The Zhitong Finance App learned that on August 31, Zhengli Xinneng (03677) released the 2026 interim results report. During the reporting period, the company achieved operating income of 5.44 billion yuan, up 71.4% year on year; net profit of 370 million yuan, up 68.6% year on year, continuing the growth trend; net cash flow from operating activities of 640 million yuan, up 770 million yuan year on year, achieving good synergy between revenue growth and profit growth.
Regarding profit performance in the first half of the year, the company's management said that in the first half of 2026, the domestic lithium battery industry continued its structural recovery trend. The industry showed a double growth pattern of structural iteration of power batteries and a rapid explosion in the energy storage industry. Demand in the downstream market picked up, but at the same time, market uncertainties such as wide fluctuations in upstream raw material prices, industry production capacity differentiation, and the escalation of overseas trade barriers continued. Facing the complex and changing industry environment, the company adheres to the core strategy of steady management, focuses on upgrading manufacturing capacity and ensuring high-quality delivery, and continues to deepen refined internal management, strictly control operating costs and expenses, and effectively hedge against the risk of industry cycle fluctuations. From turning a loss into a profit in 2024, to a significant increase in profitability in 2025, to a double increase in revenue and profit in the first half of 2026, Zhengli Xinneng continues to consolidate its development foundation with equal emphasis on scale, efficiency and quality.
Specifically, driven by continued growth in industry demand, the company's shipments of power batteries and energy storage products grew rapidly, and its revenue scale continued to expand. During the reporting period, prices of upstream raw materials rose in stages. Affected by Changxie's order arrangement and downstream customer business negotiation cycle, there was a certain lag in the transmission of costs to the downstream; the first quarter of the construction of the 10GWh plant was in the climbing phase, and the scale effect has not yet been fully released, and there is still room for further improvement in the company's profitability. The company continues to promote refined operation, cost reduction and efficiency, and cost control, promote continuous optimization of cost rates, and achieve year-on-year increase in net profit. Entering the second half of the year, all of the company's production lines operated steadily, and the capacity utilization rate remained at a high level. The newly built production capacity gradually entered the stable production stage; as customer delivery continues to advance and costs are gradually transmitted downstream, the company's operating quality and profit resilience are expected to further improve.
The power business is steady, moderate and positive, and structural optimization establishes a solid foundation for profit
The power battery business is the core support for Zhengli Xinneng's revenue and profit growth. Zhengli Xinneng continues to focus on the high-end passenger car market, insists on being customer-centered and product competitiveness as the core, continuously optimizes the customer structure, product matrix and capacity allocation efficiency, and achieves high-quality and steady business growth. At the same time, the scale of overseas deliveries of various supporting models to the company's core cooperative vehicle customers continues to increase, driving the further release of related battery supporting demand. In the first half of 2026, Zhengli Xinneng's domestic passenger car installed capacity ranking rose from 7th place to 5th place, further consolidating its market position.
During the reporting period, the company deeply cultivated refined operation, continued to promote the iteration of high-performance, cost-effective and high-safety power battery products, and accurately matched the diversified, high-end and intelligent needs of the downstream vehicle market. At the same time, the company dynamically optimizes production capacity allocation, continuously improves capacity utilization and production and marketing matching efficiency, strictly controls production loss and operating costs, and continues to consolidate the profit base from the three dimensions of customer quality, product performance, and production efficiency to ensure the steady operation of the power battery business and continuous contribution to core benefits.
The energy storage business broke through at a high speed, creating a second growth pole
While consolidating the basic market of power batteries, the energy storage business is becoming the second growth pole that the company focuses on cultivating. In the first half of 2026, the company's energy storage battery business achieved revenue of 590 million yuan, accounting for more than 10% of total revenue, a sharp increase of nearly 8 times over the same period last year. Relying on long-term accumulation in cell research and development, intelligent manufacturing, safety and quality management, the company continues to promote product iteration, capacity construction and scenario expansion to promote large-scale and high-quality development of the energy storage business. The company continues to improve its energy storage product matrix around different application scenarios such as household storage, industrial and commercial energy storage, independent energy storage, and AIDC energy storage. In the field of household storage, 104 Ah and 314 Ah standardized batteries have become the main supply products for the global household energy storage market; in order to meet differentiated needs, customized versions of 100Ah and 314Ah household storage are expected to be mass-produced in the second half of the year. Facing scenarios such as industrial and commercial energy storage, independent energy storage, and AIDC energy storage, the company has deployed multi-specification products such as 100Ah/104Ah, 235Ah, 314Ah, 587Ah, and 588Ah, and plans to achieve large-scale sales in 2026.
Anchoring the development trend of large cells and long-term energy storage, the company has laid out a new product line compatible with the next generation of high-capacity batteries, and has developed high-capacity battery products of 1,400 Ah or more and 2,700 Ah or more. Through extreme cost reduction, the company has built the competitiveness of next-generation products and continues to refine energy storage solutions for complex scenarios. On the manufacturing side, the new 10GWh production capacity, which was put into operation at the end of 2025, is currently climbing smoothly. The second phase of the new production capacity is expected to gradually be implemented in the fourth quarter of 2026, providing manufacturing guarantees for long-term energy storage business shipments and large-scale delivery.
Facing the future, with the continuous improvement of the product matrix, the gradual release of production capacity, and the continuous expansion of application scenarios, the energy storage business will further enhance the company's growth momentum outside of vehicle power batteries, improve the diversified business structure, and become an important support for the company's long-term growth.
Intelligent manufacturing upgrades enable quality improvement, and aviation quality builds core barriers
During the reporting period, the company continued to deepen the strategic layout of intelligent manufacturing and forwardly implement the “AI+ manufacturing” digital upgrade system to enable production to improve quality, increase efficiency, reduce costs and control losses with technology. With strict production standards, green and low-carbon production models and advanced intelligent manufacturing levels, Zhengli Xinneng successfully won the title of “National Green Factory”, and the industry's brand influence and green production capacity were recognized by national authorities.
At present, Zhengli Xinneng has built an advanced manufacturing system using “nanoscale materials, micron-level manufacturing, and medical-grade testing” to achieve high standards of control throughout the entire chain from raw material control, manufacturing to finished product testing. Relying on the original “three means manufacturing” management model, that is, “logistics is a station, manufacturing is quality inspection”, to deeply open up the entire production process link; a “three degree management” system for simultaneous landing equipment reliability, product health, and personnel proficiency is strictly implemented to strictly implement the “three no goals” for defective products without production, circulation, or outflow, to create a quality barrier of “aerospace-grade safety and vehicle-level application”.
Through a comprehensive upgrade of digitalization, intelligence, and refinement, the production efficiency, product yield, and delivery stability of Zhengli New Energy continues to improve, effectively reducing costs and increasing efficiency, and further strengthening the company's core operating resilience across the industry cycle.
Accumulate efforts to make breakthroughs and steadily release long-term growth value
Looking forward to the future, as power battery technology routes continue to be iterated and energy storage applications accelerate diversification and scale, competition in the lithium battery industry will focus more on product value, manufacturing capacity, operational efficiency and sustainable development quality. Facing the new stage of industry development, Zhengli Xinneng will continue to be guided by customer needs and rely on long-term accumulated technology, manufacturing and quality management foundations to continuously enhance the overall competitiveness of the green energy business.
Based on the foundation of steady operation in the first half of the year, the company will consolidate its competitive advantage in the power battery business, accelerate the implementation and climbing of new energy storage capacity, continue to improve the energy storage product matrix and scenario layout, broaden diversified growth space, promote production efficiency and profit structure optimization through intelligent manufacturing upgrades and fine management, and continue to release operational flexibility. With the gradual implementation of various layouts, Zhengli Xinneng will create long-term, stable and sustainable value for investors with a steady business trend and continuous ability to innovate.