Industry News

Recently, lithium battery company Xinwangda (300207. SZ) released its 2025 annual report and 2026 first quarter report. Data shows that the company will achieve a total operating revenue of 63.246 billion yuan in 2025, a year-on-year increase of 12.9%; The net profit attributable to the parent company was 1.057 billion yuan, a year-on-year decrease of 27.99%. In the first quarter of 2026, revenue continued to grow by 31.14% to 16.116 billion yuan, while net profit attributable to the parent company decreased by 70.49% year-on-year to 114 million yuan.

 

Currently, Xinwangda is facing a triple dilemma of "consumer batteries have profits but stagnant growth, power batteries have a large scale but suffer losses, and energy storage business is still in a climbing period". How to break through the situation has become its core issue in 2026.

 

The expansion of power battery scale cannot conceal losses

 

As the second growth curve that Xinwangda focuses on exploring, the power battery business has achieved rapid expansion in scale by 2025. Data shows that the company's annual shipment of electric vehicle batteries (including energy storage cells) reached 42.72 gigawatt hours, a year-on-year increase of 68.92%, and achieved revenue of 18.908 billion yuan, a year-on-year increase of 24.9%. However, behind the expansion of scale is the continuous pressure on the profit side.

 

From the perspective of segmented business, the gross profit margin of the power battery business is only 4.86%, which is not only far lower than the 19.42% of consumer batteries and 23.34% of energy storage systems, but also significantly lagging behind industry peers - during the same period, CATL's gross profit margin for power batteries was 23.84%, and EVE Energy also reached 15.5%. The low gross profit margin directly dragged down the overall profitability of the company. In 2025, the overall gross profit margin of Xinwangda was only 13.94%. Coupled with the synchronous growth of expenses such as sales, management, and finance, it ultimately led to a loss of 386 million yuan.

 

More noteworthy is the particularly prominent loss situation of the core subsidiary of the power battery. Among the 17 participating companies in Xinwangda with a shareholding ratio of over 10%, 6 are in a loss making state, and most of them are power battery business entities. Among them, Xinwangda Power Technology Co., Ltd. (indirectly holding 40.21% of the shares) suffered a huge loss of 3.025 billion yuan in 2025; Nanchang Xinwangda New Energy Co., Ltd. and Xinwangda Power Technology (Thailand) Co., Ltd. suffered losses of 83.5174 million yuan and 74.8457 million yuan respectively.

 

Although the company will maintain a net profit attributable to the parent company of 1.057 billion yuan in 2025, it mainly relies on the contribution of its subsidiary in the consumer electronics battery business. Industry insiders believe that due to the non full ownership of the power battery subsidiary with significant losses and the decent profitability of the consumer electronics battery business, Xinwangda's operating profit loss was formed, but the net profit attributable to the parent company was profitable. In addition, in 2025, a subsidiary of Geely Automobile filed a lawsuit against Xinwangda Power Technology Co., Ltd. due to battery quality issues. Xinwangda confirmed an estimated liability of 2.912 billion yuan (with a final settlement of 608 million yuan), which had an impact on its performance.

 

Entering the first quarter of 2026, due to exchange losses, the company's financial expenses surged by 1072.06% year-on-year, further eroding profits and resulting in a loss of 1.27 million yuan in non attributable net profit. For Xinwangda, how to enhance the bargaining power and profitability of its power battery business while maintaining scale expansion is an urgent test.

 

The energy storage business is growing rapidly but still in a climbing period

 

Against the backdrop of sluggish growth in consumer batteries and pressure on profitability in power batteries, energy storage business may become a stronghold that Xinwangda cannot abandon. Its high growth rate and high gross profit characteristics not only support the expansion of the company's revenue scale, but also have the potential to improve the overall profit structure, especially in the current industry competition pattern that has not yet solidified. Seizing the opportunity is crucial.

 

According to the annual report, by 2025, the global shipment of energy storage batteries will reach 640 gigawatt hours, a year-on-year increase of 82.9%, and the industry's prosperity will continue to be high. Xinwangda's energy storage business took advantage of the situation, with a year-on-year increase of 188% in system installed capacity to 25.6 gigawatt hours, achieving revenue of 2.313 billion yuan, a year-on-year increase of 22.42%, and a gross profit margin of 23.34%, significantly higher than that of power batteries. According to its Hong Kong stock prospectus data, based on the shipment volume in 2024, Xinwangda ranks as the tenth largest energy storage battery manufacturer in the world, with a market share of 1.4%.

 

For the outlook of energy storage business, Xinwangda emphasized in its annual report the need to achieve global market expansion and comprehensive upgrading of product matrix. In terms of globalization, the company currently has 25 major production bases that have been built or are under construction, of which 19 are located domestically and six are located overseas (distributed in India, Vietnam, Thailand, and Hungary). By 2025, the proportion of overseas revenue for Xinwangda will be 38.64%. On the product side, the company will release multiple new products within 2025, including a 179 kWh industrial and commercial energy storage outdoor cabinet and a 10 meter level 2 megawatt hour liquid cooled integrated mobile energy storage vehicle, the "Xinyi Era 2000".

 

In terms of market expansion, the company's home storage and industrial and commercial storage businesses have covered more than 30 countries and regions overseas. The large storage system has achieved batch delivery in key overseas areas, and has won 720 megawatt hour orders in the South Asian market alone. According to the Hong Kong stock prospectus, in 2022, 2023, 2024, and September 2025, Xinwangda's energy storage business will be in the stage of capacity ramp up, with capacity utilization rates of 70.7%, 74.2%, 77.5%, and 86.3%, respectively.

 

However, the current revenue share of energy storage business is relatively small and has not yet formed a scale effect. Whether it can quickly "shoulder the banner of performance" still needs to be observed. In order to meet the funding needs brought by capital expenditures and further enhance brand awareness in the international market, Xinwangda began seeking a Hong Kong stock listing in July 2025. The updated Hong Kong stock prospectus in 2026 stated that the funds raised will be used to expand overseas new production facilities and improve the global sales service network, research and development, digital and intelligent operations, and other aspects.

 

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