The Shanghai Stock Exchange has issued an inquiry letter to Golden Eagle Shares regarding its new energy battery materials business, which has posted negative gross margins for three consecutive years. In 2025, the segment generated revenue of 21.52 million yuan with a gross margin of negative 41.39 percent, and revenue has been highly volatile, reaching 75.85 million yuan in 2022 before plunging to 5.10 million yuan in 2023. The company responded that the business is heavily reliant on a single customer, Nantong Ruixiang, which accounted for 98.67 percent of revenue in 2025, and that revenue fluctuations are primarily driven by changes in order volumes from that customer. The persistently negative gross margin is mainly due to insufficient orders and low capacity utilization, which was just 3.98 percent in 2023, while processing fees have declined year by year, from around 12,500 yuan per tonne in 2021 to 5,767 yuan per tonne in 2025. The company stated it has no plans to divest the business for now and will work to improve profitability by optimizing its order mix, developing NCM811 high-nickel products, and acquiring new customers. It also said its existing production lines are not technologically obsolete, but that technical upgrades would be needed to mass-produce high-nickel products of the 8-series and above.
Zhejiang Golden Eagle Co LtdNew energy battery materials business has negative gross margins for three years, highly dependent on a single customer with volatile orders.
As the single customer accounting for 98.67% of revenue, its order changes drive the company's revenue fluctuations.