Semi-annual report of battery companies: gross profit margin has peaked, exports and energy storage are seeking breakthroughs, and year-on-year revenue growth has become the main theme

Although revenue is growing, due to the intensification of power battery involution, the gross profit margin growth rate of many companies is far lower than the revenue growth rate. It is close to peaking and has a downward trend.

In response to fierce market competition, many companies have expanded overseas markets and increased investment in the energy storage market with higher gross profit margins.

However, with the serious overcapacity of battery production and the industry concentration moving closer to the leading companies, the elimination of battery companies will inevitably accelerate.

The contrast between revenue and gross profit

The first half financial reports of domestic battery companies have been released intensively in the past few days, and revenue growth is generally double digits.

Among them, the revenue growth of lithium battery leaders CATL and Guoxuan High-tech was the largest, with year-on-year growth of 67.52% and 76.42% respectively. The revenue growth of China New Aviation, Yiwei Lithium Energy, and Funeng Technology also exceeded 33% year-on-year, and Yiwei Lithium Energy increased by 53.93% year-on-year.

Along with the growth in revenue, net profit also achieved substantial growth. The net profits of Ningde Times, Guoxuan High-Tech, China New Aviation, and Yiwei Lithium Energy increased by 153.64%, 223.75%, 60.8%, and 58.27% year-on-year respectively.

In contrast, Sunwanda's net profit growth was smaller, at 17.86%, while Funeng Technology even suffered a loss of 797 million yuan.

The growth in revenue is mainly due to the continued sales of power batteries, and furthermore, the continued growth in sales of new energy vehicles.

In the first half of the year, my country's cumulative output of power batteries was 293.6GWh, a year-on-year increase of 36.8%; new energy vehicle sales reached 3.747 million units, a year-on-year increase of 44.1%, and the market share reached 28.3%.

Translated to the enterprise side, Ningde Times’ power battery revenue increased by 76.16% year-on-year, Yiwei Lithium Energy’s 71.92%, Guoxuan Hi-Tech, Zhongxin Aviation, and Sunwanda’s revenue increased by 58.56%, 20%, and 23.47% respectively.