(1)主张公司立即停止实施侵害原告涉诉专利权的行为，包括停止制造、销售和许诺销售侵害涉 诉专利权的产品； (2)主张公司赔偿原告经济损失人民币1.1亿元； (3)主张公司赔偿原告为制止侵权支出的合理费用人民币100万元。 涉诉专利属于电池顶盖结构，公司基于该类型电池顶盖结构拥有完全自主知识产权布局，公司 产品不存在侵权行为。目前，本公告涉及诉讼尚未开庭审理。本次诉讼预计不会对公司当前及 未来的生产经营产生重大不利影响。 这已经是中创新航进入2025年之后，在短短的一个月之内公布的第三起宁德时代的起诉案件。 2025年1月28日，中国农历除夕夜，港交所上市的中创新航再次发布诉讼公告。公司于近日收 到湖南省高级人民法院送达的民事起诉书等相关诉讼材料。根据起诉书，原告宁德时代针对公 司及其他被告（为独立于公司及其关连人士的第三方），就二次电池的顶盖组件和二次电池 ZL202011086325.8号发明专利提出知识产权侵权索赔。 案件主要诉讼请求包括： 仅今年一月份这三起新增的专利索赔案，就增加了2.6亿元的侵权索赔额。 如果算上之前宁德时代对中创新航累计发起的诉讼和总索赔额来看，累计索赔金额已经接近10 亿，这一数 ...

[Company Information](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) [Management Discussion and Analysis](index=5&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Industry Overview](index=5&type=section&id=%E4%B8%80%E3%80%81%20%E5%85%AC%E5%8F%B8%E6%89%80%E5%9C%A8%E8%A1%8C%E6%A5%AD%E6%83%85%E6%B3%81) Driven by global carbon neutrality goals, the new energy industry is rapidly expanding, with significant year-on-year growth in power battery installations and energy storage lithium battery shipments in H1 2024 - Global investment in clean energy is projected to exceed **$2 trillion** in 2024, driving new energy industry development[7](index=7&type=chunk) - From January to June 2024, global new energy vehicle power battery installations reached **364.6 GWh**, a year-on-year increase of **22.3%**[8](index=8&type=chunk) - From January to June 2024, China's new energy vehicle sales reached **4.944 million units**, a year-on-year increase of **32%**, with a penetration rate of **35%**[9](index=9&type=chunk) - In H1 2024, global energy storage lithium battery shipments increased by approximately **35%** year-on-year; China's market shipments were **116 GWh**, a year-on-year increase of **41%**[13](index=13&type=chunk) [Power Battery Market](index=5&type=section&id=1%E3%80%81%20%E5%8B%95%E5%8A%9B%E9%9B%BB%E6%B1%A0%E5%B8%82%E5%A0%B4) Driven by carbon neutrality goals, the global new energy vehicle market's penetration rate is rapidly growing, boosting power battery demand, with global installations increasing by 22.3% year-on-year in H1 2024 [Energy Storage Market](index=6&type=section&id=2%E3%80%81%20%E5%82%B5%E8%83%BD%E5%B8%82%E5%A0%B4) The global energy storage market entered a high-growth phase in 2024, with H1 global lithium battery shipments increasing by approximately 35% year-on-year, driven by rapid growth in China and large-scale projects in Europe and America [Business Review](index=6&type=section&id=%E4%BA%8C%E3%80%81%20%E6%A5%AD%E5%8B%99) In H1 2024, the company achieved significant results in technology, products, and market performance, including breakthroughs in high-voltage materials and solid-state batteries, launching leading products for various vehicle and energy storage markets, and securing the world's largest energy storage battery order [Technological Breakthroughs](index=7&type=section&id=1%E3%80%81%20%E6%8A%80%E8%A1%93%E5%86%8D%E7%AA%81%E7%A0%B4) In H1 2024, the company achieved multiple technological breakthroughs across advanced materials, high-performance and novel battery technologies, and advanced manufacturing, including 5V high-voltage materials, 6C ultra-fast charging, and 400Wh/kg hybrid solid-liquid battery industrialization, holding 3,438 authorized patents - Key technological breakthroughs in advanced materials include **5V high-voltage lithium nickel manganese oxide**, new ultra-fast charging silicon-carbon materials, and all-solid-state electrolyte materials[18](index=18&type=chunk) - In high-performance battery technology, the company completed **6C ultra-fast charging high-nickel cylindrical cell** development and made progress in high-manganese lithium iron phosphate battery technology[22](index=22&type=chunk) - For novel battery technologies, **400Wh/kg high-energy density, high-safety hybrid solid-liquid battery** products entered the industrialization phase[22](index=22&type=chunk) - As of June 30, 2024, the Group had **3,438 authorized patents** and another **746 pending authorizations**[21](index=21&type=chunk) [Product Leadership](index=9&type=section&id=2%E3%80%81%20%E7%94%A2%E5%93%81%E5%86%8D%E9%A0%98%E5%85%88) The company launched several market-leading products, including 800V 5C ultra-fast charging LFP batteries and 400Wh/kg semi-solid-state batteries for passenger vehicles, full-scenario solutions for commercial vehicles, and the mass delivery of 314Ah cells and 6.25MWh+ liquid-cooled containerized energy storage systems for the energy storage market - Passenger vehicle products include **800V 3C/5C batteries** capable of **80% charge in 10 minutes**, and **ultra-high energy density semi-solid-state batteries** with energy density exceeding **400Wh/kg**[25](index=25&type=chunk) - Commercial vehicle products cover **30-600 kWh** full-scenario demands, meeting various operating conditions for light trucks, heavy trucks, and construction machinery[28](index=28&type=chunk) - In the energy storage market, **314Ah cell products** achieved mass delivery, and the new generation **20-foot energy storage container** reached **6.25MWh+** capacity, leading the industry[31](index=31&type=chunk) [Performance Achievements](index=11&type=section&id=3%E3%80%81%20%E6%A5%AD%E7%B8%BE%E6%88%90%E6%9E%9C) During the reporting period, the company's total assets grew to **CNY 111.263 billion**, with revenue increasing by **1.4%** to **CNY 12.469 billion**, driven by significant year-on-year growth in hybrid and commercial vehicle installations, substantial increases in energy storage shipments, and accelerated international expansion - Passenger vehicle market: Hybrid vehicle installations increased by **155%** year-on-year, securing new project nominations from international clients including Toyota, Volkswagen, and Ford[35](index=35&type=chunk) - Commercial vehicle market: Domestic installations increased by **125%** year-on-year, achieving full coverage of mainstream products and bulk delivery to strategic clients[34](index=34&type=chunk) - Energy storage market: Shipments continued to grow significantly, with **314Ah cell products** achieving mass delivery and securing the **world's largest energy storage battery order**[37](index=37&type=chunk) [Future Outlook](index=14&type=section&id=%E4%B8%89%E3%80%81%20%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) The company will adhere to its "dual-driven power and energy storage" and "dual domestic and international circulation" strategies, focusing on continuous technological innovation for industrialization of advanced battery products, deepening domestic client cooperation, expanding into international and emerging markets, and advancing global industrial layouts - Adherence to the **"dual-driven power and energy storage"** business strategy and **"dual domestic and international circulation"** regional strategy[40](index=40&type=chunk) - Technology and product innovation: Committed to the industrialization of **5C ultra-fast charging LFP batteries**, **6C ultra-fast charging high-nickel cylindrical batteries**, and **400Wh/kg solid-liquid hybrid batteries**[45](index=45&type=chunk) - Market expansion: Deepening domestic passenger and commercial vehicle markets, vigorously developing emerging markets such as energy storage, marine, and rail transit, and fully expanding into international markets[44](index=44&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) - International layout: Progressing with the **Europe Portugal project** construction as planned and initiating industrial layout targeting the **ASEAN region**[49](index=49&type=chunk) [Financial Review](index=17&type=section&id=%E5%9B%9B%E3%80%81%20%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) In H1 2024, the Group's revenue increased by **1.4%** to **CNY 12.469 billion**, with profit for the period surging **56.6%** to **CNY 417 million**, and basic earnings per share rising **69.9%** to **CNY 0.1405**, driven by a significant gross margin improvement to **15.6%** and **43.2%** growth in energy storage system products and other business revenue 2024 H1 Key Financial Data | Metric | 2024 H1 | 2023 H1 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | CNY 12.469 billion | CNY 12.295 billion | +1.4% | | Profit for the Period | CNY 417 million | CNY 266 million | +56.6% | | Basic Earnings Per Share | CNY 0.1405 | CNY 0.0827 | +69.9% | | Gross Margin | 15.6% | 9.6% | +6.0pp | Revenue by Product | Product | 2024 H1 Revenue (CNY thousands) | Revenue Share | 2023 H1 Revenue (CNY thousands) | Revenue Share | | :--- | :--- | :--- | :--- | :--- | | Power Batteries | 9,723,980 | 78.0% | 10,377,467 | 84.4% | | Energy Storage Systems and Others | 2,745,257 | 22.0% | 1,917,245 | 15.6% | | **Total** | **12,469,237** | **100%** | **12,294,712** | **100%** | - Revenue from energy storage system products and other businesses saw strong year-on-year growth of **43.2%**, primarily due to the company's continued expansion in this business segment[58](index=58&type=chunk) - As of June 30, 2024, total assets were **CNY 111.263 billion**, a **5.5%** increase from the beginning of the year; total liabilities were **CNY 63.894 billion**, an **8.2%** increase from the beginning of the year[64](index=64&type=chunk)[65](index=65&type=chunk) - Operating cash flow shifted from a net outflow of **CNY 2.725 billion** in the prior period to a net inflow of **CNY 1.255 billion**, primarily due to increased sales collections[66](index=66&type=chunk) [Corporate Governance and Other Information](index=22&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Corporate Governance and Compliance](index=23&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E8%88%87%E5%90%88%E8%A6%8F) The company maintains high corporate governance standards, complying with all applicable Code on Corporate Governance provisions during the reporting period, with the only deviation being the combined roles of Chairman and CEO, which the Board believes enhances leadership consistency and decision-making efficiency - The company complied with the **Code on Corporate Governance**, with a deviation from Rule C.2.1 where the roles of Chairman and Chief Executive Officer are not separated, both held by Ms. Liu Jingyu[81](index=81&type=chunk) - The Audit Committee, comprising three independent non-executive directors, reviewed and agreed to the unaudited condensed consolidated financial information for the reporting period[84](index=84&type=chunk) [Use of Proceeds from Listing](index=24&type=section&id=%E4%B8%8A%E5%B8%82%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The company's H-shares were listed in October 2022, generating net proceeds of approximately **HKD 9.98 billion**, primarily allocated to new production facility construction, with **HKD 654 million** remaining unutilized as of June 30, 2024, expected to be fully used by year-end 2024 Use of Proceeds from Listing (As of June 30, 2024) | Item | Percentage of Total Net Proceeds | Unutilized Net Proceeds (HKD millions) | | :--- | :--- | :--- | | Construction of New Production Facilities | 80% | 653.90 | | Research and Development of Advanced Technologies | 10% | - | | Working Capital and General Corporate Purposes | 10% | - | [Other Information](index=25&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) The Board resolved not to declare an interim dividend for 2024, and neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the period, with total employees at 12,286 as of June 30, 2024, and Mr. Li Yunxiang resigning as non-executive director on August 26, 2024 - The Board resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2024[92](index=92&type=chunk) - As of June 30, 2024, the Group's total number of employees was **12,286**[94](index=94&type=chunk) - Executive Directors Ms. Liu Jingyu and Mr. Dai Ying held **1,732,216** and **1,196,820** domestic shares of the company, respectively[99](index=99&type=chunk) [Condensed Consolidated Financial Statements](index=29&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss](index=29&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2024, the company achieved revenue of **CNY 12.469 billion**, a **1.4%** year-on-year increase; gross profit was **CNY 1.948 billion**, up **65.2%**; profit for the period was **CNY 417 million**, a significant **56.6%** increase; and profit attributable to owners was **CNY 249 million**, with basic earnings per share of **CNY 0.1405** Condensed Consolidated Statement of Profit or Loss Summary (For the six months ended June 30) | Item (CNY thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | 12,469,237 | 12,294,712 | | Gross Profit | 1,948,130 | 1,179,065 | | Operating Profit | 658,774 | 364,776 | | Profit for the Period | 417,306 | 266,487 | | Profit Attributable to Owners of the Company | 248,987 | 146,517 | [Condensed Consolidated Statement of Financial Position](index=31&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2024, the company's total assets were **CNY 111.263 billion**, a **5.5%** increase from year-end 2023, with non-current assets of **CNY 79.280 billion** primarily in property, plant, and equipment, and total liabilities of **CNY 63.894 billion**, resulting in net assets of **CNY 47.369 billion** and net current liabilities of **CNY 3.778 billion** Condensed Consolidated Statement of Financial Position Summary | Item (CNY thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **111,262,512** | **105,429,034** | | Non-current Assets | 79,279,591 | 73,318,005 | | Current Assets | 31,982,922 | 32,111,020 | | **Total Liabilities** | **63,893,928** | **59,043,244** | | Current Liabilities | 35,760,642 | 36,821,461 | | Non-current Liabilities | 28,133,287 | 22,221,774 | | **Net Assets** | **47,368,584** | **46,385,790** | [Condensed Consolidated Statement of Cash Flows](index=34&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2024, net cash from operating activities significantly improved to a **CNY 1.255 billion** inflow from a **CNY 2.725 billion** outflow in the prior period, while net cash used in investing activities was **CNY 8.408 billion**, and net cash from financing activities was **CNY 8.327 billion**, with cash and cash equivalents at period-end totaling **CNY 8.996 billion** Condensed Consolidated Statement of Cash Flows Summary (For the six months ended June 30) | Item (CNY thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Net Cash Generated From (Used In) Operating Activities | 1,254,970 | (2,724,886) | | Net Cash Used In Investing Activities | (8,408,291) | (13,688,636) | | Net Cash Generated From Financing Activities | 8,326,627 | 13,893,847 | | **Net Increase/(Decrease) in Cash and Cash Equivalents** | **1,173,306** | **(2,519,675)** | | Cash and Cash Equivalents at End of Period | 8,995,866 | 8,444,794 | [Notes to the Condensed Consolidated Financial Statements](index=35&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [Note 6. Revenue](index=41&type=section&id=%E9%99%84%E8%A8%BB6.%20%E6%94%B6%E5%85%A5) During the reporting period, the company's total revenue was **CNY 12.469 billion**, with power battery sales contributing **CNY 9.724 billion (78.0%)** and energy storage system products and other sales contributing **CNY 2.745 billion (22.0%)**, primarily from Mainland China, which accounted for **98.1%** of revenue Revenue by Product Line (For the six months ended June 30) | Product Line | 2024 Revenue (CNY thousands) | 2023 Revenue (CNY thousands) | | :--- | :--- | :--- | | Sales of Power Batteries | 9,723,980 | 10,377,467 | | Sales of Energy Storage Systems and Others | 2,745,257 | 1,917,245 | | **Total** | **12,469,237** | **12,294,712** | [Note 16. Trade and Bills Receivables](index=47&type=section&id=%E9%99%84%E8%A8%BB16.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) As of June 30, 2024, total trade and bills receivables increased to **CNY 8.420 billion** from **CNY 6.829 billion** at year-end 2023, comprising net trade receivables of **CNY 7.309 billion** and bills receivables of **CNY 1.112 billion**, with a bad debt provision of **CNY 120 million** Trade and Bills Receivables | Item (CNY thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Trade Receivables (net of provision) | 7,308,565 | 5,071,212 | | Bills Receivables | 1,111,627 | 1,758,094 | | **Total** | **8,420,192** | **6,829,306** | [Note 23. Contingent Liabilities](index=54&type=section&id=%E9%99%84%E8%A8%BB23.%20%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) The company faces multiple patent infringement lawsuits from CATL, with ongoing claims related to Patents Two, Six, and Seven totaling over **CNY 260 million** as of June 30, 2024, though the Board believes these claims lack merit and are unlikely to result in significant economic outflows despite an initial adverse ruling for Patent Two - The company is involved in multiple intellectual property infringement claims with CATL, concerning **Patent Two, Patent Six, and Patent Seven**[209](index=209&type=chunk)[214](index=214&type=chunk) Contingent Liabilities Related to CATL Claims (As of June 30, 2024) | Related Patent | Claimed Damages (CNY thousands) | Claimed Expenses (CNY thousands) | | :--- | :--- | :--- | | Patent Two | 40,558 | 1,018 | | Patent Six | 130,000 | 500 | | Patent Seven | 92,000 | 300 | - The Directors believe that the claims related to **Patent Two, Patent Six, and Patent Seven** lack merit, and a proper resolution of these claims is unlikely to result in a significant outflow of economic benefits[214](index=214&type=chunk) [Definitions and Glossary](index=57&type=section&id=%E5%AE%9A%E7%BE%A9%E5%8F%8A%E8%A9%9E%E5%BD%99)

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1][6]. Core Insights - The company has demonstrated stable revenue growth and improved profitability in the first half of 2024, with a revenue of 12.47 billion yuan, a year-on-year increase of 1%, and a net profit of 2.5 billion yuan, up 70% year-on-year [3][4]. - The company is focusing on enhancing its product strength and expanding its global presence in the power and energy storage sectors [5][6]. Revenue and Profitability - The company's revenue in the first half of 2024 was 12.47 billion yuan, with a slight increase of 1% year-on-year, primarily driven by a 43% increase in energy storage system sales, while power battery sales decreased by 6% to 9.72 billion yuan [3][4]. - The overall gross margin improved to approximately 15.6%, up 6 percentage points year-on-year, and the net loss from other operations decreased from 320 million yuan to 140 million yuan [4]. Market Position and Growth - The company maintained a solid position in the power battery market, with a global installed capacity of 16.7 GWh in the first half of 2024, representing a 35% year-on-year growth and a market share of 4.6%, ranking fifth globally [4]. - In the domestic market, the installed capacity reached 13.8 GWh, a 10% increase year-on-year, with a market share of 6.9%, ranking third [4]. Product Development and Innovation - The company is committed to continuous product innovation, launching new series and solid-state batteries, with plans for mass production by 2027 [5][6]. - The energy storage market saw significant growth, with the company achieving high shipment volumes and receiving recognition from strategic customers [4][5]. Financial Forecast - The company is projected to achieve revenues of 31.85 billion yuan, 40.56 billion yuan, and 49.53 billion yuan for 2024, 2025, and 2026 respectively, with net profits expected to reach 560 million yuan, 720 million yuan, and 1.06 billion yuan in the same years [6][7].

Investment Rating - The report maintains an "Accumulate" rating for the company [3][6]. Core Views - The company is a leading global lithium battery manufacturer, with expected capacity release and product matrix improvement, leading to sustained growth in power and energy storage batteries. The long-term development potential and performance improvement are promising, with projected net profits of 592 million, 966 million, and 1.25 billion RMB for 2024-2026, representing year-on-year growth of 101.3%, 63.1%, and 29.4% respectively [3][4]. Market Data - As of September 13, 2024, the company's closing price is 11.68 HKD, with a total market capitalization of 20.7 billion HKD and total assets of 111.26 billion RMB [2][3]. Financial Performance - In H1 2024, the company's revenue increased by 1% year-on-year to 12.47 billion RMB, with significant growth in energy storage revenue by 43% [3]. - The gross profit for H1 2024 rose by 65% year-on-year to 1.95 billion RMB, with a gross margin of 15.6%, up 6 percentage points year-on-year [3]. - The net profit for H1 2024 increased by 57% year-on-year to 420 million RMB, driven by gross profit growth and reduced inventory impairment provisions [3][4]. Product and Market Position - The company ranks among the top three in domestic power battery installations, with a global market share of 4.7% as of mid-2023, and a domestic market share of 6.99% as of August 2024 [3]. - The customer base is diversified, including partnerships with major automotive manufacturers for both electric and hybrid vehicles, as well as commercial vehicle collaborations [3]. Technological Advancements - The company is at the forefront of technology upgrades in high-nickel, fast-charging, and energy density improvements, with a comprehensive product matrix that includes various battery types [3][4]. Future Outlook - The company anticipates continued growth in energy storage, with a 43% increase in revenue in H1 2024, and has established strategic partnerships with major power groups for future projects [3].

Investment Rating - The report maintains a "Buy" rating for the company, with an updated target price of HK$ 16.64 per share [2][3]. Core Insights - The company's total revenue for the first half of the fiscal year 2024 reached RMB 12.47 billion, reflecting a slight year-on-year growth of 1.4%. Sales of power batteries decreased by 6.3%, while energy storage product sales increased by 43.2%, contributing to 22.0% of total revenue [3]. - The sales price of power batteries has stabilized since June, with a significant reduction in price decline due to a low base effect. The penetration rate of new energy vehicles has risen to 50%, indicating that supply-demand issues in the market have not worsened [3]. - The company is optimistic about maintaining its shipment targets for the year, with expectations for over 20 GWh in energy storage shipments. The contribution from overseas projects is expected to materialize starting in 2026/27 [3]. - The company has made significant progress in diversifying its customer base, with major clients contributing around 10% to 20% of total sales, reducing dependency on single customers [3]. - The gross profit margin improved significantly to 15.6% in the first half of the fiscal year, driven by economies of scale and increased production efficiency [3]. Financial Summary - Total revenue projections for the upcoming years are as follows: RMB 27,005.9 million for 2023, RMB 32,641.6 million for 2024, RMB 45,603.4 million for 2025, and RMB 60,965.9 million for 2026, indicating a year-on-year growth of 32.5% in 2023 and 20.9% in 2024 [8]. - The gross profit is expected to rise from RMB 3,511.5 million in 2024 to RMB 10,658.1 million in 2026, with gross profit margins projected to improve from 13.0% to 17.5% over the same period [8][12]. - The net profit is forecasted to increase significantly, from RMB 294.4 million in 2023 to RMB 2,191.2 million in 2026, reflecting a strong recovery in profitability [8]. Industry Comparison - The company has a market capitalization of approximately HK$ 20.1 billion, with a projected price-to-earnings ratio of 47.0x for the current year [5]. - Compared to industry peers, the company maintains a competitive position with a gross margin of 13.0% and a return on equity of 1.1% [5].

Investment Rating - The report assigns an "Outperform" rating to the company, indicating an expectation of better performance compared to the market [4]. Core Insights - The company has shown significant growth in its performance for the first half of 2024, with revenue reaching 12.469 billion yuan, a year-on-year increase of 1.4%, and a profit of 417 million yuan, up 56.6% year-on-year [4]. - The company is actively promoting technological innovation, enhancing its competitive edge with new product releases and advancements in battery technology [4][8]. - The report highlights the company's strong position in various sectors, including power batteries, energy storage, and marine applications, with substantial growth in installed capacity and product deliveries [4][6]. Summary by Sections Financial Performance - For the first half of 2024, the company achieved a revenue of 12.469 billion yuan, with a profit margin of 15.62%, reflecting a 6.03 percentage point increase year-on-year [4]. - The projected net profits for 2024-2026 are estimated at 654 million yuan, 1.023 billion yuan, and 1.474 billion yuan respectively, indicating robust growth [5][6]. Business Segments - Power Battery: The company ranks second among third-party power battery manufacturers in China, with a 155% year-on-year increase in installed capacity for hybrid vehicles and a 125% increase for commercial vehicles [4]. - Energy Storage: The company has seen a significant increase in shipments, with the 314Ah cell product achieving large-scale stable deliveries and securing the largest global energy storage battery order [4][6]. - Marine Applications: The company is the first domestic battery manufacturer to receive DNV certification and has signed multiple international large ship projects [4]. Valuation and Forecast - The report estimates a price-to-earnings (PE) ratio of 38-40 for 2024, translating to a reasonable value range of 14.01-14.75 yuan, or 15.35-16.15 Hong Kong dollars [4][8]. - The company is projected to maintain a gross margin of 15.50% across its product lines, with significant growth in both power battery and energy storage revenues over the next few years [6][7].

Financial Performance - The group's revenue increased by 1.4% from RMB 12,294.71 million for the six months ended June 30, 2023, to RMB 12,469.24 million for the six months ended June 30, 2024[2]. - Profit for the period rose by 56.6% from RMB 266.49 million for the six months ended June 30, 2023, to RMB 417.31 million for the six months ended June 30, 2024[2]. - Basic earnings per share increased by 69.9% from RMB 0.0827 to RMB 0.1405 for the same periods[2]. - Gross profit for the period was RMB 1,948.13 million, compared to RMB 1,179.07 million in the previous period, reflecting a significant increase[4]. - The group reported a total comprehensive income of RMB 342.97 million for the period, compared to RMB 257.43 million in the previous period[6]. - Revenue for the period was RMB 12.47 billion, representing a 1.4% year-on-year growth, driven by capacity release and increased customer demand[57]. - The company's revenue from sales of power batteries for the six months ended June 30, 2024, was RMB 9,723,980 thousand, a decrease of 6.3% compared to RMB 10,377,467 thousand in the same period of 2023[19]. - Revenue from sales of energy storage systems and others increased significantly to RMB 2,745,257 thousand, up 43.3% from RMB 1,917,245 thousand in the previous year[19]. Assets and Liabilities - Total assets less current liabilities increased to RMB 75,501.87 million from RMB 68,607.56 million[9]. - The net asset value increased to RMB 47,368.58 million from RMB 46,385.79 million[9]. - Total assets increased by 5.5% to RMB 111,262.51 million as of June 30, 2024, from RMB 105,429.03 million as of December 31, 2023[82]. - Total liabilities increased by 8.2% to RMB 63,893.93 million as of June 30, 2024, from RMB 59,043.24 million as of December 31, 2023[83]. - The debt-to-equity ratio increased to 61.2% as of June 30, 2024, compared to 47.1% as of December 31, 2023, primarily due to increased project financing[86]. Cash Flow and Expenditures - Operating cash inflow for the six months ended June 30, 2024, was RMB 1,254.97 million, a significant increase from an outflow of RMB 2,724.89 million in the same period of 2023[84]. - Capital expenditure for the six months ended June 30, 2024, was RMB 7,815.55 million, down from RMB 11,991.84 million in the same period of 2023[88]. Research and Development - Research and development expenses rose to RMB 542.23 million from RMB 170.57 million, indicating a focus on innovation[4]. - The company focused on advanced materials, including breakthroughs in 5V high-voltage nickel manganese lithium materials and new solid-state electrolyte materials[66]. - The company is committed to continuous innovation in advanced materials and manufacturing technologies to maintain a competitive edge in the battery application field[65]. Market and Sales - The global demand for power batteries reached 364.6 GWh in the first half of 2024, representing a year-on-year growth of 22.3%[37]. - In China, the sales of new energy vehicles reached 4.944 million units in the first half of 2024, a 32% increase year-on-year, with a penetration rate of 35%[38]. - The energy storage market's power storage shipments accounted for 89% of total shipments, with a year-on-year growth of 43%, indicating a strong demand driver[41]. - The company’s hybrid vehicle battery installation volume increased by 155% year-on-year, with new partnerships established with major clients such as Chery and Dongfeng[59]. Governance and Compliance - The company has complied with all applicable corporate governance code provisions, except for the separation of the roles of chairman and CEO[109]. - The audit committee has reviewed the unaudited interim consolidated financial information for the reporting period[112]. - The company will continue to assess the effectiveness of its governance structure regarding the separation of the chairman and CEO roles[110]. Legal and Contingent Liabilities - The company received a civil judgment in May 2024 requiring it to pay RMB 40.6 million in damages related to patent two[98]. - The company has assessed that claims related to patents two, six, and seven lack basis, indicating low likelihood of economic outflow[99]. - The total contingent liabilities related to claims against CATL include RMB 40,558 thousand for patent two and RMB 92,000 thousand for patent seven as of June 30, 2024[101]. Strategic Initiatives - The company plans to establish a production base in Portugal, with environmental approval expected in Q1 2024, to support international customer deliveries[71]. - The company plans to allocate approximately 80% of the net proceeds, amounting to HKD 7,984.08 million, for the construction of new production facilities totaling 95GWh for power batteries and energy storage systems by the end of December 2024[103].

Investment Rating - The investment rating for the company is "Hold" with a target price of HK$ 15.70, down from a previous target of HK$ 25.70 [2][3]. Core Insights - The company reported total revenue of RMB 27.01 billion for the fiscal year 2023, representing a year-on-year growth of 32.5%. Sales from power batteries accounted for approximately 80% of total revenue, growing by 21.4% to RMB 22.25 billion [3]. - The company's market share in power battery installations increased from 6.5% in 2022 to 8.5% in 2023, with installed capacity growing over 70% year-on-year to 32.9 GWh. However, market share has been declining since the fourth quarter of the previous year, dropping to 6.4% in the first four months of 2024 [3]. - The customer base is shifting, with XPeng becoming the primary customer, while GAC has fallen to the second position. GAC's new battery factory is expected to impact the company's installation volumes negatively [3]. - The company faces challenges with rising production capacity amid slowing downstream demand, leading to potential underutilization of capacity and increased financing costs [3][8]. Financial Summary - For 2023, the company reported a gross profit margin of 13.0%, with projected margins of 11.7% for 2024 and 10.8% for 2025 [12]. - Total revenue is expected to grow to RMB 32.20 billion in 2024 and RMB 47.21 billion in 2025, with year-on-year growth rates of 19.2% and 46.6%, respectively [8]. - The net profit for 2023 is projected at RMB 437.2 million, with a significant decline of 37.0% year-on-year [12]. Market Comparison - The company has a market capitalization of approximately HK$ 26.4 billion, with a price-to-earnings ratio of 83.3x and a projected price-to-earnings ratio of 48.3x [5]. - Compared to industry peers, the company has a lower gross profit margin and return on equity, indicating potential challenges in profitability relative to competitors [5].

Battery Technology and Innovation - CALB successfully launched 6C ultra-fast charging large cylindrical batteries and mass-produced 314Ah energy storage batteries in 2023[7] - The company's semi-solid-state battery achieved a breakthrough in energy density of 400Wh/kg with a cycle life close to 1,000 times[7] - The company developed high-nickel/silicon system batteries for low-altitude economy applications in 2023[6] - The company completed key technological breakthroughs, including the development of 6C ultra-fast charging large cylindrical batteries and high-efficiency, ultra-long-life 314Ah energy storage batteries, which have been mass-produced and delivered[17] - The company achieved breakthroughs in advanced materials, including high-manganese iron lithium materials, 5V high-voltage nickel-manganese lithium materials, and new silicon-carbon materials[18] - The company developed 4C ultra-fast charging lithium iron phosphate technology and 6C ultra-fast charging high-nickel cylindrical technology, combining high energy and ultra-fast charging capabilities[18] - The company completed the development of 400Wh/kg high-energy, high-safety hybrid solid-liquid battery technology, leading the industry in thermal safety and calendar life[18] - The company's 800V 3C/4C mid-nickel high-voltage battery achieves a 20% to 80% charge time of 10 minutes and has been delivered in large quantities[21] - The company's 800V 5C ultra-fast charging lithium iron phosphate battery achieves a 20% to 80% charge time of 9 minutes and is set for mass delivery[23] - The company's 314Ah battery cell product has a cycle life of up to 7,000 cycles in the commercial vehicle sector, utilizing breakthrough lithium replenishment technology[24] - The company's high-energy high-nickel multi-element battery achieves a cell energy density of 350Wh/kg and a cycle life exceeding 1,500 cycles[21] - The company's semi-solid-state battery achieves a cell energy density of over 400Wh/kg and a cycle life close to 1,000 cycles[21] Energy Storage Business Growth - The company's energy storage business achieved multiple-fold growth in 2023, with batch deliveries to multiple strategic customers[6] - The company's energy storage business experienced exponential growth, achieving batch deliveries to multiple strategic customers[16] - Energy storage business achieved multiple-fold growth, with strategic partnerships established with major power groups and system integrators, and successful deployment of multiple energy storage station projects[29] - The company completed product recognition and cooperation with all top 30 system integrators, delivering to over 20 of them, becoming a core supplier and partner for leading industry players[29] - Two independent energy storage station projects were successfully bid and completed, marking a breakthrough in the energy storage station business[29] - The company plans to achieve multiple-fold growth in energy storage shipments by deepening strategic partnerships with major power groups and system integrators, and exploring diversified business models in commercial and industrial energy storage[34] Financial Performance and Growth - Total assets of the company reached RMB 105.429 billion, a year-on-year increase of 16.5%, and net assets reached RMB 46.386 billion, a year-on-year increase of 11.6%[27] - The company achieved revenue of approximately RMB 27.006 billion, a year-on-year increase of 32.5%, driven by capacity release, product line expansion, and strengthened customer relationships[27] - Revenue increased by 32.5% from RMB 20,374.94 million in 2022 to RMB 27,005.89 million in 2023[36] - Gross profit grew by 66.9% from RMB 2,103.52 million in 2022 to RMB 3,511.52 million in 2023, with gross margin rising from 10.3% to 13.0%[36] - Power battery sales revenue increased by 21.4% from RMB 18,323.51 million in 2022 to RMB 22,249.05 million in 2023, accounting for 82.4% of total revenue[38] - Energy storage system and other products revenue surged by 131.9% from RMB 2,051.44 million in 2022 to RMB 4,756.84 million in 2023[39] - Domestic revenue grew by 31.8% from RMB 19,988.44 million in 2022 to RMB 26,353.03 million in 2023, representing 97.6% of total revenue[40] - Overseas revenue increased by 68.9% from RMB 386.51 million in 2022 to RMB 652.86 million in 2023[41] - Total assets grew by 16.5% from RMB 90,460.62 million in 2022 to RMB 105,429.03 million in 2023, with non-current assets increasing by 38.1%[42] - Total liabilities rose by 20.8% from RMB 48,885.16 million in 2022 to RMB 59,043.24 million in 2023, driven by increased short-term borrowing and project syndicated loans[43] - Operating cash inflow increased by 37.5% from RMB 2,109.05 million in 2022 to RMB 2,900.17 million in 2023[44] - Bank and cash balances (including pledged and restricted bank deposits) stood at RMB 9,215.86 million as of December 31, 2023, compared to RMB 12,916.90 million in 2022[44] - The company's outstanding loans as of December 31, 2023, were all denominated in RMB, with 6.1% at fixed interest rates and the remainder at floating rates[46] - The company's asset-liability ratio increased to 47.1% as of December 31, 2023, up from 17.7% in 2022, primarily due to increased project construction loans[46] - Capital expenditures for the year ended December 31, 2023, amounted to RMB 20,129.02 million, a decrease from RMB 29,989.32 million in 2022, mainly used for capacity expansion[48] - The company had committed but not yet incurred capital expenditures totaling RMB 19,828.09 million as of December 31, 2023, related to the acquisition of property, plant, and equipment and intangible assets[49] - Restricted assets with a total book value of RMB 5,763.55 million were used to secure bank loans and other bank financing as of December 31, 2023[50] - The company's maximum potential risk from default on endorsed, discounted, and factored instruments was RMB 9,969,808 thousand as of December 31, 2023, up from RMB 3,534,942 thousand in 2022[54] - The company made provisions totaling RMB 8.64 million for patent infringement claims related to Patent 1, Patent 3, and Patent 4 in 2022, but reversed RMB 8.4 million of these provisions in 2023 after the Supreme Court dismissed the claims[55] - The company maintained a provision of RMB 0.24 million for the Patent 3 claim as of December 31, 2023, as there was no significant progress in the litigation during the year[56] - The company assessed that claims related to Patent 2 and Patent 6 lacked merit and were unlikely to result in economic outflows, with potential damages of RMB 365,000 thousand and RMB 130,000 thousand, respectively[56] Market and Industry Trends - Global new energy vehicle sales reached 14.056 million units in 2023, a year-on-year increase of 33.4%, driving the demand for power batteries to 705.5GWh, up 38.6% year-on-year[11] - China's new energy vehicle sales reached 9.495 million units in 2023, with a penetration rate of 31.6%, an increase of 5.9 percentage points from the previous year, and domestic power battery installations reached 387.7GWh, up 31.6% year-on-year[12] - Global energy storage battery shipments reached 225GWh in 2023, a year-on-year increase of 50%, with China accounting for 206GWh, up 58% year-on-year, and domestic companies' global share increased from 86.7% in 2022 to 91.6% in 2023[14] - The company has accumulated over 1.4 million new energy vehicles in the passenger car market, with significant growth in the mid-to-high-end segment and a fourfold increase in hybrid market share[27] - The company's power battery installations ranked among the top three in China, with monthly installations entering the global top four, and achieved breakthroughs in international markets[16] - Commercial vehicle deliveries in international markets doubled, with new projects and deliveries added in Europe, Australia, and Asia[29] - In the passenger vehicle market, the company deepened its domestic market penetration and expanded internationally, supporting the rapid growth of China's new energy vehicle exports[33] - The company is accelerating its internationalization strategy, with high-quality progress in European industrial layout, including the Portugal project, which has received environmental approval and is set for rapid mass production[35] - The company is actively expanding overseas markets, establishing subsidiaries, and building new factories, but faces risks related to geopolitical conflicts, tariffs, and local regulations[153] Corporate Governance and Leadership - Liu Jingyu, the Chairman and CEO of the company, has over 20 years of experience in large enterprise management and has been responsible for the overall strategic planning and operational decision-making of the group since 2018[57][58] - Liu Jingyu has received numerous honors, including being named "Star Entrepreneur" by the Changzhou Municipal Government in February 2024 and "Outstanding Entrepreneur" by the Jintan District Government in 2023[58][59] - Dai Ying, the Executive Director and Senior Vice President, has over 20 years of experience in business management, investment, and financing, and is responsible for the group's investment, financing, and capital operations[60][61] - Zhou Sheng, the Non-Executive Director, has been providing guidance for the overall development of the group since 2015 and currently serves as the Chairman and Legal Representative of Jiangsu Jintan Investment Holding Co., Ltd[62][63] - Mr. Zhang Guoqing has been appointed as a non-executive director since August 13, 2019, and was designated as a non-executive director on December 10, 2021, responsible for providing guidance on the overall development of the group[66] - Mr. Li Yunxiang was appointed as a non-executive director on August 13, 2019, and designated as a non-executive director on December 10, 2021, responsible for guiding the overall development of the group[67] - Mr. Wu Guangquan joined the group as an independent non-executive director on December 25, 2021, providing independent advice and judgment to the board of directors[70] - Mr. Wu Guangquan serves as the chairman of the remuneration committee and is a member of the audit and nomination committees[70] - Mr. Li Yunxiang has been the general manager of Jinyuan Investment since January 2023, overseeing investment management, financial management, and equity direct investment[67] - Mr. Li Yunxiang has been the chairman of Xiamen International Trust Co., Ltd. since January 2023[67] - Mr. Zhang Guoqing has been the employee director and general manager of Jiangsu Jintan Jincheng Technology Industrial Development Co., Ltd. since February 7, 2023[66] - Mr. Li Yunxiang holds multiple positions in Jinyuan Investment and its subsidiaries, including director of Xiamen Bank Co., Ltd. since January 6, 2024[68] - Mr. Wu Guangquan has extensive experience in enterprise management and business development, having served as chairman of AVIC International Holding Corporation from February 2010 to December 2016[71] - Mr. Li Yunxiang was awarded the title of "Top Talent of Xiamen City" by the Xiamen Municipal Government in October 2019[69] - Wu has extensive experience in finance and accounting, having served as General Manager of Jiangxi Jiangnan Trust & Investment Co., Ltd. and Deputy Chief Accountant at AVIC Shenzhen[72] - Wang is an independent non-executive director with rich experience in investment, financing, and corporate management, currently serving as a professor and doctoral supervisor at Southern University of Science and Technology[73] - Chen is an independent non-executive director with extensive experience in corporate finance, dispute resolution, and M&A, currently serving as a senior partner at JunZeJun Law Firm[74] - Chen holds multiple independent director positions, including at Life Insurance Co., Ltd. and Shenzhen Nanshan Power Co., Ltd., and is a qualified lawyer in both Hong Kong and mainland China[75] - Jiang is the Chairman of the Supervisory Committee and a shareholder representative supervisor, currently serving as Chairman and Legal Representative of Jiangsu Jintan Construction Development Co., Ltd[76] - Cheng is a shareholder representative supervisor with extensive experience in finance and corporate governance, currently serving as Director, CFO, and Board Secretary of Chengfei Integration[77] - Cheng holds multiple positions in subsidiaries of Chengfei Integration, including Director of Anhui Jiwen Integrated Body Cover Co., Ltd. and Supervisor of Shanghai Aero Engine Manufacturing Co., Ltd[78] - Cheng has received numerous awards, including the 4A-level Board Secretary award from the Listed Companies Association and the Outstanding Board Secretary Award from the Securities Times[78] - Cheng is a certified Senior International Financial Manager and Senior Economist, holding a bachelor's degree from Northwestern Polytechnical University and an MBA from Southwestern University of Finance and Economics[78] - Nian Mingzhu, 37, serves as the company's employee representative supervisor, responsible for overseeing the duties of directors and senior management. She joined the company in July 2019 and was appointed as a supervisor in September 2020[79] - Nian Mingzhu previously worked at Xiamen Tianma Microelectronics Co., Ltd. from July 2011 to July 2019, holding positions such as fund accountant, asset accountant, and auditor, responsible for daily fund management, asset accounting, and financial audits[80] - Pan Fangfang, 39, joined the company in December 2015 and was appointed as Senior Vice President and Chief Technology Officer in September 2019, responsible for market strategy, product strategy, R&D, and intellectual property. She has over 10 years of experience in battery R&D[81] - Pan Fangfang has received numerous awards, including the Jiangsu Youth May Fourth Medal in May 2023 and the Jiangsu Province March 8th Red Flag Bearer in March 2022[82] - Geng Yan'an, 41, joined the company in July 2018 and was appointed as Senior Vice President in August 2018, responsible for procurement and information technology. He is also the legal representative and general manager of several subsidiaries[83] - Gao Yan, 40, joined the company in April 2020 and was appointed as Senior Vice President, responsible for finance and human resources. She has over 15 years of experience in financial work[84] - Wang Xiaoqiang, 39, joined the company in December 2015 and was appointed as Vice President in November 2021, responsible for manufacturing technology, quality, and energy storage business development[85] - Mr. He was appointed as Vice President of the company after serving as Assistant General Manager from August 2018 to November 2021, primarily responsible for engineering construction[86] - Mr. Xie, Vice President, is responsible for the company's automotive business sales and battery product R&D, with a background in battery pack development and project management[87] - Mr. Xie has received multiple awards for his contributions to lithium-ion battery technology, including the Luoyang Municipal Science and Technology Progress Award (First Prize) in 2016[88] - Ms. Liu Jingyu serves as both Chairman and CEO, focusing on the company's overall strategic planning and operational decision-making[92] - The company adheres to the Corporate Governance Code, with a board structure consisting of 8 directors, including 3 independent non-executive directors[94] - The company's strategic focus includes leading-edge technology, scaling operations, and promoting sustainable industrial development[94] - The board has established specialized committees (Audit, Remuneration, and Nomination) to oversee governance and decision-making processes[94] - The company emphasizes values of sincerity, efficiency, and mutual benefit in its corporate governance practices[94] - The company's mission is to drive the healthy development of the energy industry through innovation and advanced core technologies[93] - The board ensures a balance of power and responsibilities, with independent non-executive directors providing independent judgment[95] - The company has established clear guidelines for matters requiring board approval, including capital, financing, financial reporting, internal controls, shareholder communication, board composition, delegation of authority, and corporate governance[96] - All directors have participated in continuous professional development in 2023, with specific participation details provided for each director[97] - Directors are elected or replaced by shareholders' meetings for a term of three years, with independent directors limited to a maximum of six consecutive years[98] - The company complies with the requirement to appoint at least three independent non-executive directors, with at least one possessing appropriate professional qualifications or accounting/financial management expertise[99] - The board plans to hold at least four regular meetings annually to discuss overall strategy, operations, and financial performance[100] - Board meeting notices and agendas are sent to all directors, supervisors, and the general manager at least 14 days in advance for regular meetings[101] - The company held eight board meetings and six shareholders' meetings during the reporting period, with all directors maintaining a 100% attendance rate[102] - The company's Chairman and CEO roles are held by Ms. Liu Jingyu, which is believed to ensure leadership consistency and efficient strategic planning[103] - The Audit Committee held five meetings during the reporting period, reviewing external auditor findings, audit plans, and risk management[107] - The Audit Committee members had a 100% attendance rate for all five meetings[108] - The Remuneration Committee held two meetings, reviewing compensation policies and assessing director and senior management performance[110] - The Remuneration Committee members had a 100% attendance rate for both meetings[110] - The company's senior management compensation for 2023 included salaries, allowances, equity-settled share-based payments, and retirement benefits[110] - The total remuneration for directors and supervisors in 2022 and 2023 was approximately RMB 31,968,000 and RMB 34,420,000, respectively[113] - The company has a 100% coverage rate for social security contributions for employees[112] - The top five highest-paid individuals' details are disclosed in the consolidated financial statements[113] - The nomination committee held one meeting during the reporting period

Investment Rating - The report assigns an "Accumulate" rating for the company, indicating a positive outlook for the stock [1][10]. Core Insights - The company experienced significant growth in revenue and profit margins, with a 32.5% year-over-year increase in revenue for 2023, reaching 27,005.89 million yuan, and a gross profit margin increase to 13% [1][2]. - The demand for power batteries surged, with the company's installed capacity growing by 80.9% year-over-year, positioning it as one of the top three players in China's power battery market [6][10]. - The company's energy storage business saw a remarkable 131.9% increase in revenue, contributing 17.6% to total revenue, reflecting a strong market presence and strategic partnerships [6][7]. Financial Performance - In 2023, the company reported a total revenue of 27,005.89 million yuan, with a gross profit of 35.12 billion yuan, marking a 66.9% increase from the previous year [1][2]. - The net profit attributable to shareholders was 294.38 million yuan, a decline of 57% year-over-year, primarily due to increased inventory impairment provisions [2][10]. - The company's return on equity (ROE) for 2023 was 0.85%, with projected net profits for 2024, 2025, and 2026 expected to be 596.61 million yuan, 931.82 million yuan, and 1,207.42 million yuan, respectively [1][10]. Market Position and Growth - The global demand for new energy vehicles (NEVs) increased by 33.4% in 2023, with the company capturing a 4.7% market share in the global power battery market [6][10]. - The company has established strong relationships with major automotive manufacturers, significantly increasing its market penetration in both passenger and commercial vehicle segments [6][7]. - The energy storage market is expanding rapidly, with the company achieving substantial growth in this area, supported by strategic collaborations with leading power groups and system integrators [6][7][8]. Technological Advancements - The company is focused on continuous innovation, having developed advanced battery technologies that enhance energy density and safety, including high-capacity lithium iron phosphate batteries and fast-charging solutions [8][9]. - As of December 31, 2023, the company holds 3,060 authorized patents and has 1,111 pending patents, underscoring its commitment to technological leadership [8][9]. International Expansion - The company is planning to establish a zero-carbon battery factory in Portugal, expected to commence production by the end of 2025, with an initial capacity of 15GWh [8][10]. - The international business segment accounted for 2.4% of total revenue in 2023, indicating significant growth potential in overseas markets, particularly in energy storage [8][10].