Tianneng Power International (819) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2026 was RMB22,683 million, down 6.24% year-over-year, mainly due to a sharp reduction in trading business revenue, while manufacturing revenue grew 6.62%.

• Gross profit decreased by 8.70% to RMB2,316 million, with gross margin for manufacturing at 10.25%, down 1.67 percentage points year-over-year, mainly due to margin pressure in low-speed power, industrial, and Li-ion batteries.

• Profit attributable to owners was RMB284 million, a 65.3% decrease from the prior year period; basic and diluted EPS were RMB0.2524.

• Net cash outflow from operating activities was RMB538 million, compared to an inflow of RMB891 million in the prior year, mainly due to increased inventory and receivables.

• The Group continued to invest in R&D, expand international operations, and strengthen its recycling business, despite challenging market conditions and rising raw material costs.

Financial highlights

• Manufacturing business revenue: RMB22,571 million (+6.62% YoY); trading revenue: RMB113 million (–96.28% YoY).

• Gross profit: RMB2,316 million (–8.70% YoY); manufacturing gross margin: 10.25% (–1.67pp YoY).

• Other income: RMB534 million (–39.93% YoY), mainly due to lower government subsidies.

• Distribution and selling expenses: RMB615 million (+3.93% YoY); administrative expenses: RMB612 million (+9.10% YoY); R&D costs: RMB975 million (+3.52% YoY).

• Finance costs: RMB211 million (–10.50% YoY); total assets: RMB68,850 million (+24.87% from 31 Dec 2025); total liabilities: RMB48,642 million (+39.69%).

Outlook and guidance

• Focus remains on consolidating lead-acid battery market leadership, expanding Li-ion and energy storage businesses, and driving internationalization and recycling.

• Emphasis on quality, profitability, and customer value over scale growth; prudent investment in new technologies and overseas expansion.

• Continued investment in R&D for sodium-ion, solid-state, and hydrogen fuel cell technologies, with commercialization paced by market readiness.