Investment income contributes significantly: Gotion High-tech’s net profit is expected to increase by 227% to 323% in the first half of the year | Earnings Report Highlights

On July 14, Gotion High-Tech disclosed its 2026 half-year performance forecast, expecting net profit attributable to shareholders of the listed company to be between 1.2 billion and 1.55 billion yuan in the first half of the year, a year-on-year increase of 227.31% to 322.77%, achieving substantial growth. However, behind the surge in profit, non-recurring gains and losses have become an important driving factor. The company expects that the impact of investment income and fair value changes arising from holding stocks on net profit will be about 1.1 billion to 1.4 billion yuan in the first half of the year.

This means that although the profit capability of the power battery main business is being restored, this period's profit growth still benefits significantly from returns related to the capital market. If the influence of non-recurring gains and losses is excluded, the company expects net profit attributable to shareholders excluding non-recurring items to be 85 million to 120 million yuan in the first half, a year-on-year increase of 16.65% to 64.68%. This growth rate is significantly lower than the increase in net profit attributable to shareholders, indicating a relatively moderate improvement in the main business.

Net Profit Attributable to Shareholders Expected to Reach Up to 1.55 Billion Yuan

The announcement shows that the company expects net profit attributable to shareholders of the listed company to be 1.2 billion to 1.55 billion yuan in the first half of the year, compared to 367 million yuan during the same period last year.

According to the forecast range, the year-on-year growth of net profit attributable to shareholders reaches 227.31% to 322.77%, corresponding to basic earnings per share of 0.66 to 0.85 yuan, versus 0.20 yuan last year. Based on the midpoint of the forecast range, the company's net profit attributable to shareholders in the first half is about 1.375 billion yuan, nearly 2.75 times higher year-on-year.

However, this scale of profit does not fully represent changes in the profitability of the main business. The company also disclosed that for this period, non-recurring gains and losses are expected to impact net profit by about 1.1 billion to 1.4 billion yuan, mainly from investment income and fair value changes resulting from holding stocks.

Limited Growth in Excluding Non-Recurring Profit, Main Business Improvement Continues

Looking at net profit excluding non-recurring items, which better reflects the quality of operations, Gotion High-Tech expects net profit attributable to shareholders excluding non-recurring items to be 85 million to 120 million yuan in the first half of 2026, up 16.65% to 64.68% year-on-year.

Compared to the more than twofold growth in net profit attributable to shareholders, the growth in net profit excluding non-recurring items is relatively modest. Data shows the increase in net profit excluding non-recurring items is about 12.13 million to 47.13 million yuan, while the increase in net profit attributable to shareholders is up to nearly 1.183 billion yuan, showing a significant gap.

This suggests the power battery business is indeed improving, but the substantial profit growth this term mainly comes not from the release of main business profitability, but from non-operational factors like investment income and fair value changes.

For battery companies, net profit excluding non-recurring items better reflects product competitiveness, capacity utilization, cost control, and changes in order structure. This earnings forecast from Gotion High-Tech shows its main business is entering a restorative phase, but whether subsequent profit growth can continue will depend on whether net profit excluding non-recurring items can further expand.

Investment Income Becomes Core Variable in Profit Growth

Gotion High-Tech stated that during the reporting period, non-recurring gains and losses are expected to impact net profit by about 1.1 billion to 1.4 billion yuan, mainly from investment income and fair value changes arising from stocks held.

In terms of profit structure, investment income provided significant support for this period’s performance. Unlike operational factors such as battery sales, production costs, and operational efficiency, stock investment income and fair value changes are highly volatile; future performance will depend on related asset price changes and the company's subsequent disposal arrangements.

Therefore, when interpreting this period's earnings growth, the market needs to distinguish between the increase in profit scale and the improvement in main business profitability: the former is mainly driven by investment income, while the latter is reflected in the year-on-year growth of net profit excluding non-recurring items.

Product Upgrades and Overseas Expansion Drive Battery Business Recovery

Regarding main business improvement, the company stated that during the reporting period it continued to industrialize R&D results, sped up product iteration and upgrades, and improved market share by optimizing customer structure and expanding domestic and foreign markets.

In recent years, competition in the power battery industry has intensified, and companies' profitability increasingly depends on technology iteration, supply chain efficiency, and breakthroughs in overseas markets. For Gotion High-Tech, whether R&D achievements can quickly convert into large-scale orders will directly affect future income growth and profit release capability.

Based on currently disclosed information, there are signs of improvement in the company’s power battery business, but the half-year report still needs further verification of key indicators such as shipment volume, product price, gross margin, the proportion of overseas revenue, and major customer orders.

Overall, Gotion High-Tech achieved substantial profit growth in the first half, but a significant proportion came from non-recurring gains and losses. Going forward, the sustainability of the company’s profit growth depends on whether the power battery main business can take over from investment income as the new core driver of profit growth.

Risk Warning and DisclaimerThe market has risks, and investment needs to be cautious. This article does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their specific situation. Investing based on this, you are responsible for your own risk.