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whole or any part of the contents of this announcement.
(Incorporated in the Cayman Islands with limited liability)
(Stock Code: 00819) PROFIT WARNING
This announcement is made by Tianneng Power International Limited (the "Company" together with its subsidiaries, the "Group") pursuant to the Inside Information Provisions (as defined in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules")) under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) and Rule 13.09 of the Listing Rules.
The board of directors (the "Board") of the Company wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that, based on the information currently available and the preliminary review of the consolidated management accounts of the Group for the eleven months ended 30 November
2013, the Company expects to record a higher increase in the turnover of the Group for the twelve months ended 31 December 2013 as compared to that for the corresponding period of the previous year, though its profit is expected to decline considerably. The Board has these expectations mainly because the selling prices of the Group's products have decreased as compared with the same period of last year and been remained at a low level due to intense competition as a result of the accelerated consolidation of the PRC lead-acid motive battery industry since 2012.
However, taking into account that:
1) there is a steady demand for motive batteries for electric vehicles in China, and as the areas of application for new motive batteries continue to expand, the Group enjoys technical and market advantages;
2) the Group has advantage in waste battery recycling; and
3) the Lead-acid Battery Industry Entry Requirements (