Management characterized 2025 as a definitive transitional period defined by a structural upgrade of the product portfolio and a pivot toward next-generation battery form factors.

Performance was driven by a paradigm shift at the Dalian facility, where customers are transitioning from legacy 26-series cells to the newly introduced Model 40135 units.

The company successfully commissioned 2.3 GWh of 40135 capacity at Dalian and 3.0 GWh of 32140 capacity at Nanjing Phase II to address demand that currently far exceeds available supply.

Short-term profitability was intentionally suppressed by higher unit costs and suboptimal yields inherent to the intensive capacity ramp-up phase of these new production lines.

Strategic positioning was bolstered by a move into battery pack integration via the Nanjing BFD subsidiary, serving end-users directly and bypassing intermediate integrators.

The raw material segment, Hitrans, delivered a powerful turnaround due to an upward cycle in material prices, providing a vertical hedge against rising costs in the battery segment.

Global growth was accelerated by deep strategic partnerships in Africa with SPIRO and expansion into India and Vietnam with blue-chip clients like Anker and Scania.

Management projects with absolute confidence that consolidated sales will reach a record high in 2026 as capacity ramp-ups near completion.

The Dalian facility ramp-up is expected to be finalized in the first half of 2026, while the larger Nanjing Phase II facility is targeted for full capacity by early 2027.

To hedge against the PRC government's phase-out of export tax rebates, the company is localizing its supply chain with a new manufacturing facility in Malaysia.

Hitrans is expanding infrastructure with a 10,000 metric ton cathode plant and a 37,000 metric ton precursor facility slated for operation by the first half of 2027.

R&D efforts are accelerating for next-generation large-format cylindrical models (60115, 60135, 60150) and sodium-ion chemistries for low-temperature resilience.

The company is redomiciling from Nevada to the Cayman Islands to align its corporate structure with aggressive international expansion and improve administrative efficiency.

A $5 million compensation payment was successfully enforced and collected from a canceled customer order, significantly bolstering other income for the year.

Management implemented a substantive financial hedging structure using foreign currency forwards and commodity contracts to neutralize macroeconomic volatility.

The PRC export tax rebate for lithium-ion batteries will be reduced from 13% to 9% currently, with a further drop to 6% in April 2026 and total elimination by January 2027.

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Management expects gross margins to gradually recover in the second half of 2026 as the Dalian facility completes its ramp-up.

Full-year 2026 margins are anticipated to show significant improvement over current levels, though the Nanjing Phase II ramp-up extends into early 2027.

The new battery pack assembly unit is dedicated to serving a top-5 African customer using 32140 cells from the Nanjing factory.

Management believes their battery technology offers a competitive advantage in high-temperature environments typical of Southeast Asian, Indian, and African markets.

While currently focused on residential and portable ESS, the company is in the R&D phase for large prismatic cells designed for grid-size storage.

This initiative aims to expand the portfolio beyond the current focus on smaller-scale energy storage applications.

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