Star Daily News October 29th (Reporter Yu Jiaxin) Today (October 29th), Tinymega Energy released the third-quarter 2024 performance report.

In the first three quarters of this year, Tinymega Energy achieved revenue of 32.888 billion yuan, a decrease of 6.21% year-on-year; achieving a net profit attributable to the parent company of 1.464 billion yuan, a decrease of 14.45% year-on-year.

Looking at a single quarter, the company's revenue in the third quarter was 11.227 billion yuan, a decrease of 16.59% year-on-year; the net profit attributable to the parent company was 0.27 billion yuan, a decrease of 56.4% year-on-year, and a decrease of 60.97% from the previous quarter.

Regarding the decline in performance, Tinymega Energy stated that the significant increase in raw material prices in the first half of the year combined with a reduction in sales in the third quarter led to the decline.

On the business side, in a recent research report, Tinymega Energy mentioned that the company currently has graphene composite materials, diversified rare earth alloy, high-energy manganese iron phosphate, and other new material technologies in mainstream products such as lead-acid batteries and lithium-ion batteries. It is also expanding into new material lead-acid batteries like lead carbon batteries, pure lead batteries, as well as cutting-edge technologies in next-generation batteries such as fuel cells, sodium-ion batteries, and solid-state batteries.

However, industry experts point out that in terms of progress in various businesses, including hydrogen fuel cells, sodium-ion batteries, solid-state batteries, they are all in the early stages of industrialization, making it difficult to demonstrate immediate results.

Tian Energy is accelerating its expansion into overseas markets. The company stated that in July of this year, its assembly plant in Vietnam has completed trial production, and the current production capacity is 5,000 units/day; the company's initial plan is to build a self-owned factory with an annual capacity of 10 million units, expected to be completed next year. On the sales side, it has established local offices in seven countries and signed contracts with about 30 overseas distributors.

Regarding raw materials, a recent research report disclosed by Tian Energy mentioned that the company's main lead-acid rechargeable battery products have metal lead and lead products as their main raw materials, accounting for over 70% of the product cost percentage. The company's product end sales prices have a certain linkage mechanism with the main raw material prices.

"However, in the actual operation process, due to factors such as production cycles and company-set safety stock, the company needs to purchase a certain amount of lead in advance, and the reference lead price at the time of product sales often cannot fully correspond to the lead purchase price, resulting in a certain time lag. If the lead price fluctuates significantly in the short term, it will have a certain impact on the changes in product gross margin." Tian Energy expressed.

Since the beginning of this year, lead prices have experienced a roller-coaster market. Since late February this year, lead futures prices have fluctuated upwards. Starting from less than 0.0158 million yuan per ton, the highest rose to nearly 0.02 million yuan per ton. However, starting in August, the trend of lead prices has reversed to a decline, with today's (October 29) lead price at 0.0165 million yuan/ton.

Ande Futures' nonferrous metals analyst Zhang Shenghan stated that in the medium to long term, the problem of scarce waste batteries has not been fundamentally resolved, and the high cost of smelting recycled lead and potential supply disturbances still support lead prices. It is difficult for lead prices to further experience substantial unilateral declines. It is expected that lead prices will generally maintain a fluctuating trend. The estimated main fluctuation range for Shanghai lead in the fourth quarter of 2024 is 16,000-17,500 yuan/ton and for London lead is 1,900-2,150 US dollars/ton.

SMM predicts that in the coming two years, the fundamental contradiction in the supply of raw materials is difficult to fundamentally reverse, and there are few highlights in the lead consumer sector. The supply-demand conflict in lead ingots remains at a standstill. It is expected that in 2025, the domestic lead price trend may narrow compared to the significant fluctuations in 2024.

On the same day (October 29), Tian Energy announced that its core technical staff member, Mr. Guo Zhigang, recently passed away due to illness and will no longer serve as the Vice Dean of the company's Research Institute. Guo Zhigang has been the Executive Vice Dean of Tian Energy Research Institute from August 2013 to the present. Currently, the company has 8 core technical staff members.

As of the date of this announcement, Mr. Guo Zhigang does not directly hold any shares of the company. He indirectly holds 65,019 shares of the company through an employee shareholding platform, accounting for 0.0067% of the total share capital of the company.