天能股份：铅酸电池龙头应对技术替代挑战

Tianneng Battery Group Co., Ltd. (hereinafter "Tianneng") was originally a loss-making village enterprise. In 1988, Zhang Tianren took over the business. The following year, it turned a profit. However, due to the rapid contraction in downstream demand and intense market competition, Zhang developed a strong sense of crisis. In 1998, Zhang set his sights on batteries for electric two-wheelers, determined to implement comprehensive business transformation. Industry peers considered the move "risky" for two reasons: First, electric two-wheelers were a new class of vehicle with uncertain prospects. Second, ensuring the safety and stability of their batteries required substantial investments in technology. In spite of this, Tianneng invited experts to improve its products. Eventually, it delivered a new product with much better performance than competitor products, which brought in a large number of orders from electric two-wheeler manufacturers. As China became the world's largest producer, consumer, and exporter, and the electric two-wheeler industry flourished, Tianneng grew together with its clients. Since lead-acid batteries need to be replaced every 1.5 to 2 years, the demand for battery replacements exceeded that for battery installations in new vehicles. In recent years, Tianneng had built a network of over 3,000 dealers covering 400,000 hardware stores and repair shops across China, making battery replacement services available nationwide. Indeed, distribution channels had become a key strength of the company. However, there were signs that lithium batteries, which seemingly need no replacement throughout their life cycles, would substitute for lead-acid batteries in electric two-wheelers. This posed a significant challenge for Tianneng, forcing it to seek new avenues for growth. Currently, Tianneng was faced with four options: First, continue developing the lead-acid battery business to gain market share. Second, explore other applications for lead-acid batteries, such as auto start-stop power supplies. Third, double down on alternatives to lead-acid batteries, particularly lithium batteries for use in two-wheelers. Fourth, seize the opportunities in energy storage, where battery usage was growing the fastest. At this point, what option should Zhang choose?