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 this announcement, the company and its controlling subsidiary Fujian Dongheng have received from CATL and its controlling subsidiaries payments totaling approximately RMB 945 million (excluding tax) for various contracts and appointment notification letters. This contract is a routine business contract for the company, and the company has fulfilled 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 rapid development stage, it provides favorable market opportunities for the implementation of this contract. In addition, the company has certain advantages in technical quality indicators of the equipment itself—such as flexibility and intelligence, assembly accuracy, and operational stability—as well as capabilities in follow-up maintenance services. As a result, on the basis of their previously strong cooperation, both parties have strengthened collaboration. If this sales contract is completed smoothly, it is expected to have a positive impact on the company’s financial performance for 2025–2026, and will help enhance the company’s sustained profitability and core competitiveness.

According to publicly available information, Xianhui Technology mainly engages in the R&D, production, and sales of various intelligent manufacturing equipment. In 2019, it officially entered CATL’s battery automation production line supply chain. The announcement discloses that in 2022–2024, Xianhui Technology and CATL as well as its controlling subsidiaries signed contracts with contract amounts excluding tax (RMB 10,000 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 in the respective years.

In 2025, Xianhui Technology also disclosed the contract information it 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 cumulatively received from CATL and its controlling subsidiaries payments totaling approximately RMB 2.182 billion (excluding tax) for various contracts and appointment notification letters.

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

Regarding the change in performance, Xianhui Technology said that this was mainly because the company achieved improvements in operating efficiency through the in-depth implementation of the lean management philosophy, leading to an increase in the gross profit margin of its main business. Second, the company’s overseas projects have significant advantages in gross profit margin; compared with 2024, overseas projects for which revenue recognition was achieved in 2025 increased to some extent, effectively promoting an improvement in the gross profit margin of the company’s main business.