天能动力(00819) - 2025 - 中期业绩

Interim Results Announcement Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group's unaudited condensed consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, shows a significant decrease in revenue and profit for the period, with basic earnings per share also declining, while gross profit remained largely stable Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousands) | Metric | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 24,191,916 | 49,914,629 | -51.53% | | Cost of Sales | (21,655,008) | (47,368,947) | -54.29% | | Gross Profit | 2,536,908 | 2,545,682 | -0.34% | | Other Income | 889,227 | 1,241,994 | -28.40% | | Profit Before Tax | 1,103,901 | 1,366,916 | -19.24% | | Income Tax Expense | (181,423) | (301,309) | -39.79% | | Profit for the Period | 922,478 | 1,065,607 | -13.43% | | Profit for the Period Attributable to Owners of the Company | 819,768 | 928,222 | -11.70% | | Basic Earnings Per Share (RMB cents) | 72.80 | 82.43 | -11.68% | | Diluted Earnings Per Share (RMB cents) | 72.80 | 81.24 | -10.39% | - Total comprehensive income for the period was RMB 903,908 thousand, a 13.09% decrease from RMB 1,040,383 thousand in the prior year[6] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets slightly decreased, net current assets increased, and total equity steadily grew, indicating a robust capital structure Key Data from Condensed Consolidated Statement of Financial Position (RMB thousands) | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Non-current Assets | 21,345,018 | 22,062,776 | -3.25% | | Current Assets | 33,775,557 | 33,217,779 | +1.68% | | Net Current Assets | 4,943,259 | 3,945,424 | +25.29% | | Total Assets Less Current Liabilities | 26,288,277 | 26,008,200 | +1.08% | | Non-current Liabilities | 6,778,770 | 7,099,277 | -4.51% | | Net Assets | 19,509,507 | 18,908,923 | +3.18% | | Equity Attributable to Owners of the Company | 16,785,358 | 16,160,566 | +3.86% | | Total Equity | 19,509,507 | 18,908,923 | +3.18% | - The increase in current assets was primarily due to higher trade receivables and recoverable VAT; the decrease in non-current assets was mainly due to reduced restricted bank deposits[86] - The decrease in current liabilities was mainly due to lower bills payable and short-term loans; the decrease in non-current liabilities was primarily due to reduced long-term borrowings[87] Notes to the Financial Statements Basis of Preparation and Accounting Policies The Group's condensed consolidated financial statements are presented in RMB, prepared in accordance with HKAS 34 and HKEX Listing Rules, with no material impact from new HKFRS amendments applied this period - The condensed consolidated financial statements are presented in RMB and prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the HKICPA and the applicable disclosure requirements of the HKEX Listing Rules[12] - The application of amendments to Hong Kong Financial Reporting Standards (such as HKAS 21 (Revised) Lack of Exchangeability) during this interim period had no material impact on the Group's financial position or performance for the current and prior periods[14] Revenue from Contracts with Customers The Group's revenue primarily derives from manufacturing (lead-acid, renewable, lithium batteries) and trading, with Mainland China as the main market, and revenue recognition predominantly occurs at a point in time Revenue from Contracts with Customers Breakdown (RMB thousands) | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Manufacturing Business | | | | Lead-acid Battery Products | 18,292,243 | 19,252,492 | | Renewable Resources Products | 1,800,192 | 1,554,325 | | Lithium Battery Products | 501,247 | 182,549 | | Other Manufacturing | 574,554 | 221,601 | | Trading | 3,023,680 | 28,703,662 | | Total Revenue | 24,191,916 | 49,914,629 | Revenue by Geographical Market (RMB thousands) | Geographical Market | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Mainland China | 23,966,127 | 49,785,894 | | Other | 225,789 | 128,735 | | Total Revenue | 24,191,916 | 49,914,629 | - Regarding revenue recognition timing, the vast majority of revenue (RMB 24,162,283 thousand in 2025 and RMB 49,858,818 thousand in 2024) was recognized at a point in time[15] Segment Information The Group operates in two segments: manufacturing and trading; during the reporting period, manufacturing external sales remained stable, while trading external sales significantly decreased, leading to a notable reduction in total segment revenue Segment Revenue and Results Analysis (RMB thousands) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Segment Revenue | | | | Manufacturing Business – External Sales | 21,168,236 | 21,210,967 | | Trading – External Sales | 3,023,680 | 28,703,662 | | Group Revenue | 24,191,916 | 49,914,629 | | Segment Results | | | | Manufacturing Business | 925,629 | 1,115,429 | | Trading | 12,596 | (37,282) | | Profit for the Period | 922,478 | 1,065,607 | - The trading segment turned profitable from a loss in the prior period, but its external sales significantly decreased[19] Other Income and Gains The Group's other income, mainly government grants and interest income, decreased during the reporting period, while other gains and losses were significantly impacted by fair value changes in financial assets and commodity derivative contracts Other Income (RMB thousands) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Government Grants – Income Related | 675,669 | 850,730 | | Government Grants – Asset Related | 43,378 | 33,786 | | Interest Income | 120,080 | 296,844 | | Scrap Sales | 47,059 | 59,989 | | Dividend Income | 3,041 | 645 | | Total | 889,227 | 1,241,994 | Other Gains and Losses (RMB thousands) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Fair Value Changes in Financial Assets at Fair Value Through Profit or Loss (Gains/Losses) | | | | – Structured Bank Deposits | 34,417 | 8,301 | | – Investments in Listed Equity Securities | 2,944 | (7,865) | | – Forward Exchange Contracts | (15,811) | (1,747) | | – Commodity Derivative Contracts | (21,544) | 173,292 | | Loss on Disposal of Property, Plant and Equipment | (8,659) | (15,671) | | Net Exchange Losses | (2,382) | (35,983) | | Other | 15,094 | 13,783 | | Total | 4,059 | 134,110 | - Other income decreased by approximately 28.40% compared to the prior period, mainly due to lower government grants and interest income[81] Income Tax Expense The Group's income tax expense primarily stems from PRC Enterprise Income Tax, with certain high-tech subsidiaries enjoying a preferential 15% rate, and overall income tax expense decreased during the reporting period Income Tax Expense (RMB thousands) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | PRC Enterprise Income Tax – Current Tax | 264,300 | 175,863 | | Deferred Tax – For the Period | (82,877) | 125,446 | | Total | 181,423 | 301,309 | - The Group's income tax expense is recognized based on the PRC Enterprise Income Tax rate of 25%, with certain subsidiaries classified as high-tech enterprises enjoying a 15% tax rate[26] Profit for the Period Profit for the period is derived after deducting items such as depreciation, capitalization of inventories, and write-down of inventories; total depreciation of property, plant, and equipment increased during the reporting period Profit for the Period Adjustment Items (RMB thousands) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 611,529 | 521,925 | | Depreciation of Right-of-use Assets | 17,635 | 17,252 | | Total Depreciation | 629,164 | 539,177 | | Capitalization of Inventories | (454,387) | (391,294) | | Write-down of Inventories (Included in Cost of Sales) | 72,562 | 44,963 | Dividends and Earnings Per Share The Board does not recommend an interim dividend for the reporting period; profit attributable to owners of the Company is used to calculate basic and diluted earnings per share, which decreased compared to the prior period Dividends Declared During the Period (RMB thousands) | Dividend Year | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | 2024 Final Dividend (HK$0.17 per share) | 176,406 | – | | 2023 Final Dividend (HK$0.43 per share) | – | 440,832 | Earnings Per Share (RMB cents) | Metric | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic | 72.80 | 82.43 | | Diluted | 72.80 | 81.24 | - The Directors do not recommend an interim dividend for the six months ended June 30, 2025, and June 30, 2024[30] Receivables and Payables The Group's total bills receivable, trade receivables, and other receivables increased, with the largest portion of trade receivables aged 0-45 days; total bills payable, trade payables, and other payables slightly increased, with bills payable primarily due within 0-180 days Bills Receivable, Trade Receivables and Other Receivables (RMB thousands) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bills Receivable | 1,974,827 | 1,929,737 | | Trade Receivables (Net of Allowance) | 2,172,830 | 1,535,922 | | Other Receivables (Net of Allowance) | 143,410 | 107,661 | | Prepayments for Materials | 312,705 | 217,938 | | Recoverable PRC VAT and Enterprise Income Tax | 1,134,431 | 789,818 | | Total | 5,738,203 | 4,581,076 | Ageing Analysis of Trade Receivables (RMB thousands) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 45 days | 1,524,032 | 916,782 | | 46 to 90 days | 481,035 | 389,176 | | 91 to 180 days | 42,846 | 57,194 | | 181 to 365 days | 48,932 | 22,401 | | One to two years | 53,121 | 141,784 | | Over two years | 22,864 | 8,585 | | Total | 2,172,830 | 1,535,922 | Bills Payable, Trade Payables and Other Payables (RMB thousands) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Payables | 2,650,968 | 2,398,507 | | Bills Payable | 6,526,363 | 6,808,120 | | VAT Payable and Other Taxes Payable | 753,056 | 663,854 | | Staff Salaries and Welfare Payables | 423,311 | 519,600 | | Payables for Purchase of Property, Plant and Equipment | 1,472,018 | 1,759,105 | | Accrued Expenses | 661,786 | 567,859 | | Deposits Received | 612,180 | 363,335 | | Other Payables | 270,291 | 212,514 | | Total | 13,369,973 | 13,292,894 | Share Capital and Share-based Payments The Company's issued and fully paid share capital remained unchanged; the share option scheme expired on June 30, 2024, with no exercises or related expenses this period, while the share award scheme for Tianneng Shares continued, with expenses recognized Share Capital Information | Item | Number of Shares | Amount (RMB thousands) | | :--- | :--- | :--- | | Issued and Fully Paid Ordinary Shares (par value HK$0.10 per share) | 1,126,124,500 | 109,850 | - The Company's share option scheme expired during the six months ended June 30, 2024, with no share options exercised or related expenses recognized during the period[42][43] - The Group recognized expenses of approximately RMB 750,000 for Tianneng Shares' share award scheme (2024: RMB 2,107,000)[45] Operating Review Company Profile Tianneng Power International Limited, established in 1986, is a leading Chinese new energy battery enterprise, focusing on lead-acid batteries while actively expanding into diverse technologies like lithium-ion, solid-state, hydrogen fuel, and sodium-ion batteries, and building a circular economy industrial chain - The Group was established in 1986 and listed on the Main Board of The Stock Exchange of Hong Kong Limited (stock code: 00819.HK) in 2007[46] - With lead-acid batteries as its core business, the Group deeply cultivates the electric light vehicle power battery market and expands into diverse fields such as backup power, automotive batteries, and industrial power batteries[46] - Actively promotes the R&D, production, and sales of lithium-ion batteries, solid-state batteries, hydrogen fuel cells, and sodium-ion batteries, while building a circular economy industrial chain[46] Operating Overview During the reporting period, the Group adhered to a 'industry, technology, capital' driven development, consolidating core competitiveness in lead-acid business, accelerating new energy business expansion, deepening circular system construction, and simultaneously expanding overseas markets for comprehensive and sustainable development - Coordinates the 'industry, technology, capital' three-wheel drive, consolidating core competitiveness in lead-acid business, accelerating new energy business expansion, deepening circular system construction, and simultaneously expanding overseas markets[47] - Through deep integration of strategic initiatives and structural reforms, market competitive advantages and industry influence have significantly improved, laying a solid foundation for long-term development resilience[47] Industry Development and Operating Performance The Group made progress across its three core business segments: high-end eco-friendly batteries, new energy battery technology matrix, and circular economy industry, with manufacturing revenue of approximately RMB 21.168 billion, as business lines focused on technological innovation, market expansion, and internationalization - During the reporting period, the Group achieved manufacturing revenue of approximately RMB 21.168 billion[51] High-end Eco-friendly Batteries High-end eco-friendly batteries, a strategic cornerstone, include eco-friendly mobility, backup power, automotive, and electric special industrial power batteries, generating approximately RMB 18.292 billion in revenue during the reporting period - High-end eco-friendly battery business achieved revenue of approximately RMB 18.292 billion[51] Eco-friendly Mobility Batteries As a key lead-acid battery product, widely used in electric light vehicles, the Group enhances product competitiveness and actively expands overseas markets through smart manufacturing upgrades, technological iterations, and strategic market布局 - China's electric two-wheeler ownership exceeds 420 million units, with stable replacement demand; the implementation of the new national standard 'Safety Technical Specification for Electric Bicycles' (GB 17761-2024) will consolidate the advantages of leading enterprises[53] - Fully promotes smart factory construction, deeply integrating 5G, IoT, and AI technologies to achieve full-process digital and intelligent upgrades; the Puyang City production base in Henan Province was awarded as a national-level '5G Factory'[53] - Possesses over 3,000 distributors, covering more than 400,000 retail stores, serving hundreds of millions of electric light vehicle users, and building an integrated online and offline user service platform[55] - Accelerates the construction of an international business network covering Southeast Asia, Europe, and Africa, with breakthrough growth in overseas business; the Vietnam base construction is progressing in an orderly manner[55] Other High-end Eco-friendly Batteries Lead-acid batteries are widely applied in backup power, automotive, and electric special industrial power batteries, where the Group has achieved business expansion and technological breakthroughs Backup Power Supplies Driven by energy structure transformation and computing infrastructure development, the backup power market is rapidly expanding, with the Group's backup power business showing unexpected growth and accelerating international expansion - The backup power market is rapidly expanding, with lead-acid batteries deeply penetrating scenarios like communication base stations and data centers due to their cost advantage and operational stability[57] - Backup power business shows unexpected growth, with international expansion accelerating simultaneously, focusing on engaging leading overseas enterprises[58] Automotive Batteries and Industrial Power Batteries Automotive battery business focuses on starter and start-stop battery R&D, with leading domestic technology; industrial batteries serve leading engineering machinery enterprises and accelerate global expansion through technological upgrades and market development - Automotive battery business is driven by 'new technology R&D, new material application, and new product development,' breaking through multiple core indicators, with key technologies at a leading domestic level[58] - Industrial batteries focus on developing products with core advantages of 'high energy density, long cycle life, and fast charging/discharging' to meet the demands of forklifts, AGVs, and smart warehousing equipment[58] - Serves leading enterprises in the engineering machinery industry, simultaneously accelerating global expansion, and collaborating with international partners to jointly develop European and Asian markets[58] New Energy Battery Technology Matrix The Group systematically advances R&D, smart manufacturing, and application expansion across diverse technology routes including lithium-ion, solid-state, hydrogen fuel, and sodium-ion batteries, fostering new business growth drivers - Anchored in new energy development, the Group systematically advances R&D, smart manufacturing, and application expansion across diverse technology roadmaps including lithium-ion, solid-state, hydrogen fuel, and sodium-ion batteries[59] Lithium-ion Batteries The Group's lithium-ion battery business primarily focuses on energy storage and low-speed power, achieving significant operational improvement and approximately RMB 501 million in revenue during the reporting period, with notable progress in technological innovation and market expansion - Lithium-ion battery business achieved revenue of approximately RMB 501 million, with significant improvement in operational quality and efficiency[60] - Firmly implements a 'high-tech, multi-scenario, full-ecosystem' development strategy, coordinating technological innovation, scenario extension, and overseas expansion[60] - Focuses on full-chain innovation in lithium-ion battery 'materials, cells, systems, and applications,' building a technology system supporting diverse scenarios, and providing solutions in energy storage, commercial vehicles, and electric special industrial vehicles[61] - Deepens core market layout, achieving sales breakthroughs in energy storage, backup power, and low-speed power sectors, and promoting brand and ecosystem internationalization[61] Solid-state Batteries The Group made significant progress in solid-state battery industrialization, launching new generation batteries for two-wheelers and a series for low-altitude flight, steadily enhancing industry influence - Leads and participates in the formulation of multiple international, national, and industry standards, focusing on breakthroughs in three major product directions: high specific energy, long cycle life, and high rate performance[63] - The new generation batteries launched for two-wheelers have garnered widespread industry attention for their excellent safety and higher energy density, establishing strategic partnerships with leading two-wheeler enterprises[63] - Simultaneously launched a series of solid-state batteries for low-altitude flight, and jointly promotes scenario solution verification with drone and robotics companies[63] Hydrogen Fuel Cells Supported by a full-chain forward R&D system, the Group achieved significant technological and product advancements in hydrogen fuel cells, actively expanding markets and securing orders for fuel cell buses and hydrogen-powered two-wheelers in multiple regions - 80kW/130kW fuel cell systems and 100kW graphite plate stacks achieved advanced domestic performance, demonstrating excellent advantages in zero-carbon transportation scenarios like public buses and logistics[65] - Steadily advances the implementation of core products, completing small-batch delivery of various key components, and initiating iterative development of cutting-edge products such as high-power systems and stacks[65] - Actively expands cooperation networks with OEMs, logistics companies, and shared mobility platforms, securing orders for fuel cell buses and bulk hydrogen-powered two-wheelers in multiple regions[65] Sodium-ion Batteries Seizing policy and market opportunities, the Group pursues a dual-track approach of 'technological breakthroughs' and 'scenario implementation,' continuously deepening strategic R&D and application deployment for sodium-ion batteries, accelerating development of new square cells and other products - Adheres to the strategy of 'technology reserve, scenario verification, and steady advancement,' focusing on technological breakthroughs at the cell, module, and system levels[66] - Further focuses on automotive start-stop systems, leveraging an extensive channel network to deeply promote multi-scenario demonstration applications and market promotion[66] - R&D of new sodium-ion battery square cells and other products is accelerating; sodium-ion automotive battery products debuted at exhibitions like CIBF, receiving positive market feedback for their excellent low-temperature performance[66] Circular Economy Industry The Group systematically built a full lifecycle industrial chain covering production, recycling, and reuse, forming a dual-track circular industry system for lead-acid and lithium-ion batteries, achieving approximately RMB 1.8 billion in external revenue during the reporting period - Circular economy industry achieved external revenue of approximately RMB 1.8 billion[68] Recycling of High-end Eco-friendly Batteries As a leading lead-acid battery recycling enterprise with an annual disposal capacity exceeding one million tons, the Group achieved efficient resource regeneration through optimized recycling network and technological innovation, generating approximately RMB 1.375 billion in external revenue during the reporting period - Lead-acid battery recycling business achieved external revenue of approximately RMB 1.375 billion[69] - Annual disposal capacity for waste lead-acid batteries now exceeds one million tons, positioning it at a leading level in the industry[69] - Possesses recycling pilot qualifications in provinces such as Zhejiang, Jiangsu, and Anhui, with over 300 cooperative recycling points covering multiple provinces nationwide[70] - Through self-developed core technologies like side-blown furnace production enhancement and cost reduction, and refined lead detellurization, production efficiency and cost optimization are achieved, with metal recovery and energy utilization rates at superior industry levels[70] Lithium-ion Battery Resource Regeneration The Group actively promotes the construction of a lithium-ion battery recycling system, making orderly progress in process improvement, production line enhancement, and channel development, achieving approximately RMB 425 million in revenue and industry-leading recycling technology and capacity - Lithium-ion battery recycling business achieved revenue of approximately RMB 425 million[71] - A full-process technical system has been formed, covering retired lithium battery performance testing, crushing and sorting, pyrolysis enrichment, deep reduction, and efficient separation, achieving cobalt, nickel, and manganese recovery rates exceeding 98.5%, and lithium recovery rate exceeding 92%[72] - The self-developed 'Method and Device for Copper-Aluminum Separation from Waste Lithium Batteries' received national patent authorization, and disposal capacity exceeding 70,000 tons has been established[72][73] - Actively promotes the 'urban mining' development strategy, deploying integrated dry and wet processing bases, regional circular bases, and recycling points, exploring diversified recycling models[73] Strategic Planning and Development Direction Multi-technology Synergy The Group will focus on synergistic development across multiple technology routes—lead, lithium, solid-state, hydrogen, and sodium—strengthening independent innovation, concentrating on key technologies like solid-state batteries and hydrogen fuel stacks, and deepening industry-academia-research collaboration - Promotes synergistic development across multiple technology roadmaps—lead, lithium, solid-state, hydrogen, and sodium—systematically strengthening independent innovation capabilities in 'materials, cells, systems, and scenarios'[75] - Focuses on key technological directions such as solid-state batteries and hydrogen fuel stacks, steadily advancing R&D reserves and application transformation for related technologies[75] Digital and Intelligent Transformation The Group views smart manufacturing as a key strategic direction, steadily advancing full-process digital management system upgrades and adopting new manufacturing models like '5G factories' to enhance production efficiency, energy utilization, and environmental performance - Steadily advances full-process digital management system upgrades, applying new manufacturing models like '5G factories' to enhance production efficiency and energy utilization efficiency[76] - Promotes the application of clean electricity and the construction of a carbon asset management system, optimizing the environmental performance of manufacturing processes[76] Circular Economy System The Group is committed to building an efficient recycling network with both front-end reach and back-end processing efficiency, promoting dual-track recycling for lead-acid and lithium-ion batteries, and enhancing supply chain integration and synergy - Builds an efficient recycling network with both front-end reach and back-end processing efficiency, promoting dual-track operation for lead-acid battery recycling and lithium-ion battery recycling[77] - Strengthens differentiated pathway layout for lithium-ion battery recycling, deepens resource linkage in core regions and key scenarios, gradually unleashing the scale advantages and economic value of the circular system[77] Global Expansion The Group positions globalization as a key growth engine, accelerating the establishment of localized manufacturing, service, and operating systems in strategic markets like Vietnam, and promoting proprietary technologies and advantageous products to international markets - Accelerates the establishment of localized manufacturing, service, and operating systems in strategic markets like Vietnam, systematically advancing product adaptation, channel construction, and brand penetration[77] - Promotes proprietary technologies and advantageous products to international markets, gradually integrating into the global industrial system and enhancing global competitiveness[77] Financial Review Revenue and Gross Profit During the reporting period, the Group's revenue decreased by 51.53% year-on-year, primarily due to a significant decline in trading revenue; gross profit slightly decreased by 0.34%, and manufacturing gross profit margin marginally fell by 0.20 percentage points Revenue and Gross Profit Changes (RMB thousands) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Total Revenue | 24,192,000 | 49,915,000 | -51.53% | | Manufacturing Revenue | 21,168,000 | 21,211,000 | -0.20% | | Trading Revenue | 3,024,000 | 28,704,000 | -89.47% | | Gross Profit | 2,537,000 | 2,546,000 | -0.34% | | Manufacturing Gross Profit Margin | 11.93% | 12.13% | -0.20pp | - The decrease in gross profit margin was mainly due to lower gross profit margins for low-speed power batteries and industrial batteries[80] Other Income and Expenses The Group's other income decreased by 28.40%, mainly due to lower government grants and interest income; distribution and selling expenses, administrative expenses, and finance costs all decreased, while R&D costs remained largely stable Other Income and Expense Changes (RMB thousands) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Other Income | 889,000 | 1,242,000 | -28.40% | | Distribution and Selling Expenses | 592,000 | 643,000 | -7.93% | | Administrative Expenses | 561,000 | 651,000 | -13.83% | | Research and Development Costs | 942,000 | 942,000 | 0.00% | | Finance Costs | 235,000 | 282,000 | -16.67% | - The decrease in distribution and selling expenses was mainly due to lower travel and transportation costs; the decrease in administrative expenses was primarily due to lower employee wages and office expenses[82][83] - The decrease in finance costs was mainly due to reduced loan scale and lower interest rates[85] Operating Cash Flow During the reporting period, the Group's net cash flow from operating activities shifted from a net outflow to a net inflow, primarily due to strengthened inventory and payables management - Net cash flow from operating activities shifted from a net outflow of approximately RMB 162 million in the prior period to a net inflow of approximately RMB 891 million[86] - Primarily due to the Group's strengthened inventory and payables management[86] Assets, Liabilities and Capital Structure As of June 30, 2025, the Group's total assets slightly decreased, with current assets increasing and non-current assets decreasing; total liabilities decreased, with both current and non-current liabilities showing reductions Assets and Liabilities Changes (RMB thousands) | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Total Assets | 55,121,000 | 55,281,000 | -0.29% | | Total Current Assets | 33,776,000 | 33,218,000 | +1.68% | | Total Non-current Assets | 21,345,000 | 22,063,000 | -3.25% | | Total Liabilities | 35,611,000 | 36,372,000 | -2.09% | | Total Current Liabilities | 28,832,000 | 29,272,000 | -1.50% | | Total Non-current Liabilities | 6,779,000 | 7,099,000 | -4.51% | - Equity attributable to owners of the Company was approximately RMB 16.785 billion, an increase from approximately RMB 16.161 billion as of December 31, 2024[86] Borrowings and Liquidity The Group maintains ample cash and bank balances, with a decrease in total interest-bearing borrowings and substantial unused credit facilities, indicating a healthy and manageable capital structure Borrowings and Liquidity (RMB thousands) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cash and Bank Balances | 18,598,000 | 21,410,000 | | Interest-bearing Borrowings and Loan Notes Due Within One Year | 12,030,000 | 12,726,000 | | Interest-bearing Loans Due After One Year | 5,235,000 | 5,823,000 | | Total Interest-bearing Loans | 17,265,000 | 18,549,000 | - Fixed annual interest rates for RMB loans ranged from approximately 2.11% to 5.50% (2024: approximately 2.22% to 5.50%)[88] - Possesses approximately RMB 25.215 billion in unused credit facilities[88] Pledged Assets and Gearing Ratio The Group's bank credit and borrowings are secured by bank deposits, bills receivable, property, plant and equipment, and land use rights; the gearing ratio decreased, indicating reduced financial leverage Pledged Assets and Gearing Ratio | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Net Book Value of Pledged Assets | RMB 11.085 billion | RMB 14.039 billion | | Gearing Ratio | 31.32% | 33.55% | Exchange Rate Fluctuation Risk and Contingent Liabilities The Group's operations are primarily in China, transacting in RMB, thus the Board believes there is no significant foreign exchange risk; as of the reporting period end, the Group had no material contingent liabilities - There is no significant foreign exchange rate risk for the Company's operating cash flow and liquidity[91] - As of June 30, 2025, the Group had no material contingent liabilities[92] Capital Commitments and Employee Remuneration The Group has contracted but unprovided capital commitments for the acquisition of property, plant and equipment; during the reporting period, both total employees and employee costs decreased Capital Commitments and Employee Information | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted but Not Provided for Capital Commitments for Acquisition of Property, Plant and Equipment | RMB 1.402 billion | RMB 1.592 billion | | Total Employees | 20,709 persons | 21,929 persons (June 30, 2024) | | Employee Costs | RMB 1.335 billion | RMB 1.601 billion (June 30, 2024) | Material Investments and Financial Assets The Group held no material investments during the reporting period; financial assets at fair value through profit or loss primarily comprise structured bank deposits and wealth management products purchased from commercial banks, along with a small amount of listed equity securities - As of June 30, 2025, the Group held no material investments[96] - Financial assets at fair value through profit or loss primarily include unlisted financial products purchased from commercial banks, such as structured bank deposits and wealth management products, with a total fair value of approximately RMB 3,294,036 thousand[97][99] Other Important Matters Material Acquisitions and Disposals During the reporting period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[100] Significant Events After the Reporting Period Tianneng Battery Group Co., Ltd., a subsidiary, proposes to issue corporate bonds up to RMB 2 billion, while Tianneng Holding Group Co., Ltd., another subsidiary, proposes to issue targeted debt financing instruments up to RMB 2 billion - Tianneng Battery Group Co., Ltd. (an indirect subsidiary of the Company) proposes to apply to the Shanghai Stock Exchange for registration and issuance of corporate bonds with a total principal amount of up to RMB 2 billion (inclusive of RMB 2 billion)[102] - Tianneng Holding Group Co., Ltd. (an indirect wholly-owned subsidiary of the Company) proposes to apply to the National Association of Financial Market Institutional Investors for registration and issuance of targeted debt financing instruments with a total principal amount of up to RMB 2 billion (inclusive of RMB 2 billion)[102] Corporate Governance The Company is committed to high corporate governance standards, adopting and complying with the HKEX Corporate Governance Code, except for Code Provision C.2.1 (Chairman and CEO held by the same person); the Audit Committee reviewed the interim report - The Company has adopted and complied with the code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the HKEX Listing Rules, except for Code Provision C.2.1 (Chairman and Chief Executive Officer held by the same individual)[105] - The Company's Audit Committee, together with management and independent external auditors, reviewed the Company's 2025 interim report and recommended its adoption by the Board[105] Directors and Securities Transactions All Directors confirmed compliance with the Model Code for securities transactions throughout the reporting period; neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period - All Directors confirmed their continuous compliance with the standards for securities transactions as set out in the Model Code throughout the reporting period[107] - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[108] General Information This section lists the Company's executive and independent non-executive directors as of the announcement date and specifies the publication channels for the announcement - The Company's Executive Directors are Dr. Zhang Tianren, Mr. Zhang Aogen, Mr. Zhang Kaihong, Mr. Shi Borong, and Mr. Zhou Jianzhong[109] - The Company's Independent Non-executive Directors are Mr. Huang Dongliang, Mr. Zhang Yong, Mr. Xiao Gang, and Dr. Guo Yuantao[109] - This announcement will be published on the HKEX website www.hkex.com.hk and the Company's website www.tianneng.com.hk[109](index=109&type=chunk)