CITIC Securities Co., Ltd

About Tianneng Battery Group Co., Ltd

2024 Annual Continuous Supervision and Follow-up Report

CITIC Securities Co., Ltd. (hereinafter referred to as "CITIC Securities" or the "Sponsor") acted as the sponsor of the initial public offering of shares of Tianneng Battery Group Co., Ltd. (hereinafter referred to as "Tianneng Shares" or the "Company" or "Listed Company") and its listing on the Science and Technology Innovation Board. In accordance with the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing, the Rules for the Listing of Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange, and other relevant regulations, CITIC Securities performs the duties of continuous supervision and issues this annual follow-up report for continuous supervision.

1. Overview of continuous supervision

1. The sponsor has formulated a continuous supervision work system, formulated a corresponding work plan, and clarified the work requirements for on-site inspection.

2. The sponsor has signed a sponsorship agreement with the company, which has clarified the rights and obligations of both parties during the continuous supervision period, and has been reported to the Shanghai Stock Exchange for the record.

3. During the period of continuous supervision, the sponsor will carry out daily communication with the company, on-site return visits, etc

Ongoing supervision of the work, and from 3 March 2025 to 4 March 2025, 12 March 2025,

On-site inspections of the company were conducted on March 19, 2025, March 26, 2025, April 1, 2025.

4. During the period of continuous supervision, the sponsor shall perform the duties of continuous supervision in accordance with the requirements of relevant laws and regulations and normative documents, including:

(1) Consult the articles of association, the rules of procedure of the three sessions and other corporate governance systems, and the materials of the three sessions;

(2) Check the company's internal control systems such as financial management, accounting and internal audit;

(3) Check the details of the company's capital transactions with the controlling shareholder, actual controller and its related parties, as well as relevant internal review documents and information disclosure documents, and check the 2024 audit report issued by the accountant and the special report on the occupation of non-operating funds and other related capital transactions in 2024;

(4) Check the relevant systems of the company's raised funds, information disclosure documents and decision-making procedures documents for the use of raised funds, bank statements of the special account for raised funds, detailed accounts for the use of raised funds, and the 2024 annual assurance report on the deposit and use of raised funds issued by accountants;

(5) Conduct interviews with the company's directors and senior managers;

(6) Conduct public information inquiries about the company and its controlling shareholders, actual controllers, directors, supervisors, and senior managers;

(7) Inquire about the commitments announced by the company and verify the fulfillment of the commitments;

(8) Pay attention to media reports related to the issuer through public network search, public opinion monitoring, etc.

2. Problems found by the sponsor and the sponsor representative and their rectification

Based on the above-mentioned continuous supervision work carried out by the sponsors, from the issuance of the "CITIC Securities Co., Ltd. on Tianneng Battery Group Co., Ltd. 2024 Semi-annual Continuous Supervision and Tracking Report" to the date of issuance of this report, the sponsor and the sponsor representative have not found any major problems in the company.

3. Major risk matters

During the period of continuous supervision, the Company's main risk issues are as follows:

(1) Core competitiveness risks

1. The risk of technology substitution of new products

The company has formed a product system for the coordinated development of lead-acid batteries and lithium-ion batteries, hydrogen fuel cells and sodium-ion batteries and other new material battery reserve development, and the application fields cover power, start-stop, energy storage, 3C and standby. Up to now, lead-acid batteries and lithium-ion batteries are the main sources of the company's revenue, and the market demand has generally grown steadily during the reporting period. If there is a major technological breakthrough in other new batteries in the future with technological progress, and the company fails to respond to the market in a timely manner, the company will face the risk of substitution of major product technologies that will adversely affect the operating performance.

2. The risk of leakage of core technology and loss of core personnel

The sustainable development of battery manufacturing enterprises relies on the core technology of material formulation, product structure, manufacturing process and professional research and technical personnel. After long-term development, the company has accumulated multiple composite rare earth alloys

If there is a loss of core technology talents due to intensified talent competition in the future, or the leakage of core technology due to insufficient protection measures, it will have an adverse impact on the company's product competitiveness and continuous innovation ability, and then there is a risk of damage to the company's performance.

3. R&D risks of new products and technologies

The company needs to continue to invest in R&D to maintain its industry position and product competitiveness. Due to the characteristics of large investment and long cycle in the research and development of new products and technologies, and the uncertainty of the research and development results, such as the company's early research and development investment can not achieve the corresponding technical achievements, failure to continuously improve product performance and reduce costs, or the research and development speed and industrialization speed are not as fast as competitors in the industry, or the company's research and development products or technologies do not meet the actual needs of consumers, it may gradually weaken the company's competitive advantage, making the company's products tend to be homogeneous, which will adversely affect the company's market position and profitability.

(2) Business risks

1. Dealers manage risks

As of the end of the reporting period, the number of dealers of the company exceeded 3,000, if individual dealers do not carry out sales and publicity as agreed, or the improvement of the company's management and service level in the future can not keep up with the increase in the number of dealers and lag behind the management and service of some dealers, it will have an adverse impact on the company's brand image and operating performance. At the same time, if individual distributors are penalized for their non-compliant operations, it will also have a short-term adverse impact on the company's sales in the region.

2. The risk of large fluctuations in raw material prices

The main raw materials of the company's main lead-acid battery products are metal lead and lead products, accounting for more than 70% of the product cost, and there is a certain linkage mechanism between the terminal sales price of the company's products and the price of the main raw materials. However, in the actual business process, due to factors such as the production cycle of the product and the company's preset safety stock, the company needs to purchase a certain amount of lead in advance, and the lead price referenced when the product is sold often cannot fully correspond to the lead purchase price, so there is a certain price risk exposure. If the lead price fluctuates significantly in the short term, it may have a significant adverse impact on the company's operating results.

In addition, the price fluctuations of other raw materials such as plastic parts, plates, lithium battery materials, etc., will also be in a certain range

to affect the company's operating performance. Therefore, there is a risk that the short-term sharp fluctuation of raw material prices will have a greater impact on the profit level in the short term.

3. Product quality and safety production risks

The company's production scale is large, the production process is more complex, the product quality control involves many links, the management is difficult, the production process of the product can not completely exclude the possibility of production safety accidents, and is susceptible to various uncertain factors or unforeseeable factors in advance, does not exclude product quality and safety problems caused by force majeure factors, improper use and other human reasons, and the company bears the corresponding responsibility, and has a negative impact on the company's business, brand and efficiency. The risk that the profitability of the company will be adversely affected.

4. Environmental protection and occupational health risks

The company's overall production scale is large, the number of employees is large, the production process and environmental control are relatively complex, if there are force majeure events such as equipment failure, improper human operation, natural disasters and other force majeure events that lead to the effective operation of environmental protection equipment, environmental protection, occupational health management and other relevant provisions can not be effectively implemented, etc., it may have an adverse impact on the environment or employees' occupational health, and may be punished by the relevant government regulatory departments, ordered to rectify or stop production. Therefore, the company faces the risk of losses due to accidents in environmental protection, occupational health, etc., and also faces the risk of being punished by relevant government authorities due to related accidents.

5. Inventory management risk

From the procurement of raw materials to the workshop, through the circulation of various production processes, into the finished product warehouse, and finally to the delivery of goods to customers, the process often determines the company's inventory scale and the scale of occupation of working capital, and at the same time, the changes in the market environment during the business cycle also make the company face a certain risk of inventory price decline. If the company's product structure changes and the production and delivery cycle becomes longer, or the inventory management level cannot meet the needs of the rapid development of the enterprise, or the inventory realization is difficult due to changes in the market environment and intensified competition, the company's inventory turnover rate will decline, increasing the scale of working capital occupation and the risk exposure cycle of inventory price decline.

(3) Financial risks

1. Liquidity risk

In order to seize market opportunities, the company mainly focused on the expansion of lead-acid batteries during the reporting period, and gradually deepened the exploration of lithium battery business layout and fuel cells, and the scale of production and sales increased steadily. The company mainly uses its own operating volume

In terms of saving financing costs and improving financing efficiency, the ratio of current liabilities to total liabilities at the end of the reporting period was 88.54%, and the current ratio was 1.22.

If the company's operating conditions and financial situation change significantly due to uncontrollable factors such as the national macroeconomic situation, laws and regulations, industrial policies, etc., or the company fails to obtain sufficient funds due to the failure of new foreign investment to achieve the expected return, or other reasons, the company will have short-term liquidity risks caused by factors such as tightening credit lines and substantial increases in financing costs.

2. Risk of decline in net cash flow from operating activities

During the reporting period, the company's cash flow from operating activities was generally good. If the company's business scale does not grow in the future due to factors such as changes in market demand, substitution of new products, and the company's technological progress cannot keep up with the development level of the industry, or the company's negotiation power with upstream suppliers weakens, the company has the risk of declining cash flow from operating activities.

(4) Industry risks

1. Industry policy risks

The company's products are mainly used in the field of electric light vehicles, electric light vehicles have played an important role in the green and convenient travel of the people, and the company has the overall development risk of the industry due to changes in industry policies.

2. The risk of intensified market competition

The company is a leading enterprise of electric light vehicle power batteries in China, and there are still some national and regional competitive brands in the industry. If such competitive brands continue to expand their business scale through innovation and optimization of products, services and channels, and the company cannot compete effectively or respond effectively with strong conditions, the company may have the risk of declining market share, slowing down or even declining growth in operating performance.

Lithium battery industry capacity expansion sharply, raw material prices fluctuate sharply, if the industry competition intensifies, and the company in products, services and channels can not be effective competition or effective response to strong conditions, the company has a market share decline, operating performance growth slowdown or even decline risk.

(5) Macro environmental risks

1. Risks brought about by macroeconomic fluctuations

At present, the company's products are mainly used in the field of electric light vehicle power batteries, electric light vehicles have played an important role in the green and convenient travel of the masses, and its market development will be affected by the macroeconomic situation and residents' disposable income. If the global macroeconomic situation continues to be sluggish and residents' disposable income declines, it is likely to reduce consumer demand for electric light vehicles, which in turn will have a negative impact on the company's operating results. In addition, the sharp fluctuations in the macro economy may also have a negative impact on the company's raw material procurement and fixed asset investment.

2. Risks of changes in preferential tax policies and consumption tax rates

During the reporting period, the company and some subsidiaries enjoyed the income tax incentives for high-tech enterprises in accordance with the law, and if the state adjusts the relevant tax policies for high-tech enterprises, or the company cannot continue to enjoy the relevant preferential policies due to the inability to continue to maintain the qualification of high-tech enterprises, it is possible to increase the company's tax burden level, thereby adversely affecting the company's performance.

Lead-acid batteries are the main source of the company's income, since January 1, 2016, China's lead-acid battery production

Consumption tax is levied at a rate of 4% on production, contract processing and importation. In the future, if the state raises the consumption tax rate on lead-acid batteries, it may have an adverse impact on the company's operating performance.

On September 3, 2023, the State Administration of Taxation issued the "Announcement of the Ministry of Finance and the State Administration of Taxation [2023] No. 43

from January 1, 2023 to December 31, 2027, advanced manufacturing enterprises are allowed

The VAT payable shall be deducted according to the deductible input tax of the current period plus 5%. In the future, if the state cancels the VAT additional deduction policy, it may have an adverse impact on the company's operating performance.

4. Major violations

Based on the above-mentioned continuous supervision work carried out by the sponsor, the sponsor did not find any material violations of the company during the continuous supervision period.

5. Reasons and reasonableness of changes in major financial indicators

In 2024, the company's main financial data and indicators are as follows:

Unit: Yuan

Key Accounting Data 2024 2023 This period is compared to the same period last year

Increase/decrease (%)

Operating income 45,041,792,260.36 47,747,570,975.02 -5.67

Key Accounting Data 2024 2023 This period is compared to the same period last year

Increase/decrease (%)

1,554,512,146.20 2,304,503,188.38 -32.54 attributable to shareholders of listed companies

Net profit

attributable to shareholders of listed companies

Net net of non-recurring gains and losses 1,097,980,359.59 1,883,350,422.48 -41.70

profit

Cash flow from operating activities 6,562,674,733.81 2,533,763,559.74 159.01

Net amount

Key accounting data End of 2024 End of 2023 The end of the period was the same as that of the previous year

Period-end change (%)

15,889,109,096.95 15,421,459,000.15 3.03 attributable to shareholders of listed companies

Net assets

Total assets 44,287,963,941.96 35,831,963,205.83 23.60

Key Financial Indicators 2024 2023 The current period is compared to the same period last year

Increase/decrease (%)

Basic earnings per share (RMB/share) 1.60 2.37 -32.49

Diluted earnings per share (RMB/share) 1.60 2.37 -32.49

1.13 1.94 -41.75 after deducting non-recurring gains and losses

Basic earnings per share (RMB/share)

Weighted average return on equity 10.03 15.89 decreased by 5.86 percentage points

(%) points

After deducting non-recurring gains and losses, this decrease was 5.91 percentage points

The weighted average return on equity was 7.08 12.99 points

（%）

R&D investment accounted for 4.16 3.75 percent of operating income, an increase of 0.41 percentage points

Proportion (%) points

In 2024, the company's operating income and net profit attributable to the parent company will decline to a certain extent, mainly due to: on the one hand, affected by the draft of the new national standard for two-wheeled vehicles issued by the State Administration for Market Regulation and the National Standardization Administration in September 2024, before the official implementation of the new national standard, downstream customers as a whole are in a wait-and-see state, resulting in a decline in the company's product sales; On the other hand, since 2024, the price of lead, which accounts for more than 70% of the cost of lead-acid batteries, has risen sharply, resulting in higher product costs for the company, further reducing the company's profitability.

Sixth, the changes in core competitiveness

(1) The company's core competitiveness

1. Advantages of technology research and development system

The company has been deeply involved in the battery industry for many years, and has always adhered to technological innovation as the foundation, and has now formed a three-level R&D structure of "headquarters research institute + business department technology center + production base technology department" to continuously consolidate and improve R&D and innovation capabilities. The company has not only mastered new material technologies such as graphene composite materials, multi-composite rare earth alloys, and super manganese iron and lithium batteries in the field of mainstream lead-acid batteries and lithium-ion batteries, but also actively oriented to the frontier of new battery material technology, and continued to explore the cutting-edge technologies of new materials such as lead-carbon batteries, pure lead-acid batteries, and new generation batteries such as fuel cells, sodium-ion batteries, and solid-state batteries. At the same time, the company continues to optimize and adjust the battery structure, and has promoted the overall casting, welding, and direct connection structure of the busbar. The company is also actively facing the research frontier of new structure lead-acid batteries, and has developed and reserved new structural technologies such as tubular type, bipolar, winding type, and lead cloth level. In terms of lithium batteries, the company adopts the technical path of cylindrical, prismatic aluminum shell and pouch battery multi-wheel drive to meet the diversified needs of different customers and different scenarios. In terms of hydrogen fuel cells, the company continues to explore and optimize catalysts, membrane electrodes, metal plates, graphite plates and simulation design, and independently develops diversified stack products covering various application scenarios.

2. Advantages of green intelligent manufacturing

Relying on scientific and technological innovation and the advantages of long-term accumulation of manufacturing process system, with the help of the Internet and big data to achieve lean process management, the company has created a manufacturing system that combines green production and intelligent manufacturing. In terms of lead-acid battery production, the company took the lead in starting equipment upgrading in the whole industry, and was equipped with advanced production equipment such as continuous casting and rolling, fully automated casting and welding, automatic mechanical assembly, automatic wrapping, and full water bath battery internalization through independent design, commissioned development and other cooperation methods. In terms of lithium battery production, we have built an automated production line with high cleanliness and precise humidity control, and further optimized production automation and intelligence. At the same time, relying on production big data and MES system, the company has improved the flexibility of the production line and the lean process, leading the lean manufacturing level of the industry. The company continues to build green workshops, green factories and green parks, which has effectively promoted the development of green economy and achieved good social and ecological benefits.

3. Advantages of market channel system

After years of accumulation, the company has built more than 3,000 covering 32 provinces, autonomous regions and municipalities directly under the central government

The integrated marketing and after-sales network of dealers connects more than 400,000 terminal outlets, which can quickly deliver products, services and brand concepts to end users. The company has established production bases in Zhejiang, Anhui, Henan, Jiangxi and other areas with strong demand, and is equipped with an efficient logistics system to greatly shorten the transportation time and achieve rapid response to customer needs. In addition, the company's dealer network and terminal outlets are an important part of the after-sales system.

Consumers can have their batteries tested, repaired, and replaced nearby. With the help of information system and dealer network, the company has built a perfect after-sales service system to ensure the efficiency and effectiveness of battery maintenance.

The company quickly improves terminal sales and user stickiness through service empowerment, realizes the simultaneous amplification of user value, channel value and brand value through the concept of "service as a product", and successfully creates a user-centered ecosystem, laying the foundation for the brand to always occupy the first place in the "quality + service" dual-drive era of the electric bicycle battery industry, and also setting a benchmark of "offline service + online operation" for the industry leader, and effectively promoting the efficiency upgrade of the whole industry chain.

As an industry leader, Tianneng adheres to the development concept of "customer-centric and market-oriented", driven by the three-dimensional innovation of "technology + channel + service", builds a systematic empowerment system covering the whole life cycle of products, and creates a symbiotic industrial ecology through the construction of digital marketing middle platform, product joint R&D customization, and scenario-based solution output, so that each dealer and upstream and downstream partners in the industry can share technology dividends, brand premiums and market opportunities.

4. Higher brand awareness advantage

As a leader in China's new energy industry, relying on the profound accumulation in the field of power batteries for nearly 40 years, the company has taken the lead in building a multi-technology route covering lead, lithium, hydrogen and sodium, creating a green energy ecosystem, and is committed to becoming the most respected world-class new energy company. The company has been selected as one of the "Top 500 Global New Energy Enterprises" for many years, and has been awarded authoritative certifications such as "National Green Factory", "National Green Supply Chain Management Enterprise", "China Industry Award" and "Industrial Product Green Design Demonstration Enterprise", and its brand influence continues to lead the industry. The company has established in-depth strategic synergy with leading electric bicycle car companies and energy groups, continuously strengthened its industry benchmark position with technology leadership and market credibility, and driven the high-quality development of the new energy industry.

(2) Changes in core competitiveness

During the period of continuous supervision, the company has the resignation of core technical personnel: Shi Liyong, a core technical personnel, resigned due to personal reasons, and he is mainly responsible for the material development and project management of lithium battery-related products in the company; Li Wei, a core technician, resigned due to personal reasons, and he was mainly responsible for the company's lithium battery production line process design

Preparation for construction, commissioning and other work. The Company has announced the relevant matters on March 29, 2024.

The core technical personnel Chunchuan Xu (徐淳川) resigned due to personal reasons, and he was mainly responsible for the company

Responsible for the research of hydrogen energy-related technologies. The Company announced the relevant matters on July 26, 2024.

Guo Zhigang, a core technician, passed away due to illness, and he was mainly responsible for the construction of process equipment for the sealed battery production line in the company

design, debugging and other work. The Company has announced the relevant matters on October 30, 2024.

The sponsor checked the listed companies and market information in the same industry, consulted the company's prospectus, periodic reports and other information disclosure documents, and interviewed the company's senior management personnel, etc., and verified the situation as follows: there is no listed company on the Science and Technology Innovation Board among the listed companies in the same industry with lead-acid batteries as the main business, so it does not disclose the performance of its core technical personnel. Shi Liyong, Li Wei and Chunchuan Xu (Xu Chunchuan) all said that the patents applied for as one of the inventors during the participation in the company are the results of the company's duties, the ownership of relevant intellectual property rights belongs to the company, and there are no disputes and potential disputes with the company including labor and intellectual property rights, and the work of relevant personnel after leaving office has been properly arranged, and no major adverse changes have been found in the company's core competitiveness. The company also issued a statement that the inventions and creations completed by Mr. Guo Zhigang as an inventor during his tenure with the company are all service inventions, and the ownership of the intellectual property rights related to them belongs to the company, and there are no intellectual property rights such as patents, disputes or potential disputes. At the same time, the company has disclosed the "risk of core technology leakage and core personnel loss" in its regular report, and the sponsor further reminds investors to pay attention to the relevant risks.

7. Changes in R&D expenditure and R&D progress

(1) Changes in R&D expenditure

Unit: Yuan

Project FY2024 FY2023 Magnitude of change (%)

Expensed R&D investment 1,875,428,745.77 1,790,347,784.89 4.75

Capitalized R&D investment - - -

Total R&D investment 1,875,428,745.77 1,790,347,784.89 4.75

The ratio of total R&D investment to operating income was 4.15 3.75, an increase of 0.40 percentage points

（%）

Proportion of capitalization of R&D investment (%) - - -

During this continuous supervision period, the company has no capitalized R&D investment, and the overall expensed R&D investment is stable.

(2) R&D progress

Unit: 10,000 yuan

Preface Project Name Estimated Total Investment Current Investment Cumulative Investment Progress or Order

Scale, amount, and segmental results

1 New power battery general new materials, 18,500.00 21,218.91 21,218.91 Promoted

Research and application of new process technology

2 High-capacity, high-power, long-life lead 10,500.00 13,621.79 13,621.79 R&D and trial production

Acid battery research and development

Preface Project Name Estimated Total Investment Current Investment Cumulative Investment Progress or Order

Scale, amount, and segmental results

3 Advanced battery based on intelligent manufacturing 20,587.10 10,413.84 18,052.08 R&D and trial production

Manufacturing process and technology research

4 Research and development of lead-carbon batteries for energy storage systems and 8,050.00 6,140.12 6,140.12 R&D and trial production

Applications

5 High safety long-cycle square energy storage cells 5,680.00 4,391.99 8,364.69 R&D test

Under development

6 Research and development of special product batteries 3,520.00 3,539.04 3,539.04 Successfully introduced

Mass production

7 Research on high-tech materials for new lead-carbon batteries 10,140.00 3,200.93 5,605.66 Successfully introduced

Research and application Mass production

8 Advanced high-performance energy storage battery 11,424.00 2,305.29 9,183.77 R&D and trial production

Launched

9 Development of high-specific energy and high-safety solid-state batteries 9,880.00 1,650.02 2,111.17 R&D and trial production

middle

10 Research on backup batteries in the communication and electric power industry 1,350.00 1,480.78 1,480.78 R&D and trial production

with the app in 11 Automobile start-stop battery series products 3,420.00 1,374.91 1,374.91 Successfully introduced

R&D Mass production

12 Sodium-ion battery product development project 4,000.00 919.70 1,458.85 R&D test

middle

13 Fuel stacks, hydrogen-fueled new energy vehicles 3,850.00 789.04 789.04 R&D and trial production

Battery system development and application

14 Research on hydrogen fuel cell hydrogen storage technology 550.00 469.19 469.19 R&D and trial production

middle

Sum / 111,451.10 71,515.55 93,410.00 /

plan

During the period of continuous supervision, the sponsor understands the company's R&D expenditure and R&D progress by checking the details of the company's R&D expenses, vouchers of large R&D expenditures, relevant information on the progress of R&D projects, consulting listed companies and market information in the same industry, reviewing the company's periodic reports and other information disclosure documents, and interviewing the company's senior management.

8. Whether the progress of the new business is consistent with the information disclosed in the previous period

During the period of continuous supervision, the sponsor conducted interviews with the company's senior management by reviewing the company's prospectus, periodic reports and other information disclosure documents, and based on the aforesaid verification procedures, the sponsor did not find any new business in the company.

9. The use of the raised funds and whether they are compliant

During the period of continuous supervision, the sponsor consulted the company's management and use system of raised funds, bank statements of special accounts for raised funds and detailed accounts for the use of raised funds, and conducted spot checks on vouchers for the payment of large amounts of raised funds, consulted information disclosure documents and decision-making procedure documents on the use of raised funds, inspected the site of the raised funds investment project on the spot, understood the construction progress of the project and the progress of the use of funds, obtained the report on the use of raised funds issued by the listed company, and interviewed the company's senior management.

After inspection, the sponsor believes that: during the period of continuous supervision, the company has established and implemented a management system for raised funds, and the necessary decision-making procedures and information disclosure procedures have been fulfilled for the use of raised funds, and no illegal use of raised funds has been found based on the aforesaid inspection.

During the period of continuous supervision, the Company has the following changes in the raised funds:

On January 12, 2024, the company held the thirteenth meeting of the second board of directors and the second board of supervisors

Eleventh meeting, and the first extraordinary general meeting of shareholders in 2024 will be held on January 31, 2024, and the meeting will be reviewed

The "Proposal on Terminating Part of the Fund-raising Projects and Permanently Replenishing the Liquidity with the Surplus Raised Funds" was passed, and the "Green Intelligent Manufacturing Technological Transformation and Construction Project" was agreed to be completed, and the surplus raised funds of 98.6271 million yuan (including 8.9983 million yuan in dividends, the specific amount is subject to the actual balance of the raised funds account at the time of carry-over) for permanent replenishment of liquidity. Agreed to terminate the "Upgrading and Transformation Project of Lead-acid Battery Technology and Equipment with an Annual Output of 9.12 Million KVAh", and used the balance of raised funds of 134.3503 million yuan (including 12.6254 million yuan in dividends, the specific amount is subject to the actual balance of the raised funds account at the time of carry-over) for permanent replenishment of working capital. Agreed to terminate the "high-energy power lithium battery cell and PACK project", and used the remaining funds of 602.5975 million yuan (including 54.1407 million yuan in dividends, the specific amount is subject to the actual balance of the raised funds account at the time of carry-over) for eternity

Replenish liquidity for a long time. The company has been published on the official website of the Shanghai Stock Exchange on January 13, 2024

(www.sse.com.cn) Disclosure of the "Announcement of Tianneng Battery Group Co., Ltd. on the Extension, Termination and Completion of Some Fund-raising Projects and the Permanent Replenishment of Liquidity with the Remaining Raised Funds".

During the period of continuous supervision, the Company has the following inconsistencies between the progress of the use of fundraising projects and the original plan:

The "Huzhou South Taihu Base with an annual output of 10GWh lithium battery project" was originally planned to reach the scheduled usable state in February 2024. In the actual investment process, due to changes in external environmental factors, the demonstration of the specific plan of the project, the procurement of materials and equipment, and the commissioning cycle have been extended, which has affected the investment progress of the fund-raising project, and the company has decided to adjust the date of the above-mentioned fund-raising project to December 2025 according to the actual construction of the project. The company has fulfilled the statutory review procedures for the postponement of the fundraising project.

On January 13, 2024, the postponement announcement of the aforementioned project was disclosed to explain the relevant reasons.

The "Tianneng sodium-ion battery test line technical transformation project" was originally planned to reach the scheduled usable state in April 2024. Due to the adjustment of the selection of test line equipment involved in the process optimization demonstration, the company adheres to the rigorous and scientific investment principle, and the construction period of the "Tianneng sodium-ion battery test line technical transformation project" will be extended, and it is expected to reach full usability until December 2025. The company has fulfilled the postponement of the fundraising project

The statutory review process was carried out, and on March 29, 2024, the postponement announcement of the aforementioned project was disclosed to explain the relevant aspects

Cause.

The "Comprehensive Digital Support Platform Construction Project" was originally planned to reach the scheduled usable state in January 2025. According to the pace of the comprehensive digital support platform construction project, the company intends to extend the use period of the funds raised by the original fund-raising and investment project "comprehensive digital support platform construction project", and extend the date when the project reaches the scheduled usable state to December 2026. The company has fulfilled the statutory review procedures for the postponement of the fundraising project.

On January 11, 2025, the company disclosed the postponement announcement of the aforementioned project to explain the relevant reasons.

As of the end of this continuous supervision period, the construction of the "large lithium battery R&D platform" has not yet started. The reasons for the announcement are as follows: in the second half of 2023, due to the expiration of the joint venture agreement between the company and Tianneng Shuaifude Energy Co., Ltd., the main body of the original lithium battery business, the company and the partner will negotiate the follow-up cooperation plan.

As a result, it is expected that the project will reach full serviceability, adjusted to December 2025. The company has been launched in 2024

On March 28, the statutory review procedures for the postponement of the fundraising project were completed, and it was disclosed on March 29, 2024

Publish the postponement announcement of the aforementioned project and explain the relevant reasons. Subsequently, due to the continuous intensification of competition in the lithium battery industry and the lack of improvement, the company in the process of promoting the "large lithium battery R&D platform construction" project, the negotiation progress on the acquisition of 100% equity of Huzhou High-tech Intelligent Terminal Co., Ltd. did not meet expectations, which had a certain impact on the overall development plan of the company's lithium battery business, resulting in the progress of the "large lithium battery R&D platform construction" project was less than expected. If the future project investment progress is still unable to advance as planned, the company will prudently evaluate the actual situation, decide whether to terminate the project, and strictly fulfill the information disclosure obligation in accordance with relevant regulations to ensure that investors are aware of the project progress and the company's decision-making in a timely manner.

The sponsor will urge the listed company to complete the demonstration and selection of the above-mentioned fundraising project as soon as possible, and disclose information in a timely manner in accordance with the regulations.

10. Shareholding, pledge, freezing and reduction of shareholdings, pledges, freezes and holdings of controlling shareholders, actual controllers, directors, supervisors and senior managers

As of December 31, 2024, the controlling shareholders, actual controllers, directors, supervisors and senior officers of the Company

The shareholding, pledge, freezing and reduction of holdings of management personnel are as follows:

Unit: 10,000 shares

Beginning of term of office End of term Shareholding at the beginning of the year Shareholding at the end of the year Intra-year shares

Name Title/Identity Date Date Number Number of Additions and Decreases

momentum

Tianneng Holdings

Group Limited Controlling Shareholder - - 79,600.00 79,600.00 -

firm

Zhang Tianren Chairman, Real 2019 2 2025 4 - - -

International Controller 19th to 21st of January

Zhang Aogen Director 2019 2 2025 4 - - -

May 19 to May 21

Zhou Jianzhong Director 2019 2 2025 4 - - -

May 19 to May 21

Yang Jianfen Director, General Manager 2019 2 2025 4 - - -

Month 19 to month 21

Li Mingjun Director, Vice President 2019 2 2025 4 - - -

Manager 19 to 21 February

Director, Finance 2019 9 2025 4

Hu Minxiang Director, Director June 6 - - -

Will be the secretary

Changqi Wu Independent Director 2019 2 2025 4 - - -

May 19 to May 21

Li Youxing Independent Director 2022 4 2025 1 - - -

May 22 to January 13

Tong Chengsheng Independent Director 2022 4 2025 4 - - -

May 22 and June 21

Wang Baoping Chairman of the Supervisory Board 2022 4 2025 4 - - -

Seat 22 to May 21

Jiang Weimin Supervisor 2022 4 2025 4 - - -

May 22 and June 21

Yang Minjuan Employee Representative 2020 7 2025 4 - - -

Supervisor on June 9 and December 21

Yu Guochao Deputy General Manager 2022 4 2025 4 - - -

May 22 and June 21

Chen Qinzhong General Manager Assistant 2019 2 2024 8 - - -

Month 19 to month 27

During the period of continuous supervision, the controlling shareholders, actual controllers, directors, supervisors and senior management of the Company have not pledged, frozen or reduced their holdings.

11. Other matters on which the sponsor deems it necessary to express its opinion

Based on the above-mentioned continuous supervision work carried out by the sponsor, during the period of continuous supervision, the sponsor did not find any other matters on which the sponsor should express its opinion.

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(There is no text on this page, it is the signature page of the "CITIC Securities Co., Ltd. on the 2024 Continuous Supervision and Tracking Report of Tianneng Battery Group Co., Ltd.")

Sponsor Representative:

Wang Yizhen Xiang Xiaojuan

CITIC Securities Co., Ltd

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