Gotion High-tech Releases 2020 Annual Results

The superior results are driven by the company's ongoing innovation in product

HEFEI, China, April 22, 2021 /PRNewswire/ -- Gotion High-tech Co., Ltd. (Shenzhen: 002074), a leader in the R&D, production and sales of automotive lithium-ion power batteries, released its annual report of 2020 and the first quarter of 2021 on April 21. The company achieved annual revenue of 6.724 billion yuan (approx. 1.04 billion USD) for 2020, up 35.6% year-on-year. Annual net profit attributable to the parent reached RMB 150 million (approx. 23.1 million USD), up 192.02% year-on-year, the largest increase since the firm was listed. Sales outside the home market of China topped 159 million yuan (approx. 24.5 million USD), up 616.42% year-on-year. In 2021, Gotion's numbers showed further improvement. Operating income in the first quarter totaled 1.292 billion yuan (approx. 199 million USD), up 77.09%, yielding a net profit of 47.918 million yuan (approx. 7.38 million USD), a rise of 42.49%.

Product innovation in tandem with optimization of the customer mix proved to be the main drivers behind the enhanced of performance. In 2020, Gotion successively rolled out several new technologies including lithium iron phosphate batteries with a single cell energy density of 210 Wh/kg as well as the JTM technology, capable of achieving a system energy density equivalent to 200.22 Wh/kg ternary batteries as per the description in this year's MIIT catalog, the industry's document of reference for the status of China's hi-tech sector. According to the catalog, the technology delivers the highest system energy density among similar systems made in China.

In 2021, Gotion High-tech plans to continue expanding its penetration into the passenger car market, explore and enter into relationships with domestic mainstream OEM giants including Guangzhou Auto, Xiaopeng, WM Motor and NIO, while, at the same time, expand further into countries and regions outside of the home market, consolidate its already strong market share in the Netherlands, India and the United States, and enter into additional strategic collaborations with name brand automakers. As for its most important relationship, the partnership with VW, Gotion Hi-Tech has announced that it plans to work with the carmaker to soon move the VW Modular electric drive matrix (MEB) module into mass production, and, once in place, to leverage the MEB platform to quickly ramp up production and commercialization of ternary products including expansion into international markets.

About Gotion High-tech

Gotion Hi-Tech Co., Ltd., listed on the Shenzhen Stock Exchange in May 2015, develops, produces and sells power batteries, power transmission and distribution equipment as well as other power supplies for vehicles, with multiple production facilities in Hefei, Jingkai, Liuzhou, Lujiang, Nanjing, Nantong, Qingdao and Tangshan as well as other locations across China. The firm has recently added new production facilities and R&D centers in Hefei, Shanghai, Silicon Valley (USA), Cleveland (USA), Tsukuba (Japan) and Singapore .

The company is one of the first in China to enter into the independent R&D, production and sales of lithium-ion batteries for electric vehicles (EVs), with a strong focus on lithium iron phosphate materials and cells, ternary materials and cells, power battery packs, battery management systems and energy storage battery packs. Our products are widely used in both hybrid and pure passenger, commercial and special vehicles, while we also provide system solutions for energy storage power stations and communication base stations.

SOURCE Gotion High-Tech