LEOCH INT'L (Leoch International Technology) reported mixed interim results for the six months ended 30 June 2026.

Revenue and Profitability • Turnover slid 17.60% year on year to RMB 6.95 billion, reflecting a sharp contraction in the recycled-lead segment and logistics disruptions that delayed customer orders. • Gross profit rose 18.50% to RMB 1.02 billion, lifting the gross margin to 14.7% from 10.2% a year earlier, supported by product mix optimisation, lower raw-material costs and cost-control initiatives. • Profit for the period increased 41.20% to RMB 112.91 million, while profit attributable to shareholders grew 32.30% to RMB 137.86 million. • Basic and diluted EPS both improved to RMB 0.10 (1H25: RMB 0.07).

Segment Performance Power solutions (lead-acid and lithium batteries) contributed 96.9% of group sales, slipping 8.40% to RMB 6.73 billion. – Network power batteries: RMB 3.22 billion, down 6.0%, equal to 46.3% of group revenue. – SLI batteries: RMB 2.81 billion, down 9.9%, 40.4% of revenue. – Motive power batteries: RMB 0.52 billion, down 16.7%, 7.5% of revenue. Recycled lead revenue plummeted 79.8% to RMB 0.22 billion, reflecting deliberate scale-back amid input shortages and price volatility.

Regional Trends • Chinese mainland sales fell 24.2% to RMB 3.61 billion (51.9% of group total) due to lower recycled-lead output. • EMEA sales were stable at RMB 1.53 billion (22.1%). • Americas revenue declined 16.8% to RMB 1.17 billion (16.9%) amid product-mix adjustments. • Asia-Pacific ex-China dropped 13.2% to RMB 0.63 billion (9.1%).

Cost & Expenses Cost of sales dropped 21.70% to RMB 5.93 billion, mirroring lower volumes and material costs. Selling and distribution expenses decreased 17.3% to RMB 252.88 million; administrative costs slipped 5.3% to RMB 253.62 million. R&D spending rose 16.7% to RMB 175.28 million, focused on new product development. Finance costs fell 18.4% to RMB 125.50 million on lower borrowings and interest rates.

Balance Sheet & Liquidity Total assets reached RMB 15.66 billion; net assets stood at RMB 4.96 billion. Net current assets were RMB 173.49 million, down from RMB 1.19 billion at end-2025, as inventories and receivables increased. Cash and cash equivalents totalled RMB 720.04 million, while total interest-bearing bank borrowings decreased 3.5% to RMB 4.96 billion. The gearing ratio improved to 31.7% (end-2025: 33.1%).

Dividend An interim dividend of HK 1.8 cents per share was declared (1H25: nil), payable on or about 6 November 2026 to shareholders on record as of 16 October 2026.

Outlook Management highlighted enduring demand drivers from AI-driven data-centre expansion, growth in electric-vehicle auxiliary power systems, and global energy-storage deployments. The group intends to deepen investment in lithium-ion product lines, leverage its diversified manufacturing footprint across China, Vietnam, Malaysia, India and upcoming Mexico facilities, and maintain cost discipline to navigate geopolitical and supply-chain uncertainties.

Share Buyback During 1H26 the company repurchased 7.29 million shares for HK$8.21 million; a further 2.03 million shares were bought in July, with 9.31 million shares cancelled on 28 July 2026.

Auditor Review Ernst & Young reviewed the interim financial statements; the Audit Committee confirmed the adequacy of accounting policies and internal controls.