Within the automotive industry supply chain, compared to vehicle manufacturers,Power Battery SupplierPerhaps that's the one that's more profitable.
February 2nd, power battery supplier RuiPu LanJun (00666.HK) released an earnings preview, predicting the company will record a net profit of approximately 630 million to 730 million yuan in 2025. This marks a turnaround from the net loss of 1.353 billion yuan in 2024. In the announcement, RuiPu LanJun stated that the main reasons for the profit this year are twofold: Firstly, the continuous increase in the shipment of power and energy storage battery products has driven sustained revenue growth; secondly, the improvement in the company's capacity utilization.Cost Reduction and Efficiency EnhancementMeasures drive gross margin increase.
Just a few days ago, power battery supplier Guoxuan High-Tech (002074.SZ) also forecasted its parent company's net profit to be between 2.5 to 3 billion yuan in 2025, representing a year-on-year increase of 107.16% to 148.59%.
In recent years, the power battery industry chain has continuously adjusted and enhanced its profitability. Compared to vehicle manufacturers, leading power battery company CATL reported a net profit of 44.121 billion yuan, 50.745 billion yuan, and 49 billion yuan respectively for the years 2023, 2024, and the first three quarters of 2025, while leading new energy vehicle companies...BYDThe net profit attributable to shareholders for the same period was 300.41 billion yuan, 402.54 billion yuan, and 233.33 billion yuan, respectively, with a significant gap between the two.
In terms of industry, CATL's parent company's net profit exceeded 300 billion yuan in the first half of 2025, surpassing the sum of the parent company's net profits of 15 mainstream listed automobile companies.
Cui Dongshu, Secretary-General of the China Association of Automobile Manufacturers, stated that the sales profit margin in the automotive industry for January to December 2025 was only 4.1%, a further decline from 4.3% at the end of 2024. It remains at a historically low level. Moreover, the sales profit margin for December 2025, at just 1.8%, reached a recent low point, highlighting the ongoing pressure on profitability.
Industry experts believe that the main reason for the decline in profit margins in the automotive sales sector is...Unordered price warIn the second half of 2025, the Ministry of Industry and Information Technology and other relevant departments are stepping up efforts to...Oppose internal competition.The irrational price war situation is gradually reversing. However, at the same time, due to the rising prices of raw materials such as storage chips and metals, automakers are facing a new round of cost-cutting challenges.
(Original content from First Financial)
