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, through the date of this announcement, the company and its holding subsidiaries Fujian Dongheng have cumulatively received from CATL and its holding subsidiaries amounts of various contracts and designated notification letters totaling approximately RMB 945 million (excluding tax). This contract is a routine business contract for the company, and the company has completed the internal approval procedures for signing the 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 the implementation of this contract. In addition, the company has certain advantages in technical quality indicators of the equipment itself—such as flexibility, intelligence level, assembly accuracy, and operational stability—as well as capabilities in subsequent maintenance services. Therefore, on the basis of the existing strong cooperation between the two parties, both sides have strengthened their cooperation. If this sales contract is successfully fulfilled, it is expected to have a positive impact on the company’s performance for 2025–2026, which will help enhance the company’s continuing profitability and core competitiveness.

Public information shows that 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. As disclosed in the announcement, from 2022 to 2024, the tax-exclusive contract amounts (RMB ten-thousand yuan) signed by Xianhui Technology with CATL and its holding subsidiaries were 1.597 billion, 2.078 billion, and 2.1 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 contract information it signed with CATL three times. According to its announcements from last April, August, and November, from November 20, 2024, to November 18, 2025, the company and Fujian Dongheng cumulatively received from CATL and its holding subsidiaries amounts of various contracts and designated notification letters totaling approximately RMB 2.182 billion (excluding tax).

According to its performance pre-announcement for 2025 disclosed on February 27, last year the company achieved operating revenue of RMB 2.994 billion, representing a year-on-year increase of 21.52%; the net profit attributable to shareholders was RMB 352 million, representing a year-on-year increase of 57.75%.

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