Financial Results - The board meeting for Leoch International Technology Limited is scheduled for August 29, 2025, to consider and approve the unaudited interim results for the six months ending June 30, 2025[2] - The weighted average closing price of the company's shares prior to the exercise of stock options for the fiscal year ending December 31, 2024, was HKD 1.51 per share[2]

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。 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） 持續關連交易︰ 生產設施主購買協議 茲提述本公司日期為二零二四年十二月十二日的公告，內容有關購買生產設施的 二零二四年購買協議。 本集團於過往訂立二零二四年購買協議，以向廣東瑪西爾（一間由深圳瑪西爾全 資擁有的公司，而深圳瑪西爾則由董博士及其胞兄間接擁有約98.55%權益）採購若 干生產設施。鑑於本集團業務營運持續增長，加上本集團有意於境內及境外興建 工廠，需要額外的生產設施以滿足營運所需，董事會認為，與董博士訂立框架協議 而非再訂立一份一次過購買協議，確保以具競爭力的條款獲得穩定的生產設施供 應，符合商業利益。 由於上市規則項下根據(i)主購買協議年度上限最高金額；及(ii)二零二四年購買協 議與主購買協議按合併基準計算的最高適用百分比率（僅就截至 ...

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 理士國際技術有限公司 （於開曼群島註冊成立的有限公司） 呈交日期: 2025年8月6日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00842 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.1 HKD | | 1,000,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.1 HKD | | 1,000,000,000 | ...

Investment Rating - The report maintains a "Buy" rating for the electric power equipment and new energy industry [1] Core Insights - The lithium battery sector is experiencing a significant increase in sales for electric vehicles and energy storage, with lithium carbonate prices declining by 4.8% to 70,000 yuan per ton [1][5] - In March 2025, domestic wholesale sales of new energy passenger vehicles reached 1.13 million units, a year-on-year increase of 35.5% [1][20] - The transition from lead-acid to lithium batteries in the start-stop battery market is becoming clearer, driven by performance improvements and cost reductions in sodium batteries [3][12] Summary by Sections Monthly Insights - In April 2025, the lithium battery-related sectors, except for new energy vehicles, experienced varying degrees of decline, with significant drops in the phosphate iron lithium positive electrode and lithium battery copper foil sectors [2] - The monthly transaction volume for most sectors decreased significantly, while the new energy vehicle sector saw a slight increase in transaction volume [2] Research Topic - The start-stop battery market is in a growth phase, with lead-acid batteries currently dominating but facing competition from lithium and sodium batteries [3][12] - The market for start-stop batteries is expected to grow significantly, with a projected compound annual growth rate of 14.5% from 2024 to 2032 [14] Industry Insights - In March 2025, new energy vehicle sales in China and Europe were strong, with sales of 1.128 million and 304,000 units respectively, reflecting a year-on-year increase of 36% and 26% [4][20] - Energy storage installations in China and the US saw significant growth, with domestic installations reaching 3.4 GWh in March, a year-on-year increase of 57% [24][27] Lithium Battery Production Tracking - In May 2025, lithium battery production is expected to fluctuate between -5% and 13% month-on-month, with year-on-year growth ranging from -1% to 41% [5][30] - The report indicates that the lithium battery sector is entering a seasonal low period, with production adjustments anticipated [30] Investment Recommendations - The report suggests that the lithium battery sector is poised for a BETA-level market driven by both industry demand and technological advancements, recommending key players such as CATL and EVE Energy [6][39]

Financial Performance - For the year ended December 31, 2024, the Group's revenue was approximately RMB 16,126.5 million, representing a 19.7% increase from RMB 13,471.2 million in 2023[14]. - The gross profit for the same period was RMB 2,266.8 million, up by 16.6% compared to RMB 1,943.7 million in 2023[14]. - Profit attributable to owners of the parent was approximately RMB 566.4 million, a slight increase of 5.8% from RMB 535.4 million in 2023[14]. - The Group's profit for the year was RMB 563.5 million, which reflects a decrease of 0.8% from RMB 567.8 million in 2023[14]. - Basic earnings per share increased to RMB 0.41 in 2024 from RMB 0.39 in 2023, based on a weighted average of 1,373,897,419 shares[16]. - The financial highlights indicate a strong performance in revenue growth, despite a slight decline in overall profit for the year[16]. Dividends - The Board recommended a final dividend of 7 HK cents per share for the year ended December 31, 2024, consistent with the previous year[17]. - An interim dividend of 4 HK cents per share was declared and paid during the year[17]. - The Group continues to maintain a stable dividend policy, reflecting its commitment to returning value to shareholders[17]. Revenue Growth by Segment - Leoch achieved RMB16.1 billion in revenue for 2024, a 19.7% increase from 2023, driven by diversified product offerings and expanded sales channels[22]. - SLI Batteries revenue surged 60.9% to RMB5.9 billion, supported by the rising adoption of AGM and EFB technologies in start-stop systems[27]. - Data Centre and Network Batteries revenue grew 9% to RMB6.9 billion, driven by sustained demand for data center and telecom solutions[31]. - Motive Power Batteries revenue increased by 19.2% to RMB1.4 billion, fueled by trends in e-commerce logistics and industrial automation[31]. - EMEA region revenue increased by 42.3%, demonstrating strong performance across multiple segments[33]. - Americas region achieved growth of 20.1%, primarily driven by expanding demand for Energy Storage Systems (ESS)[33]. Market Trends and Strategic Initiatives - The company is well-positioned to capitalize on trends in renewable energy storage and electric vehicles, leveraging its diversified portfolio[26]. - AGM and EFB technology offerings were significantly expanded to align with the automotive industry's transition towards electrification[37]. - The acquisition of Yuasa Battery (Guangdong) strengthened aftermarket distribution channels for the Group[38]. - Rising shipping costs and reduced tax incentives in China pose significant challenges for 2024, prompting the company to optimize operations and diversify raw material sources[42]. - A strategic spin-off of Leoch Energy Inc. is planned for February 2025 to unlock value and enhance focus on regional growth opportunities[49]. Research and Development - The company plans to enhance its development of Battery Management Systems (BMS), Energy Storage Systems (ESS), and AI-driven Energy Management Systems (EMS) by 2025[43]. - The company plans to increase R&D investment to improve performance indicators of core products, including high-power lead-acid batteries and high-density lithium-ion energy storage systems[107]. - The company aims to develop energy management systems that integrate artificial intelligence for improved efficiency and safety in lithium battery projects[133]. Challenges and Operational Efficiency - Challenges in the recycling business included the removal of government incentives, impacting profitability and cash flow for reinvestment[73]. - The Group plans to enhance operational efficiency through digital means and optimize cost structure while incorporating sustainable development goals into strategic planning[138]. - The Group's manufacturing network will cover China, Southeast Asia, South Asia, and North America to ensure supply chain resilience and delivery efficiency[137]. Financial Position and Assets - Trade receivables increased by 14.1% to RMB 3,704.3 million, reflecting higher sales volumes[179]. - Inventories rose by 22.4% to RMB 3,365.2 million, driven by strong demand in the power solutions business and the acquisition of a subsidiary[174]. - The Group's net current assets increased to RMB 1,296.2 million as of December 31, 2024, from RMB 1,160.7 million in 2023, with cash and bank deposits decreasing to RMB 1,406.0 million from RMB 2,529.1 million[187]. - Bank borrowings increased to RMB 5,121.5 million as of December 31, 2024, compared to RMB 4,457.4 million in 2023, with all borrowings being interest-bearing[187]. - The Group's gearing ratio rose to 35.3% as of December 31, 2024, up from 31.6% in 2023, calculated by dividing total borrowings by total assets[191]. Future Outlook - The Group expects to achieve double-digit revenue and profit growth by 2025, further consolidating its leading position in the global energy solution provider field[138]. - The global data center market size is expected to exceed USD 300 billion by 2025, with an average annual growth rate of over 15%[107]. - The lithium-ion battery market is expected to surpass USD 400 billion by 2030, with a CAGR of 25%-30% in the energy storage sector and 20%-25% in the automotive battery sector[110]. - The global energy storage market is forecasted to exceed USD 500 billion by 2025, with lithium-ion systems accounting for over 80% of the market share[111].

Summary of the Conference Call Company Overview - The conference call focused on the 2024 annual performance highlights and development strategies of Li Shi International, a leading provider of energy solutions globally, particularly in the lithium battery market [1][2]. Industry and Market Position - Li Shi International entered the global lithium battery market in 2020 and has expanded its production capacity through acquisitions and new factories in Mexico [2]. - The company is the largest provider of communication backup batteries in China, with 40% of its revenue coming from overseas markets [2]. - Li Shi has a global presence with 21 factories and 65 sales companies covering over 150 countries [2]. Financial Performance - In 2024, Li Shi International's revenue reached 16.13 billion RMB, a 19.7% increase from 13.47 billion RMB in 2023 [8]. - The power solutions segment generated 14.5 billion RMB, up 26.7% year-over-year [8]. - The gross profit margin for 2024 was 14.1%, a slight decrease of 0.3 percentage points from the previous year [9]. Business Segments - The main business segments include: - Network batteries: 42.5% of revenue, down from 46.6% year-over-year [3]. - Automotive start-stop batteries: 36.8% of revenue, up from 27.4% year-over-year [3]. - The company has established long-term relationships with major clients in data centers, telecommunications, and automotive sectors [5][6]. Growth Drivers - The company identified three growth engines: 1. **Lead-acid battery business**: Focus on high-margin aftermarket channels [14]. 2. **Lithium battery systems**: Expected to grow significantly, with the market projected to reach 290 billion RMB by 2030 [16]. 3. **Energy management systems**: Development of smart systems to enhance energy efficiency [17]. Market Trends and Opportunities - The demand for data center batteries is expected to surge, with projections indicating a 160% increase in power demand by 2032 [14]. - Li Shi holds a 22% market share in China's communication backup battery market and has partnerships with nine of the top ten global telecom companies [15]. - The aftermarket for automotive batteries is anticipated to grow significantly, with a current market ratio of 70% OEM and 30% aftermarket [15]. Challenges and Risks - The company faces challenges related to rising interest expenses due to loans taken for expansion [30]. - The gross profit margin is affected by fluctuations in raw material prices and transportation costs [46]. Future Outlook - Li Shi plans to increase production capacity by 30% by the end of 2024, with a focus on data center batteries [22]. - The company aims to maintain a stable dividend policy, with a payout ratio of 25.4% for 2024 [9][13]. - The management is optimistic about achieving a profit growth rate that exceeds sales growth in 2025 [19]. Conclusion - Li Shi International is well-positioned in the energy solutions market, with a robust growth strategy focused on expanding its lithium battery and energy management systems while maintaining strong relationships with key clients across various sectors [1][2][14].

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].