The order is estimated at $110 million and the project is expected to be completed and delivered by the end of 2022.
(Image credit: Gotion)
Chinese power battery giant Gotion High-tech has secured a major new order in the energy storage area, which is expected to boost further growth of the business in the future.
Local energy group China Power International Development recently put out a tender for one of its energy storage equipment projects with a capacity of 500 MWh-1,000 MWh, including 500 MWh of procurement capacity and 500 MWh of standby capacity, according to an announcement by Gotion today.
Gotion's subsidiary Gotion Hefei was awarded a 60 percent share of the tender, or 300 MWh-600 MWh of energy storage battery orders, according to the announcement.
Based on the winning share and project offer calculations, the estimated order amount is a total of RMB 800 million ($110 million), Gotion said.
The project is expected to complete construction and delivery by the end of 2022, with order delivery to be completed in the first quarter of 2023.
This is expected to have a positive impact on the company's operating results in 2022 and subsequent years, help deepen its strategic partnerships with large domestic power companies and enhance the company's presence in the energy storage market, Gotion said.
Gotion, a Volkswagen-backed power battery giant, ranked fourth in China in September with a 4.33 percent share of installed capacity, according to the China Automotive Battery Innovation Alliance (CABIA) earlier this month.
Gotion started to explore the energy storage business in 2014, and its products mainly include centralized battery modules and clusters, container energy storage systems, outdoor energy storage cabinets and home energy storage systems.
The company's energy storage battery business generated revenue of RMB 1.28 billion ($177 million) in the first half, accounting for 14.8 percent of the company's first-half revenue, its semiannual report showed.
Gotion expects third-quarter net profit to reach RMB 82.35 million to RMB 97.19 million, up 318.9 percent to 394.4 percent from a year earlier, according to an October 14 exchange announcement.
The company expects third-quarter basic earnings per share of RMB 0.05 – RMB 0.06 per share, up from RMB 0.02 per share in the same period last year.