A-share lithium battery listed companies have completed their interim report disclosures. In the first half of the year, most companies achieved revenue growth, but net profits showed significant polarization.
Among leading companies, Sunwoda Electronic Co.,Ltd. achieved revenue of 26.99 billion yuan in the first half, up 12.8% year-over-year, with net profit attributable to shareholders of 860 million yuan, up 3.9% year-over-year, while adjusted net profit attributable to shareholders was 580 million yuan, down 28.0% year-over-year.
Adjusted net profit, which excludes non-recurring gains and losses, better reflects the true profitability of a company's core business operations. Sunwoda Electronic Co.,Ltd.'s adjusted net profit declined 28.03% year-over-year in H1 2025, with the second quarter alone showing a decline of 39.61%, indicating a significant deterioration in the company's core business profitability.
The decline in dynamic storage battery prices was the primary reason for Sunwoda Electronic Co.,Ltd.'s adjusted net profit drop.
In the first half of this year, Sunwoda Electronic Co.,Ltd.'s dynamic storage battery revenue reached 7.6 billion yuan, with an average price per Wh of approximately 0.5 yuan and a gross margin of 9.8%, down 1.9 percentage points year-over-year, mainly affected by declining profitability in energy storage cells. The dynamic storage battery business reported losses of approximately 430 million yuan, corresponding to a loss of nearly 0.07 yuan per Wh.
As a result, the company's gross margin was 15.79%, down 4.77 percentage points year-over-year, while net margin was only 0.91%, down significantly by 46.81% year-over-year.
Changes in operating cash flow more directly reflect the company's funding difficulties, with capital expenditures consistently exceeding net cash inflows from operating activities.
Sunwoda Electronic Co.,Ltd.'s operating net cash flow was 1.04 billion yuan in the first half, down 39.8% year-over-year, with second-quarter operating cash flow at -490 million yuan, declining 149% and 132% year-over-year and quarter-over-quarter respectively. Meanwhile, the company's capital expenditure reached 4.16 billion yuan, up 27.5% year-over-year, with second-quarter capital expenditure at 2.22 billion yuan, up 68.6% and 14.6% year-over-year and quarter-over-quarter respectively.
As of the end of June 2025, Sunwoda Electronic Co.,Ltd.'s accounts receivable reached 16.4 billion yuan, up 20.6% from the same period in 2024. Accounts receivable turnover days were 107 days, up 12.6% from the same period in 2024, indicating significant collection pressure.
The past three interim reports show that the company's accounts receivable-to-revenue ratio has continued to grow, at 49.95%, 55.27%, and 59.8% respectively. At the same time, the accounts receivable-to-total assets ratio has also continued to increase, at 14.08%, 16.14%, and 17.49% respectively in the recent three interim reports.
With cash outflows exceeding inflows, Sunwoda Electronic Co.,Ltd.'s asset-liability ratio reached 65.46%, up 5.18 percentage points year-over-year, with interest-bearing debt of 25.81 billion yuan, up 26.25% year-over-year.
In 2023, Sunwoda Electronic Co.,Ltd. had planned to spin off Sunwoda Power for listing on the ChiNext board, but as of the three years prior to the spin-off listing, Sunwoda Power had accumulated losses exceeding 5 billion yuan, becoming a "drag" on the parent company's profits, and the plan was subsequently shelved. In the same year, Sunwoda Electronic Co.,Ltd. also planned a new round of private placement, intending to raise 4.8 billion yuan for continued capacity expansion and working capital replenishment, but this ended in failure just a few months later.
Under current financial pressure, Sunwoda Electronic Co.,Ltd. has formally submitted a listing application to the Hong Kong Stock Exchange, planning to become the third domestic lithium battery company to achieve "A+H" dual listing.
According to the prospectus disclosed by the Hong Kong Stock Exchange, Sunwoda Electronic Co.,Ltd.'s overall capacity utilization has declined, with consumer battery utilization falling from 94.2% in 2022 to 84.3% in Q1 2025. Power battery capacity utilization dropped from 83.5% to 53.6%, with capacity-demand mismatches causing resource waste and further increasing cost pressure.
Facing intensifying industry competition, continuously loss-making power battery business, and mounting financial pressure, whether Sunwoda Electronic Co.,Ltd.'s Hong Kong IPO can proceed remains to be tested by the market.
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