Chinese battery manufacturer Tianneng Power International has forecast a fall of up to 66% in first-half profit as high sulphuric acid prices and weak end-user demand squeeze margins.
The Hong Kong-listed company expects profit attributable to shareholders to fall by approximately 62–66% for the six months ending 30 June 2026. Based on its attributable profit of RMB819.8 million ($114 million) a year earlier, that would place the latest figure at approximately RMB279–312 million.
Overall revenue is expected to decline by 5–8%, despite manufacturing revenue increasing by approximately 5–9%.
Tianneng attributed the reduction in group revenue principally to its deliberate scaling back of its trading business. Lead-acid battery sales volumes remained broadly stable during the period, according to the company.
The manufacturer said prices of upstream raw materials, including sulphuric acid, remained comparatively high. More intense competition in downstream markets and a slower-than-expected recovery in end-user demand also put substantial downward pressure on the gross profit of its principal business.
Other income declined following changes to China’s additional value-added tax deduction for advanced manufacturing companies, further reducing overall profit.
Tianneng said its position in the lead-acid battery market remained strong, supported by its brand, distribution channels and customer base. It added that its battery-recycling operations were producing increasing resource-utilisation benefits, while its lithium-ion battery business and international expansion were progressing steadily.
Tianneng Battery Group, the company’s separately listed mainland Chinese subsidiary, issued a more detailed forecast on the same day.
The subsidiary expects first-half revenue of RMB21.88–22.77 billion, representing year-on-year growth of 4.59–8.86%. However, attributable net profit is forecast to fall by 65.46–68.92% to RMB270–300 million.
Net profit excluding non-recurring gains and losses is expected to decline by 71.98–74.70% to RMB149–165 million.
The subsidiary reported revenue of RMB20.92 billion and attributable net profit of RMB868.6 million during the corresponding period of 2025.
Its performance had already weakened substantially in the opening quarter of 2026. First-quarter revenue fell 4.8% year on year to RMB9.74 billion, while net profit declined 82.1% to RMB75.1 million.
Tianneng Power said the forecast was based on a preliminary review of unaudited management accounts. It expects to publish its full interim results in late August.
Photo: the opening of Tianneng’s first authorised export operations centre in July 2026
Credit: Tianneng Power International
