Tianneng Power International reported interim revenue of RMB 22.68 billion for the six months ended 30 June 2026, a 6.24% year-on-year decline driven by a deliberate pull-back in low-margin trading activities.

Gross profit fell 8.70% to RMB 2.32 billion, with the manufacturing segment’s margin contracting 1.67 percentage points to 10.25%. Manufacturing revenue, centred on lead-acid, lithium-ion and recycling operations, rose 6.62% to RMB 22.57 billion, while trading revenue plunged 96.28% to RMB 112 million.

Operating costs increased: distribution and selling expenses advanced 3.93% to RMB 615 million; administrative expenses climbed 9.10% to RMB 612 million; and R&D spending grew 3.52% to RMB 975 million. Finance costs eased 10.50% to RMB 211 million, reflecting lower borrowing levels and interest rates.

Profit before tax contracted to RMB 416.91 million from RMB 1.10 billion a year earlier. Net profit attributable to shareholders declined 65.33% to RMB 284.20 million, translating into basic earnings per share of RMB 0.2524 versus RMB 0.7280 in the prior-year period. No interim dividend was declared.

Operating cash flow swung to a net outflow of RMB 537.83 million compared with an inflow of RMB 890.86 million in the first half of 2025, mainly due to higher inventories and receivables. Cash and bank balances, including pledged deposits and time deposits, expanded to RMB 28.71 billion from RMB 19.04 billion at year-end 2025, supported by bond issuance and increased borrowings.

Total assets rose 24.87% to RMB 68.85 billion, while total liabilities climbed 39.69% to RMB 48.64 billion, lifting the gearing ratio to 39.58% from 24.72%. Short-term borrowings stood at RMB 23.69 billion, and new bonds of RMB 1.84 billion were issued during the period.

Segment highlights: • High-end eco-friendly batteries generated revenue of RMB 19.12 billion, led by stable light motive battery sales. • Lithium-ion battery revenue reached RMB 872.49 million, up from RMB 501.25 million a year earlier, driven by energy-storage and light-motive applications. • Recycling operations contributed external revenue of RMB 2.13 billion, benefiting from improved coordination of procurement, production and sales.

Management signalled continued focus on lead-acid battery dominance, expansion of lithium-ion and energy-storage businesses, overseas localisation, and enlargement of recycling capacity. Investment discipline and cash-flow preservation remain priorities amid heightened market competition and input-cost pressures.