achieving revenue of RMB 686.8 million, which is a 10.5% increase year-on-year[45] - The lead recycling business reported revenue of RMB 744.4 million, a decrease of 25.3% compared to the previous year, impacted by market challenges and lead price fluctuations[46] Revenue by Region - Revenue from mainland China increased to RMB 4,363,895 thousand in 2024, a rise of 19.2% from RMB 3,662,189 thousand in 2023[17] - The Americas region saw revenue of RMB 1,349.5 million, a substantial increase of 67.6% year-on-year, supported by high demand for lead-acid batteries in automotive and industrial applications[49] - Sales in the Europe, Middle East, and Africa region amounted to RMB 1,165.2 million, representing an 18.5% increase compared to the same period last year[50] - The Asia-Pacific region (excluding mainland China) generated revenue of RMB 664.4 million, a 20.2% increase year-on-year, driven by growth in automotive and industrial sectors[51] Financial Position and Assets - Total assets as of June 30, 2024, amounted to RMB 14,054.1 million, compared to RMB 14,095.2 million as of December 31, 2023[6] - Total non-current assets as of June 30, 2024, amounted to RMB 4,597,871 thousand, an increase from RMB 4,340,384 thousand as of December 31, 2023[18] - The net asset value of current assets was RMB 1,473,698 thousand, up from RMB 1,160,659 thousand, indicating a significant increase[7] - The company's total liabilities and equity as of June 30, 2024, were RMB 4,833,509 thousand, compared to RMB 4,588,640 thousand as of December 31, 2023[7] Liabilities and Financial Costs - Non-current liabilities, including interest-bearing bank loans, rose to RMB 1,257,911 thousand from RMB 956,169 thousand, reflecting a 31.5% increase[7] - The company incurred finance costs of RMB 160,085 thousand in the first half of 2024, significantly higher than RMB 98,058 thousand in 2023, marking a 63.3% increase[25] - The company's total liabilities related to bank loans due within one year were RMB 3,689,369,000 as of June 30, 2024, compared to RMB 3,501,194,000 as of December 31, 2023[38] Dividends and Shareholder Returns - The company maintained an interim dividend of 4 HK cents per share, consistent with the previous year[1] - The proposed interim dividend is 4 Hong Kong cents per share, consistent with the previous year, amounting to RMB 50,227,000 for the six months ended June 30, 2024, compared to RMB 50,219,000 for the same period in 2023[28] Research and Development - R&D expenses rose by 13.0% to RMB 181.5 million, mainly for enhancing product performance and developing new products[62] Administrative and Other Expenses - Administrative expenses increased by 14.0% to RMB 222.3 million for the six months ended June 30, 2023, primarily due to employee costs and office depreciation from business acquisitions[61] - Other income and gains decreased to RMB 65.9 million from RMB 124.0 million, indicating a decline in additional revenue streams[2] Strategic Focus and Innovations - The company continues to focus on technological innovations to enhance energy density, lifespan, and charging efficiency in response to market demands[42] - The company is actively expanding its lithium battery production capacity to meet the growing demand from various sectors, including communications and data centers[53] - The company plans to enhance its product performance and quality while deepening cooperation with clients across various fields to seize more market opportunities[52]

Summary of the Conference Call Company Overview - The company is focused on the lead-acid battery sector since 1999 and has recently expanded into lithium battery production and technology to support green transformation in the industry [1][2]. Industry and Market Position - The company has established a global production network with factories in China, Vietnam, Mexico, India, and Malaysia, which helps meet overseas customer demands and reduces transportation costs [2]. - The main product segments include: - **Backup Batteries**: Primarily for telecommunications, UPS data centers, alarms, and renewable energy systems [3]. - **Automotive Starting Batteries**: Comprising 27.4% of total sales, serving both electric and traditional fuel vehicles [3]. - **Recycling Business**: Servicing both internal and third-party manufacturers [4]. - **Power Batteries**: Providing stable cash flow for low-speed vehicles and industrial applications [4]. Financial Performance - In 2023, the company reported revenues of 13.47 billion, a year-on-year increase of 4.9% [13]. - Net profit reached 568 million, up 12.9% year-on-year, with a gross margin increase from 12.4% to 14.4% [14]. - The dividend payout for 2023 was 0.01 per share, with a payout ratio of 25.6% [15]. Customer Base and Growth - The customer base includes major telecommunications companies and data centers, with new clients like Amazon and Century Internet added in 2023 [6]. - The company has a significant market share in the backup battery market, holding 32% in China, with 50% of these batteries used in data centers [25]. Strategic Initiatives - The company is focusing on product diversification, particularly in lithium and lead-carbon batteries, aiming for lithium battery revenue to reach 50% within five years [31]. - Recent acquisitions include a 70% stake in Tianjin Jieshi and Shunde, enhancing production capacity and market share in the Japanese automotive sector [27]. Future Outlook - The company plans to expand its lithium battery production lines and establish a logistics management center in Singapore to enhance international operations [29][35]. - The focus on data centers and AI-driven growth is expected to increase demand for battery products significantly [60]. Challenges and Risks - The company faces challenges from rising raw material prices, particularly lead, which has seen significant price increases recently [67]. - Tariff policies in the U.S. on electric vehicle batteries may impact growth, but the company has mitigated risks through its global manufacturing footprint [46][47]. Conclusion - The company is well-positioned in the battery industry with a strong focus on innovation, customer proximity, and strategic growth through acquisitions and product diversification. The outlook remains positive, driven by increasing demand in data centers and electric vehicles, despite potential challenges from raw material costs and regulatory changes.

Summary of Conference Call Transcript Industry or Company Involved - The discussion revolves around the lead-acid battery sector and the company's expansion into lithium battery production Core Points and Arguments - The company has focused on leading players in various industries since 1999, emphasizing its commitment to the lead-acid battery segment [1] - Continuous improvement in production processes for lead-acid batteries has been a priority for the company [1] - In recent years, the company has diversified its operations by entering the lithium battery market, indicating a strategic shift [1] - The company has established lithium battery production lines and invested in research and development for lithium battery products [1] - New technologies have been introduced to support the industry's green transformation, highlighting a commitment to sustainability [1] Other Important but Possibly Overlooked Content - The mention of the company's long-term focus on the lead-acid battery sector suggests a deep understanding of the market dynamics and customer needs [1] - The transition to lithium batteries may indicate a response to changing market demands and the growing importance of renewable energy solutions [1]