On the evening of February 12, Great Power released two consecutive announcements regarding foreign investments. The company plans to invest a total of RMB 3.3 billion to construct two major battery production projects in Yicheng District and Zhengyang County, Zhumadian City, Henan Province. The investment focuses on the layout of 587Ah and 120Ah battery production capacities.
RMB 3.3 Billion Investment to Build Two Major Battery Production Projects
According to the announcements, this investment consists of two independent projects.
The project located in Yicheng District, Zhumadian City, has a planned total investment of RMB 1.2 billion. This project will be implemented by Henan Great Power Power Co., Ltd., a wholly-owned subsidiary of Great Power. The construction content includes one production line for 587Ah batteries and one production line for 120Ah batteries.
The other project is located in Zhengyang County, Henan Province, with a planned total investment of RMB 2.1 billion. This project will be implemented by an independent legal entity (project company) to be registered and established by Great Power in the locality. Unlike the Yicheng District project, the Zhengyang County project will concentrate on the construction of four production lines for 120Ah batteries.
Regarding the funding sources for the two aforementioned investments, Great Power stated in the announcements that it will utilize its own funds or self-raised funds. The company expects to raise construction funds through a "combination of equity and debt," utilizing channels including, but not limited to, bank financing, the issuance of convertible bonds, preferred shares, rights issues, or private placement of shares.
This expansion plan is closely aligned with the company's latest product strategy. During an investor relations activity on January 22, Great Power revealed that the company plans to put the 587Ah large-capacity cell into production in 2026. The Phase II plant at its Quzhou base has already been completed, and output is expected this year. Regarding the 587Ah product, there is already demand from domestic customers for this model, while overseas demand is expected to be released in 2027.
Booming Production and Sales Drive Performance Turnaround
Behind the large-scale expansion lies the saturation of Great Power's existing capacity and a significant improvement in performance.
The company's 2025 annual performance forecast shows that the net profit attributable to shareholders of the listed company for 2025 is expected to range from RMB 170 million to RMB 230 million. Compared to the loss of RMB 252 million in the same period of the previous year, the company has successfully achieved a turnaround from loss to profit. Net profit after deducting non-recurring gains and losses is expected to be between RMB 80 million and RMB 110 million.
The company stated that the performance change benefited primarily from the positive industry trend, booming production and sales for products, and an increase in sales orders driving revenue growth. Currently, the company’s production lines for major energy storage product models—such as the 314Ah large storage cell, as well as the 100Ah and 50Ah small storage cells—are all at full capacity.
Locking in Niche Market Opportunities and Strengthening Risk Resilience
This large-scale expansion targeting different battery specifications demonstrates Great Power's precise assessment of the future supply and demand landscape in global energy storage market segments.
In terms of market segments, Great Power noted that the supply of "small storage" cells is currently very tight. Driven by subsidy policies in Europe and Australia, demand for household storage has resumed growth. Meanwhile, top manufacturers have been cautious about expanding production, resulting in a favorable supply and demand landscape. The 120Ah production lines, which are the key layout in Zhengyang County, Henan, are expected to further alleviate the capacity bottlenecks for such small and medium-sized energy storage cells.
Regarding "large storage," the company believes the growth prospects for the coming years are clear. Domestically, the sector benefits from the National Development and Reform Commission's action plan regarding the large-scale construction of new energy storage. Overseas, due to power shortages caused by the deployment of computing centers in the United States and the need for grid transformation, large storage orders are expected to see a significant increase in 2026.
Regarding raw material price fluctuations, specifically changes in lithium carbonate futures prices, the company has adopted commodity hedging operations to hedge risks and has begun signing price-linkage contracts with customers. Regarding sodium battery technology, although the company has accumulated technical expertise, given the current price level of lithium carbonate, the cost-performance advantage of sodium batteries over lithium batteries is not yet significant.
Source：EnergyTrend