Gotion High-tech Co., Ltd. (002074)

Equity Research Report　|　Industry: Power Battery and Energy Storage Battery Manufacturing　|　Report Date: September 13, 2026　|　As of the close on September 11, 2026; technical indicators are calculated based on the historical closing prices described in the research notes, while shareholder structure data are as of June 30, 2026, and are subject to an approximately three-month lag.

This report was automatically compiled by AI based on publicly available information and is for reference only. It does not constitute investment advice.

1. Executive Summary

Gotion High-tech’s latest results show “high revenue growth and substantial growth in attributable profit, but relatively weak quality of core earnings”: in the first half of 2026, the company achieved operating revenue of RMB 27.776 billion, up 43.22% year on year, and net profit attributable to shareholders of RMB 1.386 billion, up 278.05% year on year. However, net profit attributable to shareholders excluding non-recurring items was only RMB 107 million, up 46.71% year on year. The gap of approximately RMB 1.279 billion between attributable net profit and net profit excluding non-recurring items indicates that stock investment gains, fair-value changes and other non-recurring factors made a substantial contribution to profit. During the same period, power battery system revenue was RMB 22.597 billion, up 61.01% year on year; energy storage battery system revenue was RMB 3.689 billion, down 19.14% year on year; and overseas revenue was RMB 9.476 billion, up 48.06% year on year.

The company’s core businesses remain power batteries and energy storage batteries. In 2024, the two businesses together accounted for 94.60% of operating revenue. In 2025, operating revenue was RMB 45.070 billion, up 27.35% year on year, while net profit attributable to shareholders was RMB 2.383 billion, up 97.49% year on year. However, the sales gross margin in the first half of 2026 was approximately 15.60%, down approximately 0.82 percentage points year on year. Finance expenses increased 131.47% year on year to RMB 1.451 billion, while net operating cash flow was RMB 428 million, indicating that scale expansion has not yet been fully converted into stable core profit and cash-flow improvement.

The company has established capabilities in lithium iron phosphate, energy storage products, overseas operations and strategic cooperation with Volkswagen. Overseas revenue accounted for 31.09% of total revenue in 2024, and the gross margin of overseas operations was 22.28%, higher than the 16.07% recorded in mainland China. However, the industry remains in a phase of competition involving capacity, pricing, customer certification and overseas localization. In 2024, Gotion High-tech’s domestic power battery installations reached 25.04 GWh, representing a market share of 4.59% and ranking fourth domestically. It nevertheless remains behind leading companies such as CATL and BYD in scale, customer coverage and profitability.

As of September 11, 2026, the company’s share price was RMB 25.02, down approximately 10.3% from the August 26 closing price. The stock was below its MA5, MA10 and MA20, while RSI14 was approximately 30.3. Combined net outflows from extra-large and large orders were approximately RMB 22.1045 million, indicating weak short-term technical momentum and proximity to oversold territory. The market’s assessment of the company’s value currently depends primarily on whether net profit excluding non-recurring items, power battery and energy storage gross margins, operating cash flow, foreign-exchange gains and losses, and overseas and energy storage operations can be sustained.

2. Company Overview

2.1 Basic Information

2.2 Core Businesses and Product Portfolio

• Power battery systems: Including lithium iron phosphate cells and battery systems, lithium manganese iron phosphate products, ternary-material cells and power battery packs, battery management systems, modules and battery packs. Revenue in 2024 was RMB 25.648 billion, accounting for 72.47% of operating revenue, with a gross margin of 15.14%.
• Energy storage battery systems: Including energy storage cells, standardized battery boxes and clusters, liquid-cooled battery containers, outdoor cabinets for commercial and industrial energy storage, residential energy storage systems, mobile and portable energy storage equipment, and integrated energy storage power station solutions. Revenue in 2024 was RMB 7.832 billion, accounting for 22.13% of operating revenue, with a gross margin of 21.75%.
• Power transmission and distribution equipment: Including high- and low-voltage switchgear, digital electrical equipment, intelligent distribution-grid equipment, transformers, circuit breakers, integrated charging piles, energy storage cabinets, and power transmission and transformation operation and maintenance services and EPC general contracting. Revenue in 2024 was RMB 457 million, accounting for 1.29% of operating revenue, with a gross margin of 19.68%.
• Other businesses and emerging application scenarios: Including batteries for low-altitude aircraft, electric vessels, construction machinery batteries, mobile power replenishment, portable energy storage, battery recycling and resource recycling. Revenue in 2024 was RMB 1.455 billion, accounting for 4.11% of operating revenue, with a gross margin of 47.80%. This is a relatively broad category and cannot simply be equated with a single emerging business.
• Power battery and energy storage battery revenue totaled RMB 33.480 billion, accounting for 94.60% of operating revenue. The company has effectively become a new-energy battery enterprise primarily focused on power batteries and energy storage batteries.

2.3 Position in the Upstream and Downstream Value Chain and Cost-Profit Structure

Gotion High-tech is positioned in the midstream of the new-energy industry chain. Its core business is the manufacture of power batteries and energy storage batteries, with expansion upstream into materials, mineral resources and battery recycling, and downstream into vehicle manufacturers, power storage and overseas energy applications. In 2024, all sales revenue was recognized under a direct-sales model, primarily serving vehicle manufacturers, energy storage system integrators and major energy customers.

• Major upstream materials actually purchased or used include lithium resources and lithium carbonate, nickel, cobalt and other metal resources, cathode materials, anode materials, separators, electrolytes, copper foil, aluminum foil, structural components and electronic components. The company also purchases production and automation equipment.
• The company has invested in lithium mines in Yichun, nickel resources in Indonesia, salt lakes in Argentina, cathode materials, anode materials, copper foil, separators, precursors and battery recycling. However, these disclosures primarily reflect projects, equity investments or value-chain initiatives and do not mean that the company owns all relevant mineral reserves that it can independently control and directly recognize. Public annual reports do not provide unified, verifiable data on the company’s attributable lithium or nickel reserves.
• In 2024, raw-material costs in the power battery business were RMB 23.119 billion, accounting for 79.66% of power battery operating costs. Although this was below 86.03% in 2023, raw materials remained the key cost variable.
• The company improves supply-chain stability through long-term cooperation, strategic investments and partial in-house materials production. However, it remains highly exposed to commodity prices for lithium, nickel, copper and aluminum and has the characteristics of a price taker. Cost advantages are derived mainly from scale procurement, materials integration, process cost reductions and product mix rather than resource monopolies.
• Purchases from the five largest suppliers accounted for 24.24% of total annual purchases in 2024. The annual report disclosed supplier names anonymously as “Supplier One” through “Supplier Five,” making their specific identities impossible to confirm based solely on the annual report.
• Downstream customers primarily include passenger and commercial vehicle manufacturers, heavy-truck and construction-machinery companies, special-purpose vehicle manufacturers, energy storage system integrators, power and energy groups, and overseas automotive and energy storage customers.
• Vehicle customers disclosed in the 2024 annual report included VinFast, Rivian, Ebusco, Chery, Geely, SAIC-GM-Wuling, Leapmotor, Changan, Great Wall, JAC and Sany. Energy storage customers included PowerCo, NextEra, Daiwa Energy, Huawei, Longyuan Power, China Three Gorges and China Resources Power. However, the disclosed customer or partner list does not mean that every listed customer generated substantial revenue in 2024.
• Sales to the five largest customers totaled RMB 13.290 billion in 2024, accounting for 37.55% of annual sales. The single largest customer accounted for 9.49%, and no related-party sales were disclosed among the five largest customers. These concentration figures are for 2024. Customer names were anonymized as “Customer One” through “Customer Five,” making it impossible to cross-check their specific identities. The latest annual report shall prevail.
• In the power battery business, vehicle manufacturers generally impose pressure through model designation and development, annual price reductions, model life-cycle price management and quality compensation. For energy storage batteries, price competition, bidding and project delivery capabilities are particularly important when dealing with system integrators and energy customers.
• The company does not have the end-market pricing power of a consumer-brand company. Its bargaining power depends primarily on product performance, cost, quality certification, customer designation relationships and overseas localization capabilities. Overseas operations also face certification, foreign-exchange, local supply-chain and project collection risks.
• As of December 31, 2024, the book value of accounts receivable was RMB 16.454 billion, equivalent to approximately 46.5% of annual revenue, up 27.45% from RMB 12.911 billion at the end of 2023. Accounts payable were RMB 16.648 billion, up from RMB 13.407 billion at the end of 2023. Prepayments were at the several-hundred-million-renminbi level, with the specific year-end amount lower than accounts receivable and accounts payable. The growth in accounts receivable exceeded revenue growth, reflecting significant working-capital usage in the power battery and energy storage businesses, potentially due to downstream payment terms, overseas expansion and project delivery schedules. The fact that accounts payable were slightly higher than accounts receivable alone is insufficient to conclude that the company has strong bargaining power over suppliers.
• In terms of customer concentration, sales to the five largest customers accounted for 37.55% of annual sales in 2024, while the largest single customer accounted for 9.49%. In terms of supplier concentration, purchases from the five largest suppliers accounted for 24.24% of total annual purchases. Both customers and suppliers were disclosed anonymously, and their specific names cannot be verified. The above data mainly comes from the 2024 Annual Report; the latest annual report shall prevail.

The company operates in the midstream manufacturing segment of the new-energy industry chain. It is neither a high-margin upstream resource company nor a vehicle manufacturer with end-market brand pricing power, and therefore exhibits the characteristics of midstream manufacturing with moderately low margins. Further profit improvement will depend primarily on a rising contribution from energy storage and overseas operations, cost reductions through materials integration and long-term procurement, higher capacity utilization, volume growth of high-energy-density and fast-charging products, customer-mix optimization and improved collections.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest formally disclosed financial report is the 2026 Interim Report, disclosed on August 25, 2026. Net profit attributable to shareholders excluding non-recurring items in the first half of 2026 was RMB 107 million, up 46.71% year on year; the figure for the same period in 2025 was RMB 73 million. Basic earnings per share in the first half of 2026 were RMB 0.76, up 280.00% year on year. Net cash flow from operating activities was RMB 428 million, up 31.74% year on year. In 2025, net profit attributable to shareholders excluding non-recurring items was RMB 432 million, up 64.48% year on year, while net cash flow from operating activities was RMB 3.624 billion, up 33.96% year on year.

Revenue grew rapidly in the first half of 2026. Power battery system revenue was RMB 22.597 billion, up 61.01% year on year; energy storage battery system revenue was RMB 3.689 billion, down 19.14% year on year; and overseas revenue was RMB 9.476 billion, up 48.06% year on year. However, the gap of approximately RMB 1.279 billion between attributable net profit of RMB 1.386 billion and net profit attributable to shareholders excluding non-recurring items of RMB 107 million indicates a substantial contribution from non-recurring gains, while the profitability of core operations has not yet fully matched the revenue scale. Sales gross margin in the first half of 2026 was approximately 15.60%, down approximately 0.82 percentage points year on year. R&D investment was RMB 1.558 billion, up 12.80% year on year. Finance expenses rose 131.47% year on year to RMB 1.451 billion, which the company attributed mainly to foreign-exchange fluctuations.

3.2 Earnings Forecasts

As of September 11, 2026, data from Tonghuashun showed that 13 institutions had issued forecasts for 2026 results during the previous six months. Publicly verifiable aggregated forecasts indicate 2026 operating revenue of approximately RMB 65.851 billion. Revenue forecasts from different institutions were generally concentrated around RMB 60 billion to RMB 67 billion. Institutional forecasts for net profit attributable to shareholders differed substantially, with disclosed 2026 forecasts ranging from approximately RMB 968 million to RMB 3.290 billion. The main factors affecting forecasts include non-recurring gains and losses, raw-material prices, gross-margin recovery, volume growth in overseas and energy storage operations, foreign exchange and fair-value changes.

3.3 Valuation and Institutional Ratings

The most recent trading day was September 11, 2026. Public data recorded a closing price of approximately RMB 25.06 or RMB 25.47, reflecting differences in data-update timing or date labeling. The exchange or brokerage terminal should be used as the final reference. Public valuation data for the same period indicated a total market capitalization of approximately RMB 45.5 billion to RMB 46.2 billion, a trailing P/E ratio of approximately 13.6x to 16.4x, a P/B ratio of approximately 1.5x to 1.65x, total shares of approximately 1.815 billion, and a 52-week price range of approximately RMB 24.26 to RMB 49.83. Based on a share price of RMB 25.00 to RMB 25.50, the static P/E ratio based on 2025 attributable net profit was approximately 19x. Based on institutional consensus forecasts for 2026, 2027 and 2028 attributable net profit, forward P/E ratios were approximately 22.5x, 15.4x and 11.2x, respectively. Based on the latest trailing profit, some data platforms showed a dynamic P/E ratio of approximately 13.6x to 16.4x. However, this measure was affected by non-recurring gains in the first half of 2026 and should not be used independently as a basis for valuation. Public target prices were generally distributed between RMB 35.00 and RMB 54.84. Different target prices were based on materially different earnings forecasts and valuation centers and therefore cannot be compared directly. Key indicators for validating the current valuation include gross margins in the power battery and energy storage businesses, net profit attributable to shareholders excluding non-recurring items, operating cash flow, and marginal changes in foreign-exchange and fair-value gains and losses.

4. Recent News and Announcements

4.1 Strong Growth in First-Half 2026 Results, but Relatively Limited Growth in Excluding-Items Profit

The company disclosed its 2026 Interim Report on August 25, 2026. In the first half of 2026, it achieved operating revenue of RMB 27.776 billion, up 43.22% year on year; net profit attributable to shareholders of RMB 1.386 billion, up 278.05% year on year; and net profit attributable to shareholders excluding non-recurring items of approximately RMB 107 million, up 46.71% year on year. Previously, on July 15, 2026, the company issued a results forecast indicating attributable net profit of RMB 1.200 billion to RMB 1.550 billion and attributable net profit excluding non-recurring items of RMB 85 million to RMB 120 million. Non-recurring items were expected to affect net profit by approximately RMB 1.1 billion to RMB 1.4 billion. The formal interim-report results were broadly within the forecast range. However, the substantial increase in attributable net profit was mainly driven by non-recurring factors such as stock investment gains and fair-value changes. The quality of core earnings still needs to be assessed through subsequent quarterly excluding-items profit, gross margins and operating cash flow.

4.2 RMB 526 Million in Impairment Provisions Recognized in the First Half, Mainly for Accounts Receivable and Inventories

On August 25, 2026, the company disclosed an Announcement on the Recognition of Impairment Provisions. As of the end of the first half of 2026, the company and its subsidiaries intended to recognize total impairment losses of RMB 525.6181 million, including credit impairment losses of RMB 246.0241 million and asset impairment losses of RMB 279.5940 million, mainly inventory write-downs. Bad-debt losses on accounts receivable amounted to RMB 363.7450 million; bad-debt losses on notes receivable reversed or written back amounted to RMB 108.7518 million; and bad-debt losses on other receivables reversed amounted to RMB 8.9692 million. The matter negatively affected current-period profit. However, the announcement alone cannot determine whether the impairment fully reflects the relevant risks. Subsequent attention should be paid to collections of accounts receivable and inventory turnover.

4.3 Approved Registration of RMB 7 Billion in Debt Financing Instruments

On August 26, 2026, the company disclosed that the National Association of Financial Market Institutional Investors had accepted registration of the company’s debt financing instruments. The registered amount was RMB 7 billion, and the registration quota would remain valid for two years from the date of the notice. Industrial Bank Co., Ltd. would act as lead underwriter. Registered instruments included super-short-term commercial paper, short-term commercial paper, medium-term notes and perpetual notes. The matter means that the financing quota has been registered, but does not mean that the full RMB 7 billion has been issued or that new liabilities have already been incurred. The subsequent issuance size, maturity and interest rate will depend on the company’s funding needs and market financing conditions.

4.4 Authorization to Sell Listed-Company Stock Assets Opportunistically Over the Next 12 Months

On August 25, 2026, the company disclosed that its board had authorized the management of the company and its controlling subsidiaries to opportunistically sell directly or indirectly held tradable shares of domestic and overseas listed companies over the next 12 months. The total transaction value would not exceed 15% of the latest audited net assets attributable to shareholders of the parent company. Sale methods could include secondary-market auction transactions and negotiated transfers. The timing, price, quantity and counterparties had not yet been determined, and the transaction amount and potential profit could not yet be determined. Proceeds were intended to supplement working capital, fund project construction and support business development. The announcement did not disclose the specific stocks to be sold or their carrying value, making it impossible to estimate potential gains or losses at this stage.

4.5 External Guarantees: Multiple New Financing and Leasing Guarantees

On August 29, 2026, the company disclosed multiple recent guarantee contracts signed with financial institutions. Larger guarantees included: RMB 203 million, EUR 203 million, EUR 97 million and RMB 300 million provided for Hefei Gotion High-tech Power Energy Co., Ltd.; RMB 985.6701 million provided for Qianyuan Equipment Import and Export Trading Co., Ltd.; RMB 400 million provided for Tongcheng Gotion Battery Technology Co., Ltd.; RMB 250 million provided for Nanjing Gotion New Energy Co., Ltd.; RMB 110 million provided for Tangshan Gotion Battery Co., Ltd.; and RMB 90 million provided for Wuhu Gotion Power Technology Co., Ltd. The above guarantees were all within the estimated 2026 guarantee quota. The company had previously approved a total 2026 external guarantee quota of no more than RMB 122 billion or its equivalent in foreign currency. The guarantee contract amounts disclosed do not equal losses that have already occurred. Subsequent attention should be paid to outstanding guarantee balances, the cash flows of guaranteed entities and the risk of compensation payments.

4.6 Director Resignation and Volkswagen Nomination of a New Non-Independent Director Candidate

On August 25, 2026, the company disclosed that Olaf Korzinovski had resigned as a non-independent director due to personal work changes and would hold no other position with the company after resignation. Volkswagen (China) Investment Co., Ltd. nominated Jörg Fenstermann as a candidate for non-independent director of the 10th Board of Directors. The matter remains subject to consideration at the company’s second extraordinary general meeting of shareholders in 2026, which the company announced would be held on September 24, 2026. The matter should help maintain the company’s strategic relationship with Volkswagen, but does not directly constitute a new order or performance commitment.

4.7 Additional Estimates for 2026 Recurring Related-Party Transactions

On August 25, 2026, the company disclosed additional estimates for 2026 recurring related-party transactions. Certain additional estimated related-party purchases included: RMB 500 million for battery cell housings and components from Nanjing Shengshi Precision Industry Co., Ltd., bringing the estimated annual amount to RMB 2.5 billion; RMB 200 million for electrolytes from Hefei Qianrui Technology Co., Ltd., bringing the estimated annual amount to RMB 1.2 billion; RMB 1 billion for lithium carbonate, battery boxes and components from Anhui Gotion Feidong New Energy Technology Co., Ltd. and its subsidiaries, bringing the estimated annual amount to RMB 1.5 billion; RMB 200 million for battery boxes and components from Anhui Gotion Xianglv Technology Co., Ltd. and its subsidiaries, bringing the estimated annual amount to RMB 700 million; and RMB 50 million for battery materials and components from Bengbu Jinshi Technology Co., Ltd., bringing the estimated annual amount to RMB 350 million. The above matters remain subject to consideration by the shareholders’ meeting. Estimated related-party transaction amounts do not equal new revenue or profit for the company.

4.8 Partial Cancellation of Options under the 2022 Stock Option Incentive Plan

On August 29, 2026, the company disclosed that, because the third exercise period for the initially granted portion of the 2022 Stock Option Incentive Plan expired on July 7, 2026, a total of 152,623 stock options granted to 15 incentive recipients but not yet exercised were cancelled. Following completion of the cancellation, the 2022 Stock Option Incentive Plan had been fully implemented. The announcement stated that the matter would not have a material impact on the company’s equity structure, financial position or operating results.

4.9 Saudi Arabia 6 GWh Energy Storage Order Disclosed; Details of Formal Contract Yet to Be Confirmed

As of September 13, 2026, the company’s website and media reports disclosed that the company had obtained a core 6 GWh energy storage order for Saudi Arabia’s first batch of large-scale battery energy storage projects. It would provide complete energy storage solutions for three major local energy storage sites, and the company described the order as its largest single energy storage order. The relevant information was mainly disclosed on September 11, 2026. As of now, the primary information retrieved consists of company website news and media reports. No corresponding formal material-contract announcement from the Shenzhen Stock Exchange or CNINFO had been identified. The company website news did not disclose the contract value, order price, delivery schedule, revenue-recognition method, customer name or default provisions. Whether the “order” has been formalized in a signed contract, and whether it includes long-term operation service revenue, must be confirmed through subsequent formal announcements or periodic reports. It should not currently be used to directly estimate future revenue or profit.

4.10 September Company News: New Product Launches, Technical Awards and Patent Awards

The company’s website disclosed that its fifth-generation lithium iron phosphate battery was installed in the Chery Fulwin T7, which was launched on September 8, 2026. On September 2, 2026, the company’s GotionGuard battery safety early-warning platform received an award related to the National New-Energy Vehicle Power Battery Safety Early-Warning Algorithm Competition. On September 1, 2026, the company received the Silver Award at the 26th China Patent Awards. The above information relates to company news, technology and marketing promotion. No quantifiable new revenue or profit commitment arising from these items has been identified.

4.11 Developments in Shareholders and Employee Shareholding Plans

According to the company’s 2026 Interim Report, as of June 30, 2026, Chairman Li Zhen’s shareholding had not changed, and no material purchases or sales by directors or senior management occurred during the reporting period. The third employee shareholding plan sold 944,584 company shares during the reporting period because its term expired. The fourth employee shareholding plan sold 2.7461 million unlocked shares, while the fifth employee shareholding plan completed a non-trading transfer of 9.439993 million shares. As of June 30, 2026, the fourth employee shareholding plan held 8.2489 million shares and the fifth employee shareholding plan held 9.439993 million shares. Changes in the shareholder register in the interim report do not equate to active selling by the company’s controlling shareholder or chairman.

4.12 No New Share Repurchase Announcement or Material M&A Identified as of September 13, 2026

As of September 13, 2026, no new announcement on the implementation of a share repurchase or a new repurchase plan disclosed in September 2026 had been identified. The company had historical share-repurchase arrangements, but historical repurchase plans should not be treated as still being implemented. Whether any repurchase balance remains outstanding should be determined based on the latest repurchase progress announcement or periodic report. At the same time, no new announcement in September 2026 relating to a material asset restructuring, material acquisition, change of control or regulatory penalty was identified. The company’s previously disclosed issuance of A-shares to specific investors and its proposed financing plan of no more than RMB 5 billion are previously disclosed capital-operation arrangements and do not constitute new September events.

5. Share Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, Gotion High-tech closed at RMB 25.02, near the lower end of its 52-week range of approximately RMB 24.26–RMB 49.83. The stock was approximately 49.8% below the 52-week high and approximately RMB 0.76 above the 52-week low. The current share price was below MA5, MA10 and MA20, indicating a bearish short-term moving-average configuration. The closing price was also below the calculated lower Bollinger Band, while RSI14 was approximately 30.3, indicating weakness and proximity to oversold territory. A short-term rebound would first need to recover RMB 25.5–RMB 26.0, with further resistance at RMB 26.4–RMB 26.8. In terms of capital flows, extra-large and large orders recorded a combined net outflow of approximately RMB 22.1045 million on September 11. Recent turnover value and turnover rate had declined from the high-volume phase in late August, and no signal of sustained large-fund inflows or a high-volume bottoming process had yet emerged.

5.3 Short-Term Outlook (Next Week; Scenario Analysis for Reference Only)

⚠️ Risk warning: The following is a subjective scenario analysis based on closing data as of September 11, 2026, historical prices and calculated technical indicators. It does not constitute investment advice or a definitive forecast of future prices.

① Key Technical Levels

② Scenarios for the Next Week (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively higher subjective heuristic weight, approximately 50%–60%; this weight is based on the current technical, capital-flow and trading-volume structure and is not a statistical probability): The observed range would be RMB 24.6–RMB 26.0. Trigger conditions include buying support near RMB 24.6–RMB 25.0, turnover value remaining at approximately RMB 300 million to RMB 500 million, no further consecutive breaks below intraday lows, and no clear broad-based decline in the battery and new-energy sectors. Any rebound would first face resistance at RMB 25.5–RMB 26.0, and the sustainability of a break above RMB 26 would require observation if volume remains insufficient.
• Weak decline (medium subjective heuristic weight, approximately 30%; this weight is based on the current technical, capital-flow and trading-volume structure and is not a statistical probability): The observed range would be RMB 24.2–RMB 24.8, with a possible test of the 52-week low under weak conditions. Trigger conditions include an effective closing break below RMB 24.6, turnover value materially exceeding the recent normal range of approximately RMB 300 million to RMB 500 million during the break, continued consecutive net outflows of main funds, and simultaneous weakness in the new-energy battery sector or the SZSE Component Index. If the RMB 24.2–RMB 24.6 support zone is breached on heavy volume, short-term technical risk would increase further, although this would not imply an inevitable decline.
• Stronger rebound (low subjective heuristic weight, approximately 10%–20%; this weight is based on the current technical, capital-flow and trading-volume structure and is not a statistical probability): The observed range would be RMB 25.8–RMB 26.8. Trigger conditions include reclaiming RMB 25.5 and breaking above RMB 26.0, daily turnover value increasing to approximately RMB 600 million or more, extra-large and large-order flows changing from net outflows to consecutive net inflows, a simultaneous rebound in battery and new-energy sectors, and consecutive closes above RMB 26 rather than merely an intraday spike. If RMB 26 is broken on increased volume, the next observation zone would be RMB 26.4–RMB 26.8. If volume is insufficient, the move would more likely represent a weak technical bounce.

③ Capital-Flow and Liquidity Background

As of September 11, 2026, the turnover rate was approximately 0.91% and turnover value was approximately RMB 392 million. Turnover value from September 8 to September 11 was approximately RMB 284 million to RMB 392 million, with the recent turnover rate mainly around 0.6%–1.4%. From August 27 to September 4, turnover value was approximately RMB 416 million to RMB 998 million, while turnover value on August 26 was approximately RMB 1.197 billion and the turnover rate rose to approximately 2.1%–2.5%. Current trading activity has declined materially from the high-volume phase. For a stock with a total market capitalization of approximately RMB 45.4 billion, a 0.91% turnover rate does not indicate extremely low liquidity. However, compared with the previous high-volume range, capital participation and price-driving power have weakened. In terms of shareholder structure, as of June 30, 2026, the ten largest shareholders held 46.74% of the shares, with a substantial portion held by Volkswagen China, the actual controller and parties acting in concert. Funds held approximately 3.67% of the free float, other institutions approximately 39.5% and banks approximately 0.94%. Hong Kong Securities Clearing Company Limited held approximately 1.95% and Citibank approximately 0.90%. The above shareholder and institutional data are subject to a quarterly disclosure lag of approximately three months from the latest price date. The current ownership structure may have changed and cannot substitute for real-time ownership analysis.

If daily turnover value reaches or exceeds approximately RMB 600 million for multiple consecutive days, the closing price returns above RMB 26.0, and combined extra-large and large-order flows turn to net inflows, this could be viewed as an observation signal of improved short-term capital participation. If turnover value exceeds RMB 600 million but the closing price falls below RMB 24.6 and main-fund flows continue to show net outflows, the risk of a high-volume breakdown should be monitored.

④ Points to Monitor (Observation Framework Only, Not Trading Instructions)

• Observe whether the first resistance zone of RMB 25.5–RMB 26.0 can be reclaimed and held, and whether turnover value supports a rebound into the RMB 26.4–RMB 26.8 area.
• Observe buying support in the first support zone of RMB 24.6–RMB 25.0 and the strong support zone of RMB 24.2–RMB 24.6, particularly whether a high-volume breakdown occurs.
• Observe whether the near-oversold RSI14 reading of approximately 30.3 is confirmed by price and volume, and do not treat RSI alone as a trend-reversal signal.
• Observe whether turnover value can increase from the recent normal range of approximately RMB 300 million to RMB 500 million to above RMB 600 million, accompanied by a shift in extra-large and large-order flows to net inflows. The above are observation frameworks only and are not instructions to buy, sell or hold.

The above scenario analysis is based on the September 11, 2026 closing data and calculations using historical prices and technical indicators. Short-term share prices may also be affected by news, capital flows, broader market conditions and multiple other factors. Technical indicators are inherently lagging and limited, and do not guarantee future actual performance or constitute a buy or sell recommendation. Investors should independently assess the latest market information and bear their own investment risks.

6. Industry Landscape and Competitor Analysis

6.1 Industry Conditions

The power battery industry is a core midstream segment of the new-energy vehicle and energy storage value chains. Competition is concentrated in cell energy density, safety, fast-charging performance, cycle life, material costs, manufacturing scale and yield, customer designation, overseas localized capacity and energy storage system integration capabilities. In 2024, the industry continued to exhibit clear competition in capacity, pricing and customer certification.

6.2 Competitive Landscape

• According to full-year 2024 data released by the China Automotive Battery Innovation Alliance, national cumulative power battery installations reached 548.4 GWh, up 41.5% year on year. Lithium iron phosphate battery installations reached 409.0 GWh, accounting for 74.6%, while ternary battery installations reached 139.0 GWh, accounting for 25.3%.
• In 2024, CATL recorded installations of 246.01 GWh and a market share of 45.08%; BYD recorded 135.02 GWh and 24.74%; CALB recorded 36.48 GWh and 6.68%; and Gotion High-tech recorded 25.04 GWh and 4.59%.
• CATL and BYD together accounted for approximately 69.82% of domestic power battery installations, creating a clear “one dominant leader and one strong competitor” structure. Gotion High-tech ranked fourth domestically and is a leading second-tier company, but it still trails the top two in scale, customer coverage, profitability and capacity utilization.
• Key areas of competition include lithium iron phosphate, ternary, lithium manganese iron phosphate and solid-state technology routes; fast charging; large-capacity cells; material costs and supply-chain control; mass manufacturing and yield; vehicle customer designation; overseas localized capacity; energy storage system integration; and after-sales services.
• The company’s 2023 Annual Report disclosed approximately 150 GWh of global capacity, but the 2024 Annual Report did not re-disclose a unified global capacity figure. The 150 GWh figure reflects a previously disclosed basis and cannot be directly regarded as total effective or operational capacity at the end of 2024.

6.3 Major Competitors

Gotion High-tech’s advantages include years of experience in power batteries, its lithium iron phosphate technology route, energy storage products, overseas expansion and strategic cooperation with Volkswagen. Compared with leading companies such as CATL and BYD, it still trails in overall scale, customer coverage and profitability. Compared with CALB, both are core companies in China’s second tier. Compared with EVE Energy and Sunwoda, Gotion High-tech has a stronger focus on lithium iron phosphate, commercial-vehicle batteries and its role as an independent third-party battery supplier.

7. Risk Factors

• Insufficient quality of core earnings: In the first half of 2026, attributable net profit was RMB 1.386 billion, while net profit attributable to shareholders excluding non-recurring items was only RMB 107 million. Non-recurring items were expected to affect profit by approximately RMB 1.1 billion to RMB 1.4 billion. If stock investment gains, fair-value changes and other gains decline, attributable profit could fall materially.
• Risk of impairment of accounts receivable and inventories: At the end of 2024, the book value of accounts receivable was RMB 16.454 billion, equivalent to approximately 46.5% of annual revenue. In the first half of 2026, the company recognized total impairment provisions of RMB 526 million, including RMB 364 million in bad-debt losses on accounts receivable. Inventory write-downs were an important component of asset impairment. Subsequent collections and inventory turnover could continue to affect profit and cash flow.
• Energy storage business volatility: Energy storage battery system revenue was RMB 3.689 billion in the first half of 2026, down 19.14% year on year, while the energy storage business generated revenue of RMB 7.832 billion and a gross margin of 21.75% in 2024. If energy storage project delivery, bidding or customer demand falls short of expectations, improvements in business mix and profit recovery could be affected.
• Overseas execution and foreign-exchange risks: Overseas revenue was RMB 9.476 billion in the first half of 2026, up 48.06% year on year, but finance expenses increased 131.47% year on year, mainly due to foreign-exchange fluctuations according to the company. Overseas operations also face risks related to certification, local supply chains, project delivery, collections and contract execution. The Saudi 6 GWh energy storage order currently comes mainly from company website and media information. Contract value, price, delivery schedule and revenue-recognition method have not been formally disclosed and cannot be treated directly as recognized revenue.
• Raw-material and pricing competition risks: In 2024, power battery raw-material costs were RMB 23.119 billion, accounting for 79.66% of power battery operating costs. The company remains a relatively strong price taker for lithium, nickel, copper, aluminum and other bulk materials. Vehicle customers also impose pressure through annual price reductions, model life-cycle price management and quality compensation. Rising raw-material prices or falling product prices could compress gross margins.
• Customer concentration and collection risks: Sales to the five largest customers accounted for 37.55% of annual sales in 2024, while the largest single customer accounted for 9.49%. Customer names were anonymized, making it impossible to verify specific customer quality and order stability. If major automotive, energy storage or overseas customers adjust procurement plans, extend payment terms or delay project collections, working-capital usage could increase.
• Financing, guarantee and funding-pressure risks: The company received approval to register RMB 7 billion in debt financing instruments, but this does not mean that issuance has been completed. Meanwhile, the total external guarantee quota for 2026 is no more than RMB 122 billion or its equivalent in foreign currency, and multiple large financing and leasing guarantees have been disclosed. If the cash flows of guaranteed entities deteriorate or project returns fall short of expectations, compensation, leverage and funding pressures could arise.
• Industry competition and capacity-utilization risks: CATL and BYD together accounted for approximately 69.82% of domestic power battery installations in 2024, while Gotion High-tech’s market share was 4.59%. The company remains behind leading enterprises in scale, customer coverage and profitability. As capacity and price competition continue, the previously disclosed global capacity figure of approximately 150 GWh cannot be directly regarded as total effective or operational capacity at the end of 2024. Capacity utilization and fixed-cost absorption require continued monitoring.
• Share-price and technical risks: As of September 11, 2026, the share price was RMB 25.02, below MA5, MA10 and MA20, with the closing price below the calculated lower Bollinger Band. Large-order funds recently recorded net outflows, and turnover value had declined from the previous high-volume phase. If the RMB 24.2–RMB 24.6 support zone breaks on heavy volume, the short-term weak structure could persist. Technical indicators are lagging and cannot represent definitive changes in fundamentals or future prices.

8. Conclusion and Outlook

The company’s medium- to long-term growth thesis is based primarily on increased power battery shipments, overseas growth, expansion of energy storage products and new application scenarios, as well as improvements in materials integration, scale procurement and manufacturing efficiency. In the first half of 2026, power battery revenue grew rapidly and overseas revenue maintained a high growth rate. The company also received approval to register RMB 7 billion in debt financing instruments. In addition, the Saudi 6 GWh energy storage order information and Volkswagen’s nomination of a new non-independent director respectively reflect overseas energy storage expansion and the continuation of the strategic relationship. However, the former lacks a formal material-contract announcement, while the latter does not directly constitute a new order or performance commitment.

Earnings elasticity and sustainability still require further verification. Attributable net profit in the first half of 2026 was primarily driven by non-recurring gains, while excluding-items profit remained low. Energy storage revenue declined year on year, gross margin fell year on year, finance expenses were materially affected by foreign-exchange fluctuations, and institutional forecasts for 2026 attributable net profit ranged from approximately RMB 968 million to RMB 3.290 billion, indicating substantial disagreement. Key factors to monitor include whether gross margins in the power battery and energy storage businesses can recover, whether energy storage revenue can return to growth, delivery and collections for overseas projects, operating cash flow, and the performance of core operations after non-recurring gains decline.

From a technical and valuation perspective, the share price is near the lower end of its 52-week range but has not yet formed a high-volume bottoming structure. RMB 25.5–RMB 26.0 and RMB 26.4–RMB 26.8 represent short-term and stronger resistance zones, respectively, while RMB 24.2–RMB 24.6 is an important support area to monitor. Public valuation data differ by methodology, and the dynamic P/E ratio has been affected by non-recurring gains in the first half of the year and therefore cannot independently reflect the valuation of core operations. Accordingly, the stability of the subsequent valuation center will depend on whether improvements in excluding-items profit and cash flow can keep pace with revenue growth.

Data Sources

• Gotion High-tech Co., Ltd. 2024 Annual Report
• https://static.cninfo.com.cn/finalpage/2025-04-25/1223284129.PDF
• [Consolidated Balance Sheet

December 31, 2024

Entity: Gotion High-tech Co., Ltd.

Unit: RMB](https://static.cninfo.com.cn/finalpage/2025-04-25/1223284112.PDF?utm_source=openai)

• Gotion High-tech Co., Ltd. 2021 Annual Report
• Gotion High-tech 2022 Visual Annual Report | Shanghai Securities Journal·China Securities Network
• Gotion High-tech (002074)_Company Announcements_Gotion High-tech: 2023 Annual Report_Sina Finance
• 〖Shenfa Color Steel Plate·Focus〗Production and sales surpass 1 TWh! Top 15 Chinese power battery installation companies in 2024 released! | New Energy_Sina Finance
• Gotion High-tech (002074)_Company Announcements_Gotion High-tech: 2026 Interim Report Summary_Sina Finance
• Gotion High-tech (002074)_Company Announcements_Gotion High-tech: 2026 Interim Report_Sina Finance
• Gotion High-tech (002074) Earnings Forecast_Sina Finance
• Securities Code: 002074
• Gotion High-tech (002074)_Company Announcements_Gotion High-tech: Investor Relations Management Information 20260430_Sina Finance
• Gotion High-tech (002074): Scale Effects Strengthen; Earnings Inflection Point Approaches_Gelonghui
• Gotion High-tech (002074) Earnings Forecast_F10_Tonghuashun Financial Services
• Gotion High-tech (002074)—Detailed Institutional Ratings
• https://pdf.dfcfw.com/pdf/H3_AP202606181823659851_1.pdf?1781787944000.pdf=
• Gotion High-tech (002074) Earnings Forecast_F10_Tonghuashun Financial Services
• BOCOM International—Gotion High-tech (002074): Shipments Growing Rapidly; Profitability Expected to Gradually Recover in 2H26; Maintain Buy—260506.pdf
• Dongxing Securities—Gotion High-tech (002074) Review of 2025 Annual Report and 2026 Q1 Report: Results Maintain High Growth; Volkswagen and Overseas Strategies Enter Monetization Phase—260511.pdf
• Gotion High-tech (002074) Historical Stock Data: Historical Prices, Quotes and Charts_Investing.com
• Gotion High-tech (002074) P/E Ratio|Valuation|Fundamentals—Lixinger

This report was automatically researched, compiled and generated by AI based on publicly available sources. Information is current as of the close on September 11, 2026; technical indicators are calculated based on the historical closing prices described in the research notes, while shareholder structure data are as of June 30, 2026, and are subject to an approximately three-month lag. Information may differ in terms of timeliness. Specific data should be based on the company’s formal announcements and authoritative data terminals. This report is provided solely for information and research reference, does not constitute investment advice, and investors should make independent judgments and bear their own investment risks.