HONG KONG, Aug 29, 2024 – (ACN Newswire) – Tianneng Power International Company Limited (the “Company”, together with its subsidiaries, collectively the “Group” or “Tianneng”) (stock code: 00819.HK), a leading company in China’s new energy battery industry, announced its interim results for the six months ended 30 June 2024 (the “Reporting Period”).
In the first half of 2024, Tianneng focused on building new quality productivity by utilizing the three driving forces of “industry, technology and capital” and the three interlinked transformations of “digitalization, platform-based operation and internationalization” to form a new development pattern. The Group adhered to the concept that “technological innovation is the core element of developing new quality productivity”, further upgraded and optimized the production processes of lead-acid batteries, and actively expanded the layout and applications of emerging batteries such as lithium, hydrogen, sodium, and solid-state batteries. In addition, it strived to address global climate change challenges by enhancing efficiency and environmental protection through green and intelligent manufacturing, developing a circular economy, and building a sustainable supply chain that aligns with a series of development goals such as high-quality development and modern governance of China.
During the reporting period, the Group achieved revenue of approximately RMB 49.915 billion, representing an increase of approximately 20.36% compared to the same period last year. Profit attributable to owners of the Company was approximately RMB 928 million, representing a growth of approximately 1.09% compared to the same period last year. While actively exploring the development of emerging businesses, Tianneng invested significant effort in consolidating and strengthening its leading position in its core business. The cornerstone business of lead-acid batteries generated revenue of approximately RMB19.252 billion. In the field of new energy batteries, Tianneng accelerated the development of lithium-ion battery for ESS, facilitated the iteration of hydrogen fuel cells and sodium-ion batteries, and achieved breakthroughs in key technologies and applications in diverse scenarios. In the field of circular economy, Tianneng established a battery recycling green industry chain integrating production, recycling, smelting, and reproduction, with the circular industry generating revenue from external customers of approximately RMB1.554 billion.
Breaking Barriers through Continuous Technological Innovation
The Group has established a dual-core strategy in “motive batteries and energy storage systems”, achieved a parallel development in the traditional track with both lead and lithium technologies, and accelerated the development of hydrogen fuel cells, sodium-ion batteries, and solid-state batteries in emerging tracks. In terms of motive batteries, Tianneng has successively launched the first dedicated lead-acid motive battery for electric motorcycles, the new generation sodium-ion motive battery “Tianna T2” and colloidal batteries for forklifts, catering to a more diverse range of applications. For energy storage, successful developments included the OPzV-1000 valve-regulated colloidal lead-carbon battery, the “Sodium Storage No.1” suitable for energy storage scenarios, and a new generation 5MWh lithium-ion intelligent liquid-cooled energy storage system. These advancements help systems unleash greater value and provide stable and reliable power support for various application scenarios.
Upholding Sustainable Development Strategy for Green Industry
As one of the world’s largest lead-acid battery manufacturers, Tianneng utilizes over 90% of its battery products in electric light vehicles, possessing an inherent low-carbon advantage in the transportation industry. Tianneng incorporates green and intelligent manufacturing into its corporate development strategy by optimizing production processes, enhancing automation coverage, and improving production efficiency. By developing and integrating multiple digital management systems, Tianneng elevates the digitalization level of production management, thereby continuously driving the Company towards a more efficient and environmentally friendly future.
While focusing on the battery industry, Tianneng is also committed to achieving more efficient resource recovery and recycling. It has established four lead-acid battery circular economy industrial parks and two lithium-ion battery circular economy industrial parks in China. The recovery rates of various materials from waste lead-acid batteries exceed 99%, while the recovery rate of sulfate from waste lithium-ion batteries exceeds 98.5%, and the lithium carbonate recovery rate reaches 90%. For lead-acid battery recycling, Tianneng continuously enhances the capabilities of recovery and disposal and establishes a stable and sustainable supply chain to improve production capacity utilization. The Company now has the capacity to dispose of 1 million tons of waste lead-acid batteries annually. For lithium battery recycling, Tianneng has the capacity to dispose of 10,000 tons of waste ternary lithium-ion batteries annually, with an additional 60,000 tons of new capacity to be put into operation this year. Tianneng consistently innovates battery recycling technologies, and possesses various lithium-ion battery recycling technologies, including intelligent crushing and sorting without discharge, targeted thermal decomposition of dismantled materials, simultaneous disposal of ternary lithium iron phosphate, and lithium extraction through freezing.
During the Reporting Period, the Group undertook a waste lead-acid battery recycling and treatment project at the Circular Economy Industrial Park in Changxing County, Huzhou, Zhejiang Province, becoming the first “National Circular Economy Standardization Demonstration Project” in Zhejiang Province. By transforming typical models into national standards, this project has led the development direction of the industry. The Ministry of Industry and Information Technology announced the list of Green Manufacturing for 2023, with Tianneng New Materials Co., Ltd., a subsidiary of the Group specializing in lithium battery recycling, being selected as a national-level “Green Factory”.
Keeping Up with the Times to Strengthen Brand Promotion
In terms of the marketing, the Group has established an extensive distribution and after-sales service network and has over 3,000 distribution and after-sales service points in China, covering more than 400,000 terminal stores. This network provides replacement and repair services to 400 million users of electric light vehicles, making it one of the most well-known battery brands in the market.
Tianneng actively embraces big data technology and the emerging internet market, utilizing digital means to empower marketing efforts and support partners in refined operations and management. During the Reporting Period, the Group deepened the advancement of digital marketing models and upgraded the Tianneng innovative cloud commerce model, significantly optimizing the Group’s flexible production. This allows for faster and more accurate responses to changes in market demand, adjustments to production plans, and a notable increase in operational efficiency. It has also established dozens of online and offline integrated service experience centers, which promoted the growth of customized product sales, significantly enhanced the quality and effectiveness of the distribution channels and further strengthened its competitiveness.
Marching Forward with Determination to Expand International Operations
While consolidating its industry-leading position in China, Tianneng, based on local conditions, has rapidly pushed its battery products and energy solutions into the global market. Tianneng’s overseas business layout covers various countries and regions such as Southeast Asia, Europe, and Africa. Dr. Zhang Tianren, Chairman of the Board, was invited to participate in the “China-Vietnam Trade and Investment Cooperation Promotion Forum” in April 2024, and the first overseas intelligent manufacturing base was established in Vietnam, serving as a bridgehead for expanding the Southeast Asian market. The Company successfully contracted with dozens of Tianneng brand overseas partners for overseas terminal distribution and after-sales service network development. It also made frequent appearances at international exhibitions such as the EV TREND KOREA in Seoul and the EES Europe in Munich, Germany, receiving recognition from customers worldwide.
Leveraging the technological innovation achievements in green energy products and the industry experience accumulated over the years, Tianneng has set the international market as the new stage for its future development. Following the establishment of local offices, the development of overseas sales channels, and the Vietnam factory construction project, Tianneng will continue to explore overseas markets, actively respond to China’s “Belt and Road” initiative, use the Southeast Asian market as an entry point, and collaborate with more like-minded partners to enhance its influence in overseas markets and seize the initiative in international competition.
Future Outlook
Tianneng will adhere to the development direction of “focusing on high-quality development and enhancing sustainability” to accelerate the creation of new quality productivity with Tianneng’s characteristics. With technological innovation as the driving force and structural adjustment as the main theme, the Company will promote the transformation and upgrading of the new energy industry with a focus on nurturing the two major industrial ecosystems of motive batteries and energy storage systems. Meanwhile, based on the entire lifecycle of the battery industry, the Company will utilize the scale advantages of the circular economy to enhance efficiency. Based on its own technological advantages and fully leveraging the supporting and leading role of technological innovation, Tianneng will contribute more clean energy system solutions to the “carbon peaking and carbon neutrality” strategy and make greater contributions to the ecological civilization construction of China.
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Issued by Porda Havas International Finance Communications Group for and on behalf of Tianneng Power International Limited. For further information, please contact:
Kelly Fung
Tel: +852 3150 6788
Email: tianneng.hk@pordahavas.com
Topic: Press release summary