Net profit of $670 million: Panasonic Group releases Q3 financial results

Recently, NetEase Auto learned from the overseas media outlet InsideEVs that Panasonic Group’s net profit for the third quarter of 2021 amounted to $670 million, with total sales reaching $15.4 billion—a 4% year-on-year increase; operating profit stood at $850 million, also up 4% year-on-year; and net profit rose 30% year-on-year to $670 million. Notably, in its automotive business segment, Panasonic recorded sales of $3.15 billion, but operating profit was negative $24 million, with gross margin declining by 0.8 percentage points. Specifically, Panasonic’s cylindrical lithium-ion battery business continued to grow steadily. Lithium-ion batteries produced for Tesla at the Gigafactory Nevada achieved profitability for the full year. In August this year, Panasonic commenced production of its 2170-type batteries; currently, 14 production lines are operational, with total annual capacity reaching 38–39 GWh. Combined with new production lines and Panasonic’s existing 1865-type battery plant in Japan, total annual capacity will reach 50 GWh—sufficient to meet the annual demand of at least 100,000 Tesla Model S/X vehicles.

Building cars for Chery for 20 years: Mosntech ties 60% of its revenue to a single automaker

During two rounds of review inquiries, the Beijing Stock Exchange repeatedly probed this issue. Mosntech responded candidly: “Should our major customer undergo changes in its own business operations or experience a significant adverse shift in its cooperative relationship with us—resulting in a sharp decline in procurement volume of our products—our operating performance would be adversely affected.” The company also stated that, although its cooperation with Chery has experienced fluctuations, Chery’s core status remains stable. As of July 1, 2026, Chery has awarded Mosntech 25 projects still awaiting mass production, most of which are expected to enter mass production within 2026. (Image / Jiemian Image Library) Yet these so-called “positive developments” ironically corroborate regulators’ concerns: future growth remains tightly coupled to Chery’s vehicle launch schedule. The more awarded projects there are, the deeper—not shallower—Mosntech’s dependence on Chery will become over the next two to three years. 2. Cashing out while simultaneously seeking capital? Riding the wave of Chery’s rising sales, the company’s revenue grew from RMB 1.572 billion in 2023 to RMB 1.956 billion in 2024, while its net profit attributable to shareholders increased from RMB 193 million to RMB 264 million. Its sunroof business—the main revenue driver—contributed approximately 60% of total revenue. During those two years, Chery Group’s annual vehicle sales successively surpassed 1.8 million and 2.6 million units; as a core supplier, Mosntech naturally benefited. But the wind shifted in 2025: revenue declined slightly to RMB 1.924 billion (a 1.6% drop), and net profit attributable to shareholders fell to RMB 225 million—a roughly 15% year-on-year decline. The nearly tenfold gap between the profit decline and the revenue decline indicates the problem is not merely “selling less,” but “selling cheaper.” The gross margin of its core sunroof business tells the clearest story: 21.38%, 21.15%, and 19.55% across the three reporting periods—down nearly two percentage points over three years. In its prospectus, the company explicitly attributes this primarily to price cuts imposed by downstream OEMs. This reflects a widespread predicament across the auto parts industry: OEMs impose annual price reductions (“yearly cost-down”), slicing away suppliers’ profit margins bit by bit. Moreover, Mosntech faces Chery—a related-party major customer—whose pricing fairness is already under close regulatory scrutiny, further constraining Mosntech’s bargaining power. The performance forecast for the first half of 2026 offers no sign of reversal either. According to the announcement, the company expects revenue of RMB 825–865 million, representing a year-on-year change of −4.48% to +0.15%; and net profit attributable to shareholders of RMB 97–104 million, reflecting a year-on-year change of −6.41% to +0.34%. Accounts receivable represent another latent risk. During the reporting period, accounts receivable accounted for 51.30%, 45.52%, and 31.1% of current assets, respectively. Although the proportion is declining, the absolute scale remains substantial. OEMs’ dominant position in the industrial chain manifests clearly in payment terms—suppliers deliver goods first and receive payment later, often waiting months before cash inflow. Should the major customer’s operational condition fluctuate, impairment of accounts receivable could directly erode profits. What truly caught market attention, however, is the stark contrast between dividend payouts and fundraising efforts. During the reporting period, Mosntech distributed dividends of RMB 53.01 million, RMB 63.61 million, and RMB 84.82 million—totaling RMB 201 million. Its controlling shareholder, Wuhu Investment & Holding Co., Ltd., holds 42.87% of shares and received over RMB 86 million in dividends over the three years.

India's Motherson Sumi posts quarterly profit rise on strong auto-part demand

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Motherson Sumi Wiring posted a 35% quarterly profit rise driven by auto demand, despite raw material costs including copper jumping 55.4%.

reuters

2026-10-30

India's Motherson Sumi posts quarterly profit rise on strong auto-part demand

India's Motherson Sumi posts quarterly profit rise on strong auto-part demand

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