Tianneng Co., Ltd. plans to invest 5.17 billion yuan in the annual 15GWh energy storage and power lithium battery project.

On the evening of March 30th, Tianneng (688819) announced that the company intends to take Zhejiang New Energy, a wholly-owned subsidiary, as the main body of the project to invest in the construction of an annual 15GWh energy storage and power lithium battery project in Changxing District of Huzhou South Taihu Industrial agglomeration Zone, mainly producing lithium iron phosphate battery cells and systems for energy storage and power. It is expected that all of them will reach production capacity by 2025.

According to the announcement, the project plans to build 10 fully automatic batteries and PACK production lines, with an investment of about 3 billion yuan in new equipment to form 15GWh energy storage and power lithium battery cells and PACK production capacity after completion. Among them, the first phase plans to build 4 fully automatic cells and PACK production lines, with an additional equipment investment of about 1.2 billion yuan, to form 6GWh cells and PACK production capacity after completion; the second phase plans to build 4 fully automatic cells and PACK production lines, with an investment of about 1.2 billion yuan, to form 6GWh cells and PACK production capacity; and the third phase plans to build 2 fully automatic cells and PACK production lines with additional equipment investment of about 600 million yuan, forming 3GWh cells and PACK production capacity after completion. At the same time, a total of about 320000 square meters of buildings and structures will be built, such as factory warehouses, testing centers, office and domestic rooms, with an additional investment of about 370 million yuan.

The total investment of the project is expected to be about 5.17 billion yuan, including 3.37 billion yuan for the construction of factories and supporting facilities, equipment purchase and installation, etc., with a working capital of 1.8 billion yuan. Tianneng shares plan to use their own funds to increase the capital of Zhejiang New Energy by 1 billion yuan, and the rest of the construction funds will be solved by self-financing. The final total investment is based on the actual investment, and the company will invest on demand according to the progress of the project.

Tianneng said that this investment will accelerate the landing of the company's long-term development strategic planning, speed up the company's production capacity layout, enrich the company's product structure, seize the development opportunities of the energy storage industry, and effectively meet the needs of high-end power battery customers. continue to optimize the company's industrial structure, and further enhance the company's competitive advantage in the market.

The battery network learned that in the early days of its establishment, Tianneng was mainly engaged in lead storage power batteries for electric two-wheels. after years of development, it has now formed a product system for the coordinated development of lead batteries and lithium-ion batteries and the reserve development of hydrogen fuel cells. the scope of business has also been extended to electric light vehicle power batteries, vehicle start-stop batteries, energy storage batteries, backup batteries and other fields. On January 18, 2021, the company successfully landed on the A-share Kechuang Board and was successively included in FTSEA400, CSI Entrepreneurship 50 Index and CSI Chuangchuang 50 Index.

Main accounting data of Tianneng shares (unit: yuan currency: RMB)

On the evening of the 30th, Tianneng shares also released the latest performance report, saying that the company's operating income in 2021 was about 38.716 billion yuan, an increase of 10.3 percent over the same period last year; the net profit belonging to shareholders of listed companies was about 1.369 billion yuan, down 39.94 percent from the same period last year; and basic earnings per share was 1.42 yuan, down 46.62 percent from the same period last year.

As for the decline in performance, Tianneng shares said that the gross profit margin was lower than the same period last year, mainly due to the sharp rise in the price of raw and auxiliary materials. In 2021, the prices of the main auxiliary materials of lead-acid batteries rose sharply, the average price of sulfuric acid (98%) rose 303.77% compared with the same period last year, and the average price of tin ingots rose 60.83% over the same period last year. However, under the original price adjustment mechanism, the settlement price of lead-acid battery was not reflected in time and transmitted downstream, resulting in a lower gross profit margin of lead-acid battery in 2021 than that of the same period last year. In 2021, the prices of major raw materials for lithium batteries continued to rise and increased significantly. The average price of lithium hexafluorophosphate rose 319.01% year on year, and the average price of lithium iron phosphate cathode material rose 66.78% year on year. Although the company has locked in a certain amount of raw material supply by price locking, it is still unable to hedge the cost pressure caused by rising raw material prices, resulting in a lower gross profit margin for lithium batteries in 2021 than in the same period last year.

Specifically, in the lead battery business, by the end of 2021, Tianneng shares have formed a long-term and stable cooperative relationship with mainstream electric light vehicle manufacturers by virtue of product strength and brand influence. such as Emma Technology, Yadi Holdings, Tailing car Industry, Xinri shares and so on. At the same time, the company has established a sales and service network composed of more than 3000 dealers, covering hundreds of thousands of stores across the country. At present, the company is replacing more than 45% of the market share and firmly occupies a leading position in the market. In 2021, the company realized lead storage battery sales of 32.3467313 billion yuan for electric light vehicles, an increase of 11.30% over the same period last year.

Tianneng shares in the consolidation of electric light vehicle power battery market position, but also continue to expand the lead battery application scene. In 2018, the company cut into the start-up and stop business from the secondary market, and accelerated the development of the primary market on the basis of the original channel advantages. in 2021, the company successfully established supporting relations with Sinotruk, Jiangling Motor and other mainframe manufacturers. and realized the automobile start and stop business income of 538.464 million yuan, an increase of 186.72% over the same period last year.

At the same time, Tianneng lithium power business investment expansion is accelerated, business growth is expected to accelerate. In 2021, due to factors such as the company's production capacity and the sharp rise in the price of battery raw materials, the profit level of the company's lithium battery business declined, with sales revenue of 996.6024 million yuan, down 2.35% from the same period last year. However, while protecting the original two-wheeler market in 2021, the company actively laid out the business of energy storage and low-speed electric vehicles. In 2021, the company successfully completed the delivery of power battery products such as Haiquan and Jinzhi of low-speed electric vehicles, as well as the energy storage orders of Jiangsu New Energy Association and France Shuai Fu de.

In 2021, Tianneng accelerated the construction of lithium power production capacity. In addition to the company's first IPO project, the company invested about 4 billion yuan to build lithium power production capacity 10Gwh. It is expected that with the gradual release of the company's lithium power production capacity, the growth of lithium power business is expected to increase rapidly.

In terms of industrial battery business, Tianneng shares will also achieve steady growth in 2021 and improve the product ecology. The company has been deeply engaged in the field of forklift batteries for many years. With the continuous improvement of the proportion of forklift motorization, the scale of the company's industrial vehicle battery business has also maintained a steady growth trend. In 2021, the sales revenue of industrial vehicle batteries reached 537.11 million yuan, an increase of 54.38% over the same period last year.

In 2021, while maintaining close cooperation with leading forklift companies such as Anhui Heli Co., Ltd., Hangzhou forklift Group Co., Ltd., Tianneng Co., Ltd. continues to develop multi-dimensional customers such as cleaning vehicles and field vehicles, and do a good job in market development. On the other hand, relying on the advanced innovation platform and strong scientific research team, the company has always persisted in the development of new products to meet the needs of customers, and successively launched lithium iron phosphate forklift battery, "Li Ding" series forklift fuel cell system and so on. Provide safe and reliable green energy guarantee for various scenarios, and constantly improve the product ecology.

In terms of energy storage business, Tianneng shares dual technology route steadily promote the market layout. With the trend of energy reform and the macro background of China's dual-carbon goal, the development of energy storage industry in 2021 has become a general trend. In the field of energy storage, the company provides lead-carbon + lithium electricity dual technical route solutions to meet the different product needs of customers.

In 2021, Tianneng energy storage and reserve business completed sales revenue of 48.8383 million yuan, an increase of 29.66% over the same period last year. At the same time, the company is actively establishing strategic partnerships with downstream large energy companies such as Huaneng (Zhejiang) Energy Development Co., Ltd., Datang Shandong Power Generation Co., Ltd., and will carry out in-depth cooperation in energy storage, photovoltaic and other fields in the future. jointly explore innovative business models.

Tianneng shares also actively layout the field of hydrogen fuel to achieve industrialization landing. In 2021, the company's hydrogen power development entered the "acceleration". On the basis of the establishment of relevant wholly-owned subsidiaries, the company actively carried out industry-university-research cooperation and successively carried out technical cooperation with Dalian Institute of Chemical Engineering of the Chinese Academy of Sciences and Beijing University of Chemical Technology. the technical capability of the products has been continuously improved. In 2021, the company has successively obtained 5 provincial new products in Zhejiang Province, 1 key engineering project of Zhejiang Province (set) products, 1 set of products in key areas of equipment manufacturing industry in Zhejiang Province in 2021, 1 key high-tech products in Zhejiang Province, 23 new patent applications and 2 national standards. The products also successfully cover stack, membrane electrode, integrated system and so on.

In terms of industrialization landing, Tianneng shares signed strategic cooperation agreements with Nanjing Jinlong, Xugong Group, Geely Automobile and other manufacturers. Among them, the Kaiwo bus in cooperation with Nanjing Jinlong and the long-distance bus in cooperation with Geely are on the catalogue of the Ministry of Industry and Information Technology, which indicates that the company's hydrogen fuel cell has been commercialized successfully. In 2021, the company's fuel cell products have been produced and realized revenue, which is an important step in the process of industrialization.

In addition, the overseas market layout of Tianneng shares is beginning to show results. In 2021, the company will continue to promote the globalization strategy of "going out", further develop overseas markets, set up sales offices or cooperation organizations in Vietnam, India, Africa and other countries and regions, and develop overseas customers. In 2021, the company achieved overseas business income of 247.9719 million yuan, an increase of 86.87% over the same period last year.