GOTION expects its annual net profit to double year-on-year, CHERY's IPO significantly increases book profits | Financial Report Insights

Due to the listing of its affiliated company CHERY AUTO in Hong Kong, GOTION's annual net profit has doubled year-on-year. The net profit after deducting non-recurring gains and losses, as well as basic earnings per share, have significantly increased compared to the same period last year, with the explosive demand in the new energy vehicle and energy storage markets and the implementation of strategic layouts becoming the core driving forces. According to the performance forecast released on Friday, GOTION's net profit attributable to shareholders of the listed company is expected to be between 2.5 billion and 3 billion yuan in 2025, an increase of 107.16%-148.59% compared to 1.207 billion yuan in the same period last year, more than doubling. The net profit after deducting non-recurring gains and losses is expected to reach 350 million to 450 million yuan, an increase of 33.31%-71.40% compared to 262 million yuan in the same period last year, indicating a steady enhancement in the profitability of its main business. Basic earnings per share are expected to be 1.38 yuan/share - 1.66 yuan/share, doubling from 0.68 yuan/share in the same period last year, significantly improving shareholder return levels. The shares of CHERY AUTO held by the company in its early stages have generated an overall fair value change gain of approximately 1.7 billion yuan due to CHERY AUTO's successful listing on the Hong Kong stock market. This portion of the gain belongs to non-recurring gains and losses and forms an important supplement to the company's annual net profit growth. Significant Increase in Sales of Next-Generation High Energy Density Lithium Iron Phosphate Battery Products The primary reason for the growth in performance is the rapid increase in demand in the new energy vehicle and energy storage markets. The sales of the company's next-generation high energy density lithium iron phosphate battery products have significantly increased year-on-year, aligning with the current industry's demand trend for high safety and high energy density batteries. In terms of market expansion, GOTION is firmly advancing its internationalization strategy. On one hand, it deepens cooperation with strategic customers, and on the other hand, it actively explores new businesses, new customers, and new markets, promoting continuous optimization of customer structure and product structure, and reducing dependence on a single market or customer. At the same time, the company's high-quality production capacity continues to be released, and scale effects are gradually becoming apparent, which not only guarantees the future delivery of more bulk orders from strategic customers but also further dilutes unit costs. In addition, the company deeply implements lean manufacturing concepts, continuously optimizing operational efficiency through management enhancement and cost control, driving a substantial improvement in profitability this year