Gotion High-tech Co.

002074.SZ

Electrical Equipment & Parts · Industrials

Price

¥27.69

-0.20 (-0.72%)

Market Cap

¥50.25B

Exchange

Shenzhen Stock Exchange

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 28, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Exceptional

Cash Flow

Good

Stability

Weak

Valuation

Good

Dividends

Weak

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Share count rising — dilution

+8.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 1.66B (2021) → 1.81B (2025)

Winston Score History

The full picture

Gotion High-tech is a Chinese company that makes batteries, mainly lithium-ion battery packs used in electric vehicles and energy storage systems. Its customers include major automakers in China and globally, and it supplies batteries for electric cars, buses, and grid-scale storage projects. Volkswagen Group is a significant strategic investor, which has raised the company's international profile.

Gotion earns revenue by manufacturing and selling battery cells, modules, and packs to automakers and energy companies. It is headquartered in Hefei, China, and has been expanding production capacity both domestically and overseas, including planned facilities in Europe and the United States. While the Volkswagen partnership and growing global demand for EV batteries support its expansion, Gotion operates in an intensely competitive market with thin margins — its operating margin sits near 1% — and faces risks from battery technology shifts, raw material price swings, and increasing competition from larger rivals like CATL and BYD.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+55.4% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+406.7% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

¥2.4B/ year

↑ Rising (+13% vs prior year)

5.4% of revenue

In line with sector average (4%)

R&D investment increasing — building for the future

Insider Activity

44.7%ownership

Insiders own a meaningful stake in the company

Cash Runway

~18 months

¥27.2B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Adequate runway but may need to raise capital within 2 years

Revenue accelerating

Gotion High-tech Co. grew revenue 55% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

14.5%

Thin — 14.5% gross margin

Profit after running costs

Operating Margin

4.4%

Thin — 4.4% operating margin

Return on the money invested

ROCE

0.6%

Weak — 0.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

+40.7%

Fast-growing sales (+40.7% YoY)

Profit growth

EPS YoY

+151.9%

Earnings growing fast (+151.9% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

111%

Turns 111% of profit into real cash

Spare cash per sale

FCF Margin

-22.9%

Burning cash (-22.9%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

2.45

Heavy debt load (2.45)

Covers its interest

Interest Cover

0.40x

Dangerous — barely covers interest (0.4x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

Price vs profit

P/E Ratio (TTM)

14.7x

Attractive valuation — P/E 14.7

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

-13.2

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend

Dividend Yield

0.36%

Small dividend — 0.36% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

-13.5%

Dividend cut (-13.5% YoY) — warning sign

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