Gotion reported a profit of 1.386 billion RMB in H1 2026. After adjustments, it remains at 107 million RMB.
Gotion High-tech, a battery manufacturer backed by Volkswagen, released its report for the first half of 2026 on August 25. Revenues rose to 27.776 billion RMB, an increase of 43.22% year-on-year, while net profit attributable to shareholders surged by 278.05% to 1.386 billion RMB. There is one caveat, however: most of this growth did not come from its core business.
The report itself shows 1.279 billion RMB in one-time gains. After excluding these, the adjusted net profit was only 107 million RMB, which still represents a year-on-year increase of 46.71%, but it sounds much less impressive compared to the headline figure of 278%.
Traction batteries drive the company, energy storage slows growth
The strongest driver of growth was automotive batteries. The power battery system segment generated RMB 22.597 billion in revenue for Gotion, representing a +61.01% year-on-year increase, and accounted for 81.36% of its total business. The gross margin was 14.02%, roughly the same as the previous year.
The energy storage segment performed worse. Revenues from energy storage battery systems dropped to RMB 3.689 billion, a decrease of 19.14% year-on-year. This segment’s share of sales fell from 23.52% last year to 13.28% now. However, the margin here was higher at 19.50%, exceeding that of traction batteries.
The quarterly breakdown is also interesting. Gotion earned around RMB 1.365 billion in the second quarter, compared to just RMB 21 million in the first quarter. A surge of about 63.7 times seems significant, but once again, the impact of one-time items must be considered.
Gotion Expands Globally with Growing Overseas Revenue
According to SNE Research, Gotion’s battery installations in electric vehicles reached 28 GWh in H1 2026, marking a +43.3% year-on-year increase. Its market share rose to 4.6%, pushing the company to 5th place globally.
In China, per CABIA, Gotion installed 20.75 GWh of batteries, holding a 6.19% market share and ranking as the third-largest supplier in the country. For passenger vehicles, it supplies cells to models such as Chery Exeed, Chery Fengyun series, Geely Galaxy, and Leapmotor. Additionally, it has contracts for higher-end HIMA series and Volkswagen ID models. There is also an 81 kWh LFP battery pack in development for the AITO M6 and other HIMA vehicles.
Supplies to commercial vehicles have also grown significantly. Battery installations for this segment reached 7.66 GWh, an increase of +87.29% year-on-year. Clients include FAW Jiefang, Chery Commercial Vehicle, Sany Heavy Truck, and Farizon Auto.
Exports are becoming increasingly important. Overseas revenue rose to 9.476 billion RMB, up by 48.06% year-on-year, accounting for 34.11% of total revenue. The gross margin abroad was 18.05%, compared to 14.34% in the Chinese market. For European brands, including Volkswagen, this is a clear signal: Gotion aims to be more than just a local supplier from China.
For now, it is the scale that impresses the most, not profit margins. Do you think Gotion has a chance to enter Europe’s top tier of battery suppliers, or will it remain primarily a supplier for a few brands?
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