TIANNENG POWER (00819.HK) experienced a significant downturn in Tuesday's trading session, with its stock plummeting 5.06%. The sharp decline comes in the wake of the company's recently released interim results and a subsequent analyst report highlighting various challenges facing the battery manufacturer.

According to the interim report, TIANNENG POWER's revenue for the period fell drastically by 51.53% year-on-year to RMB 24.192 billion. The company's profit attributable to shareholders also saw a decline of 11.68%, reaching RMB 820 million. These disappointing figures prompted CICC, a leading investment bank, to issue a research report that shed light on the factors contributing to the company's underperformance.

CICC's analysis pointed to several key issues affecting TIANNENG POWER's financial results. The primary factor was a significant contraction in the company's trading business scale, which led to the substantial year-on-year revenue decline. Additionally, the company faced headwinds from slowing demand in the aftermarket, reductions in government subsidies, decreased futures gains, and lower interest income. While the two-wheeler OEM market showed signs of recovery due to new national standards and trade-in policies, the aftermarket segment remained weak, impacted by broader macroeconomic conditions. On a positive note, the report highlighted improvements in the company's lead-acid battery gross margin and significant growth in its lithium battery business revenue, offering some silver linings amidst the overall challenging picture.