The board of directors of Tianneng Power International Limited provided that the company is expected to record an increase of not less than 40% in its profit attributable to equity shareholders of the Company (unaudited) for the year ended 31 December 2020 as compared to the year ended 31 December 2019 (the profit attributable to equity shareholders of the Company for the year ended 31 December 2019 amounted to approximately RMB 1.682 billion). The expected increase in the profit attributable to equity shareholders of the Company is mainly attributable to, including but not limited to, the following reasons: when compared with the same period of last year, there was a slight increase in the sales volume of batteries; and benefited from the Company's lean management approach, enhancement in its smart manufacturing capabilities and price adjustments in raw materials, the gross profit margin of major products was higher than the same period of last year.