Most Battery Producers Reported Profit Margins below 20%

SHANGHAI, Apr. 7 (SMM) – Eight of the nine listed battery companies have released their annual reports, and their profit margins in 2012 were basically reported between 10%-20%.

Profits, particularly those for electric vehicle batteries, fell sharply in 2012 due to overcapacity caused by massive expansion and the price war. Profits at Tianneng Power and Chaowei Power were 18.76% and 19.80% in 2012, respectively, down 7.63% and 8.7% YoY. Meanwhile, profits for motive batteries of Sacredsun and Narada Batteries fell 0.88% and 7.28% to 10.67% and 12.68%.
 

The intensifying competition and rising costs for lead-acid battery industry caused many battery producers to develop products with high added value, accelerating industry transformation.

Nevertheless, the profits for backup and ignition batteries did not fall significantly, but ignition battery sales were weighed on due to slowing growth in automobile industry last year.

The profits for backup batteries of Narada and Sacredsun rose 2.61% and 1.72% to 23% and 19.45%, respectively.

Dynavolt Power Technology which primarily exports batteries to overseas market and focuses on nano gel batteries with high technical content, reported its profit at 25.86%.

The weakening demand and falling prices caused profit margins for lead-acid batteries to fall last year, but the margin was still above that for nonferrous metals industry.