Battery prices continue to decline, raising questions about the future of companies like Gotion High-tech. What does this trend mean for the upcoming quarters?
As of April 18, 2025, reports indicate that Gotion High-tech (300750.SZ) has experienced a decline in revenue for the first quarter, amounting to 84.705 billion CNY, which represents a 6.18% decrease compared to the previous year. This decline follows a period where the company had already seen five consecutive quarters of declining revenue.
On April 14, during a financial report release, Gotion High-tech revealed that its revenue for the year was 847.05 billion CNY, marking a decrease of 6.18% year-on-year. This decline has been attributed primarily to the drop in prices of electric vehicle batteries.
According to analysts, Gotion High-tech has seen its first-quarter revenue significantly impacted by reduced battery prices, which have decreased by 17.9% compared to the same quarter last year. The company’s battery production capacity reached 57.52 GWh, up from 41.32 GWh in the previous year, indicating a growth of 39.21%.
Market trends indicate that the demand for electric vehicle batteries continues to rise. Recent data shows that in the first quarter, the sales volume of Gotion High-tech electric vehicle batteries increased by 59% year-on-year, suggesting strong market demand.
“This year, we anticipate that the sales volume of new energy vehicles will continue to rise, which will further support our revenue growth,” stated company officials.
In the first quarter, Gotion High-tech’s revenue growth was recorded at 32.85%, reaching 139.63 billion CNY. This is the company’s highest revenue growth in the past four quarters, indicating a strong recovery.
In terms of financial stability, Gotion High-tech reported liabilities totaling 5309.58 billion CNY, with a liability ratio of approximately 64.74%. This is down from 65.23% in the previous year.
Significantly, the company’s cash reserves reached 656.4 billion CNY, which is an increase of 58.04 billion CNY from the previous year, reflecting a growth of 9.7%.
These results indicate that Gotion High-tech is in a strong position to continue its expansion, with plans to further increase production capacity and meet growing market demands.
Looking ahead, the company aims to enhance its battery production capabilities while preparing for potential fluctuations in the market, especially as competition in the electric vehicle sector intensifies.
As of April 15, Gotion High-tech shares were priced at 228.15 CNY, reflecting a 1.85% increase, with a market capitalization of 1 trillion CNY.
For further insights and analysis, please visit Gotion High-tech’s financial reports.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/electric-vehicle-sales-decline-amidst-falling-prices-whats-next-for-the-industry/
