EVE Energy reported first-half 2026 revenue of RMB45.69 billion, up 62.20% year on year, while net profit attributable to shareholders rose 105.66% to RMB3.30 billion, the first half-year profit above RMB3 billion since its listing. Net profit excluding non-recurring items increased 111.89% to RMB2.45 billion, basic earnings per share were RMB1.57, and the company proposed an interim cash dividend of RMB2.30 per 10 shares based on 2.173 billion shares outstanding. Revenue and profit reached the upper end of the company’s earlier guidance range, but operating cash flow turned negative at RMB388 million, compared with positive RMB2.37 billion a year earlier, as strategic inventory buildup and payments for goods absorbed cash. Consumer batteries generated RMB6.41 billion of revenue, power batteries RMB17.28 billion and energy storage batteries more than RMB15.09 billion, while battery materials revenue rose 140.73% to RMB6.87 billion. Energy storage shipments reached 44.46 GWh, above power battery shipments of 35.76 GWh. EVE’s 46-series large cylindrical cells entered BMW’s Neue Klasse supply chain, while commercial vehicles remained central to its power-battery ranking in China. The company ranked second globally in commercial vehicle power-battery installations and energy-storage battery shipments in the first half, according to SNE Research. Profit growth was supported by operating leverage and a 263.55% increase in investment income to RMB1.18 billion, but overall gross margin fell to 14.31%, with segment margins pressured by higher lithium carbonate and other raw-material costs. Overseas revenue rose 62.61% to RMB11.33 billion, and EVE advanced solid-state and sodium-ion battery programs. China’s planned lithium-battery consumption tax, starting at 2% on Sept. 1, 2026, and rising to 4% on Sept. 1, 2027, adds a policy challenge that the company said was manageable. The next test is whether EVE can convert expanded capacity, inventory and overseas orders into sustainable cash flow and profit.