Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 1.82, indicating a potential upside of 43% from the current price of HKD 1.27 as of April 9, 2024 [1][18]. Core Insights - The company achieved a revenue of RMB 13.471 billion in 2023, representing a year-on-year increase of 4.9%. The gross profit reached RMB 1.595 billion, up 21.9%, and the net profit attributable to shareholders was RMB 535 million, an increase of 11.3% [18]. - The company is expanding its production capacity globally, with new battery assembly plants in Mexico and plans for a new starter battery production facility in Malaysia, expected to begin production by late 2024 or early 2025 [19]. - The gross margin improved to 14.4% in 2023, primarily due to better control over manufacturing costs and a significant reduction in transportation costs [19]. - The company is actively developing its overseas business, with overseas sales revenue reaching RMB 950 million, a substantial increase from RMB 480 million the previous year [19]. Financial Projections - Revenue is projected to grow to RMB 16.176 billion in 2024 and RMB 19.404 billion in 2025, with corresponding net profits of RMB 652 million and RMB 840 million [5][19]. - The earnings per share (EPS) are expected to be RMB 0.48 for 2024 and RMB 0.62 for 2025 [19]. - The company maintains a dividend yield of 8% based on the current stock price, with a proposed final dividend of HKD 0.07 per share [19]. Shareholder Structure - The major shareholders include 董李 with 74.5%, 睿思资本 with 6.0%, and RUAN David Ching Chi also holding 6.0%, with other shareholders making up the remaining 8.5% [2].

Financial Performance - The company's revenue for the year 2023 was RMB 13,471.2 million, representing a 4.9% increase from RMB 12,845.9 million in 2022[1]. - Gross profit increased by 21.9% to RMB 1,943.7 million, compared to RMB 1,594.8 million in the previous year[1]. - Net profit for the year was RMB 567.8 million, up 12.9% from RMB 502.7 million in 2022[1]. - Revenue from batteries and related products amounted to RMB 11,447.5 million, up 9.7% from RMB 10,432.8 million in the previous year, driven by a 19.4% growth rate in the Chinese market and a 0.3% growth rate in overseas markets[34]. - In the second half of 2023, revenue from batteries and related products was RMB 6,440.6 million, representing a 28.6% increase compared to RMB 5,006.9 million in the first half of the year[34]. - The company's customer contract revenue for 2023 was RMB 13,471,235,000, compared to RMB 12,845,859,000 in 2022, indicating growth[75]. - The company's profit attributable to equity holders for 2023 was RMB 545,389,000, an increase from RMB 481,075,000 in 2022, representing a growth of approximately 13.4%[89]. Market Expansion and Strategy - The company plans to establish a battery assembly plant in Mexico to enhance competitiveness in the Americas, with production expected to commence in a few months[14]. - The company has acquired a 70% stake in two advanced starter battery factories to expand its market share in China, anticipating rapid growth in this sector in 2024[14]. - The company aims to expand its market share in emerging economies while strengthening risk management and enhancing technological innovation capabilities in response to global instability factors[21]. - The company is confident in its starter battery business and plans to enhance R&D investment while integrating resources from previous acquisitions to capitalize on the growing demand for new energy vehicles[64]. - The company aims to expand its global footprint in green energy storage products, aligning with the international consensus on climate change and sustainable development[66]. Research and Development - The R&D team consists of over 380 personnel focused on developing new models of lead-acid batteries and lithium-ion batteries, as well as energy management systems[13]. - Research and development costs totaled RMB 597.0 million, compared to RMB 574.3 million in the previous year, indicating a continued investment in innovation[52]. - The company plans to accelerate production capacity expansion for lithium battery production lines in Anhui, China, and Vietnam starting in 2024[155]. Sales and Revenue Breakdown - The sales revenue from starter batteries reached RMB 3,687.0 million, a significant increase of 28.9% from RMB 2,860.1 million in 2022, accounting for approximately 32.2% of total battery sales revenue[7]. - The sales revenue of backup batteries for the period was RMB 6,284.4 million, an increase of 4.6% compared to RMB 6,006.1 million in the previous year, accounting for approximately 54.9% of total battery sales revenue[37]. - The sales revenue of power batteries decreased to RMB 1,209.4 million, a decline of 3.9% from RMB 1,258.3 million in the previous year, representing about 10.6% of total battery sales revenue[41]. - The sales revenue from recycled lead products was RMB 2,023.8 million, a decrease of 16.1% compared to RMB 2,413.0 million in the previous year[43]. Financial Position and Assets - The total value of non-current assets increased to RMB 4,724.5 million in 2023 from RMB 3,704.9 million in 2022[33]. - Cash and cash equivalents rose significantly to RMB 1,563.3 million in 2023, compared to RMB 436.2 million in 2022[33]. - The company's total liabilities increased to RMB 3,003,992,000 in 2023 from RMB 2,361,044,000 in 2022, marking an increase of about 27.3%[103]. - The company's inventory remained stable at approximately RMB 100,000,000 in both 2023 and 2022, indicating no change year-over-year[90]. - The company's trade receivables increased to RMB 3,320,369,000 in 2023 from RMB 2,817,996,000 in 2022, reflecting a growth of about 17.8%[91]. Economic Outlook - The International Monetary Fund has adjusted the global economic growth forecast for 2024 to 3.1%, with emerging Asian economies expected to grow at 5.2%[19]. - The global data center market is projected to reach USD 340 billion by 2024, growing at a CAGR of 6.56% to over USD 438.7 billion by 2028, positively impacting the UPS battery industry[22]. - The household energy storage market is expected to grow from approximately USD 4.38 billion in 2023 to USD 16.75 billion by 2029, with a CAGR of 24.4%[29]. - The telecommunications battery market is projected to grow at a CAGR of 15.76%, reaching USD 9.24 billion from 2023 to 2028, driven by advancements in communication technologies[24]. Dividend and Shareholder Returns - The proposed final dividend per share is 7.0 HK cents, down from 10.0 HK cents in the previous year[1]. - The company plans to propose a final dividend for the fiscal year 2023, subject to approval at the upcoming annual general meeting[87].

Financial Performance - The Group's revenue for the period was RMB6,003.4 million, a decrease of 2.7% compared to RMB6,168.3 million in the same period of 2022[4][6]. - Profit for the period increased significantly by 141.1% to RMB232.6 million, with profit attributable to owners of the parent rising by 161.3% to RMB209.1 million[4][5]. - Basic and diluted earnings per share for the period were RMB0.15[4][5]. - The Group's gross profit increased by 19.3% to RMB818.0 million, with the overall gross profit margin rising from 11.1% to 13.6%[12][18]. - The Group's cost of sales decreased by 5.4% to RMB 5,185.4 million, down from RMB 5,482.9 million, attributed to a shift in revenue mix towards higher margin products[48]. - Profit before tax for the Period was RMB265.7 million, compared to RMB144.5 million for the six months ended 30 June 2022, reflecting a significant increase[147]. - Income tax expenses decreased by 31.3% from RMB48.1 million for the six months ended 30 June 2022 to RMB33.0 million for the Period, mainly due to a decrease in taxable profit[147]. - The Group recorded a profit for the Period of RMB232.6 million, up from RMB96.5 million for the six months ended 30 June 2022, with profit attributable to owners of the parent at RMB209.1 million[147]. Revenue Breakdown - Revenue from the Power Solutions business slightly increased by 1.9% to RMB5,006.9 million, while revenue from the Recycled Lead business decreased by 20.7% to RMB996.5 million[6]. - Revenue from power solutions increased by 1.9% to RMB 5,006.9 million, while revenue from recycled lead products decreased by 20.7% to RMB 996.5 million[128]. - The total revenue from reserve power batteries was RMB 2,853.2 million, accounting for 47.5% of total revenue, with a slight decrease of 3.1% compared to the previous year[131]. - The SLI battery business contributed 24.5% of total sales, with revenue of RMB1,469.1 million, an increase of 4.4% year-on-year[104]. - The motive power battery segment contributed 10.4% of total sales, with revenue of RMB621.8 million, representing a 16.3% increase compared to the previous year[106]. - Sales revenue from power batteries amounted to RMB 621.8 million, a 16.3% increase compared to RMB 534.6 million in the same period last year[116]. - Sales revenue from lead recycling products was RMB 996.5 million, a decrease of 20.7% from RMB 1,257.1 million in the same period last year[117]. Dividends and Shareholder Information - An interim dividend of HK4 cents per share has been recommended for the Period, compared to nil for the same period last year[34]. - The Board proposed an interim dividend of HK 4 cents per share, compared to no dividend in the same period last year[70]. - As of 30 June 2023, Dr. DONG Li beneficially owns 1,014,021,000 shares, representing 74.47% of the total shares issued[38]. - The total number of shares in issue as of 30 June 2023 is 1,361,707,666[38]. - Ms. YIN Haiyan holds 3,650,000 shares, which includes options granted under the 2010 Share Option Scheme and the New Share Option Scheme[38]. Operational Developments - The Group plans to enhance its global production layout and expand its product range to meet the increasing demand for energy storage and starting batteries[1]. - A flagship factory in Anhui will focus on lithium battery production, with plans to gradually increase annual production capacity[1]. - The Group intends to establish a battery assembly plant in Mexico to extend its production lines into the North American market[1]. - The Group plans to commence construction of a battery assembly plant in Mexico within the year to serve the North American market[112]. - The Group signed an agreement in July to acquire 70% stakes in Tianjin Jieshi Battery Co., Ltd. and Shunde Yuasa Battery Co., Ltd. for approximately HK$230 million, aiming to enhance cooperation and expand business scale[127]. Employee and Expense Information - As of June 30, 2023, the Group had 13,019 employees, with employee benefit expenses totaling RMB 533.1 million, up from RMB 488.0 million in the previous year[48]. - The Group's selling and distribution expenses decreased by 29.0% from RMB 301.7 million in the first half of 2022 to RMB 214.3 million in the current period[139]. - Administrative expenses increased by 28.2% from RMB 152.1 million in the first half of 2022 to RMB 195.0 million, primarily due to increased staff costs[139]. - Research and development expenditure rose by 31.5% from RMB 122.2 million in the first half of 2022 to RMB 160.7 million, aimed at enhancing product performance and developing new products[139]. Financial Position and Borrowings - As of June 30, 2023, the Group's bank borrowings amounted to RMB2,916.8 million, with an effective interest rate range of 1.88% to 8.10%[22]. - The Group's bank borrowings are secured by various assets including properties, equipment, and trade receivables[32]. - The Group's gearing ratio as of June 30, 2023, was 25.9%, slightly up from 25.8% at the end of 2022[141]. - The Group's cash and bank deposits amounted to RMB1,139.9 million as of 30 June 2023, compared to RMB1,230.0 million as of 31 December 2022[147]. - The Group's finance costs increased by 32.3% from RMB74.1 million for the six months ended 30 June 2022 to RMB98.1 million for the Period due to higher average interest rates[147]. Market Outlook and Trends - The average growth rate of the Group's battery business in China was over 27% in terms of turnover during the first half of 2023[87]. - The Group expects overseas shipments to recover in the second half of the year, while growth in China is anticipated to continue[102]. - The global start-stop battery market size is projected to grow from US$70.6 billion in 2022 to US$273.4 billion in 2032, representing a compound annual growth rate of 14.5%[110]. - The market size of data centers is expected to rise from US$5 billion in 2023 to over US$120 billion in 2030, with a compound annual growth rate of 12%[119]. - The market size of household energy storage products is expected to grow from approximately US$4.38 billion in 2023 to US$16.75 billion in 2028, representing a compound annual growth rate of 24.4%[124]. Risks and Challenges - The Group's financial performance is subject to foreign exchange risk[44]. - The decrease in recycled lead revenue was attributed to increased internal sales to battery factories and a reduction in sales to unprofitable third-party accounts[107]. - The Group's profit contribution from the recycled lead business has improved, as reflected in the profit attributed to minority interest[107].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何 部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 1 截至二零二三年六月三十日止六個月 中期業績公告 誠如本公司日期為二零二三年四月四日的公告所載，從二零二二財政年度開始，銷 售成本中已納入本集團產品的運輸成本。因此，期內產品的運輸成本納入到銷售成 本而非銷售及分銷開支以更佳與行業內其他公司進行基準對比。倘於期內有關運輸 成本將如截至二零二二年六月三十日止六個月般入賬列作銷售及分銷開支，則期內 本集團的毛利將進一步增加116.0百萬元。毛利率將進一步增加2.0%至15.6%。 中期業績 2 | --- | --- | --- | --- | |----------------------------------|----------|------------------------------------------------------|---------------------------| | | | 截至六月三十日止六個月 \n二零二三年 \ ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因公告全部或任何部 份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Leoch International Technology Limited 理士國際技術有限公司 （於開曼群島註冊成立的有限公司） （股份代號：842） 茲提述理士國際技術有限公司（「本公司」）於二零二三年四月二十四日刊發的截至二 零二二年十二月三十一日止年度的年報（「二零二二年年報」）。除另有界定者外，本 公告所用詞彙與二零二二年年報所載列者具有相同涵義。 (ii) 期內就根據本公司的所有計劃授出的購股權及獎勵可能發行的股份數目（即 新購股權計劃項下的37,500,000股股份）除以期內已發行股份的加權平均數（即 1,357,854,935股）為0.0276；及 | --- | --- | --- | |-------|-------|----------------------| | | | 承董事會命 | | | | 理士國際技術有限公司 | | | | 主席 | | | | 董李博士 | 1 截 ...

Financial Performance - For the year ended December 31, 2022, the Group's revenue increased by 13.6% to approximately RMB12,845.9 million compared to RMB11,303.1 million in 2021[14]. - Gross profit for the same period rose by 5.6% to RMB1,594.8 million, up from RMB1,509.7 million in 2021[14]. - Profit attributable to owners of the parent surged by 225.3% to RMB442.8 million, compared to RMB136.1 million in the previous year[14]. - Basic earnings per share increased to RMB0.33 from RMB0.10 in 2021, based on a weighted average of 1,357,854,935 shares issued during the year[17]. - The Group's overall revenue for the year reached RMB12,845.9 million, a 13.6% increase from RMB11,303.1 million in 2021[41]. - Profit for the period amounted to RMB464.4 million, compared to RMB166.7 million for the year ended December 31, 2021, with profit attributable to owners of the parent at RMB442.8 million[123]. Dividends and Shareholder Returns - The Board recommended a final dividend of 10 HK cents per share for the year ended December 31, 2022, compared to no dividend in 2021[18]. - The Group did not declare or pay any interim or special dividends during the year ended December 31, 2022[19]. Revenue Breakdown - Revenue from the battery business amounted to RMB10,432.8 million, a 12.8% increase from RMB9,249.2 million in the same period of 2021, driven by a 25.8% growth in overseas markets and 1.9% in the PRC market[39]. - Sales of reserve power batteries reached RMB6,006.1 million, representing a 26.2% increase compared to RMB4,758.9 million in 2021, accounting for approximately 57.6% of total battery sales revenue[44]. - Revenue from recycled lead products was RMB2,413.0 million, an increase of 17.5% from RMB2,053.9 million in 2021, despite higher collection costs impacting profit margins[56]. - SLI battery sales decreased by 4.9% to RMB2,860.1 million from RMB3,006.0 million in 2021, representing 27.4% of total battery sales revenue[46]. - Motive power batteries recorded sales revenue of RMB1,258.3 million, a 2.9% increase from RMB1,223.1 million in 2021, accounting for approximately 12.1% of total battery sales revenue[51]. Market Expansion and Strategy - The Group plans to expand its business with key accounts and strengthen its distribution sales network in various battery segments, with a focus on the aftermarket as a driving engine for sales and profit[28]. - The lithium battery and Energy Storage System applications are identified as another key growth driver for the company[28]. - The Group's sales network spans over 100 countries and regions, with more than 80 sales offices and centers globally, employing over 700 dedicated sales and marketing staff[57]. - The Group anticipates that the APAC region will be a major contributor to overseas business growth in 2023, driven by China's economic recovery[112]. - The Group aims to expand its market share in China by investing sufficient resources in the new energy vehicle segment, which includes partnerships with major domestic brands[100]. Research and Development - The company is investing more in technology and product development, with a R&D team of 1,000 engineers, enabling the production of over 3,000 different battery models and holding more than 900 patents[29]. - R&D expenses surged by 59.9% to RMB 382.9 million, focusing on enhancing existing products and developing new ones[144]. - The battery R&D team consists of over 350 researchers and technicians, focusing on new models of lead-acid and lithium-ion batteries[62][64]. Economic and Market Conditions - The global economic growth is projected to fall to 2.9% in 2023, with inflation expected to decrease to 6.6%[78][81]. - The automobile market in China is expected to grow at a rate of approximately 3% in 2023, supported by economic stabilization policies and alleviation of chip supply shortages[96]. - The demand for reserve power batteries for 5G applications in the PRC market is increasing, with expectations for further growth due to infrastructure development[89][92]. Operational Efficiency - The Group's cost of sales increased by 14.9% to RMB 11,251.1 million, primarily due to increased sales volume[136]. - Gross profit rose by 5.6% to RMB 1,594.8 million, but the overall gross profit margin decreased from 13.4% in 2021 to 12.4% in 2022[137]. - The Group's factory has maintained full capacity operations despite industry-wide challenges, contributing to sustained growth in recycled lead output[118]. Employee and Workforce Management - Employee benefit expenses totaled RMB1,053.1 million for the period, an increase from RMB1,020.2 million in 2021, covering wages, bonuses, and retirement benefits[191]. - The Group has established a share option scheme for selected participants to incentivize and reward contributions[193]. - The Group encourages continuous education and training for employees to enhance their skills and personal development[193]. Future Outlook - The Group plans to invest in a battery assembly plant in Mexico in 2023 to enhance competitiveness in the Americas[67]. - The establishment of a lithium battery recycling business is planned for 2023, following a careful evaluation of the industry's future prospects[119].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何 部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 公告： 截至二零二二年十二月三十一日止年度全年業績的補充資料 茲提述理士國際技術有限公司於二零二三年三月二十四日刊發的截至二零二二年 十二月三十一日止年度（「二零二二財年」）的年度業績公告（「業績公告」）。除非另有 所指，否則本公告所用詞彙與業績公告所界定者具有相同涵義。 倘於二零二二年有關運輸成本將如二零二一年般入賬列作銷售及分銷成本，則本集 團的銷售及分銷成本將由二零二一年的人民幣586.1百萬元增加38.6%至二零二二財 年的人民幣812.0百萬元，且本集團的毛利將由二零二一年的人民幣1,509.7百萬元增 加至二零二二財年的人民幣2,017.7百萬元，增加約33.6%。其後毛利率將由二零二一 年約13.4%增至二零二二財年的15.7%。 | --- | --- | --- | |-------|-------|----------------------| | | | | | | | 承董事會命 ...

Leoch International Technology Limited 理士國際技術有限公司 （於開曼群島註冊成立的有限公司） （股份代號：842） | --- | --- | --- | --- | |---------------------------|---------------------------|-------------------------|--------| | | | | | | | | | | | 財務摘要 | | | | | | 二零二二年 人民幣百萬元 | 二零二一年 人民幣百萬元 | 變動 | | 營業額 | 12,845.9 | 11,303.1 | 13.6% | | 毛利 | 1,594.8 | 1,509.7 | 5.6% | | 本年度溢利 | 464.4 | 166.7 | 178.6% | | 母公司擁有人應佔溢利 | 442.8 | 136.1 | 225.3% | | 每股基本盈利 （人民幣） | 0.33 | 0.10 | | | 建議每股末期股息 （港仙） | 10.0 | 無 | | 全年業績 | --- | --- | --- | --- | ...

@ 於 開 曼 群 島 註 册 成 立 的 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) ch Batte Stock Code 股票代號:842 理 士 國 際 技 術 有 限 公 司 LEOCH INTERNATIONAL TECHNOLOGY LIMITED Interim Report 2022 中期報告 LEOCH LEOCH I I 4 dictio 理工电池 Q # Acter (@ Addi Contents 目錄 | --- | --- | --- | |-------------------------------------------------------------------|------------------------------|-----------| | | | Contents | | | | 目錄 | | | | Page 頁碼 | | | | | | Corporate Information | 公司資料 | 2 | | Financial Highlights | 財務 ...

@ 於 開 曼 群 島 註 册 成 立 的 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) ch Batte Stock Code 股票代號:842 理 士 國 際 技 術 有 限 公 司 LEOCH INTERNATIONAL TECHNOLOGY LIMITED Annual Report 2021 年報 LEOCH LEOCH I I 4 dictio 理工电池 0 dotest Addi # Contents 目錄 | --- | --- | --- | |------------------------------------------------|------------------|-----------------| | | | Contents \n目錄 | | | | | | Corporate Information Financial Highlights | 公司資料 | 2 5 | | Chairman's Statement | 財務摘要 | 7 | | | 主席報告 | | | Manag ...