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Profit Attributable to the Owners of the Company Increased Substantially by 40.42% to RMB837 Million
Basic EPS Increased by 40.42%
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HONG KONG, Aug 31, 2020 - (ACN Newswire) - Tianneng Power International Limited ("Tianneng Power" or the "Company"), together with its subsidiaries, (the "Group"; stock code: 819.HK), today announced its interim results for the 6 months ended 30 June 2020 ("During the reporting period").
In the first half of the 2020, despite a complex and unpredictable external environment, the Group's main businesses maintained stable growth momentum with steady progress and improvement of quality. During the reporting period, the Group's sales revenue amounted to approximately RMB22,635 million, representing an increase of 14.26% year-on-year. The gross profit was approximately RMB2,116 million, representing an increase of 14.23% as compared with the same period last year. It was mainly attributable to an increase in sales volume and a growth in the battery gross profit margin. The gross profit margin was approximately 9.35%, which remained stable as compared with the same period last year. The net profit was approximately RMB860 million, representing an increase of 45.57% year-on-year.
Strives for Progress on High-end Eco-friendly Batteries Business
High-end eco-friendly batteries are one of the Group's main businesses, providing the Group with a solid cash flow. During the reporting period, the sales revenue of high-end eco-friendly batteries was approximately RMB11,641 million. The Company has now formed a product system based on lead batteries and supplemented by lithium batteries that includes motive, start-stop and energy storage batteries. Among these types of batteries, lead batteries have a history of more than 160 years. Characterised by their high safety, high recyclability, high price-performance ratio, mature technology and excellent performance in high and low temperature environment, lead batteries enjoy a sharp competitive edge. As a result, lead batteries occupy a leading position in the global market of rechargeable batteries and are currently the most commonly used batteries in vehicles and equipment such as light electric vehicles, special electric vehicles and start-stop systems in automobiles. The overall market demand for them will continue to grow steadily.
In the future, the fields of application for lead batteries will continue to grow and expand, and the related technologies and processes will continue to develop with the aim of achieving higher energy densities, higher price-performance ratio and higher safety. With the in-depth application of the 5th generation mobile network (5G), lead batteries will also go "smart" with features like identifiability and traceability, remote controllability and connectivity to the Internet of things.
Rapid Development of New Energy Batteries Business
As one of the new energy batteries, the lithium-ion battery is an important strategic segment of the Group. During the reporting period, the Group's operating revenue in the new energy battery business was approximately RMB403 million, representing an increase of 58.08% year-on-year. In November 2019, Tianneng signed a cooperation agreement with SAFT, a subsidiary of the French company Total S.A., one of the world's top 500 enterprises, to form a joint venture that focuses on the development, manufacture and sale of advanced lithium-ion batteries for the Chinese and global markets. The cooperation with SAFT will allow the Group to share the world-leading lithium battery company's rich experience in the construction and management of R&D systems and technological reserve to enhance the Group's global competitiveness. Over the years, the Group has continued to expand its product line of lithium-ion batteries. In addition to the sector of motive batteries, the Group's lithium battery business has also gained a foothold in smart energy storage, 3C and backup battery industries. The Company won the awards of "Best Provider of Systems Integration Solutions" and "Best Demonstration Project for Energy Storage" at the 7th Global Solar+Energy Storage Conference & Expo (2020) July this year.
The Company will further increase its cooperation with renowned battery companies in and outside China, deepen its distribution in the sectors of lithium-ion motive batteries for special vehicles and lithium-ion batteries for smart energy storage, and pay close attention to the technological trends and market developments of automobile start-stop lithium batteries, lithium-sulfur batteries and solid-state batteries, so as to make the lithium-ion battery business one of the Company's core segments and enhance the market competitiveness of the Company's lithium battery business.
Green New Materials Business Scudding along before the Wind
The Company is the first enterprise to develop circular business. After over ten years of technology accumulation and scientific operations, green new materials segment has become one of the three major businesses of the Company, and has had an important position in the Company's future development plan. In the first half of this year, the Group accelerated the industry distribution, and focused on the development of circular business. During the reporting period, the Group's external operating revenue in green new materials business recorded approximately RMB397 million. The Group will continue to put much effort in the circular business, gradually expand the categories of renewable materials for recycling, and at the same time extend to the up and down streams in the industry, thus steadily progress towards the goal of setting up large circular industry clusters.
Strategic Blueprint for Global Presence, Market Share Expansion
During the first half of this year, the Group leveraged on its overseas offices as the "bridgehead", deeply explored the market potentials in regions such as Southeast Asia, South Asia, Europe as well as Central and East Africa, constantly developed new markets and sectors, and used its overseas business division as platforms, thereby enhancing international communications and cooperation. The Group will continue to strengthen cooperation with scientific research platforms overseas, integrate world's top technological resources, thus foster core technological advantages for the entire industrial chain. At the same time, the Group continues to seek mergers and acquisitions opportunities for upstream and downstream products, and establishes research and development production bases overseas in due time while creating a global supply chain network, with the Group striving to become the "world's leading green energy solution provider".
Capital Development
In accordance with the results of the 51st review meeting of the Listing Committee for Science and Technology Innovation Board of the Shanghai Stock Exchange in 2020 that was held on 6 July 2020, the issue of A shares by Tianneng Battery Group Co., Ltd. and the listing of the A shares of the Spin-off Company on the Science and Technology Innovation Board of the Shanghai Stock Exchange has been approved by the Listing Committee.
Looking to the future, Mr. Zhang Tianren, the Chairman of the Board, said, "The Group will adhere to the sustainable development strategy of "new materials, new structures, new technologies, new sectors", follow the strategic direction of "artificial intelligent, globalization, platform-building", strive to seek after diversified fund raising channels to assist businesses with sufficient fundings for future development, as well as fully promote reforms in quality, efficiency and driving forces. Leveraging on its advantages in technology, production framework, market channels, brands and information technology system which have been accumulated in the battery industry for many years, Tianneng will strengthen the international leading position of its high-end eco-friendly batteries, enhance the product competitiveness of new energy batteries, create closed-loop green smart industry chain, construct a smart energy service system, build a logistics supply chain platform, actively expand businesses such as start-stop batteries and energy storage systems, and continue with the technological development of fuel cells and new-generation batteries, with the aim of becoming the most respected first-tier new energy enterprise across the globe."
About Tianneng Power International Limited
Tianneng Power International Co., Ltd. ("Tianneng Power") is a leading company in the new energy power battery industry in China, which was founded in 1986. In 2007, Tianneng Power was listed on the Main Board of The Stock Exchange of Hong Kong Limited as the "First China Company of Power Battery." After more than 30 years of development, it has become a large high-tech energy group focusing on the manufacturing and provision of services of environmentally friendly power batteries for electric vehicles, while offering integrated power storage ancillary services, and integrating the R&D, production and sale of lithium batteries for new energy vehicles, start-stop batteries for vehicles and wind power and solar power storage batteries; the recycling and cyclic utilization of waste batteries; the construction of smart micro-grids in cities; as well as the building of green and smart industrial parks. In July 2020, Tianneng Power won the awards of "Best Provider of Systems Integration Solutions" and "Best Demonstration Project for Energy Storage" at the 7th Global Solar+Energy Storage Conference & Expo (2020).
Topic: Press release summary
Source: Tianneng Power International Limited
Sectors: Daily Finance, Daily News
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