TIANNENG POWER (00819) declined over 4% in afternoon trading. As of press time, the stock was down 4.18% to HK$7.57, with turnover of HK$94.36 million.

On the news front, TIANNENG POWER released its interim results, showing revenue of RMB 24.192 billion, down 51.53% year-on-year; profit attributable to shareholders was RMB 820 million, down 11.68% year-on-year.

CICC issued a research report stating that due to the contraction in trading business scale, the company's first-half revenue declined significantly year-on-year. Net profit was affected by slowing demand in the aftermarket, as well as reductions in government subsidies, futures gains, and interest income, falling below market expectations.

CICC noted that with the implementation of new national standards and stimulation from trade-in policies, the two-wheeler OEM market demand recovered in the first half, and the company's OEM shipments achieved solid year-on-year growth. However, the aftermarket was affected by domestic macroeconomic conditions and trade-in policies (replacement conversion), resulting in relatively weak demand. Combined with the high base in the first half of 2024, the company's aftermarket shipments declined year-on-year. The volatility of lead, the main raw material, narrowed significantly compared to the same period last year, driving improvement in the company's lead-acid battery gross margin.

The firm pointed out that the company's lithium battery business revenue grew significantly, while the reduction in non-operating and interest income also dragged down apparent performance.