①What are the main reasons for the significant decline in Tianneng Power's performance? ②What are the primary uses and strategic significance of CATL's HKD 39.1 billion financing this time?
Cailian Press, April 30 (Editor Hu Jiarong) Most lithium battery stocks in Hong Kong fell today, with Tianneng Power leading the declines.
As of press time, Tianneng Power fell by 25.48%,$CHAOWEI POWER (00951.HK)$dropped by 9.09%,$LEOCH INT'L (00842.HK)$fell by 3.09%.
The sharp drop in Tianneng Power is related to its first-quarter performance. According to the 2026 Q1 financial report disclosed by Tianneng Battery Group (688819.SH), the company achieved revenue of RMB 9.745 billion, a year-on-year decrease of 4.82%; net profit attributable to parent company was RMB 75.084 million, a year-on-year decrease of 82.14%.
The decline in performance was mainly due to the macroeconomic environment, with a contraction in sales scale and rising costs of raw materials such as sulfuric acid, which pressured the gross margin of the core business. Additionally, policy adjustments such as VAT additional deductions for advanced manufacturing enterprises led to a year-on-year reduction in other income, further squeezing the company’s profitability.
In contrast, during the same period,$GANFENGLITHIUM (01772.HK)$There was a slight increase. The Q1 report showed that the company achieved revenue of RMB 9.196 billion, a year-on-year increase of 143.81%; net profit attributable to shareholders of the listed company was RMB 1.837 billion, reversing losses from the previous year; net profit excluding non-recurring gains and losses was RMB 1.419 billion, a year-on-year increase of 685.83%. The core driver behind the turnaround in performance was the simultaneous rise in volume and price of lithium products and lithium battery products.
It is worth noting that against the backdrop of an overall recovery in the lithium battery industry chain, Tianneng Power, as the traditional lead-acid battery leader, experienced such a significant decline in performance, contrasting sharply with industry trends, raising investor concerns about the company.
CATL makes bold financing move to expand globally
In addition to the earnings announcement, CATL announced on April 28 the completion of its H-share placement, with plans to issue 62.385 million new H-shares at a placement price of HKD 628.2 per share, raising a total of approximately HKD 39.19 billion, with net proceeds amounting to approximately HKD 39.11 billion.
According to relevant reports, this placement attracted participation from over 150 institutional investors, including Norges Bank Investment Management, a Norwegian sovereign wealth fund, and Hillhouse Capital, among others. Notable hedge funds and investment management firms such as Millennium Management and Jane Street Group were also involved.
The proceeds will be primarily allocated toward global new energy projects, zero-carbon business initiatives, research and development investments, and working capital supplementation, aiming to accelerate the implementation of a global zero-carbon strategy and support the company's long-term sustainable development.
The lithium battery industry continues to experience high growth momentum.
The price of lithium carbonate futures on the Guangzhou Futures Exchange recently surpassed the RMB 180,000/ton threshold. Market data shows that China’s energy storage lithium battery shipments reached 215GWh in the first quarter of 2026, marking a year-on-year surge of 139%. Leading companies in the industry have production orders scheduled until the end of 2026 to the second quarter of 2027, with capacity utilization remaining at a high level.
Data from the China Automotive Power Battery Industry Innovation Alliance indicates that China’s energy storage battery sales reached 60.4GWh in March 2026, representing a month-on-month increase of 56.2% and a year-on-year growth of 115.9%. Application scenarios continue to expand, ranging from photovoltaic storage driven by energy security needs to emerging fields such as AI data center backup power, demonstrating broad growth potential for the energy storage sector.
UBS Securities recently significantly raised its lithium price forecast. Analyst Lachlan Shaw pointed out that this lithium cycle fundamentally differs from historical trends: demand is bolstered by three concurrent growth drivers—strengthened energy storage demand, improved economic viability of electric vehicles, and accelerated penetration of electric trucks in China—while supply responses, though present, remain relatively lagging.
The institution noted that specific forecast adjustments include a 23% increase in the near-term price prediction for 6% Li2O spodumene concentrate, with the long-term price revised upward by 17% to USD 1,400/ton. Mid-term price forecasts for battery-grade lithium carbonate and lithium hydroxide were raised by 17%-47%, while the long-term price outlook remained stable. They believe that the structural characteristics of this cycle will reshape the industry valuation framework, benefiting leading enterprises with resource security and technological advantages.
Looking to pick stocks or analyze them? Want to know the opportunities and risks in your portfolio? For all your investment-related questions,just ask Futubull AI!
Editor/joryn