Over 80% of Lithium Battery Companies in China Project Profit Growth Amidst Intense Competition

As of July 10, more than 80% of the 23 listed companies in the lithium battery sector that have disclosed their performance forecasts on the Shanghai and Shenzhen stock exchanges expect a year-on-year increase in net profit, marking a dominant trend of positive performance. Despite the ongoing fierce competition in the battery new energy industry, the performance forecasts released by these companies convey optimistic signals. According to incomplete statistics from Battery Network, by July 10, over 80% of the 23 listed companies in the lithium battery sector projected a year-on-year increase in net profit. This positive outlook is driven by multiple favorable factors, including the continuous growth of new energy vehicle penetration, explosive growth in the energy storage market, and robust overseas exports, enabling quality enterprises to accelerate their recovery in profitability even amid intense competition. China Power (600482) expects a net profit attributable to the parent company of 800 million to 1.15 billion yuan in the first half of 2025, an increase of 68.28% to 141.90% year-on-year. The company’s shipbuilding sector continued to grow, with price increases for main products such as marine low-speed engines improving gross margins. The company has been focusing on controlling costs and enhancing product profitability. Zongshen Power (001696) anticipates a net profit attributable to shareholders of 479 million to 564 million yuan for the first half of 2025, a growth of 70% to 100% compared to 282 million yuan in the same period last year. The growth is attributed to increased scale in its general machinery and motorcycle engine businesses. Plit (002324) expects a net profit of 200 million to 240 million yuan in the first half of 2025, up 38.88% to 66.65% year-on-year, driven by growth in modified materials and improvements in its new energy business. Far East Smarter Energy (600869) forecasts a net profit of 120 million to 200 million yuan, a 192.49% to 254.14% increase. The company has focused on high-end smart battery markets and has accelerated its overseas expansion. Shanghai Xiba (603200) expects a net profit of 99 million to 118 million yuan, a year-on-year increase of 136.47% to 181.85%, primarily due to non-recurring income from investment gains. HaoPeng Technology (001283) anticipates revenues of 2.68 billion to 2.8 billion yuan, with a net profit of 90 million to 102 million yuan, representing a growth of 228.03% to 271.77%. Huayou Cobalt (603799) expects a net profit of 2.6 billion to 2.8 billion yuan, a year-on-year increase of 55.62% to 67.59%. The company attributes this growth to its integrated operational advantages and rising cobalt prices. Overall, the forecasts indicate a resilient performance in the lithium battery sector despite competitive pressures.