Hong Kong – 28 August 2026 – Tianneng Power International Limited (“Tianneng Power”) reported a sharp decline in interim earnings as softer overall revenue, narrower margins and reduced government subsidies weighed on performance for the six months ended 30 June 2026.
Financial highlights • Revenue fell 6.24% year on year (YoY) to RMB 22.68 billion, driven by a planned 96.28% plunge in trading income to RMB 0.11 billion. Core manufacturing revenue rose 6.62% to RMB 22.57 billion. • Gross profit contracted 8.70% to RMB 2.32 billion; the manufacturing gross margin slipped to 10.25% from 11.92% a year earlier, reflecting intensified competition and higher raw-material costs. • Profit attributable to owners of the Company slid 65.32% to RMB 0.28 billion; total net profit sank 64.1% to RMB 0.33 billion. Basic and diluted EPS were RMB 0.2524, down from RMB 0.7280. • Operating cash outflow reached RMB 0.54 billion versus a RMB 0.89 billion inflow in H1 2025, mainly due to higher inventories (up 10.7% to RMB 8.52 billion) and receivables (up 43.6% to RMB 7.68 billion). • Cash and deposits expanded 51% to RMB 28.71 billion, but total interest-bearing debt doubled to RMB 27.25 billion, lifting the gearing ratio to 39.58% (31 Dec 2025: 24.72%). • No interim dividend was declared; a final 2025 dividend of HK$0.36 per share (RMB 358.22 million) was paid during the period.
Segment performance • Manufacturing: Segment profit retreated 69.6% to RMB 0.28 billion despite higher sales, as margins came under pressure in lead-acid light-motive, industrial and lithium-ion battery lines. • Trading: Revenue collapsed as Tianneng continued to scale back low-margin trading activities, producing a RMB 9.22 million loss versus a small profit a year earlier. • Recycling: External sales of renewable-resource products grew 18.2% to RMB 2.13 billion, reflecting expanded lead-acid and lithium-ion battery recycling operations.
Cost structure and expenses • Other income fell 39.9% to RMB 0.53 billion, mainly on lower government grants. • R&D spending rose 3.52% to RMB 0.98 billion as the group pursued lithium-ion, sodium-ion, solid-state and hydrogen fuel-cell developments. • Distribution, selling and administrative expenses grew 6.4% combined, outpacing revenue and adding to margin compression. • Finance costs decreased 10.5% to RMB 0.21 billion, helped by lower average borrowing rates.
Balance-sheet movements Total assets increased 24.9% to RMB 68.85 billion, lifted by higher cash, deposits and financial investments. Current liabilities jumped 45.6% to RMB 43.57 billion due to expanded short-term borrowings and bills payable, while non-current liabilities rose 3.5% to RMB 5.08 billion after bond issuance. Net assets were broadly stable at RMB 20.21 billion.
Operational notes • Lead-acid light-motive batteries maintained stable shipment volumes under China’s new GB 17761-2024 standard; Tianneng intensified cooperation with major OEMs and expanded overseas capacity in Vietnam and Indonesia. • Lithium-ion battery revenue advanced 74.0% YoY to RMB 0.87 billion, with progress in energy-storage cabinets, industrial vehicles and telecommunications backup power. • Sodium-ion and semi-solid-state battery programs moved forward with pilot deliveries, while high-power hydrogen fuel-cell stacks were introduced for heavy-duty and stationary applications.
Outlook and strategy Management aims to stabilise core lead-acid operations, accelerate profitable growth in lithium-ion and energy-storage segments, deepen overseas localisation, and enhance closed-loop recycling to secure raw-material supply. Investment discipline and cost control remain priorities amid heightened market competition and raw-material volatility.