On the afternoon of May 8, Guoxuan High-Tech (002074) held a performance briefing to discuss its operational status, technology research and development, product iteration, capacity layout, and market expansion with investors. In 2024, Guoxuan High-Tech achieved several record-breaking performance indicators, with revenue reaching 35.392 billion yuan, marking a year-on-year increase of 11.98%. The net profit was 1.207 billion yuan, up 28.56% from the previous year, while the net profit after deducting non-recurring items was 263 million yuan, a significant increase of 125.86%.
The company shipped approximately 63 GWh of products in total, with the power battery shipments accounting for about 65% and energy storage shipments making up approximately 35%. In terms of profitability, Guoxuan High-Tech’s gross profit margin improved in 2024, reaching 18%, which is an increase of 1.08 percentage points compared to 2023. The company attributed this improvement mainly to product structure optimization, overseas market expansion, and cost control.
During the performance briefing, Guoxuan High-Tech provided a detailed breakdown of its product and customer structure optimization. In the domestic market, the company has established stable partnerships with major automotive manufacturers such as SAIC-GM-Wuling, Geely, Chery, Leap Motor, and Changan, gradually moving towards mid-to-high-end product offerings, with significant increases in the energy capacity per vehicle. Furthermore, the company is actively expanding its overseas market presence, adding several international client projects, which is expected to enhance its market share and brand influence.
Data reflects the rapid growth in overseas markets. In 2024, Guoxuan High-Tech’s overseas revenue reached 11.005 billion yuan, marking the first time it surpassed the 10 billion yuan threshold, which is a year-on-year increase of 71.21%. This overseas revenue now represents 31.09% of the company’s total revenue. Recently, the so-called “reciprocal tariffs” imposed by the United States caused market turbulence. In response, Guoxuan High-Tech stated it would develop overseas capacity and supply chain systems to mitigate the long-term impact of potential tariffs.
On one hand, the company has built a diversified global market supply structure, covering the Asia-Pacific and European-African markets in addition to the U.S., which enhances its ability to withstand localized risks. On the other hand, Guoxuan High-Tech is strengthening communication and cooperation with overseas clients and suppliers to jointly address the challenges posed by tariffs and ensure a smooth transition to localized production and supply in global markets.
Regarding future market expansion priorities, Guoxuan High-Tech provided a positive outlook during the briefing. In the power battery market, the focus will be on expanding mid-to-high-end and high-capacity vehicle markets based on existing strategic clients. In the energy storage sector, the company aims to advance the layout of large energy storage cells while gradually transitioning from cell sales to integrated sales, further increasing the proportion of product sales. Additionally, it plans to collaborate with leading domestic and international manufacturers to develop new application scenarios, including low-altitude flight and humanoid robots, to deepen and broaden its business, ensuring sustained growth.
Amidst the current stage of supply-demand mismatch in lithium battery capacity, the capacity planning of leading enterprises remains a focal point in the market. During the meeting, Guoxuan High-Tech indicated that the pace of its new capacity additions is closely aligned with market demand and strategic planning. The company is steadily advancing its global capacity layout to ensure overseas projects are executed as planned. Currently, the lithium cell factory in Vietnam has been completed and is operational, while facilities in Morocco, Illinois (USA), and Slovakia are progressing smoothly.
On the domestic front, capacity construction is focused on ensuring supply and enhancing efficiency by dynamically matching demand, products, and capacity. The company is set to timely initiate production line upgrades and accelerate the construction of new lines to ensure capacity meets delivery demands. To align with the high-performance lithium battery requirements of its strategic customer, Volkswagen, Guoxuan High-Tech announced in April this year that it would expand the capacity scale of the Volkswagen standard cell project from the initial 20 GWh of annual production of power lithium-ion batteries to 28 GWh, with expected operational readiness by the end of 2026.
In terms of reducing costs across the supply chain, Guoxuan High-Tech insists on maintaining control over core industrial segments. The company has successively entered the upstream raw materials and battery recycling sectors, including mining, precursors, cathodes, anodes, copper foil, and separators, gradually forming an integrated advantage. Regarding the recent decline in raw material prices, the company noted that lithium carbonate prices have dropped significantly from their highs to a level that is gradually stabilizing within a reasonable range. This trend is expected to have substantial short-term impacts on industry participants; however, from a long-term perspective, it is beneficial for the sustained healthy development of the industry and aligns with commercial cyclical patterns. Currently, the company’s lithium carbonate project is operating normally, and it will continue to advance cost reduction and efficiency enhancement efforts while closely monitoring market supply-demand dynamics and price trends, adjusting production pace flexibly based on market changes.
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