Gotion said further reductions in raw material costs and the introduction of Volkswagen's management system have helped it improve efficiency.
Chinese power battery maker Gotion High-tech expects its earnings to grow strongly in 2023, as battery shipments grow and costs fall.
Gotion's revenue in 2023 is expected to be between RMB 31 billion ($4.3 billion) and RMB 33 billion, up 34 percent to 43 percent from RMB 23.1 billion in 2022, according to its earnings preview released today.
The company expects it to report net profit attributable to shareholders of RMB 800 million to RMB 1.1 billion in 2023, up 157 percent to 253 percent from RMB 311 million in 2022.
After non-recurring gains and losses, Gotion expects its net profit in 2023 to be RMB 85 million to RMB 120 million. In 2022, Gotion lost RMB 515 million after non-recurring gains and losses.
Gotion's revenue for the first three quarters of 2023 was about RMB 21.8 billion, with net profit of RMB 292 million and net profit after non-recurring gains and losses of RMB 50.76 million.
The latest earnings preview implies that Gotion expects to report revenue of RMB 9.2 billion to RMB 11.2 billion in the fourth quarter, representing year-on-year growth of 7 percent to 30 percent.
It also implied its net profit for the fourth quarter to be RMB 508 million to RMB 808 million, representing a year-on-year increase of 216 percent to 402 percent.
Benefiting from the rapid development of the new energy industry and strong market demand for power and energy storage batteries, the company's lithium battery business was growing at a high rate, Gotion said.
The company showed initial success in its overseas business in 2023, and the delivery capacity of its energy storage business was further improved, it said.
In addition, the cost of raw materials has further declined, especially as the company has introduced the management system of the Volkswagen Group, which promoted the improvement of management capacity and product quality, and realized cost reduction and efficiency, Gotion said.
Gotion is one of the largest battery makers, ranking fifth in China with a 4.22 percent share in December, according to the China Automotive Battery Innovation Alliance (CABIA).
In the global market, Gotion was No. 8 with a 2.4 percent share in January-November, according to South Korean market researcher SNE Research.
($1 = RMB 7.1813)