Farasis Energy says revenues in 2021 increased compared to last year, but net losses increased

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Shanghai (Gazgu) – Chinese manufacturer of energy batteries Farasis Energy (Ganzhou) Co., Ltd. (“Farasis Energy”) announced today that its revenue for the full year in 2021 grew by 203.97% year on year to about 3.403 billion yuan ($ 538.71 million).

However, the shareholders’ annual net loss was increased to 974.211 million yuan ($ 154.203 million) from 331.004 million yuan ($ 52.393 million), according to the company’s financial results.

Photo: Farasis Energy

Last year, base earnings per share were minus 0.91 yuan (minus $ 0.14) versus minus 0.35 yuan (minus $ 0.055) in 2020.

The company said the steady growth in annual revenue is largely due to growing supplies for many OEM customers. For example, it began supplying batteries for models such as EQS, EQA and EQB to its main customer, Mercedes-Benz. Meanwhile, GAC Group’s procurement volume has also clearly increased.

Farasis Energy attributes the increase in net loss in 2021 to factors such as falling product prices and rising commodity prices, investment in research and development and depreciation of capital incentives.

The company noted that prices for battery products remain relatively low, in part due to the overall decline in average industrial battery prices.

In addition, when the company negotiated with customers in 2020 on product prices for next year, it negotiated lower prices taking into account lower commodity prices and market trends at the time.

To maintain a reliable partnership with customers, the battery manufacturer has also offered some discounts to deepen cooperation.

In 2021, prices for basic raw materials rose due to growing demand for batteries. However, the prices of the products that the company negotiated with customers were not adjusted in time, which led to a greater loss of net profit.

The company noted that prices for its products have now returned to normal.

Increased research and development costs were also a factor that led to greater net losses. In 2021, the company allowed significant investment in research and development in areas such as solid state batteries, heat management and energy storage.

Farasis Energy says revenues in 2021 increased compared to last year, but net losses increased

Source link Farasis Energy says revenues in 2021 increased compared to last year, but net losses increased