On October 25th, the share prices of several lithium battery stocks surged significantly. By the close of trading, Eve Energy (300014.SZ) saw a substantial increase of 10%, reaching 49.44 yuan per share, with a market value of 101.1 billion yuan.

On the evening of October 24th, Eve Energy released its third-quarter report, showing that the company achieved a revenue of 34.049 billion yuan, with a net profit attributable to the parent company of 3.189 billion yuan, a year-on-year decrease of 6.88%; the net profit attributable to the parent company, excluding non-recurring gains and losses, was 2.5 billion yuan, a year-on-year increase of 16%, exceeding market expectations.

Among these figures, Eve Energy's third-quarter revenue declined by 1.3% year-on-year; the net profit attributable to the parent company decreased by 17.44% year-on-year, but after deducting non-recurring gains and losses, the net profit attributable to the parent company increased by 11.38% year-on-year.

The net profit margin of the energy storage business in the third quarter exceeded 10%.

This year, constrained by the significant decline in lithium carbonate prices and the upward transmission of cost pressures from the price wars among car manufacturers, the overall prosperity of the battery industry has remained sluggish. Even the "big brother" CATL (Contemporary Amperex Technology Co., Limited) saw a year-on-year revenue decrease of 12.48% in the third quarter.

Advertisement

In the face of industry sluggishness, what is tested is the enterprise's ability to control costs and manage inventory. In the third quarter, Eve Energy's sales, management, research and development, and financial expenses remained relatively stable compared to the previous quarter, but the gross profit margin improved in the third quarter, reaching 17.4% for the first three quarters, a year-on-year increase of 0.6%.

Data from Wind shows that in the third quarter, the price of lithium carbonate broke through the 80,000 yuan/ton mark and has been fluctuating above 70,000 yuan recently. On October 23rd, the quoted price for battery-grade lithium carbonate was 73,000 yuan per ton.

Eve Energy's energy storage battery business performance in the third quarter exceeded market expectations, with energy storage battery shipments reaching 14.8 GWh in the third quarter, while the power battery shipments were only 7.2 GWh, making the energy storage shipments twice that of the power batteries.

A research report from Guojin Securities revealed that Eve Energy's net profit margin for the energy storage business in the third quarter exceeded 10%, a significant improvement from the first half of the year, mainly due to increased operational efficiency and reduced raw material costs. It is expected that by 2025, an additional 20 GWh of energy storage capacity will be added (for a total of 70 GWh), with external cooperative factories supplementing capacity. The 628Ah battery cells and Mr.Giant systems are expected to enter delivery by the end of the year, with customer demand extending from battery cells to DC-side systems.

According to InfoLink data, in the first half of 2024, Eve Energy's energy storage battery cell shipments ranked second globally, just behind CATL.Power Battery Business Urgently Needs a Turnaround

In comparison, the situation faced by the power battery business is even more severe. In September, EVE Energy's domestic power battery installation volume has dropped to the seventh place, with an installation volume of 1.42GWh for the month.

The reason for this is attributed to the impact of the price war in the new energy vehicle market. Due to some passenger car models of major customers of EVE Energy not meeting sales expectations, the battery installation volume has been affected to a certain extent, showing a fluctuating trend.

Recently, EVE Energy announced that it has received a定点 notice from Zero Run Technology, and its subsidiary EVE Power has been selected by Zero Run Technology as a development cooperation supplier for lithium-ion battery cells.

As of the third quarter, EVE Energy has added several new models in the passenger car field, which are expected to be delivered to the market starting from the fourth quarter. With the adjustment and optimization of downstream products, overall demand is expected to be further released.

The performance of commercial vehicle business is quite considerable. As of the end of the third quarter, according to data from the China Automotive Power Battery Industry Innovation Alliance, EVE Energy's domestic market share for commercial vehicle batteries is 13.09%, ranking second, an increase of 4.69% compared to the same period last year.

In September, EVE Energy, together with its partners, completed the mass production of commercial vehicle products with the open-source battery Z series (long-range products), achieving a new breakthrough in the new energy heavy truck market.

On October 10th, EVE Energy released the revised prospectus for convertible bonds, further increasing its investment in energy storage batteries and power batteries. The announcement shows that the convertible bonds are expected to raise 5 billion yuan, with 3.1 billion yuan used for a 23GWh cylindrical lithium iron phosphate energy storage and power battery project, and 1.9 billion yuan for a 21GWh large cylindrical passenger car power battery project.