Zenergy records a shift to financial losses due to expanding economies of scope
In a positive development for the battery industry, Jiangsu Zenergy Battery Technologies Group Co. Ltd. (3677.HK) has announced expected profits of between 198 million yuan ($27.6 million) and 243 million yuan for the first half of the year. This marks a significant improvement from the net loss of 130 million yuan reported in the same period last year [8].
The profitability growth at Zenergy is primarily due to increased sales of its batteries in mass-produced electric vehicles [3]. As the company gained economies of scale, its expense ratio decreased significantly year-on-year [7]. Additionally, the company's improving efficiency has boosted its gross margin for the period [6].
Zenergy's shares opened higher and were up 0.76% at HK$10.66 in early Friday trade [2]. The stock is up 29% from its IPO price of HK$8.27 in April [4].
The strong financial performance of Zenergy reflects its strengthening position within the competitive battery market. This trend is in line with the broader industry, where energy storage firms are gaining prominence on financial markets, such as multiple lithium battery companies listing on the Hong Kong Stock Exchange (HKEX) [5].
The article, written by Doug Young, can be found on the FastNews website under the New Energy category [9].
[1] Increased EV battery shipments and improvements in operational efficiency. [2] Zenergy's shares opened higher and were up 0.76% at HK$10.66 in early Friday trade. [3] The company's profitability is primarily due to increased sales of its batteries in mass-produced electric vehicles. [4] The stock is up 29% from its IPO price of HK$8.27 in April. [5] Multiple lithium battery companies listing on the Hong Kong Stock Exchange (HKEX). [6] Zenergy's improving efficiency has boosted its gross margin for the period. [7] As it gained economies of scale, the company's expense ratio decreased significantly year-on-year. [8] Zenergy's net loss in the year-ago period was 130 million yuan. [9] The article is categorized under New Energy on FastNews and written by Doug Young.
The financial success of Zenergy is significantly attributed to increased sales in the business sector of electric vehicles, where its batteries are being mass-produced. This positive trend in the battery industry has been further amplified by the company's employment of technology, which has led to operational efficiencies and reduced costs.
