EVE Energy's adjusted net profit rises 19.32% YoY in H1 2024

Shanghai (Gasgoo)- On August 22, Chinese power and consumer battery supplier EVE Energy Co., Ltd. ("EVE Energy") released its semi-annual financial report for 2024.

The company posted a revenue of 21.659 billion yuan for the first half of the year, a 5.73% decline year-over-year. Net profit attributable to shareholders stood at 2.137 billion yuan, down 0.64% from the same period last year. However, the net profit excluding non-recurring gains and losses was 1.499 billion yuan, marking a significant year-over-year increase of 19.32%. Basic earnings per share were reported at 1.04 yuan for the period.

EVE Energy's R&D expenditure for the first half of 2024 was 1.468 billion yuan, up 16.42% year-over-year, accounting for 6.78% of total revenue. The company reported accounts receivable of 12.503 billion yuan for this period, accounting for 12.64% of its total assets.

EVE Energy's power battery products, photo credit: EVE Energy

In line with its 2024 operational strategy focusing on "precision management" and emphasizing quality, EVE Energy's core segments of power batteries and energy storage batteries performed well during the reporting period.

Specifically, the company's power battery shipments reached 13.54 GWh, a year-over-year increase of 7.03%, generating revenue of 8.994 billion yuan. Energy storage battery shipments more than doubled, growing by 133.18% year-over-year to 20.95 GWh, with revenue reaching 7.774 billion yuan. Notably, the gross margin for energy storage batteries was 14.38%, compared to 11.45% for power batteries.

In the power battery sector, EVE Energy saw rapid growth in shipments for new energy commercial vehicles. According to the China Automotive Power Battery Industry Innovation Alliance, EVE Energy ranked second in domestic shipments for new energy commercial vehicles from January to June, with a market share of 13.59%.

For energy storage batteries, EVE Energy's capacity utilization rate increased steadily, with shipments shooting up 133.18% year-over-year, further enhancing market share..

To enhance its global presence, EVE Energy has launched a new business model, the "CLS Global Cooperative Operating Model," which leverages a light-asset operational approach to complement its existing battery business and industrial collaborations. CLS stands for "Co-development," "License," and "Service." This model has been incorporated into five key strategic business units.

During the reporting period, EVE Energy's first CLS model project, Amplify Cell Technologies LLC (ACT), successfully broke ground in Mississippi, USA. This joint venture, established by EVE’s wholly-owned subsidiary EVE USA in partnership with Daimler Truck, PACCAR, and Electrified Power, plans to produce prismatic lithium iron phosphate batteries primarily for the North American commercial vehicle market, with an annual production capacity of approximately 21 GWh. The three foreign partners and their affiliates are expected to be the main customers, purchasing the majority of the plant’s output.