On December 13, TianNeng Co., Ltd. held an Earnings Conference for its third-quarter performance in 2024.

In the first three quarters of this year, the company's performance has declined. "In the third quarter, due to the new national standard policy yet to be implemented and the volatile lead prices, a wait-and-see sentiment emerged in the downstream market, which led to the peak sales season not meeting expectations," stated TianNeng Co., Ltd. Chairman Zhang Tianren at the Earnings Conference. "In terms of production, given the sharp rise in lead prices in the first half of the year and the traditional sales peak in the third quarter, the company adopted a stockpiling production strategy, resulting in relatively high costs for lead Rechargeable Battery products in the third quarter, consequently compressing profit margins."

Regarding the outlook for the subsequent market, TianNeng Co., Ltd. expressed that if lead prices remain relatively stable in the fourth quarter, the gross margin for lead Rechargeable Battery products is expected to improve. The "Old-for-New Policy" from five ministries and the "New National Standard Policy" are positive for boosting industry confidence. Overall, sales conditions in the fourth quarter and next year will require further observation.

In the overseas market, Chairman Zhang Tianren views Southeast Asia as a region with significant growth potential. It was introduced that on the production side, the TianNeng Vietnam assembly plant completed trial production in July this year, and the company's first phase plan for an annual production capacity of 10 million units (lead Rechargeable Batteries) is also underway, expected to be completed next year. On the sales side, the company has established localized offices in seven countries and signed about 30 overseas Dealers.

In addition to lead Rechargeable Batteries, TianNeng's battery products also include Lithium Batteries, Hydrogen Fuel Cells, Sodium-ion Batteries, Solid State Batteries, etc., covering the Business scope of power batteries for electric light vehicles, energy storage batteries, power batteries for special vehicles, and Autos start-stop batteries.

Regarding Solid State Batteries, Zhang Tianren stated at the Earnings Conference to a reporter from the Star, "The company's Solid State Battery team has made certain progress, successfully developing Cells with an energy density of 300Wh/kg and launching the TianNeng 'Panshi' series Solid State Battery products. Moreover, the company's independently developed prototype of quasi-Solid State Batteries with an energy density greater than 500Wh/kg has passed certification from the National Testing Center. In terms of market expansion, the company is actively establishing partnerships with downstream enterprises in the Industry. Currently, it has established partnerships with several companies in the Drone sector and achieved small batch product delivery. At the same time, in the electric bicycle sector, the company is collaborating with downstream vehicle manufacturers to test and validate products."

Regarding the Lithium Battery Sector, under the multi-factor situation of overall capacity surplus, weak market demand, and intensified competition, the Lithium Industry continues to experience growing pains. Therefore, the utilization of TianNeng's Lithium production capacity has become a focus of investor attention.

Yang Jianfen, Director and General Manager of Tianneng Co., stated at the Earnings Conference, "In the field of Lithium Batteries, the company's existing production capacity is approximately 14GWh. Given the current market conditions and the company's Strategic considerations, the company will leverage existing capacity to enhance the profitability of its Lithium Business. At this stage, the company has no plans for additional capital expenditure to increase Lithium production capacity."

Regarding Fuel Cell Energy, Yang Jianfen revealed that the company's self-developed 80kW fuel cell system has successfully completed joint debugging and testing with the prototype vehicle, which featured the Tianneng hydrogen-powered 80kW engine system and was listed in the 384th product announcement issued by the Ministry of Industry and Information Technology.

In the area of Sodium-ion Batteries, the company has launched two products: one is the Tianna T2 battery designed for electric two-wheelers, and the other is the NFPP polycation Sodium-ion Battery aimed at the energy storage market.