Key takeawayEnjie’s improved profitability came from higher separator sales volumes and stabilizing prices, while its overseas capacity and solid-state electrolyte projects position it for future business at different stages of development.
Why did profitability improve faster in the third quarter?
- Enjie reported third-quarter revenue of 5.555 billion yuan, up 46.95% year on year; net profit attributable to shareholders was 974 million yuan, up 142.52% year on year and approximately 73% from 560 million yuan in the second quarter.
- Revenue for the first three quarters was 14.226 billion yuan, up 49.07% year on year; net profit attributable to shareholders was 1.794 billion yuan, returning to profit from a year-earlier loss. The improvement mainly came from higher sales volumes, stabilizing prices, and rising revenue and gross margin.
- Sinolink Securities believes lithium-ion battery separators are characterized by long cycles, high capital intensity and high barriers to entry, and may benefit from price increases during an industry upturn. It forecasts Enjie’s net profit attributable to shareholders at approximately 2.5 billion yuan, 4.8 billion yuan and 6 billion yuan, respectively, for 2026–2028.
How far has overseas separator capacity progressed?
- According to EVTank, Enjie has ranked first globally by lithium-ion battery separator market share for consecutive years, with customers spanning power, consumer and energy storage batteries.
- The first phase in Hungary has planned base-film capacity of approximately 400 million square meters; its production lines have entered mass production and begun shipments. The company has also signed long-term supply and capacity reservation agreements with ACC and leading international battery manufacturers, with orders covering 2025–2033.
- Expansion continues: the second phase in Hungary has planned capacity of 800 million square meters, and the US coated separator facility has planned capacity of 700 million square meters; both are under construction.
What stage is the solid-state electrolyte business at?
- The company is developing lithium sulfide, sulfide solid-state electrolytes and solid-state electrolyte membranes: its lithium sulfide pilot production line has begun operation, the 10-tonne-scale solid-state electrolyte production line has been fully connected end to end, and the electrolyte membrane remains at the laboratory-scale research and development stage.
- The sulfide solid-state electrolyte project for which the company signed an agreement with Yuxi High-Tech Zone in Yunnan has a total investment of 300 million yuan. Once fully built and operational, it is expected to have annual material production capacity of 1000 tonnes. This planned capacity is at a different stage from the currently connected 10-tonne-scale production line.
