Financial Performance - The Group's turnover for the six months ended June 30, 2022, was approximately RMB 6,168.3 million, representing a 19.1% increase from RMB 5,180.5 million in the same period of 2021[13]. - Gross profit for the same period was RMB 685.4 million, a decrease of 8.0% compared to RMB 744.9 million in 2021[13]. - Profit for the period increased by 116.9% to RMB 96.5 million, up from RMB 44.5 million in the previous year[13]. - Profit attributable to owners of the parent reached RMB 80.0 million, marking a significant increase of 174.3% from RMB 29.2 million in 2021[13]. - Basic earnings per share for the period was RMB 0.06, compared to RMB 0.02 in the same period last year[15]. - Other income and gains surged by 617.0% to RMB 114.5 million, mainly driven by increased exchange gains and government grants[83]. - Profit before tax rose to RMB 144.5 million, compared to RMB 55.5 million for the same period in 2021[93]. - Income tax expenses increased by 335.4% to RMB 48.1 million, attributed to a rise in assessable profit[94]. - Total comprehensive income for the period reached RMB 132,295,000, a significant increase of 167% compared to RMB 49,545,000 in the same period last year[193]. Revenue Breakdown - Revenue from the Power Solutions business amounted to RMB 4,911.2 million, a 15.6% increase from RMB 4,248.0 million in the same period last year[33]. - The Recycled Lead business generated revenue of RMB 1,257.1 million, reflecting a 34.8% increase from RMB 932.5 million in the corresponding period of 2021[44]. - The reserve power battery business accounted for 47.7% of total sales, with sales revenue of RMB 2,945.4 million, up 45.2% from RMB 2,028.1 million in the previous year[37]. - The SLI battery business contributed 22.8% of total sales, with revenue of RMB 1,406.9 million, a slight decrease of 1.3% from RMB 1,425.9 million in the same period last year[39]. - The motive power battery segment represented 8.7% of total sales, with revenue of RMB 534.6 million, down 2.4% from RMB 547.9 million in the previous year[42]. - The Group's recycled lead business contributed 20.4% of total sales, but rising costs of scrap batteries negatively impacted gross profit margins[44]. Operational Overview - The Group operates over 80 sales offices and centers globally, serving battery customers in more than 100 countries[24]. - The Group has eleven manufacturing facilities located in the PRC, Vietnam, Malaysia, India, and Sri Lanka[24]. - The Power Solutions business is categorized into three major applications: reserve power batteries, SLI batteries, and motive power batteries[24]. - The Group is also engaged in the recycled lead business in the People's Republic of China[23]. Cost and Expenses - Selling and distribution expenses increased by 21.9% to RMB 301.7 million, primarily due to rising freight charges and export-related expenses[84]. - Research and development costs decreased by 29.1% to RMB 122.2 million, mainly due to the completion of recycling skill improvements[90]. - The Group's cost of sales increased by 23.6% to RMB 5,482.9 million, primarily due to increased sales volume[78]. - Gross profit decreased by 8.0% to RMB 685.4 million, with a gross profit margin of 11.1%, down from 14.4% in the previous year[81]. Economic Context - Global economic growth is projected to slow from around 6% last year to 3.2% in 2022, with inflation revised up to 8.3% due to rising food and energy prices[48]. - The PRC government has adjusted its GDP growth target for 2022 from "around 5.5%" to a focus on stabilizing employment and prices[49]. - China's reserve power batteries shipment grew by over 30% in tonnage compared to the same period in 2021, indicating strong market demand[52]. Shareholder Information - Dr. DONG Li beneficially owns 1,009,513,000 shares, representing 74.35% of the issued share capital[134]. - Ms. YIN Haiyan has been granted options for 1,500,000 shares and 1,000,000 shares under the 2010 Share Option Scheme and the New Share Option Scheme respectively[134]. - Mr. CAO Yixiong Alan and Mr. LAU Chi Kit have both been granted options for 800,000 shares under the 2010 Share Option Scheme[134]. - The total issued shares as of June 30, 2022, was 1,357,854,666 shares[134]. - The New Share Option Scheme allows the issuance of a maximum of 135,764,466 shares, representing 10% of the issued shares as of the extraordinary general meeting on October 30, 2020[150]. Corporate Governance - The Company has confirmed compliance with the Model Code for Securities Transactions by Directors during the reporting period[166]. - The Company has maintained high standards of corporate governance, meeting the provisions of the Corporate Governance Code during the period[169]. - The Audit Committee has reviewed the unaudited financial statements and discussed accounting principles and internal control matters with management and auditors[170].

Financial Performance - Revenue for 2021 reached RMB 11,303,125, an increase of 17.4% from RMB 9,631,362 in 2020[14] - Gross profit for the year was RMB 1,509,706, reflecting a growth of 27.0% compared to RMB 1,188,279 in 2020[14] - Profit for the year amounted to RMB 166,729, which is a 20.8% increase from RMB 137,964 in the previous year[14] - Profit attributable to owners of the parent was RMB 136,126, up 10.0% from RMB 123,732 in 2020[14] - Basic earnings per share increased to RMB 0.10, compared to RMB 0.09 in 2020[14] - The Group's gross profit rose by 27.0% to RMB 1,509.7 million, with the overall gross profit margin increasing from 12.3% in 2020 to 13.4%[144] - Profit before tax increased to RMB 192.0 million from RMB 161.7 million in 2020, reflecting improved operational performance[159] - Net profit for the period was RMB 166.7 million, up from RMB 138.0 million in 2020, with profit attributable to owners of the parent rising to RMB 136.1 million from RMB 123.7 million[161] Revenue Breakdown - Revenue from battery sales amounted to RMB 9,249.2 million, an 11.1% increase from RMB 8,324.2 million in 2020, driven by a 27.3% growth in the overseas market[51] - Sales of reserve power batteries reached RMB 4,758.9 million, a 13.7% increase compared to RMB 4,187.1 million in 2020, accounting for approximately 51.5% of total battery sales revenue[55] - Revenue from recycled lead business increased by approximately 57.1% to RMB 2,053.9 million from RMB 1,307.1 million in 2020[51] - Sales of SLI batteries amounted to RMB 3,006.0 million, representing a 4.3% increase from RMB 2,883.1 million in 2020, accounting for approximately 32.5% of total battery sales revenue[58] - The motive power batteries business recorded sales revenue of RMB 1,223.1 million, representing a 9.7% increase from RMB 1,114.6 million in 2020, accounting for approximately 13.2% of total battery sales revenue[64] Market and Economic Outlook - The global economy experienced a strong recovery in 2021, with the Group's business in the EMEA and Americas regions achieving over 36% and 50% year-on-year growth rates respectively during the period[28] - The economic outlook for China in 2022 is predicted to be relatively bright, with GDP growth forecast at over 5%, higher than the global average[35] - The Group anticipates sustained growth in overseas business, despite potential challenges from renewed COVID-19 outbreaks and supply chain disruptions[30] - The World Bank projects global growth to decelerate from 5.5% in 2021 to 4.1% in 2022 due to ongoing COVID-19 disruptions and supply bottlenecks[89] - China's GDP grew by 8.1% in 2021, the largest increase since 2011, but the government set a lower GDP target of 5.5% for 2022, indicating weaker economic expectations[88][91] Production and Capacity - The Group's manufacturing plants, with 85% of production capacity located in China, operated smoothly to meet increasing overseas demand despite a slowdown in local demand[24] - The Group plans to concentrate production capacity resources more in China in the near future to enhance efficiency[29] - The production capacity of the recycling plant was fully utilized at the maximum allowed capacity of 200,000 tons in 2021[80] - The Group's Vietnam factories accounted for 8% of total production capacity in 2021, with an average utilization ratio of 70% due to labor supply issues[75] Research and Development - The Group's R&D team consists of over 350 researchers focused on developing new models of lead-acid and lithium-ion batteries, including those for smart cars[70] - R&D expenditure rose by 38.6% from RMB 172.7 million in 2020 to RMB 239.4 million, primarily for enhancing existing products and developing new products across all categories[151] - The Group is focusing on marketing and R&D for new 5G products, including lithium-ion batteries, to capture opportunities from the rising 5G life cycle in 2022 and beyond[56] Investment and Financial Position - The Group invested RMB282.6 million in property, plant, and equipment for new production facilities during the period, down from RMB520.0 million in 2020[183] - As of December 31, 2021, the Group's net current assets were RMB541.8 million, a decrease from RMB596.4 million in 2020, with cash and bank deposits at RMB951.7 million, up from RMB848.5 million[186] - The Group's bank borrowings totaled RMB2,372.2 million as of December 31, 2021, compared to RMB2,303.3 million in 2020, with effective interest rates ranging from 1.80% to 7.09%[186] - The gearing ratio as of December 31, 2021, was 24.7%, slightly down from 25.4% in 2020, calculated by dividing total borrowings by total assets[187] Challenges and Strategic Focus - The Group plans to continue investing in relevant technology and products, increasing production capacity and flexibility to meet changing client demands[43] - The Group will continue to monitor the global economic outlook and manage overseas resources prudently amid uncertainties[125] - The Group aims to enhance customer satisfaction and solidify its world-class status through competitive pricing, reliable quality, and comprehensive services[42]

Financial Performance - The Group's turnover for the six months ended June 30, 2021, was approximately RMB 5,180.5 million, representing a 40.6% increase from RMB 3,684.2 million in the same period of 2020[12]. - Gross profit for the same period was RMB 745.0 million, up 56.1% from RMB 477.4 million year-on-year[12]. - Profit for the period increased significantly to RMB 44.5 million, a 233.8% rise compared to RMB 13.3 million in the previous year[12]. - Profit attributable to owners of the parent was RMB 29.2 million, reflecting a 15.9% increase from RMB 25.2 million in 2020[12]. - Basic earnings per share remained stable at RMB 0.02 for both 2021 and 2020[14]. - Profit before tax for the period was RMB 55.5 million, compared to RMB 26.1 million in the same period of 2020[83]. - Total comprehensive income for the period reached RMB 49,545,000, a significant increase from RMB 4,701,000 in the previous year, representing a growth of approximately 951%[175]. - The net income attributable to owners of the parent was RMB 34,072,000, compared to RMB 16,890,000 in 2020, marking an increase of about 102%[175]. Revenue Breakdown - Revenue from the Power Solutions business was RMB 4,248.0 million, an increase of 24.7% from RMB 3,405.4 million in the same period last year[31]. - The Recycled Lead business saw revenue of RMB 932.5 million, a significant increase of 234.5% from RMB 278.8 million in the corresponding period of 2020[31]. - Revenue in Mainland China increased by 38.2% to RMB 3,157.5 million, primarily due to increased production output from the Recycled Lead business[68]. - The reserve power battery business accounted for 39.1% of total sales, with sales revenue of RMB 2,028.1 million, a 10.1% increase from RMB 1,842.3 million in the same period last year[37]. - The SLI battery business contributed 27.5% of total sales, with revenue of RMB 1,425.9 million, representing a 35.7% increase from RMB 1,050.7 million in the same period last year[40]. - The motive power battery segment contributed 10.6% of total sales, with revenue of RMB 547.9 million, a 13.7% increase from RMB 481.7 million in the same period last year[40]. Operational Insights - The Group serves battery customers in over 100 countries through more than 80 sales offices and 11 manufacturing facilities located in various countries[22]. - The Group provides backup power solutions to leading telecommunications operators and data center solution providers globally[20]. - The Group anticipates that the new 5G investment cycle will drive growth in the telecommunications and data center backup power solution market in China, presenting new growth opportunities[50]. - The Group has increased resources for research and development to meet the rapid expansion of mobile and data center infrastructure requirements, impacting short-term profitability[50]. Cost and Expenses - Cost of sales rose by 38.3% to RMB 4,435.5 million, primarily due to increased sales[73]. - Selling and distribution expenses increased by 44.4% to RMB 247.5 million, driven by higher freight charges and sales staff commissions[78]. - Research and development expenditure surged by 140.6% to RMB 172.4 million, focusing on performance enhancement of existing products and new product development[78]. - Administrative expenses and research and development costs totaled RMB 143,971 and RMB 172,357 respectively for the six months ended June 30, 2021[167]. Financial Position - As of June 30, 2021, the Group's net current assets were RMB 534.2 million, with cash and bank deposits totaling RMB 858.2 million[83]. - The Group's gearing ratio was 25.2% as of June 30, 2021, slightly down from 25.4% at the end of 2020[86]. - As of June 30, 2021, the Group's bank borrowings amounted to RMB 2,341.6 million, with an interest rate range of 1.80% to 7.90%[88]. - The Group's debt-to-asset ratio was 25.2% as of June 30, 2021, slightly down from 25.4% at the end of 2020[89]. - Current assets totaled RMB 5,828,453,000, up from RMB 5,594,180,000, reflecting an increase of approximately 4.2%[177]. - Total current liabilities amounted to RMB 5,294,298,000, an increase from RMB 4,997,761,000, which is approximately 5.9% higher[179]. - Total equity increased to RMB 3,450,285,000 from RMB 3,399,936,000, showing a growth of approximately 1.5%[181]. Share Options and Corporate Governance - The total number of shares issued as of June 30, 2021, is 1,357,854,666[132]. - The company has authorized a stock option plan allowing for the issuance of up to 135,764,466 shares, representing 10% of the issued shares as of the special meeting date on October 30, 2020[125]. - The company secured a term loan facility of US$100,000,000 to refinance a previous facility and finance working capital, with repayment scheduled in five installments of 15%, 15%, 15%, 15%, and 40% over three years[137][138]. - The company is committed to high standards of corporate governance and believes it has met the relevant code provisions during the reporting period[146]. - The Audit Committee has reviewed the unaudited financial statements and discussed accounting principles and internal controls with management and auditors[148].

Financial Performance - For the year ended December 31, 2020, the Group's revenue increased by 15.2% to approximately RMB9,631.4 million compared to RMB8,362.7 million in 2019[16] - Gross profit for the year was RMB1,188.3 million, reflecting a growth of 17.0% from RMB1,015.4 million in the previous year[16] - Profit attributable to owners of the parent was approximately RMB123.7 million, an increase of 8.2% from RMB127.5 million in 2019[18] - The Group's profit for the year was RMB137.9 million, compared to RMB127.5 million in 2019, indicating a positive trend in profitability[16] - The Group's revenue for the year ended December 31, 2020, amounted to RMB 9,631.4 million, representing a 15.2% increase from RMB 8,362.7 million in 2019[49] - Profit for the period amounted to RMB 138.0 million, compared to RMB 127.5 million in 2019, with profit attributable to the owners of the parent at RMB 123.7 million, down from RMB 132.6 million in the previous year[123] - Basic earnings per share decreased to RMB0.09 from RMB0.10 in 2019, based on a weighted average of 1,357,594,679 shares issued during the year[19] Revenue Breakdown - Revenue from the battery business was RMB 8,324.2 million, a 12.7% increase from RMB 7,386.5 million in 2019, with over 75% of this revenue coming from the PRC market[50] - Sales of reserve power batteries amounted to RMB 4,187.1 million, a 7.0% increase from RMB 3,913.1 million in 2019, accounting for approximately 50.3% of total battery sales[52] - SLI batteries sales increased to RMB 2,883.1 million, a 16.7% rise from RMB 2,470.5 million in 2019, representing about 34.6% of total battery sales[58] - The motive power batteries business recorded sales revenue of RMB1,114.6 million, an increase of 33.7% compared to RMB833.9 million in 2019, accounting for approximately 13.4% of total battery sales revenue[63] - Revenue from recycled lead products amounted to RMB1,307.1 million, representing a 34.6% increase from RMB971.2 million in 2019, with significant output growth after resuming full operations[66] Market and Economic Outlook - The Group plans to continue focusing on market expansion and product development to sustain growth in the coming years[15] - The Group anticipates fierce competition in China, which may lead to oversupply and price wars affecting margins and profits[39] - The global economic recovery in 2021 is uncertain, with many wealthy nations not expected to fully rebound until 2022[38] - China's economy is expected to improve significantly over the next five years, benefiting reserve power battery manufacturers due to strategic technology developments[30] - The dual circulation policy will be central to the 14th Five-Year Plan, promoting mutual reinforcement of domestic and international markets[36] Production and Capacity - Production capacity for the lead-acid plant in the PRC was expanded by 10% to support current and future growth[29] - The production volume of the Group's two new plants in Vietnam reached a 90% occupation rate for the motorcycle battery production lines by the end of 2020[77] - The production capacity for the lead-acid plant was expanded by 10% to support current and future growth, while the lithium-ion battery plant will gradually expand[78] Research and Development - The Group plans to increase investment in R&D for new battery models to meet rapidly changing application needs[41] - R&D expenditure increased by 44.7% from RMB119.3 million in 2019 to RMB172.7 million in 2020, focusing on performance enhancement and new product development[154] - As of December 31, 2020, the battery R&D team consisted of over 350 researchers, and the Group owned 505 patents with another 160 in the application process[72] Employee and Operational Insights - Employee benefit expenses totaled RMB 849.2 million for the period, up from RMB 805.3 million in 2019, reflecting the Group's commitment to employee compensation and benefits[196] - The Group employs 14,553 individuals, emphasizing its workforce size and the importance of employee development and training programs[196] - The Group encourages continuous education and training for employees to enhance skills and personal development, reflecting its commitment to workforce improvement[196] Financial Position and Assets - As of December 31, 2020, the Group's net current assets increased significantly to RMB596.4 million from RMB65.5 million in 2019, mainly due to the reclassification of a term loan[162][167] - Trade receivables increased to RMB2,419.7 million in 2020 from RMB2,306.9 million in 2019, reflecting higher sales from the battery business[171][175] - Other payables and accruals increased to RMB990.0 million in 2020 from RMB854.8 million in 2019, mainly due to higher payables for fixed asset purchases[179] Strategic Initiatives - The Group plans to deepen the franchise store model and optimize agent quality and quantity to improve product turnover efficiency in 2021[110] - The Group is actively promoting green recycling of lead and has established a national recycling network system[117] - The Group has adopted a price-linked pricing mechanism to minimize lead price exposure and centralized procurement to reduce raw material costs[84]

Financial Performance - For the six months ended June 30, 2020, the Group's turnover was RMB 3,684.2 million, a decrease of 7.1% compared to RMB 3,963.9 million in 2019[13]. - Gross profit for the same period was RMB 477.4 million, reflecting a slight increase of 1.6% from RMB 470.0 million in 2019[13]. - Profit before tax dropped significantly to RMB 26.1 million, down 75.3% from RMB 105.6 million in the previous year[13]. - Profit attributable to owners of the parent was RMB 13.3 million, an 83.1% decline compared to RMB 78.7 million in 2019[13]. - Basic earnings per share decreased to RMB 0.02, down 70.8% from RMB 0.06 in the prior year[14]. - Total comprehensive income for the period was RMB 4,701, a decrease of 95.5% from RMB 104,058 in 2019[177]. - Profit for the period was RMB 13,328, a significant decline of 83.0% from RMB 78,693 in 2019[171]. - Profit before tax for the six months ended June 30, 2020, was RMB 26,092, a decrease of 75.3% compared to RMB 105,617 in 2019[193]. Revenue Breakdown - Revenue from the Power Solutions business was RMB 3,405.4 million, an increase of 0.5% from RMB 3,389.9 million in the same period of 2019[31]. - The Recycled Lead business revenue decreased by 51.0% to RMB 278.8 million from RMB 569.0 million in the same period of 2019, primarily due to a drop in lead prices and production disruptions[44]. - The reserve power battery business accounted for 50.0% of total sales, with revenue of RMB 1,842.3 million, down 6.4% from RMB 1,967.5 million in the same period of 2019[35]. - The SLI battery business contributed 28.5% of total sales, with revenue of RMB 1,050.7 million, an increase of 2.5% from RMB 1,025.3 million in the same period of 2019[38]. - The motive power battery segment saw a significant increase of 40.2% in revenue, reaching RMB 481.7 million compared to RMB 343.5 million in the same period of 2019[42]. Operational Challenges - The Group faced disruptions in production and shipment due to COVID-19 but resumed operations in March 2020, allowing it to support global requirements[28]. - The Group experienced a more than 35% increase in shipments to PRC customers, while shipments to overseas markets decreased by 5%[30]. - The Group's sales revenue in Mainland China decreased by 3.9% to RMB 2,284.7 million, primarily due to reduced production output from recycled lead products[66][67]. - July 2020 shipments in the PRC showed continued growth momentum, although overseas demand remained sluggish[49]. Cost and Expenses - The Group's cost of sales decreased by 8.2% from RMB 3,493.9 million for the six months ended 30 June 2019 to RMB 3,206.8 million for the Period, primarily due to a decline in recycled lead product sales[70]. - Selling and distribution expenses increased by 2.2% from RMB 167.8 million to RMB 171.4 million, attributed to higher freight charges and export fees[76]. - Research and development costs rose by 48.9% from RMB 48.1 million to RMB 71.6 million, focusing on performance enhancement and new product development[78]. - Other income and gains decreased by 64.0% from RMB 90.3 million to RMB 32.5 million, mainly due to the absence of a gain on the disposal of a subsidiary[75]. Financial Position - The Group's net current assets amounted to RMB 655.1 million as of 30 June 2020, compared to RMB 65.5 million at the end of 2019[86]. - The Group's gearing ratio was 26.0% as of 30 June 2020, slightly down from 26.6% at the end of 2019[91]. - Total current liabilities decreased to RMB 4,751,143, down from RMB 5,225,590, a reduction of 9.1%[182]. - Total equity attributable to owners of the parent increased to RMB 3,121,204, up from RMB 3,117,746, showing a marginal increase of 0.1%[185]. Shareholder Information - The Group's total number of shares issued as of June 30, 2020, was 1,357,644,666[130]. - Mr. DONG Li is deemed to be interested in 1,009,513,000 shares held by Master Alliance Investment Limited, representing 74.36% of the total shares[141]. - The Pre-IPO Share Option Scheme had 6,860,000 outstanding share options, representing approximately 0.51% of the total issued share capital[133]. - The Share Option Scheme had 40,730,000 outstanding share options, representing approximately 3.00% of the total issued share capital[138]. Future Outlook - The Group anticipates that the current trends will persist if the situation remains unchanged[50]. - The Group is accelerating the development of innovative 5G power solutions to meet growing customer demands in the telecommunications market[54][55]. - The Group's delivery to data center industry customers in China showed solid recovery and growth during the Period, with expectations for continued demand driven by 5G technology[52][53]. - The Group maintains confidence in future prospects despite unpredictable overseas economic performance, supported by long-term relationships with global customers in various industries[58][61].

Financial Performance - For the year ended December 31, 2019, the Group's revenue was approximately RMB8,362.7 million, a decrease of 12.4% from RMB9,544.4 million in 2018[14]. - Gross profit for the year was RMB1,015.4 million, down 3.8% from RMB1,055.0 million in the previous year[14]. - Profit attributable to owners of the parent increased by 24.6% to RMB132.6 million, compared to RMB106.4 million in 2018[14]. - Basic earnings per share rose to RMB0.10, up 25.0% from RMB0.08 in 2018[17]. - The Group's profit for the year was RMB127.5 million, a marginal increase of 0.3% from RMB127.1 million in 2018[14]. - The financial highlights indicate a challenging year with a decline in revenue but an increase in profit attributable to owners of the parent[14]. - The Group's audited profit attributable to equity holders for the year ended December 31, 2019, was approximately RMB 132.6 million, with basic earnings per share of RMB 0.10, compared to RMB 0.08 in 2018[20]. - The Group's revenue for the year ended December 31, 2019, was RMB 8,362.7 million, a decrease of 12.4% from RMB 9,544.4 million in 2018[70]. - Revenue from the battery business amounted to RMB 7,386.5 million, representing a decrease of 8.5% from RMB 8,069.1 million in the previous year[71]. - Revenue from the recycled lead business was RMB 971.2 million, down approximately 31.6% from RMB 1,419.1 million in 2018[71]. - The Group's cost of sales decreased by 13.5% to RMB7,347.3 million from RMB8,489.4 million in 2018[166]. - Other income and gains increased by 46.9% from RMB118.3 million in 2018 to RMB173.8 million for the Period, mainly due to the recognition of gain on disposal of a subsidiary and increased government grants[168]. Market Conditions - The global auto market experienced a simultaneous decline in sales across major markets, with China, the US, and Japan reporting year-on-year decreases of 8.2%, 2%, and 1% respectively, posing a threat to auto parts and accessories players[37]. - The unusual surge in the PRC lead price since 2018 continued to negatively impact the Group during the first half of 2019, although a more stabilized pricing trend was observed in the second half[38]. - Goldman Sachs has cut its global GDP growth forecast to 1.25% for the year, indicating that the Group will face unprecedented challenges amid the ongoing economic disruptions[49]. - The global economy is predicted to face recession due to COVID-19, with negative growth expected in major economies, including a forecasted 1.5% growth for China[120]. - The automotive industry experienced a sales drop of over 4% in 2019, with February 2020 sales in China plummeting 80% month-on-month due to the pandemic[133]. Operational Developments - The lithium-ion battery industry saw significant consolidation, with many sizeable players collapsing, presenting opportunities for the Group to acquire valuable resources[39]. - The new lithium-ion battery business infrastructure was fully constructed during the year, successfully undergoing test runs, positioning the Group for upcoming 5G orders expected to materialize in 2020[46]. - A new production facility in Vietnam was delivered on schedule, increasing the Group's overall production capacity by nearly 5%[46]. - The Group streamlined its operations to enhance efficiency, reducing its product catalog to approximately 1,800 best-selling models to improve average yield per model[43]. - The Group established a Risk Control & Prosecution Division to safeguard its interests, covering all tangible and intangible assets during the COVID-19 pandemic[47]. - The Group's lithium-ion battery production capacity is expected to increase to 1.8 GWh in the current year and gradually reach 4 GWh over the next few years[56]. - The newly developed production base in Vietnam will produce products for the US market, saving considerable tariffs and reducing production costs compared to domestic plants in China[57]. - The Group's lead recycling business has reopened for test runs with plans to double its production capacity in the future[58]. - The Group has expanded its client base by securing orders from new clients such as China Greatwall/BMW, BYD, Nio, Mitsubishi, and Volvo despite global demand challenges[86]. - The Group has partnered with over 261 local agents and distributors across China, utilizing more than 50,000 end client points of sales to improve sales channel efficiency[94]. Research and Development - The R&D team consists of more than 350 researchers and has developed a range of new products, including AGM VRLA batteries and lithium-ion batteries, with a catalog streamlined to 1,800 best-selling models[99][103][106]. - A new series of advanced lead-acid batteries with five times the density of traditional models is expected to be tested in 2020, developed in collaboration with Gridtential Energy Inc.[105][110]. - Research and development expenditure increased by 7.5% from RMB111.0 million in 2018 to RMB119.3 million for the Period, focusing on performance enhancement of existing products and development of new products[174]. Financial Position - As of 31 December 2019, the Group had net current assets of RMB65.5 million, a significant decrease from RMB718.3 million in 2018, primarily due to reclassification of a term loan as a current liability[187]. - Trade receivables decreased from RMB2,424.7 million in 2018 to RMB2,306.9 million for the Period, in line with the decrease in sales from the battery business[192]. - Inventories decreased from RMB1,963.0 million in 2018 to RMB1,817.0 million for the Period, attributed to lower carrying costs in lead[189]. - The group's trade payables and notes payable as of December 31, 2019, were RMB 2,009.7 million, slightly increasing from RMB 2,001.7 million in 2018[198]. - Other payables and accrued expenses totaled RMB 854.8 million as of December 31, 2019, up from RMB 777.4 million in 2018, primarily due to an increase in payables for fixed asset purchases[199].

Financial Performance - For the six months ended June 30, 2019, the Group's revenue amounted to RMB3,963.9 million, representing a decrease of 20.5% from RMB4,986.5 million for the corresponding period in 2018[24]. - Gross profit for the same period was RMB470.0 million, down 16.5% from RMB562.7 million in 2018[15]. - Profit before tax decreased by 5.8% to RMB105.6 million from RMB112.1 million in the previous year[15]. - Profit for the period was RMB78.7 million, a decline of 16.1% compared to RMB93.8 million in 2018[15]. - Profit attributable to owners of the parent increased by 25.8% to RMB86.2 million from RMB68.5 million in the previous year[15]. - The gross profit margin improved to 13.7%, up from 12.8% in the corresponding period last year[24]. - The Group's revenue for the period amounted to RMB3,963.9 million, representing a decrease of 20.5% compared to RMB4,986.5 million in the corresponding period in 2018[64]. - Profit for the period was RMB78.7 million, a decrease of 16.1% year-on-year, while profit attributable to owners of the parent increased by 25.8% to RMB86.2 million[64]. Revenue Breakdown - Revenue from the Power Solutions business was RMB3,389.9 million, a decrease of 15.6% from RMB4,015.7 million in 2018[28]. - Revenue from the Recycled Lead business decreased by 39.2% to RMB569.0 million from RMB935.4 million in the previous year[28]. - The Telecom and Data Center business accounted for 42.8% of total sales, with revenue of RMB1,695.9 million, down 14.8% from RMB1,990.1 million in 2018[30]. - The Automotive business accounted for 25.9% of total sales, generating revenue of RMB1,025.3 million, down 16.6% year-on-year due to a slowdown in the global automotive market[34]. - Revenue from the Others category, primarily from power solutions, was RMB668.7 million, reflecting a 16.0% decrease compared to the previous year[35]. - The Recycled Lead business saw sales revenue of RMB569.0 million, a significant decline of 39.2% year-on-year, impacted by production disruptions during facility expansion[36]. - The revenue from the Telecom and Data Center business decreased by 14.8% to RMB1,695.9 million, and revenue from the Automotive business decreased by 16.6% to RMB1,025.3 million[71]. Investments and Future Outlook - The Group anticipates a new investment cycle in the telecommunications sector driven by the rollout of 5G, with expected total investment in 5G networks in China reaching USD411 billion from 2020 to 2030[45]. - It is projected that China will deploy 4.9 million 5G base stations by 2030, which is 1.3 times the number of 4G base stations, significantly increasing power consumption requirements[45]. - The global data center market is expected to reach USD90 billion by 2020, with a compound annual growth rate (CAGR) of 28% over the next three years, presenting growth opportunities for backup power solutions[52]. - The Group is well-positioned to benefit from the global rollout of 5G networks, leveraging its extensive sales and service network[46]. - The Group's established position in the data center market will drive revenue growth as demand for backup power solutions increases[53]. - The Group expects earnings growth momentum to gradually pick up from 2020 onwards with the launch of new manufacturing facilities[63]. - The Group has invested RMB1.2 billion in a new lithium-ion battery manufacturing facility in Anhui, China, with a designed annual production capacity of 4GWh, expected to contribute up to RMB5 billion in annual revenue upon completion[57]. - The construction of two new lead-acid battery manufacturing facilities in Vietnam will increase the Group's annual production capacity by 2.4GWh, more than doubling its current overseas production capacity[59]. Cost Management and Expenses - The Group's cost of sales decreased by 21.0% to RMB3,493.9 million, reflecting the decline in sales[84]. - Selling and distribution expenses decreased by 15.4% to RMB167.8 million, consistent with the decline in sales[89]. - Administrative expenses decreased by 9.5% to RMB124.9 million due to improved cost control[92]. - Research and development expenditure decreased by 23.9% to RMB48.1 million, mainly due to capitalized costs from new product development[93]. - Other income and gains increased by 55.1% to RMB90.3 million, primarily from the gain on disposal of a subsidiary[88]. Shareholder Information - As of June 30, 2019, Mr. DONG Li holds 1,008,059,000 shares, representing approximately 74.26% of the company's total issued shares[128]. - The total number of issued shares as of June 30, 2019, is 1,357,521,666[131]. - The Pre-IPO Share Option Scheme has 11,503,000 outstanding options, which is about 0.8% of the total issued share capital[134]. - The Share Option Scheme has 21,697,000 outstanding options, representing approximately 1.6% of the issued share capital[141]. - The mandate limit of the Share Option Scheme allows for the issuance of a maximum of 135,732,166 shares, representing 10% of the issued shares as of May 18, 2018[140]. - The Share Option Scheme allows for the issuance of up to 135,732,166 shares, representing 10% of the issued shares as of the annual general meeting date on May 18, 2018[142]. - As of June 30, 2019, there were 21,697,000 unexercised share options under the scheme, equivalent to approximately 1.6% of the company's issued share capital[142]. Corporate Governance - The company has adopted the Model Code for Securities Transactions by Directors and confirmed compliance by all directors during the reporting period[163]. - The company is committed to high standards of corporate governance and believes it has met the relevant code provisions during the period[166]. - Following the passing of an independent non-executive director, the company is working to fill the vacancy within three months as required by the Listing Rules[168].

Financial Performance - Revenue for the year ended December 31, 2018, was approximately RMB 9,544.4 million, representing a 0.8% increase from RMB 9,465.4 million in 2017[18] - Gross profit decreased by 9.2% to RMB 1,055.0 million in 2018, down from RMB 1,162.5 million in 2017[18] - Profit for the year attributable to owners of the parent was RMB 106.4 million, a decline of 56.2% compared to RMB 242.9 million in 2017[21] - Basic earnings per share decreased to RMB 0.08 in 2018 from RMB 0.18 in 2017, based on a weighted average of 1,357,431,128 shares[22] - The Group's total revenue for the year ended December 31, 2018, was RMB 9,544.4 million, a slight increase of 0.8% compared to 2017[170] - The Group's profit for the year amounted to RMB 127.1 million, down from RMB 271.5 million in 2017[170] Dividends - The board recommended a final dividend of 2.0 HK cents per share for the year ended December 31, 2018, compared to no dividend in 2017[23] - The company did not declare or pay any interim or special dividends during the year ended December 31, 2018[23] Market and Business Strategy - The company plans to focus on improving operational efficiency and exploring new market opportunities to enhance profitability[18] - The management discussed potential strategies for market expansion and product development in future earnings calls[18] - The Group is committed to expanding its footprint in overseas markets and matching demand with overseas supply[58] - The Group's strategy includes strict control over production costs and enhancing production efficiency to overcome challenges in price competition[58] - The objective of the Group is to provide sustainable growth in shareholder value over the long term, backed by 20 years of experience in providing reliable battery solutions[61] Production and Capacity - The construction of lead-acid battery production plants in Vietnam and a lithium battery production plant in the PRC is underway, with completion and product delivery expected in the second half of 2019[42] - The Group's battery production capacity reached 21.7 million KVAh, a slight increase from 21.6 million KVAh in 2017[108] - The Group plans to expand its overseas production capacity to meet at least 50% of overseas demand by the end of 2020[112] - The construction of a lithium battery factory in Anhui, started in December 2018, is expected to provide at least 4GWh of design production capacity[115] - The Group's recycled lead production facilities aim to increase annual production capacity from 100,000 tons in 2017 to 200,000 tons in 2018, with potential annual sales reaching RMB 4 billion under full production[118] Sales and Revenue Breakdown - Revenue from batteries and related items amounted to RMB 8,069.1 million, representing an increase of 5.3% from RMB 7,661.3 million for the corresponding period in 2017, driven mainly by the increase in average lead price[68] - The sales of reserve power batteries during the Period amounted to RMB 4,436.9 million, representing a decrease of 5.1% compared to the same period of last year[76] - Revenue from recycled lead products amounted to RMB 1,419.1 million, representing a decrease of 19.1% from RMB 1,754.8 million for the corresponding period in 2017[68] - SLI batteries sales revenue amounted to RMB2,542.1 million, representing a 17.4% increase compared to RMB2,164.7 million in the same period last year[80] - Motive power batteries revenue increased by 75.4% to RMB871.6 million from RMB497.0 million in the previous year, accounting for approximately 10.8% of total battery revenue[86] Challenges and Market Conditions - The financial highlights indicate a significant drop in profit margins, reflecting challenges in the market[18] - The US-China trade war has negatively impacted business growth in the US market during the second half of 2018[35] - The Group's overall business performance was affected by an unusual surge in the PRC lead price during the last eight months of 2018[34] - The abnormal lead price hike affected overseas demand in the second half of 2018, but prices returned to normal in January 2019, increasing demand from overseas customers[137] Research and Development - The Group is committed to investing in new technologies to stay competitive in the battery industry[18] - The Group will continue to invest in research and development to maintain its leading position in technological knowhow and product reliability[60] - The Group's R&D team consists of over 400 researchers and technicians, holding 372 patents with 133 proprietary technologies in the patent application process[95] - Research and development expenses decreased by 22.4% from RMB 143.1 million in the year ended December 31, 2017, to RMB 111.0 million in the year ended December 31, 2018, mainly due to the capitalization of most expenses related to new product development in 2017[199] Cost Management - The Group's cost of sales increased by 2.2% to RMB 8,489.4 million, primarily due to rising lead prices[188] - Selling and distribution expenses increased by 11.3% to RMB 408.7 million, driven by higher staff costs and expansion of the sales network[194] - Administrative expenses increased slightly by 3.4% to RMB 269.7 million, due to better control over spending[195] - The Group's centralized procurement strategy aims to reduce raw material costs through favorable negotiations on bulk purchase contracts[126]