Jiangsu Zenergy Battery Technologies Group 2025 Annual Report: Key Highlights and Investor Insights

Overview

Jiangsu Zenergy Battery Technologies Group Co., Ltd., a leading lithium-ion battery manufacturer in China, has released its 2025 annual report. The company focuses on the R&D, production, and sales of EV battery products, ESS battery products, and aviation battery products. The report covers significant financial achievements, strategic updates, risk management, and corporate governance disclosures that are highly relevant to investors.

Key Financial Highlights

• Revenue Surge: Revenue rose by 57.9% year-on-year, reaching RMB 8.1 billion in 2025, up from RMB 5.13 billion in 2024.
• Profitability Improvement: Net profit skyrocketed to RMB 808.6 million, compared with RMB 91.0 million in 2024 (an increase of 788.4%).
• Earnings Per Share: Basic and diluted earnings per share were RMB 0.33, up from RMB 0.04 in 2024 (725% growth).
• Gross Profit Margin: Improved from 14.6% to 18.4%.
• Net Profit Margin: Jumped from 1.8% to 10.0%.
• Share of Profits from Joint Ventures: Increased to RMB 359.9 million from RMB 302.5 million.
• Income Tax Credit: RMB 199.4 million, reflecting significant tax benefits, partly due to R&D super deductions.

Capital Structure and Dividend Policy

• No Final Dividend Proposed: The Board does not recommend a final dividend for 2025. There are no shareholder dividend waivers.
• Share Capital: Details about issued shares are available in Note 30. No debentures are in issue.
• Public Float: The company maintains a public float of approximately 21.16%, as per a waiver granted by the Stock Exchange. This is slightly below the standard 25%, due to the company’s large market capitalization at listing (over HK\$10 billion).
• Gearing Ratio: Improved to 17% at end-2025 (down from 25% in 2024), reflecting stronger financial stability and lower leverage.

Use of Proceeds and Capital Allocation

• IPO Proceeds: Raised HK\$927.5 million in April 2025. As of 31 December 2025, HK\$653.6 million was utilized, mostly for:
  • Expansion of production capacity, especially in Changshu (Phase I and II).
  • R&D on advanced battery technologies, including semi-solid-state and ultra-fast charging batteries.
  • Working capital and general corporate purposes.

  Remaining unutilized proceeds: HK\$273.9 million, mainly earmarked for Phase II expansion before end-2027.

• H Share Placement: In October 2025, completed a placing of 45,921,000 new H Shares, raising net proceeds of HK\$500.4 million. As of year-end, HK\$70.3 million was used, with HK\$430.1 million reserved for further expansion of the Changshu facility by 2027.

Strategic and Operational Updates

• Business Focus: Continued leadership in lithium-ion batteries for EVs, energy storage, and aviation. No significant change in core business activities.
• Material Acquisitions: No new material acquisitions or disposals in 2025.
• Contingent Liabilities: None as of year-end.
• Subsequent Events: No significant events reported after 31 December 2025.
• Charitable Contributions: RMB 0.15 million donated in 2025.

Key Risks and Risk Management

• Macroeconomic and Competitive Risks: Heightened geopolitical tensions and global battery industry competition may impact cash flows and profitability. The company is diversifying its customer base and increasing R&D investment to mitigate these risks.
• Raw Material Price Volatility: Prices for cathode, anode materials, separators, and electrolytes are volatile. Zenergy adopts price linkage mechanisms with customers and diversified procurement to stabilize costs.
• Technology Risks: Rapid innovation in battery technology could challenge competitiveness. Zenergy is investing heavily in R&D to stay ahead in material science, manufacturing, and performance.

Corporate Governance and Compliance

• Corporate Culture: The company is committed to building a zero-carbon society, focusing on sustainability and technological advancement.
• Governance Practices: Fully compliant with the Hong Kong Listing Rules, Corporate Governance Code, and Model Code for Securities Transactions by Directors.
• Risk Management: The Board and Audit Committee oversee robust risk and internal control systems, including anti-corruption policies and whistleblower channels.
• Board Composition: Balanced between executive, non-executive, and independent directors. No director or supervisor has a non-terminable service contract.
• Shareholder Rights: Mechanisms in place for shareholders to request EGMs, submit proposals, and make inquiries.

Shareholding Structure and Major Shareholders

• Substantial Shareholders: The largest shareholders are Zenergy Investment (controlled by Mr. Chen Jicheng and Ms. Cao Fang), SINOGY VC, and state-linked entities such as Fujian Financial Investment Co., Ltd. and Changshu Hi-Tech Holding Co., Ltd.
• Directors’ Interests: Ms. Cao Fang and Mr. Chen Jicheng, acting in concert, together control over 23% of total share capital via unlisted and H shares, with significant influence over corporate decisions.
• No Insider Dealings: No material transactions or competing business involving directors, supervisors, or major shareholders.

Accounting Standards and Financial Transparency

• IFRS Compliance: Financial statements fully prepared under IFRS and Hong Kong Companies Ordinance requirements. No material uncertainties on going concern.
• Audit Opinion: The independent auditor issued an unqualified opinion, with all key audit matters addressed satisfactorily.
• Upcoming Standards: The Group is monitoring and preparing for IFRS 18 and other upcoming standards, with no expected major impact on results or position.

Potential Price-Sensitive or Share Price-Moving Factors

• Exceptional Profit and Margin Growth: The massive increase in revenue and net profit, alongside margin expansion, signals robust business momentum and could positively impact share valuation.
• Expansion Projects: Significant unutilized IPO and placement proceeds earmarked for production expansion in Changshu suggest further growth and potential capacity-driven upside.
• No Dividend Declared: Investors may react to the Board’s decision not to declare a final dividend, despite strong profits, as funds are being retained for expansion.
• Public Float and Share Liquidity: The public float is above the minimum required (21.16%), but below the usual 25%, which could affect trading liquidity and investor perception.
• Risk Management and Compliance: No material litigation, non-compliance, or contingent liabilities, supporting a stable investment environment.

Conclusion

Jiangsu Zenergy Battery Technologies Group has delivered an outstanding year in 2025, with transformative growth in revenue, profitability, and operational metrics. The company’s disciplined capital management, commitment to innovation, and expansion plans position it well for sustained growth. However, shareholders should note the absence of dividends and the relatively lower public float, which may affect near-term share price dynamics. The strong performance, ongoing expansion, and robust governance are likely to be positive for share valuation in the medium to long term.

Disclaimer: This article is based on publicly available information from Jiangsu Zenergy Battery Technologies Group’s 2025 annual report and is intended for informational purposes only. It does not constitute investment advice. Investors are advised to perform their own due diligence or consult a professional advisor before making investment decisions.

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