Daily Inside Look at a Company: Guoxuan High-Tech (Hefei)

Company Overview: Guoxuan High-Tech (Gotion High-tech, hereinafter referred to as “Guoxuan”) was founded in 2006, with its headquarters located in Baohe District, Hefei. Leveraging the policy benefits of the “Ten Cities, One Thousand Electric Vehicles” initiative launched in 2009 and local advantages in Hefei, Guoxuan partnered with JAC Motors to launch the world’s first all-electric bus route (Hefei Bus Route 18) in 2010. In 2012, Guoxuan’s power battery output value ranked first nationwide; at that time, Contemporary Amperex Technology Co. Limited (CATL) had only been established for one year, while BYD’s power battery business had not yet scaled up external supply—Guoxuan thus enjoyed a clear first-mover advantage. In 2015, Guoxuan went public via backdoor listing on the A-share market through Dongyuan Electric Appliances, becoming the first listed power battery company in China. But its golden era was short-lived. At the end of 2016, China’s Ministry of Finance and three other ministries raised the subsidy threshold for new energy vehicles by linking subsidies directly to battery energy density: pure electric passenger vehicles needed battery system energy density of no less than 90 Wh/kg to qualify for subsidies, and those exceeding 120 Wh/kg received a 1.1× subsidy multiplier. Ternary lithium batteries, with their higher energy density, easily cleared the 120 Wh/kg threshold and secured higher subsidies—quickly becoming the mainstream choice for passenger vehicles. By contrast, Guoxuan—having heavily bet on lithium iron phosphate (LFP)—was caught off guard. Its net profit attributable to shareholders plummeted from RMB 1.031 billion in 2016 to RMB 150 million in 2020, leaving it far behind CATL and BYD and downgraded from industry leader to a second-tier player. In May 2020, Volkswagen China announced a strategic investment of approximately €1.1 billion in Guoxuan High-Tech. The transaction officially closed in December 2021, with Volkswagen China acquiring a 26.47% stake and becoming Guoxuan’s largest shareholder (though Volkswagen waived part of its voting rights; the company’s actual controller remains founder Li Zhen). Backed by Volkswagen’s capital, technology, and overseas distribution channels, Guoxuan formally launched its catch-up campaign. As of now, Guoxuan employs over 30,000 people and reported RMB 45.07 billion in revenue (RMB 2.383 billion net profit attributable to shareholders) in 2025—yet its non-recurring net profit stood at only RMB 432 million, indicating relatively weak core profitability. Industry Position: ⭐⭐⭐⭐ Guoxuan’s core power battery business entered the global Top 5 for the first time in 2025. According to SNE Research data, Guoxuan’s global battery installation volume reached 53.5 GWh in 2025 (up 82.5% year-on-year), ranking first among the Top 10 global installers in growth rate and securing fifth place globally with a 4.5% market share. Entering 2026, Guoxuan’s momentum remains strong: its first-half 2026 global installation volume hit 28 GWh (up 43.3% YoY), significantly outpacing the industry’s average growth rate of 20%; its market share edged up to 4.6%, solidifying its position at fifth globally. Domestically, Guoxuan’s performance is even more impressive: per statistics from the China Automotive Power Battery Industry Innovation Alliance, Guoxuan installed 20.75 GWh of batteries in H1 2026, capturing a 6.19% domestic market share and ranking third—behind only CATL and BYD. Guoxuan’s most valuable asset is Volkswagen. On November 20, 2025, the jointly developed standardized cell entered mass production and delivery at Guoxuan’s Hefei factory—the first such global batch. Designed to be compatible with Volkswagen’s next-generation vehicle platform, this cell will cover over 80% of Volkswagen’s future NEV models. Both parties have already signed a seven-year long-term supply agreement covering 2026–2032.

Jiannian Daily, September 28: Zhijie RX Launches at Starting Price of RMB 259,800; Xiangjie V8 Opens Pre-orders at Starting Price of RMB 329,800; NIO and Geely Holding Group Reach Comprehensive Strategic Cooperation in Charging & Battery-Swapping Fields

• Geely Holding Group will contribute its 100% equity stake in Yiyi Interconnection plus RMB 640 million in cash to NIO Energy. Upon completion of the transaction, Geely Holding Group will hold a 30% stake in NIO Energy. Yiyi Interconnection’s commercial vehicle battery-swapping operations will be integrated into NIO Energy, which will continue enhancing the operation of the commercial vehicle battery-swapping network to empower Yiyi Interconnection’s commercial vehicle business. • The two parties will jointly build unified C-end battery-swapping technologies and standards. Geely Holding Group will develop battery-swappable models for the C-end market, while NIO Energy will provide battery-swapping services for Geely’s C-end battery-swappable models. This collaboration will further accelerate NIO’s battery-swapping network expansion. NIO Energy plans to build a cumulative total of 10,000 battery-swap stations by 2030, with an estimated annual electricity demand for the NIO battery-swapping network exceeding 10 billion kWh at that time. 2. Report: Changan Automobile Establishes AD Synergy Development Department; Avatr and Deepal Begin Substantive Integration On September 27, according to Yicai News, substantive integration between Changan Automobile’s two brands—Deepal and Avatr—has officially commenced. Specifically, Changan Automobile has announced the establishment of the AD (Avatr & Deepal) Synergy Development Department, designated as a first-level department. Under this department, several second-level departments—including Planning & Cooperation, Market & Product, Shared HR Center, Shared Finance Center, and General Affairs—have been set up to handle corresponding business functions delegated by Deepal Auto and Avatr. Changan Automobile recommends that Avatr establish shared or collaborative centers for styling design, product development, and platform technology to undertake related tasks delegated by Deepal; meanwhile, Deepal Auto will dissolve multiple business units and subordinate organizations. 3. Report: XPeng Motors Consolidates Its Product Lines On September 28, according to 36Kr Auto, XPeng Motors has consolidated its product lines—from the original four (F, D, I, and G) down to just two (G and D), with F and I lines fully merged into the G line. The original G line handled large SUVs such as the GX and G9L; the F line primarily covered sedan models like the P series; the D line focused on MONA-series models; and the I line managed overseas products. Additionally, XPeng Motors has carried out a round of personnel adjustments: the former head of the F line retains his rank but now oversees product definition for the G line; the former head of the I line has shifted to managing XPeng’s overseas affairs—excluding overseas vehicle sales. According to the report, XPeng’s product lines are responsible for functions including product definition and R&D. Consolidating four lines into two will help concentrate R&D resources, drive cost reduction, and mitigate internal competition among products in terms of positioning and pricing. 4. SAIC Motor Invests Additional RMB 1 Billion to Deepen Collaboration with Huawei Terminal On September 26, according to Xinhua News Agency, SAIC Motor and Huawei Terminal will further deepen their collaborative efforts under the “Shangjie” brand. In this new phase of enhanced cooperation, SAIC Motor will invest an additional RMB 1 billion to upgrade the Jinqiao Shangjie dedicated plant with intelligent manufacturing capabilities. Reportedly, this facility serves as a core manufacturing hub within SAIC Motor’s broader passenger vehicle strategy, constructed to “Industry 4.0” standards and benchmarked against globally leading automobile assembly plants. 5. Guoxuan High-Tech Plans Joint Overseas Ventures with Volkswagen AG On September 28, Guoxuan High-Tech announced that the company and its wholly owned subsidiaries intend to sign investment agreements with Volkswagen AG and its subsidiaries to jointly establish three joint ventures—in Valencia (Spain), Štúrovo (Slovakia), and Kenitra (Morocco)—to build lithium battery and lithium iron phosphate cathode material production bases. The total project investment is approximately €3.222 billion, of which Guoxuan’s portion amounts to roughly €1.598 billion.

China's Gotion Invests $1.25 Billion in Volkswagen Battery Plant in Spain

1 day ago

China's Gotion will invest $1.25 billion in Volkswagen's Valencia battery plant, acquiring a 49% stake to expand its European LFP battery supply chain. The deal includes joint ventures in Slovakia and Morocco, marking a major breakthrough for both companies' electric mobility goals.

reuters

2026-09-28

China's Gotion Invests $1.25 Billion in Volkswagen Battery Plant in Spain

China's Gotion Invests $1.25 Billion in Volkswagen Battery Plant in Spain

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