Xianhui Technology secures a sales contract worth 945 million yuan with CATL again

On March 6th, Xianhui Technology (688155.SH) announced that, from November 19, 2025, to the date of this announcement, the company and its holding subsidiary Fujian Dongheng have cumulatively received various contracts and designated notices from CATL and its holding subsidiaries amounting to approximately RMB 945 million (excluding tax). This contract is a routine operational contract for the company, which has completed the internal approval procedures for signing this contract.

Regarding the orders received from CATL, Xianhui Technology stated that due to the rapid development phase of the new energy vehicle market, there are good market opportunities for the implementation of this contract. Additionally, the company has certain advantages in technical quality indicators such as the flexibility, intelligence level, assembly accuracy, and operational stability of the equipment itself, as well as in subsequent maintenance service capabilities. Consequently, both parties have strengthened their cooperation based on the original good cooperation foundation. If this sales contract is successfully executed, it is expected to have a positive impact on the company’s performance for the 2025-2026 fiscal year, which will help enhance the company’s sustainable profitability and core competitiveness.

Public information shows that Xianhui Technology mainly engages in the research, development, production, and sales of various intelligent manufacturing equipment, officially entering CATL’s battery automation production line supply chain in 2019. The announcement disclosed that from 2022 to 2024, Xianhui Technology signed tax-excluded contracts with CATL and its holding subsidiaries amounting to RMB 1.597 billion, RMB 2.078 billion, and RMB 2.01 billion, accounting for 88.46%, 84.86%, and 81.57% of the company’s annual operating revenue, respectively.

In 2025, Xianhui Technology also disclosed contract information signed with CATL three times. According to its announcements in April, August, and November last year, from November 20, 2024, to November 18, 2025, the company and Fujian Dongheng have cumulatively received various contracts and designated notices from CATL and its holding subsidiaries amounting to approximately RMB 2.182 billion (excluding tax).

According to its performance preliminary report disclosed on February 27, the company achieved revenue of RMB 2.994 billion last year, a year-on-year increase of 21.52%; net profit attributable to the parent company was RMB 352 million, a year-on-year increase of 57.75%.

Regarding the changes in performance, Xianhui Technology stated that the main reason is the company’s deep implementation of lean management concepts, leading to improved operational efficiency and an increase in the main business profit margin. Additionally, the company has significant advantages in gross profit margins for overseas projects, with an increase in revenue recognition for overseas projects in 2025 compared to 2024, effectively driving the increase in the main business gross profit margin.