Farasis Energy faces market competition pressure

As one of the world's leading companies in ternary soft-pack power batteries, Farasis Energy faces market competition pressure. In 2023, the company's global power battery shipments exceeded 16GWh, but its net profit has been in the red for four consecutive years. The company said that the main reason was that costs and expenses remained high, and the gross profit margin of the main business was lower than that of the same industry. In 2023, Farasis Energy achieved revenue of 16.436 billion yuan, a year-on-year increase of more than 40%, but the net profit loss was nearly 1.868 billion yuan, an increase from the previous year. The company explained that the main reasons were factors such as declining gross profit, asset impairment losses, and increased R&D investment.