BRIEF: Zenergy swings to the black on growing economies of scale
Lithium ion battery maker Jiangsu Zenergy Battery Technologies Group Co. Ltd. (3677.HK) said on Thursday it expects to report a profit of between 198 million yuan ($27.6 million) and 243 million yuan for the first half of the year, reversing a net loss of 130 million yuan in the year-ago period.
The company credited rising sales for its move to profitability, as more of its batteries get used in mass-produced electric vehicles. It pointed out that its improving efficiency helped to boost its gross margin for the period. As it gained economies of scale, its expense ratio also decreased significantly year-on-year, it added.
Zenergy’s shares opened higher and were up 0.76% at HK$10.66 in early Friday trade. The stock is up 29% from its IPO price of HK$8.27 in April.
By Doug Young
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