Lead batteries supercharge Leoch results

Lead batteries supercharge Leoch results

Lead batteries supercharge Leoch results 883 515 Batteries International

September 1, 2022: Chinese lead and lithium batteries manufacturer Leoch said in unaudited half-year results announced on August 26 that lead batteries were the key driver in achieving a 19% increase in revenue over the corresponding period in 2021.

Leoch chairman Dong Li said revenue for the six months ended June 30 was more than Rmb6.1 billion ($885 million) compared to Rmb5 billion previously — a result in line with a forecast issued last month.

The group’s reserve power batteries unit, including AGM and pure lead products, was the major revenue contributor for the period. These products accounted for 48% of total sales (Rmb3 billion compared to Rmb2 billion previously).

Revenue from Leoch’s overall batteries business amounted to nearly Rmb5 billion — a 16% increase from the corresponding period in 2021.

Leoch’s lead recycling business generated revenue of Rmb1.25 billion (a rise of 35%), while overall profit for the period increased by 117% to Rmb96 million.

On future prospects, Dong said “overwhelming” global risks including the energy crisis, inflation and tough trading conditions could hit overseas market growth and suppress battery sales.

However, Dong said the group believed its reserve power battery business “will be one of the key growth drivers in 2022 and China’s market will be the major revenue generator in this category”, thanks to ongoing strong support from the Chinese government for investments in sectors such as 5G telecoms infrastructure.