Eve Energy Co.,Ltd. delivered strong shipment volumes and a significant revenue jump in the first quarter of 2026. However, rising material costs compressed profit margins, with net profit growth lagging behind revenue growth by more than half. A shift to negative operating cash flow has also drawn attention to the quality of the earnings.
The quarterly report disclosed on April 24th shows that Eve Energy achieved operating revenue of 20.68 billion yuan in Q1 2026, a year-on-year increase of 61.61%. Net profit attributable to shareholders of the listed company was 1.446 billion yuan, up 31.35% from the same period last year. The growth gap of over 30 percentage points between these two metrics highlights the ongoing erosion of gross profit margins by a 67.70% increase in operating costs.
Regarding shipments, energy storage battery shipments for the quarter reached 20.38 GWh, a 60.82% year-on-year increase, surpassing power batteries in both scale and growth rate. Power battery shipments were 14.34 GWh, up 40.93% year-on-year. Concurrently, the net cash flow from operating activities turned negative, moving from a positive 892 million yuan in the same period last year to negative 366 million yuan, primarily due to increased payments to suppliers.
Facing supply chain cost pressures, Eve Energy stated it has proactively implemented forward-looking management. This includes diversifying its supply chain layout, strategic sales business planning, and the prudent use of financial instruments. Under the guidance of the Board of Directors and the Strategy and Sustainable Development Committee, the company will opportunistically further intensify its strategic sales planning to enhance operational stability.
**Revenue and Profit: Growth Gap Highlights Cost Pressure** In the first quarter, Eve Energy's total operating revenue reached 20.68 billion yuan, a 61.61% year-on-year increase, continuing a trend of rapid expansion. However, operating costs grew 67.70% year-on-year to 17.78 billion yuan, a rate approximately 6 percentage points higher than revenue growth. The company attributed the faster cost growth to a combination of business scale expansion and rising material prices.
Net profit attributable to shareholders was 1.446 billion yuan, up 31.35% year-on-year. Net profit after deducting non-recurring gains and losses was 1.115 billion yuan, an increase of 36.32%. Basic earnings per share rose to 0.70 yuan from 0.54 yuan in the prior-year period. The weighted average return on equity improved to 3.35% from 2.88% a year earlier.
In research and development, the company invested 841 million yuan in the quarter, a 38.09% year-on-year increase, accounting for about 4.1% of revenue, reflecting ongoing investment in product iteration. Management expenses also increased by 36.00% year-on-year to 577 million yuan, in line with the expansion of operational scale.
**Shipments: Energy Storage Outpaces Power Batteries with Strong Dual Growth** Shipment volume was the standout metric this quarter. Energy storage battery shipments reached 20.38 GWh, a 60.82% year-on-year increase, significantly surpassing the power battery segment in both absolute scale and growth rate, indicating that the energy storage business has become the primary growth driver. Power battery shipments of 14.34 GWh grew 40.93% year-on-year, demonstrating robust growth momentum as well.
The rapid volume expansion in both segments collectively drove the substantial revenue increase. The company stated it will continue to seize market growth opportunities by advancing product iteration, service upgrades, and process optimization to drive sustained business growth.
**Cost Management: Hedging and Forward Stockpiling** The company explicitly noted in its quarterly report that it faced "significantly rising supply chain cost pressures" in the first quarter and implemented several forward-looking management measures in response. Financially, gains from changes in fair value surged to 285 million yuan from 22,000 yuan in the same period last year, primarily due to fair value changes in hedging instruments. Derivative financial assets increased 70.62% from the beginning of the year to 655 million yuan, indicating a significant strengthening in the use of financial instruments to hedge against raw material price fluctuations.
Regarding inventory, the ending balance increased to 11.49 billion yuan, up 39.42% from the start of the year. The company explained this was related to stockpiling in overseas VMI (Vendor Managed Inventory) warehouses following the continued release of new production capacity, as well as forward raw material reserves made during a period of rising material prices. Prepayments decreased by 30.70% to 979 million yuan as purchased raw materials were progressively received.
**Cash Flow and Debt: Operating Cash Flow Turns Negative, Short-Term Debt Pressure Rises** The shift to negative operating cash flow is a key financial signal for the quarter. Net cash flow from operating activities was -366 million yuan, a sharp decline of 140.99% from the positive 892 million yuan a year earlier, which the company attributed to increased payments to suppliers.
In terms of debt structure, short-term borrowings increased 94.40% from the beginning of the year to 1.373 billion yuan. Non-current liabilities due within one year grew 30.12% to 8.51 billion yuan, indicating increased short-term debt repayment pressure. To supplement funding needs, the company obtained 3.407 billion yuan in cash inflow from new borrowings during the quarter. Net cash flow from financing activities was 2.705 billion yuan. The ending balance of cash and cash equivalents increased to 11.33 billion yuan, up 33.21% from the start of the year, partly due to the return of matured structured deposits to cash.
As of the end of the reporting period, total assets were 132.76 billion yuan, an increase of 5.75% from the beginning of the year. Net assets attributable to parent company shareholders were 43.97 billion yuan, up 3.89% from the start of the year.
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