TIANNENG POWER (00819) saw its stock price plummet by 5.06% in Tuesday's trading session, as investors reacted to the company's disappointing interim results and market analysis. The sharp decline came after the company reported a significant drop in revenue and profit for the first half of the year.

According to the interim results released by TIANNENG POWER, the company's revenue fell by 51.53% year-on-year to RMB 24.192 billion. Profit attributable to shareholders also declined, dropping 11.68% to RMB 820 million. CICC, in a research report, noted that the company's performance fell below market expectations, citing several factors contributing to the weaker results.

The CICC analysis highlighted that TIANNENG POWER's revenue decline was primarily due to a contraction in its trading business scale. Additionally, the company's net profit was negatively impacted by slowing demand in the aftermarket, reductions in government subsidies, lower futures gains, and decreased 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, affected by domestic macroeconomic conditions. On a positive note, the company's lead-acid battery gross margin improved, benefiting from reduced volatility in lead prices. Despite significant growth in the lithium battery business revenue, the overall decline in non-operating and interest income further pressured the company's performance, leading to today's sharp stock price drop.