Farasis Energy says revenue in 2021 surges YoY, but net loss widened

Shanghai (Gasgoo)- Chinese power battery maker Farasis Energy (Ganzhou) Co., Ltd. (“Farasis Energy”) announced today its full-year revenue in 2021 surged 203.97% year on year to around 3.403 billion yuan ($538.71 million).

However, the yearly net loss attributable to shareholders was widened to 974.211 million yuan ($154.203 million) from 331.004 million yuan ($52.393 million), according to the company's financial results.

Photo credit: Farasis Energy

The basic earnings per share stood at minus 0.91 yuan (minus $0.14) last year, versus the minus 0.35 yuan (minus $0.055) for the year of 2020.

The company said the robust growth in the annual revenue owed much to the growing supplies for many OEM clients. For instance, it started providing power batteries for such models as the EQS, the EQA, and the EQB of its main client, Mercedes-Benz. Meanwhile, the procurement volume of GAC Group also evidently climbed.

Farasis Energy attributed the widened net loss in 2021 to such factors as lower product prices and the increase in prices of main raw materials, R&D investment, and amortization of equity incentive expenses.

The company noted prices of its battery products remained at a relatively low level partly due to the general downward movement in average industrial price of power batteries.

Besides, when the company negotiated with clients in 2020 for next year’s product prices, it agreed lower prices given the downward raw materials prices and the market trend of that moment.

To maintain sound partnerships with clients, the battery maker also offered some discounts to deepen cooperation.

In 2021, prices of main raw materials soared due to the surging demands of power batteries. Nevertheless, the product prices the company had agreed with clients were not adjusted in time, resulting in the bigger net profit loss as well.

The company noted its product prices have currently returned to a normal level.

The increase in R&D expense was also a factor leading to the larger net loss. In 2021, the company allowed a heavy investment in the R&D of such fields as solid-state battery, thermal management, and energy storage.