Tianneng Power International Limited
Overview
Tianneng Power International Limited (SEHK:819) and its subsidiaries is a leading enterprise in the industry of new energy power battery in China, founded in 1986. In 2007, Tianneng Power was listed on the Main Board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) as the “First mainland enterprise 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-and-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.1
“Responsibility, Innovation, Striving and Sharing” are the core values of Tianneng Power, and these core values focus on striving for value, enhancing responsibilities, persistently driving for innovation, constantly generating motivation, boosting core competitiveness, consistently achieving high-quality development, creating values for customers and providing a platform for employees, with the aims to create returns to its shareholders and to give back to its community through concrete actions.
Product
High-tech Eco-friendly Battery.
- Longer Service Life：The self-developed formula of low calcium and high tin alloy increases the cycle life of the battery through efficient multi-frequency conversion process and continuous casting and rolling process.2
- High Energy Density：By developing anode additives and electrolyte additives, negative graphene technology is applied to improve the utilization rate of active materials, to reduce the amount of lead used in conductive parts. Therefore, the energy density of the battery is increased
- Good Performance at Low Temperature：Through the comprehensive comparison and analysis of the new expander, the temperature control of adding acid to the battery and the battery design, the new negative electrode and reasonable quality control technology are developed, so that the battery can be charged and discharged efficiently in the low temperature environment.
- Production line upgrade：Intelligent manufacturing efficiency significantly improved, with continuous casting & rolling and equipment upgrading achieved
New Energy Batteries
- Tianneng lithium has been appraised by Ministry of Industry and Information Technology as the intelligent manufacturing project, China's first batch of key laboratory of new energy lithium battery, and pilot demonstration project of integrated development of manufacturing and the Internet3
- The Group has a sophisticated R&D team that comprises various academicians, “National One Thousand Talents”, foreign experts, and professors or doctors. The Group successfully created a whole industrial chain regarding the R&D and production of lithium battery material, the ternary lithium battery, the lithium iron phosphate battery as well as BMS and PACK systems
- Develop positive electrode materials of high energy density, negative electrode materials of long-circulation silicon composite, high-safety electrolyte and diaphragm of high-temperature resistance and high safety
Green and Renewable Materials
- Identified by China Development and Reform Commission as a resource comprehensive utilization enterprise and a pilot of national recycling economy4
- National center for circular economy technology
- Two major recycling and processing bases in East China and North China
- Diversified Channels: self-owned recycling bases, cooperation across socialized network that covers the whole country
- By deeply practicing the concept of “Lucid waters and lush mountains are invaluable assets” and resolutely implementing the producer responsibility extension system, the Group targets to create integrated industrial park of green circular economy and set up a benchmark of non-waste for urban enterprises
- "National Invention Patent" is rewarded for “A Copper Removal Composition Used for the Refining of Recycled Lead and Its Application”
- Participated in the formulation of Standard System of Circular Economy in National Standards of Industrial Enterprises and Industrial Garden and Industry Standards for Waste Battery Recycling
New Technology New Product
New Technology
- Involve in the establishment of national standard
- Specific energy, service life, the performance of high-and-low-temperature resistance are improved significantly5
New Product
- High-temperature Solidifying Technology
- Rare-earth Alloy Technology
- Busbar Directly Connected Technology
- Highly Water-retaining New Arm Technology
Financial highlights
During the six months ended 30 June 2019, with the complex and volatile amacroeconomic environment, the increased operational pressure on the real economy and intensifying competition in the industry, the Group adhered to its guiding principle of being “stable and progressive” in its work, steering its direction towards green wisdom (綠色智造), focusing on quality and efficiency and aiming at reform and innovation, thereby achieving the Group’s high-quality and sustainable development. According to the “List of Top 100 Battery Enterprises in China for 2018” (《2018年度中國電池行業百 強企業名單》) issued by the China Industrial Association of Power Sources in July 2019, Tianneng continued to rank top in the top 100 enterprises in the battery industry of China.6
During the reporting period, the Group recorded a revenue of approximately RMB20,087 million, representing an increase of 38.47%% as compared with the same period last year, and a net profit of approximately RMB554 million, representing an increase of 3.78% as compared with the same period last year.
Business and industry
High-end eco-friendly batteries
High-end eco-friendly batteries are one of the Group’s traditional major businesses, providing the Group with a solid cash flow. During the reporting period, the sales revenue of high-end eco-friendly batteries was approximately RMB12,561 million.
Electric bicycle and electric tricycle battery
With the continuous growth of China’s economy, the continuous increase of the consumption level, the increase of people’s awareness of environmental protection, and the promotion of energy conservation and emission reduction policies, the market of electric vehicles is expected to continue to grow steadily. Meanwhile, following the rapid development of the modern service sector, practitioners of emerging forms of businesses will become a new consumer group.
The national standards of “Safety Technical Specifications for Electric Bicycles” (hereinafter referred to as the “New National Standard”) promulgated by four government departments including the State Administration for Market Regulation, Standardization Administration of China, Ministry of Public Security and Ministry of Industry and Information Technology have become effective since 15 April 2019. The introduction of the New National Standard is of great significance for the steady development of the industries. The New National Standard has regulated market order, improved product safety performance, and fostered market competition for the best to remain.
Micro electric vehicles
Micro electric vehicles are four-wheel low-speed vehicles entirely driven by electricity. This kind of vehicle is of small volume, affordable, and commonly used for short-distance travelling.
Driven by diversified traffic conditions and consumption upgrade, micro electric vehicles have become a convenient, low-carbon and eco-friendly vehicle for the people. In the “Key points of standardization wzrking plan for new energy vehicles of 2018” (《2018年新能源汽車標準化工作要點》) issued by the Ministry of Industry and Information Technology, micro electric vehicles were included in the category of new energy vehicles for the first time, which demonstrated that the nation and government at all levels have started to place importance on the development of micro electric vehicles, and the micro electric vehicle market may enjoy further growth. Being the power source of micro electric vehicles, the motive battery is the core component part that ensures the rapid development of the micro electric vehicle industry. It has crucial influences on the quality, lifespan and cruising mileage of micro electric vehicles, as well as being the key element in determining whether a micro electric vehicle manufacturing enterprise possesses core competency. Tianneng continued to maintain its market leading position in batteries for micro vehicles.
Market expand
International trade
In terms of the high-end eco-friendly battery industry, the focus of the Group is on underdeveloped regions and developing countries, with the aim of helping them with their infrastructure construction. In terms of new energy batteries, many products have obtained international certifications and have accordingly been introduced to the high-end consumer markets in developed countries such as Europe and Australia. Leveraging its leading technology and excellent products in the sector, the Group has been mainly expanding international markets including Southeast Asia, Australia, and Europe. In particular, electric vehicles have become a trend in densely populated South Asian and Southeast Asian countries and will see a golden age in its market development.7
Global research and development, global manufacturing, global recycling
The Group actively collaborated with overseas scientific research platforms and brought together world-leading technological experts to create core technological advantages in the whole industrial chain. Meanwhile, the Group actively explored opportunities of merge and acquisition in the up and down streams, conducted research and site selection, and will build an overseas R&D and production base in due course, thereby gradually developing into local production, recycling and smelting, and simultaneously creating a global supply chain system.
Spin off
On 9 November 2018, upon the approval of the Board, the Group submitted a proposal on the Proposed Spin-off to the The Stock Exchange of Hong Kong Limited pursuant to Practice Note 15 of the Listing Rules. For details, please refer to the announcement published by the Group on 9 November 2018 in relation to the “Proposed Spin-off and separate listing of the batteries business by way of Proposed A Shares Listing of the Spin-off Group on a Stock Exchange in the PRC”.
References
- ^ http://www.tianneng.com.hk/html/about.php
- ^ http://www.tianneng.com.hk/html/bus_high.php
- ^ http://www.tianneng.com.hk/html/bus_energy.php
- ^ http://www.tianneng.com.hk/html/bus_green.php
- ^ http://www.tianneng.com.hk/html/bus_product.php
- ^ http://www.tianneng.com.hk/attachment/2019090213480120683598912_en.pdf
- ^ http://www.tianneng.com.hk/attachment/2019090213480120683598912_en.pdf
