Battery Industry Challenges and Our Solution

Since December 2025, the global battery industry has faced several significant challenges. The continuous rise in raw material prices, exchange rate fluctuations, and policy changes have put pressure on companies, signaling a new phase of industry transformation. Below is an analysis of the current industry status, our response strategies, and the opportunities and challenges ahead.

 Industry Status

In recent months, raw material prices in the battery industry have surged. Cell costs have increased by 10%, while protection board costs have risen by 5%. Meanwhile, the US dollar entered a rate-cutting cycle, leading to a depreciation of the RMB from 7.35 to 6.95, directly impacting procurement costs and profit margins.

Additionally, in early January 2026, the Chinese government introduced new export tax rebate policies. From April to December 2026, the lithium battery export rebate rate will decrease from 9% to 6%. By 2027, the rebate will be fully phased out. This policy change will further increase export costs for Chinese battery companies, intensifying market competition.

 Our Solution

In the face of these challenges, Shenzhen Jinjunye Electronics Co., Ltd. continues to uphold the strategy of "innovation and quality." To cope with the rising material costs, we have taken the following key measures:

• Optimizing Supply Chain Management: Strengthening partnerships with core suppliers to ensure quality while reducing procurement costs.

• Enhancing Product Value: Investing in battery technology R&D to improve product competitiveness, ensuring we maintain market share despite price pressures. 
  

• Increase investment in automated production We already have a wide range of advanced automation equipment, and we will increase our investment in this area to improve production efficiency and product quality
  

Looking Ahead

Shenzhen Jinjunye Electronics will focus on quality and innovation to overcome challenges and drive growth, aiming to strengthen our industry leadership and achieve greater success.