VW-Backed Gotion H1 Net Profit Jumps 278% on Power Battery Strength

Volkswagen-backed Gotion High-tech released its 2026 semi-annual report on Aug. 25.

During the first half of the year, the company generated revenue of RMB 27.776 billion ($4.13 billion), up 43.22% year over year, setting a new first-half revenue record for the sixth consecutive year.

Net profit attributable to shareholders reached RMB 1.386 billion ($206.8 million), representing a year-over-year increase of 278.05%.

However, the sharp increase in net profit was not entirely driven by improvements in core operations.

During the reporting period, Gotion recorded RMB 1.279 billion ($190.7 million) in non-recurring gains.

After excluding these items, adjusted net profit attributable to shareholders stood at RMB 107 million ($16.0 million), up 46.71% year over year.

By quarter, second-quarter net profit attributable to shareholders reached approximately RMB 1.365 billion ($203.7 million), about 63.7 times higher than the roughly RMB 21 million ($3.1 million) recorded in the first quarter.

From a revenue perspective, the power battery system business remained the primary growth driver.

In the first half, Gotion’s power battery business generated revenue of RMB 22.597 billion ($3.37 billion), up 61.01% year over year, accounting for 81.36% of total revenue.

Its gross margin reached 14.02%, largely unchanged from the same period last year.

The company also expanded its position in the global power battery market.

According to SNE Research data, Gotion’s global EV battery installations reached 28 GWh in the first half of 2026, increasing 43.3% year over year.

Its global market share rose to 4.6%, lifting its ranking to fifth place worldwide.

In China, data from CABIA showed that Gotion installed 20.75 GWh of power batteries during the same period, securing a 6.19% domestic market share and ranking third among battery suppliers.

On the vehicle supply side, Gotion continued expanding its customer base during the first half.

In passenger vehicles, the company supplied batteries for models including Chery Exeed, Chery Fengyun series, Geely Galaxy and Leapmotor, while also securing supply contracts for premium series models from HIMA and Volkswagen ID .

The commercial vehicle segment saw stronger growth. Power battery installations for commercial vehicles reached 7.66 GWh in the first half, up 87.29% year over year.

Gotion has entering supply chains of customers including FAW Jiefang, Chery Commercial Vehicle, Sany Heavy Truck and Farizon Auto.

Compared with the rapid growth of its power battery business, Gotion’s energy storage business faced pressure.

During the reporting period, revenue from energy storage battery systems reached RMB 3.689 billion ($549.6 million), down 19.14% year over year.

Its contribution to total revenue declined to 13.28% from 23.52% a year earlier.

However, the segment maintained a higher gross margin of 19.50%, exceeding the 14.02% margin of the power battery business.

Overseas markets became a key source of revenue growth for Gotion.

In the first half, overseas revenue reached RMB 9.476 billion ($1.41 billion), increasing 48.06% year over year and accounting for 34.11% of total revenue.

The overseas business recorded a gross margin of 18.05%, higher than the 14.34% margin generated in domestic markets.

As the company continues expanding overseas production capacity and customer networks, international operations are expected to contribute more significantly to overall profitability.