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

On March 6, Xianhui Technology (688155.SH) announced that, from November 19, 2025 to the date of disclosure of this announcement, the company and its controlling subsidiaries, Fujian Dongheng, have cumulatively received from CATL and its controlling subsidiaries the amounts of various contracts and appointment notice letters totaling approximately RMB 945 million (excluding tax). This contract is an everyday operating contract. The company has completed the internal approval procedures for signing this contract.

Regarding obtaining CATL orders, Xianhui Technology stated that, since the new energy vehicle market is currently in a phase of rapid development, it provides favorable market opportunities for implementing this contract. The company also has certain advantages in technical quality indicators such as the flexibility and smart level of the equipment itself, assembly accuracy, and operational stability, as well as its ability to provide follow-up maintenance services. As a result, both parties have strengthened their cooperation on the basis of the strong collaboration between them. If this sales contract is successfully fulfilled, it is expected to have a positive impact on the company’s performance for fiscal years 2025–2026, helping to enhance the company’s sustainable profitability and core competitiveness.

Public information shows that Xianhui Technology mainly engages in the research and development, production, and sales of various intelligent manufacturing equipment, and officially entered CATL’s battery automation production line supply chain in 2019. According to the announcement, in 2022–2024, Xianhui Technology and CATL and its controlling subsidiaries signed tax-exclusive contract amounts (in ten thousand yuan) of 1.597 billion, 2.078 billion, and 2.01 billion, respectively, accounting for 88.46%, 84.86%, and 81.57% of the company’s operating revenue for the respective years.

In 2025, Xianhui Technology also disclosed three times contract information it signed with CATL. According to the announcements in April, August, and November last year, from November 20, 2024 to November 18, 2025, the company and Fujian Dongheng have cumulatively received from CATL and its controlling subsidiaries the amounts of various contracts and appointment notice letters totaling approximately 2.182 billion (excluding tax).

A 2025 annual performance forecast report disclosed on February 27 shows that, last year, the company achieved revenue of RMB 2.994 billion, representing a year-on-year increase of 21.52%; net profit attributable to the parent company was RMB 352 million, representing a year-on-year increase of 57.75%.

Regarding changes in performance, Xianhui Technology said that this is mainly because the company has deeply implemented the lean management philosophy, leading to an improvement in operating efficiency, which in turn increased the gross profit margin of the main business. Second, the company’s overseas projects have significant advantages in gross profit margin. In 2025, the overseas projects for which revenue was recognized increased compared with 2024, effectively driving an improvement in the gross profit margin of the company’s main business.