Gotion's earnings preview implies it will post a net profit of RMB 7,439 to RMB 124.4 million in the second quarter, a year-on-year increase of 129.46 percent to 283.68 percent.
Volkswagen-backed Chinese power battery giant Gotion High-tech has previewed strong first-half earnings growth on the back of increased power battery business growth.
Gotion expects first-half net profit of RMB 150 million - RMB 200 million ($28 million), up 132.27 percent - 209.69 percent year-on-year, according to its earnings preview released today.
Considering the company's net profit of RMB 75.61 million in the first quarter, the earnings preview implies that it will post a net profit of RMB 743.9 million to RMB 124.4 million in the second quarter, an increase of 129.46 percent-283.68 percent year-on-year.
After deducting non-recurring gains and losses, Gotion expects a first-half net profit of RMB 30 million - RMB 42 million. It reported a loss of RMB 173 million after non-recurring gains and losses in the same period last year.
Gotion expects first-half revenue to be RMB 14 billion to RMB 16 billion, up from RMB 8.64 billion in the same period a year ago.
Considering the company's revenue of RMB 7.18 billion in the first quarter, the preview implies it will post revenue of RMB 6.82 billion to RMB 8.82 billion in the second quarter, up 44.49 percent to 86.86 percent year-on-year.
Gotion expects basic earnings per share of RMB 0.08 to RMB 0.11 in the first half, up from RMB 0.04 in the same period last year.
Gotion installed 3.41 GWh of batteries in China in the second quarter, up 15.59 percent year-on-year and up 29.17 percent from the first quarter, according to data from the China Automotive Battery Innovation Alliance (CABIA) monitored by CnEVPost.
Benefiting from the rapid development of the new energy industry and strong demand in the power battery market, Gotion's power battery business was growing at a high rate, it said.
Gotion saw the new production capacity gradually come on stream in the first half of the year, and its supply capacity was further strengthened, it said.
At the same time, the company strengthened its ability to develop domestic and international markets and maintain strategic customers, and its customer structure continued to be optimized and improved, especially in the international market, it said.
Gotion's cost control capability was improved, and it continued to implement measures for cost reduction and efficiency and strengthened expense control, it said.
In June, Gotion's share of China's power battery market was 3.69 percent, ranking fifth, according to the CABIA.
($1 = RMB 7.1407)