TEN PAO GROUP: Actively expanding into Southeast Asia and markets along the Belt and Road Initiative

TEN PAO GROUP (01979.HK) Chairman, Executive Director, and CEO Hong Guangyi stated that the Thai market is the starting point for the company's expansion into the Asian market. Due to the time required for the development of new products and the need to obtain local government certifications, it is expected that the new business in Thailand will contribute to the group's performance next year or later.

Hong Guangyi mentioned that the group is currently actively exploring the Asian market, with Southeast Asian countries such as Indonesia and Vietnam having demand for technologies related to charging, battery swapping, and energy storage systems. Additionally, countries along the Belt and Road Initiative are also one of the company's expansion targets.

Furthermore, he pointed out that the company is selling solar-related appliances and energy storage discharge systems in Africa, but the market is still not mature. Executive Director and Chief Financial Officer Xie Zhongcheng added that the African market has huge potential, but it still requires time to develop slowly.

Moreover, Xie Zhongcheng revealed that the company is currently in talks with a Hong Kong-listed enterprise regarding a cooperation project for electric vehicle charging stations in Thailand. He also noted that the utilization rate of the two factories in Vietnam under the company is about 70%, and there are currently no expansion plans, but he emphasized that plans may be adjusted in the future based on demand.

He also believes that, in the long run, Mexico remains the backyard of the U.S. market, explaining that tariffs are a political game between the U.S. and Mexico, and the impact is expected to be relatively short-lived