Chinese battery manufacturer Gotion High-Tech released its latest financial report on October 26, showing operating income of 14.426 billion yuan ($1.99 billion) in the first three quarters of the year, an annual increase of 152%. In addition, The Paper reported that batteries supplied by the company to Volkswagen will be installed next year. Volkswagen China is Gotion High-Tech’s largest shareholder.
In the third quarter, Gotion High-Tech achieved operating income of 5.788 billion yuan, a year-on-year increase of 166%, while net profit attributable to shareholders was 85.56 million yuan, a year-on-year increase of 355%.
However, in the first three quarters of this year, Gotion High-Tech’s net profit, excluding extraordinary profit and loss, was -359 million yuan. The company has continued to record losses since 2019.
Insiders indicated that while Gotion High-Tech’s main business generates income, it does not increase profits. Excessive dependence on government subsidies is also a major reason for its poor performance. The report shows that in the first three quarters of this year, government subsidies received by Gotion High-Tech amounted to 467 million yuan.
During the reporting period, Gotion High-Tech still recorded an eye-catching performance. In August, the construction of the 10th-largest battery production base officially commenced. This project is divided into three phases, and some products will be exported to overseas markets such as the US and India.
The project, which will provide an annual output of 10GWh, is located in Liuzhou, Guangxi Province and was officially put into production in September for customers including SAIC-GM-Wuling and Indian multinational conglomerate Tata. On October 8, the second phase of construction began for a lithium battery production base in Yichun, Jiangxi Province, expected to be put into production in October 2023. On October 26, Gotion High-Tech said that it plans to build a new battery base with an annual output of 20GWh in Hefei, Anhui Province, with 6.7 billion yuan.
In addition, during the reporting period, Gotion High-Tech made significant moves to expand its operations in overseas markets. On July 28, the company was officially listed on the Swiss Stock Exchange, becoming the only Chinese battery firm to do so. On October 5, Michigan Governor Gretchen Whitmer announced that the US subsidiary of Gotion High-Tech plans to invest $2.36 billion in the state to build a battery anode material factory.
According to the firm’s plans, its battery capacity will exceed 100GWh in 2022 and 300GWh in 2025. According to data from the China Automotive Battery Innovation Alliance, from January to September, Gotion High-Tech ranked fourth in the industry with a loading capacity of 9.35 GWh, behind CATL, BYD, and CALB.