Gotion High-Tech Releases Results for the First Half of 2023

PRESS RELEASE

Ad hoc announcement pursuant to article 53 LR

Gotion High-Tech releases results for the first half of 2023

Hefei, China, August 29, 2023 -- Gotion High-Tech Co., Ltd. (the "Company") released its results for the first half of 2023 today:

l In the first half of 2023, the Company generated a revenue of RMB 15.24 billion, a year-on-year increase of 76.42%, and realized an operating profit of RMB 221 million, a year-on-year increase of 314.79%, achieved total profit of RMB 206 million, a year-on-year increase of 273.26%.

The main operational summary of the Company is as follows:

Ø Continuous Improvement of Industrial Chain

During the reporting period, the Company continuously optimizes the construction of its entire industry chain system and accelerates the implementation of resource-side projects. In addition to possessing patented technology covering the entire lifecycle of batteries, the industry chain also vertically integrates resources such as lithium, nickel, and raw materials like lithium carbonate. It encompasses the entire battery production process, including the cathode, anode, and separator, battery manufacturing, Battery Management Systems (BMS), and recycling, effectively ensuring supply chain security, cost control, and the company's competitive cost advantage.

Ø Accelerating the Development of International Business

During the reporting period, the Company's overseas sales proportion experienced a significant increase. In the first six months of 2023, the sales revenue from overseas operations amounted to 3.062 billion RMB, marking a year-on-year growth of 296.74%. The Company secured contracts for several projects with companies such as GAC Aion and NETA, entered into the supply chain of the Renault-Nissan-Mitsubishi Alliance, and became a designated supplier for Volkswagen in overseas markets. In the future, the Company plans to supply a wide range of vehicle models to the Volkswagen Group. In overseas markets, the Company also formed strategic partnerships with European battery manufacturer InoBat and Japanese company Edison to jointly explore and expand into the European and Japanese markets. Furthermore, the Company is actively promoting the establishment of overseas power battery and supporting industry bases to gain market share in international markets.

Ø Strengthening Battery Technology Innovation

During the reporting period, the Company focused on the research and development as well as investments in power batteries and energy storage batteries. It added 653 new patented technologies, bringing the total number of authorized patents to 4,672. The Company also led or participated in the development of 66 industry standards. On May 19th, during the Company's 12th Technology Conference, it unveiled the self-developed L600-Qicheng battery cell and battery pack based on the new LMFP system. The energy density of the individual battery cell reached 240Wh/kg, and the system energy density reached 190Wh/kg. In early 2023, the Company officially obtained recognition from the Volkswagen Group for its battery cell testing laboratory, marking the Company's testing and validation capabilities as being acknowledged by the Volkswagen Group and entering into the global leading technology management system.

Ø Rapid Growth of Energy Storage Business

“Make Energy Storage Business Bigger” is one of the Company's business strategies. Since the start of the energy storage business in 2016, the Company has continued to deepen its strategic cooperation with first-class enterprises such as Huawei, China Tower, State Grid, SUMEC, and Shanghai Electric. In recent years, the Company has accelerated the development of overseas markets, and has established cooperation with ABB, Nextera, Invenergy, Jinko, Borrego, Edison, and other well-known international enterprises. It has vigorously explored domestic and international energy storage markets, providing system solutions for power, household, and commercial energy storage. The energy storage business has realized rapid increase.

Financial Results (unaudited)  

Full Interim Report

Our full interim (semi-annual) report as of and for the six months ended 30 June 2023 is available on our website at https://en.gotion.com.cn/financial-reporting-release.

Contact information

Dr. Guohong Xu

Phone: +86 0551 62100213,

e-mail: gxgk@gotion.com.cn 

About Gotion

Gotion High-tech Co., Ltd., as the earliest private enterprise in power battery industry to enter the capital market in China, was listed on the Shenzhen Stock Exchange in May 2015, Specializing in power battery for new energy vehicles, energy storage application, power transmission and distribution equipment, etc.

Gotion High-tech is a technology-based company focused on power battery technology research and development and innovation. It is one of the earliest enterprises engaged in the independent research and development, production and sales of new energy vehicle power lithium-ion batteries in China. Gotion High-Tech has global operations and has carried out strategic cooperation with Volkswagen, Tata Group, Vinfast and Jinko, among others.

Disclaimers

This announcement may contain forward looking statements, estimates, opinions and projections with respect to anticipated future performance of the Company ("forward-looking statements"). These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes," "estimates," "anticipates," "expects," "intends," "may," "will" or "should" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. Forward-looking statements are based on the current views, expectations and assumptions of the management of the Company and involve significant known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Any forward-looking statements included herein only speak as at the date of this release. Gotion undertakes no obligation, and does not expect to publicly update, or publicly revise, any of the information, forward-looking statements or the conclusions contained herein or to reflect new events or circumstances or to correct any inaccuracies which may become apparent subsequent to the date hereof, whether as a result of new information, future events or otherwise. Gotion accepts no liability whatsoever in respect of the achievement of such forward-looking statements and assumptions.