On July 14, Gotion High-Tech Co.,Ltd. (SHE: 002074) released a performance forecast for the first half of 2026, projecting a substantial increase in net profit attributable to shareholders of the listed company to a range of 1.2 billion to 1.55 billion yuan. This represents a year-on-year growth of 227.31% to 322.77%.
However, non-recurring gains and losses have been a key driver behind this profit surge. The company estimates that investment income and fair value changes from its stock holdings will impact its net profit for the period by approximately 1.1 billion to 1.4 billion yuan.
This indicates that, while the profitability of its core power battery business is recovering, the significant profit growth for this period is still largely attributable to gains related to capital markets. Excluding the impact of non-recurring items, the company forecasts its first-half net profit after deducting non-recurring gains and losses to be between 85 million and 120 million yuan, representing a year-on-year increase of 16.65% to 64.68%. This growth rate is notably lower than that of the overall net profit, suggesting that the improvement in its main business operations remains relatively moderate.
Projected Net Profit Reaches Up to 1.55 Billion Yuan
The announcement shows the company expects to achieve a net profit attributable to shareholders of 1.2 billion to 1.55 billion yuan for the first half, compared to 367 million yuan in the same period last year.
Calculated based on the forecast range, this represents a year-on-year increase of 227.31% to 322.77%, with basic earnings per share estimated between 0.66 yuan and 0.85 yuan, versus 0.20 yuan a year ago. Using the midpoint of the forecast range, the first-half net profit would be approximately 1.375 billion yuan, nearly 2.75 times higher than the previous year.
However, this profit figure does not fully reflect changes in the profitability of the core business. The company concurrently disclosed that non-recurring gains and losses are expected to impact net profit by about 1.1 billion to 1.4 billion yuan, primarily stemming from investment income and fair value changes related to its stock holdings.
Limited Growth in Core Profit, Business Recovery Ongoing
Looking at the net profit after deducting non-recurring gains and losses, which better reflects operational quality, Gotion High-Tech forecasts a figure of 85 million to 120 million yuan for the first half of 2026, representing year-on-year growth of 16.65% to 64.68%.
Compared to the more than twofold increase in the overall net profit, the growth in this core profit metric is relatively modest. Data shows the incremental increase in this core profit is approximately 12.13 million to 47.13 million yuan, whereas the maximum increase in the overall net profit year-on-year is close to 1.183 billion yuan, highlighting a significant gap between the two.
This demonstrates that while the company's power battery business is indeed improving, the substantial profit growth for this period is not primarily driven by enhanced profitability of the main operations but rather by non-operational factors such as investment gains and fair value changes.
For battery manufacturers, the net profit after deducting non-recurring items is a more accurate indicator of product competitiveness, capacity utilization, cost control, and changes in order structure. This performance forecast indicates that Gotion High-Tech's main business has entered a recovery phase. However, whether this profit growth can be sustained will depend on the ability to further expand this core profit metric.
Investment Income as the Key Variable for Profit Growth
Gotion High-Tech stated that non-recurring gains and losses during the reporting period are expected to impact net profit by about 1.1 billion to 1.4 billion yuan, mainly due to investment income and fair value changes from its stock portfolio.
From a profit structure perspective, investment income provided significant support for the period's performance. Unlike operational factors such as battery sales, production costs, and operational efficiency, stock investment income and fair value changes are subject to high volatility. Their future performance will depend on the price movements of the related assets and the company's subsequent disposal plans.
Therefore, when interpreting this earnings growth, the market needs to distinguish between the increase in overall profit scale and the improvement in core business profitability: the former is primarily driven by investment gains, while the latter is reflected in the year-on-year growth of the core net profit.
Product Upgrades and Overseas Expansion Drive Business Recovery
Regarding the improvement in its main business, the company noted that it has been continuously promoting the industrialization of R&D achievements, accelerating product iteration and upgrades, while also enhancing its market share by optimizing its customer structure and expanding into domestic and international markets.
In recent years, competition in the power battery industry has intensified, making corporate profitability increasingly reliant on technological iteration, supply chain efficiency, and breakthroughs in overseas markets. For Gotion High-Tech, the ability to rapidly convert R&D results into large-scale orders will directly impact future revenue growth and profit generation capacity.
Based on currently disclosed information, there are signs of improvement in the company's power battery business. However, the upcoming semi-annual report will need to provide further validation of key metrics such as shipment volumes, product pricing, gross margins, the proportion of overseas revenue, and orders from major customers.
Overall, Gotion High-Tech achieved substantial profit growth in the first half, but a considerable portion stemmed from non-recurring gains. Going forward, the sustainability of the company's profit growth will hinge on whether its core power battery business can take over from investment gains as the new primary driver of profit growth.
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