Net Profit Attributable to Parent Surges 278%, Gotion High-Tech Profit Recovery Underway

“Global power battery market share climbed to fifth place, net profit surged 278% year-on-year, revenue increased 43% year-on-year.”

On August 25, Gotion High-Tech released a very bright semi-annual performance report. In the first half of the year, Gotion High-Tech achieved operating revenue of 27.776 billion yuan, a year-on-year increase of 43.22%; net profit attributable to shareholders reached 1.386 billion yuan, a year-on-year increase of as high as 278.05%. More noteworthy is that in the first half of this year, Gotion's global power battery installed capacity market share has risen to 4.6%, firmly ranking in the global top five, domestic ranking improved further, leaping to third place. In terms of energy storage business, Gotion High-Tech also ranked within the global top ten.

The financial report clearly shows Gotion High-Tech's development status in the first half of 2026: Rapid growth in the main power battery business brings continuous elevation in market ranking; sustained investment in global capacity and technical R&D; operational profitability remains in the recovery and climbing stage.

Revenue Surges, Profitability Enters Recovery Channel

From the perspective of operational fundamentals, Gotion High-Tech's expansion momentum remains strong. The revenue scale of 27.776 billion yuan in the first half, power battery business contributed 81.36% of it.

In terms of profitability, the scale of main business profit continues to expand. During the reporting period, Gotion High-Tech's gains from changes in fair value reached 996 million yuan, mainly from the appreciation of trading financial assets; government subsidies were 330 million yuan, the two combined occupy a large proportion in net profit attributable to shareholders. At the same time, net profit after deducting non-recurring gains and losses was 107 million yuan, a year-on-year increase of 46.71%, and operating quality is gradually improving.

It is worth mentioning the strong growth in the power battery business. This sector's revenue reached 22.597 billion yuan, a year-on-year increase of 61.01%, indicating that economies of scale are becoming apparent.

Energy Storage Slightly Declines, Other Businesses Show Strong Resilience

Different from the rapid advance of power batteries, Gotion High-Tech's energy storage business saw a phased adjustment. In the first half of 2026, energy storage battery system revenue was 3.689 billion yuan, a year-on-year decline of 19.14%, revenue share contracted to 13.28%; but the sector's gross margin slightly rose to 19.50%, profitability remains superior to power battery business.

In the first half of this year, the share of Gotion High-Tech's energy storage revenue dropped significantly. Gotion High-Tech did not provide excessive explanation in the financial report. I consider the factors are mainly from project implementation rhythm, intensifying market competition, and internal production line resources tilting towards power battery business.

Another reason may be that Gotion High-Tech's energy storage business is in the product iteration window. New products launched during the reporting period such as the "Qianyuan Smart Storage 2.0" system and "NaChen" sodium-ion battery are still in the market introduction stage, it takes time from technical launch to scaled delivery. Once new products scale up, the energy storage sector is expected to regain growth.

In terms of other businesses, power transmission and distribution product business showed resilience, achieving revenue 401 million yuan, a year-on-year increase of 62.67%; other business revenue 1.088 billion yuan, a year-on-year increase of 97.71%, complementing the main business, enriching company revenue structure, hedging the fluctuation risk of the two core businesses.

Customer Premiumization and Diversification

Gotion High-Tech's customer expansion is also effective.

In the power lithium battery field, Gotion High-Tech has equipped multiple main models of brands such as Chery Exeed, Fengyun series, Geely Galaxy, Leapmotor, achieving batch assembly and stable mass production delivery.

More noteworthy is, the company added Volkswagen ID series high-end vehicle projects during the reporting period, the passenger car customer matrix realized an iteration upgrade from independent brands to international top brands. This is another important milestone of deepening synergy at the business level between Volkswagen China and the company after Volkswagen China became the company's largest shareholder.

In the energy storage field, Gotion High-Tech has carried out energy storage system and cell business cooperation with European energy storage customers such as InoBat Europe. In the domestic market, Gotion High-Tech has also established cooperation with State Grid, China Southern Power Grid, and major power groups, participating in tendering and bidding and delivery of multiple energy storage projects.

In emerging power application fields, Gotion High-Tech has deployed multi-scenario customers such as electric heavy trucks, two-wheeled electric vehicles, and low-altitude aircraft. The "DianLala Mobile Storage-Charging-Swapping Integrated Solution" launched for the commercial vehicle market adapts to diverse cross-border transport scenarios and has obtained preliminary recognition from some logistics and commercial vehicle customers, opening up new growth space for the business.

Going Global Enters Harvest Period

Besides business and customer diversification, the market also needs to be diversified. Just like the development of the automobile industry this year, the growth potential for battery companies is all in going overseas.

Gotion High-Tech's global layout belongs to companies that walk earlier and further in the industry. The financial report shows, overseas revenue is 9.476 billion yuan, accounting for 34.11% of total revenue, this number is in a relatively leading position among top battery companies.

In terms of overseas customer development, Gotion High-Tech has established deep cooperative relationships with international customers such as VinFast, Rivian, PowerCo, Volkswagen. Among them, synergy with Volkswagen Group is particularly prominent. The company not only achieved batch cell supply to Volkswagen Anhui Parts Company (related party transaction amount 395 million yuan during the reporting period), but also obtained designations for Volkswagen ID series high-end vehicles; at the same time, it undertook development and cell procurement orders for Volkswagen's battery company PowerCo, related party transaction amount reached 1.292 billion yuan.

In addition, its procurement amount with Tata Components Gotion Green Energy Application Co., Ltd. reached 1.310 billion yuan, and sales amount with Skoda Auto reached 870 million yuan. Gotion High-Tech is also continuously expanding customers in the three regions of Americas, Europe-Africa, and Asia-Pacific, products have achieved batch overseas shipping, overseas business is transitioning to a continuous scale-up phase.

Customer increase inevitably brings capacity expansion. Construction in progress of Gotion High-Tech grew 63% compared to the beginning of the year, mainly in overseas markets such as USA, Morocco, Southeast Asia. Among them, the Morocco base added 772 million yuan in investment during the reporting period, cumulative investment has exceeded 1.14 billion yuan. USA base cumulative investment has exceeded 4.9 billion yuan, it is the company's largest single overseas investment project.

More noteworthy is, the gross margin of the company's overseas business reached 18.05%, significantly higher than the domestic 14.34%, it is visible that "going global" not only brings scale growth, but also plays a role in optimizing overall profit structure.

Technology and Full Industry Chain Layout Continue to Add Momentum

After looking at the market, let's look at R&D, technology, and industry chain layout.

Specifically, Gotion High-Tech's R&D investment is still continuing to grow. During the reporting period, Gotion High-Tech R&D investment reached 1.125 billion yuan, a year-on-year increase of 7.58%. The results are obvious, more and more technical results are moving from the laboratory to mass production.

During the reporting period, multiple new products were released externally, including G-Core 2nd Gen Ultra-Fast Charging Battery, G-Wall Hybrid Solid-Liquid Smart Battery, Jinshi All-Solid-State Battery, 5th Gen LFP All-Scenario Battery, Qichen 3rd Gen LMFP Battery, NaChen Sodium-Ion Battery, fast charging, solid-state, sodium battery multiple routes advance in parallel, adapting to passenger cars, energy storage, commercial vehicles and other multi-scenario.

At the industry chain level, Gotion High-Tech has laid out lithium mines, nickel resources, precursors, cathode and anode materials upwards, and opened up battery recycling downwards, increasing upstream material self-sufficiency rate, hedging raw material price fluctuation risk, and enhancing supply chain security. Eight Global R&D Centers are distributed in China, Japan, Singapore, USA and other places, industrial-academic-research collaborative innovation continues to advance, providing support for product iteration.

From the current view, Gotion High-Tech's global capacity layout has taken shape, technical reserves have entered a stage of intensive release, and customer structure continues to evolve towards premiumization. As the company said in the financial report, the industry trend of shifting from "scale expansion" to "value competition", for top companies with global layout capabilities and technical iteration strength, is an opportunity rather than a challenge.