Tianneng Power to develop electric autos with Chery

Tianneng Power International Ltd, which is engaged in producing motive batteries, has signed a strategic agreement with Chery Automobile Co Ltd to jointly develop electric automobiles, according to Zhang Tianren, president of the Hong Kong-listed firm.

The firm's market share is expected to increase from the current 22% to 30% in three to five years, Zhang added.

Last year, Tianneng Power International's revenue from sales of motive battery products accounted for only 0.6% of total operating revenue, but Zhang said he believes that the proportion will increase after the firm invests in research and development this year.

Tianneng Power International's net profit rose 15.58% to RMB 271 million in 2009 from RMB 234 million in 2008. Operating revenue declined 12.78% year on year to RMB 2.26 billion.

The enterprise's gross profit margin, however, was 28.5% in 2009, 6 percentage points higher than that of 2008, due to a decline in the price of lead.