Lead battery major Leoch International has reported a profit boost of 33% for the first half of 2026 — more than double the amount forecast in a preliminary assessment reported by Batteries International in July.

However, the group, which also has an expanding lithium business, has warned that ongoing Middle East conflict, supply chain disruptions and soaring energy costs are taking their toll.

In interim results up to the end of June, released on August 26, the group said profit attributable to owners of the group — a core business metric — jumped to Rmb138 million (previously Rmb104 million).

The network power battery business accounted for 46% of the total half-year group sales and posted revenue of Rmb3.2 billion, down 6%.

Leoch said the slight fall was the result of the firm’s decision to phase out low-margin products and revenue from core products, while their market share both experienced slight increases.

Lead prices

Sales revenue of the SLI battery business accounted for 40% of the group’s total sales at Rmb2.8 billion, representing a year-on year decrease of 10%.

The group’s recycled lead business posted revenue of Rmb220 million, a fall of Rmb870 million. Leoch said this reflected a tightening of raw material supplies from used lead acid batteries and fluctuations in lead prices. In response, the group is studying technological upgrades to adjust production scales.

Motive batteries accounted for 7.5% of the total first-half sales of the group with Rmb518 million — a year-on-year fall of 17%. Leoch said this was mainly due to the impact of the transition from lead acid to lithium batteries for OEM factory-fit batteries, leading to an overall market decline.

On the Chinese mainland group sales fell by 24% for the period compared to last year, which Leoch said was mainly due to a significant decline in the domestic recycled lead business hitting regional sales.

Across the Asia-Pacific region (excluding mainland China) sales revenue was down 13%. This was due in part to a return to normal sales levels following strong SLI battery sales in Southeast Asia in 2025, driven by local incentives to boost the EV industry.

In Europe, the Middle East and Africa, sales remained largely stable at around Rmb1.5 billion.

Sales in the Americas fell by 17% as the group adjusted its product mix but orders are expected to gradually recover in the second half of the year.

Looking ahead, founder and chairman Dong Li said Leoch will expand on its technological strengths and customer advantages in lead acid battery UPS systems for the DC sector to maintain steady business growth.

‘Escalating demand’

Meanwhile, the group will “proactively cater to escalating demand” from AI powered intelligent data centre (AIDC) customers for lithium ion battery upgrades, continue to step up investment and expand the market share of its lithium portfolio.

In terms of the burgeoning EV market globally, Dong Li said requirements for low voltage power supply systems had become increasingly diverse and stringent. However, Leoch’s lead and lithium battery tech is fully capable of meeting such requirements.

“Lead acid batteries have already been supplied to a majority of new energy vehicle manufacturers as supporting components, while lithium ion batteries have also successfully entered the supplier base of relevant automotive OEMs.”

He said despite ongoing uncertainties in the global geopolitical landscape, supply chain and international trade policies, Leoch is well-placed to drive sales and expand its reach thanks to production sites in China and other nations — plus the impending completion and commissioning of its plant in Mexico.