Veson Holdings Limited Overview
Veson Holdings is a Fuzhou-based contract designer and manufacturer (ODM) of lithium-ion battery modules (packs) for consumer electronics. Its core products are smartphone batteries, followed by tablet, notebook and power-bank batteries and a small, growing line of "new power" products for wearables, in-vehicle electronics and storage. More than 90% of revenue comes from ODM sales to a concentrated group of well-known PRC and international handset and internet-hardware brands; the top five customers took 77.6% of FY2025 sales. The company integrates purchased cells with its in-house battery-protection circuitry and PCBA, so it sits in the mid-stream pack-assembly layer of the value chain, between cell makers and device OEMs. This is a high-volume, thin-margin business: FY2025 gross margin was 7.6% on RMB5.23bn of revenue. The company has emerged from a multi-year revenue decline (FY2021 peak RMB7.09bn) and returned to profit in FY2025 and H1 2026. Its balance sheet is highly geared (102.8%), and the founder holds tight control.
Company's own description (FY2025 Annual Report, paraphrased)
The FY2025 annual report describes Veson as a PRC lithium-ion technology company with two roles: a leading supplier of lithium battery solutions for consumer electronics and smart hardware, and a manufacturer that integrates battery modules. Operations fall into two businesses:
ODM (original design manufacturing): Supplies lithium-ion battery modules to well-known domestic and international communications brands. Products are mainly mobile-phone, tablet and notebook batteries and power banks.
Battery cell business: Bare lithium-ion cells.
The company says it is adjusting strategy to address growing battery demand in emerging consumer electronics. It is exploring wearable-device batteries, automotive batteries and energy-storage batteries. It attributes its reputation for safety and quality to its self-developed power-management (protection) systems and its module-packaging technology.
Its main production base is in Fuzhou. Management cites international-standard controls from supplier selection through quality control, and automated, precise processes as the basis for large-scale delivery. The corporate motto is "Efficiency, Innovation, Excellence and Integrity" (FY2025 Annual Report, Corporate Profile).
Independent characterisation
In practice Veson is a captive-style pack assembler. It does not make most of its own cells: the bare cell segment is only 1.8% of FY2025 revenue and loss-making. Direct materials, mainly purchased cells, accounted for 91.8% of FY2025 cost of sales. Direct labour was 5.0% and other production costs 3.2% (FY2025 Annual Report).
The value it adds is in four areas:
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Battery-management and protection-circuit design (PCM/BMS).
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Mechanical and industrial design of the pack.
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Surface-mount (SMT) PCBA assembly.
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High-throughput, qualified manufacturing inside customers' supply chains.
The economics resemble an EMS/ODM business. Pass-through material cost is high, gross margins sit in the mid-single digits (6.4–7.6% over FY2022–H1 2026), and receivable days are long (112 days in FY2025). Earnings depend heavily on utilisation, customer allocation decisions and interest costs.
Revenue model
| Revenue type | Description | Approx. weight |
|---|---|---|
| Product sales (point in time) | Finished battery modules, power banks, new power products; bare cells | Vast majority. ODM 94.4% and cells 1.8% of FY2025 turnover |
| Processing services (over time) | PCBA/SMT processing, including for connected parties (Scud Power Technology) under framework agreements | Included within ODM/Others; not separately quantified in extracts reviewed |
| Other | Sales of raw materials and work-in-progress, mould sales, rental income (e.g., premises leased to Scud Stock at about RMB7.48m p.a.) | "Others" residual of about RMB196m in FY2025 (derived) |
| Subscription / licensing | — | 0% |
Value-chain position, customers and end-markets
Upstream: cell suppliers and component vendors. The top five suppliers took 58.9% of FY2025 purchases, and the largest single supplier 30.0%.
Midstream (Veson): pack design, BMS/PCM, PCBA, assembly, testing.
Downstream: smartphone, tablet, notebook and smart-hardware brands, plus power-bank programmes for major customers. Customers are not named in filings. They are described as well-known domestic and international mobile-communication and internet-technology companies.
End-markets: smartphones (59.9% of FY2025 group turnover), tablets (17.1%), power banks (6.3%), new power products such as wearables, in-vehicle and storage (4.3%), notebooks (4.0%) and bare cells (1.8%).
Strategy
Stated strategy (FY2025 Chairman's Statement and MD&A; themes paraphrased)
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Defend and grow core customers. Strengthen relationships with core customers, improve product and service quality, and secure stable, growing order share.
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Profit over revenue. Management explicitly states that the future business plan will prioritise profit improvement rather than revenue growth.
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Cost discipline. Strict control of fixed costs and raw-material procurement, plus supply-chain integration, to protect gross and net margins.
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Mix upgrade. Deepen penetration of higher-margin categories, optimise the product structure, and cultivate new projects and customers.
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Diversification. Reduce dependence on phone batteries by expanding tablets, notebooks and power banks, and new segments (wearables, AR/VR, in-vehicle electronics, energy storage, smart hardware).
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Manufacturing excellence. Automate and add intelligence to equipment, increase equipment versatility to cut line capex, and shorten development cycles.
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R&D focus. Industrial design and AI technology applications; exploration of new materials and advanced manufacturing processes.
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ESG. Energy-saving products, green innovation and social responsibility.
Initiatives in the last 24 months
| Date | Initiative | Detail / target |
|---|---|---|
| 2,024 | India exit | Terminated JV and disposed of entire stake; one-off loss RMB20.4m |
| Feb 2025 | PCBA processing for connected party | 3-year Processing Framework Agreement with Scud Power Technology |
| Feb 2025 | Component sales to Vietnam | 3-year Sales Framework Agreement to supply cells, plastic parts and nickel sheets to Vietnam Scud Power Technology |
| FY2025 | Lean / restructuring programme | Equipment redesign and retrofit; asset and labour optimisation. Gross margin up 0.5pp to 7.6%. No quantified savings target disclosed |
| FY2025 | Power-bank push | Revenue +86% to RMB326.9m, positioned around stricter PRC safety rules |
| FY2025–26 | Deleveraging | Short-term borrowings cut from RMB1,003m to RMB712m; finance costs -21% |
| Jun 2026 | Governance refresh | New INED; revised Nomination Committee charter |
Guidance. Management does not publish quantitative medium-term financial targets or revenue/margin guidance. Not publicly disclosed.
Products & Services
ODM segment
| Product line | Description / capabilities | Target customer | Pricing model | Latest disclosed scale |
|---|---|---|---|---|
| Mobile-phone battery modules | Li-ion polymer packs with self-developed protection circuitry, flexible connectors and mechanical housing. Includes designs for foldables and AI handsets with higher capacity, fast charging and thermal management (FY2025 Chairman's Statement) | Branded smartphone OEMs (PRC and international) | Per-unit contract pricing; ASP about RMB35 per unit in FY2025 (derived) | FY2025: RMB3,131.4m, 89.1m units. H1 2026: RMB1,817m (+27.6% YoY) |
| Tablet battery modules | Larger multi-cell packs for tablets | Tablet OEMs | Per-unit contract | FY2025: RMB891.4m (+7.3%). H1 2026: RMB340m (-29.3%) |
| Notebook battery modules | Multi-cell notebook packs with BMS | Notebook OEMs | Per-unit contract | FY2025: RMB211.2m (-9.6%). H1 2026: RMB113m (+11.7%) |
| Power banks | ODM power banks designed and developed for major customers. Benefiting from tighter PRC quality regulation and airline restrictions on non-compliant power banks (FY2025 MD&A) | Brand owners selling power banks | Per-unit contract | FY2025: RMB326.9m (+86%). H1 2026: RMB116m (+62.6%) |
| New power supply products | Wearable-device batteries, automotive / in-vehicle batteries, storage and backup batteries, smart-hardware batteries | Wearable, smart-home, automotive-electronics customers | Per-unit contract | FY2025: RMB225.0m (-14.3%). H1 2026: RMB112m (about flat) |
| Motive batteries | Small motive packs (listed in segment description) | — | — | — |
| PCBA / SMT processing services | SMT, DIP and other pre-processing (labelling, testing, wire harness). Typical turnaround is 3 working days for SMT boards and 5 for boards needing other processes. Pricing tiers by end-use (phone batteries, 3C/motive batteries, smart home, LED panels, POS, car products) | Connected party Scud Power Technology plus third parties | Fee quotes within 2 working days, based on order size, panelisation and efficiency | Annual caps per framework agreement (amounts not extracted) |
Bare battery cell segment
| Product | Description | Scale |
|---|---|---|
| Bare Li-ion cells | Cells for phones, tablets and power banks. Also sold to connected party Vietnam Scud Power Technology under the Feb 2025 Sales Framework Agreement, together with plastic parts and nickel sheets | FY2025: RMB96.5m; gross margin 0.1%; segment loss RMB14.8m |
Product revenue history
| Product line | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
| Mobile-phone batteries (RMB M) | 4,831.6 | 4,264.0 | 3,334.3 | 3,131.4 |
| Tablet batteries (RMB M) | 556.5 | 746.5 | 831.0 | 891.4 |
| Notebook batteries (RMB M) | 246.3 | 252.9 | 233.7 | 211.2 |
| Power banks (RMB M) | 273.6 | 211.9 | 175.9 | 326.9 |
| New power supply products (RMB M) | 81.9 | 212.2 | 262.6 | 225.0 |
| Bare battery cells (RMB M) | 140.2 | 141.1 | 110.3 | 96.5 |
| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
| Mobile-phone battery volume (M units) | 116.0 | 110.1 | 93.4 | 89.1 |
| Mobile-phone battery ASP, derived (RMB per unit) | 41.65 | 38.73 | 35.70 | 35.14 |
| Mobile share of ODM turnover (%) | 80.2 | 74.5 | 66.8 | 63.5 |
| Tablet share of ODM turnover (%) | 9.2 | 13.0 | 16.6 | 18.1 |
| Power bank share of ODM turnover (%) | 4.5 | 3.7 | 3.5 | 6.6 |
| Product (H1 2026) | Revenue (CNY Mn) | YoY | Share of total sales |
|---|---|---|---|
| Mobile-phone batteries | 1,817 | +27.6% | 65.8% (H1 2025: 59.8%) |
| Tablet batteries | 340 | -29.3% | 12.3% (H1 2025: 20.2%) |
| Notebook batteries | 113 | +11.7% | 4.1% |
| Power banks | 116 | +62.6% | 4.2% (H1 2025: 3.0%) |
| Other new power products | 112 | about flat | — |
H1 2026 product mix (Tencent News / Gelonghui summary of interim results)
Brands. The legacy "SCUD 飛毛腿" brand is now used mainly by companies controlled by the Fang family outside the listed group (Scud Stock, Scud Power Technology, Scud Energy Technology). The listed group operates almost entirely on an ODM, customer-branded basis. No flagship own-brand products are disclosed for the listed entity.
Financial Narrative
Income statement
Sources: FY2023 and FY2025 Annual Reports for FY2022–FY2025. FY2021 figures from Yahoo Finance / TipRanks (aggregator, consistent with the FY2022 comparatives).
FY2021 EPS derived (42.2 / 1,090.0m shares). Diluted EPS equals basic in every year (no dilutive instruments).
Four-year supplementary income metrics (company-reported, FY2022–FY2025)
Pre-tax income.
FY2021–FY2024 figures are from Yahoo Finance / TipRanks and match the FY2022–FY2024 annual-report comparatives.
Revenue CAGR FY2021–FY2025 (derived): -7.3% per year (RMB7,091.6m to RMB5,225.6m).
Commentary.
Revenue: Revenue contracted for four consecutive years (FY2021–FY2025), down 26% cumulatively. The main cause is smartphone battery volume and price erosion: mobile-phone battery revenue fell 35% between FY2022 and FY2025 as units dropped from 116.0m to 89.1m and derived ASP fell about 16%. Tablets (+60% over FY2022–FY2025) and, from FY2025, power banks partly offset the decline.
Gross margin: Margins compressed to 6.8% in FY2023, which management attributed to lower production volume. They recovered to 7.6% in FY2025 through equipment redesign and retrofit, lean management and labour optimisation, despite customer price-down pressure. H1 2026 gross margin slipped back to 6.5% (H1 2025: 7.5%). The reversal suggests the volume rebound was bought with price concessions or a richer mix of lower-margin phone volume.
Net profit: Bottom-line profit is structurally thin, at 0.3–0.6% net margin. It is highly sensitive to finance costs (RMB52–78m per year, larger than net profit in every year) and to one-offs:
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Typhoon-related write-offs in FY2023.
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Insurance recovery of RMB17.3m in FY2024.
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India JV disposal loss of RMB20.4m in FY2024.
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Impairment movements: net reversal of RMB5.6m on trade receivables in FY2025, against a RMB21.7m impairment on prepayments and other receivables in the same year.
FY2025 turnaround: The swing to profit came from a lower interest burden (-RMB13.9m), the absence of the India loss (+RMB20.4m) and gross-profit improvement (+RMB16.5m). Underlying core operating profit improved only modestly.
Investment property and PP&E from etnet balance-sheet extract (FY2021: 51.0 and 814.9 respectively). Goodwill and intangibles are not separately disclosed in the sources reviewed; they are believed to be immaterial.
Debt structure.
All bank loans are secured on group assets. Borrowings are principally RMB-denominated.
H1 2026 snapshot (interim results, Tencent News summary):
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Cash and equivalents RMB72.2m.
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Interest-bearing borrowings RMB1,157m.
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Operating cash flow continued to show a net outflow during the period.
Cash flow
Capex and free cash flow. Capital expenditure was not separately extracted. Capital commitments were RMB19.1m (2022), RMB41.0m (2023), RMB29.3m (2024) and RMB1.8m (2025). Management states there are no plans for material investments or capital assets in the coming year. Free cash flow is therefore not computed. StockAnalysis reports a trailing EV/FCF of 113x, implying FCF of only about HK$13m; Yahoo reports trailing levered FCF of -RMB91.5m. The two aggregators conflict.
Commentary. Operating cash flow is volatile and strongly tied to working capital. The positive RMB256m in FY2024 coincided with falling revenue, which released receivables. FY2025 OCF fell to RMB83.7m, and H1 2026 was negative as growth absorbed working capital. This pattern, where growth consumes cash, is the key financial constraint on a business with gearing above 100%.
Ratios (derived unless stated)
ROIC. StockAnalysis estimates trailing ROIC at about 2.65%, which is below any reasonable cost of capital for a leveraged PRC small cap. It also estimates interest coverage at 1.88x on an EBIT basis.
Ratio commentary.
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Returns on equity have not exceeded 2.3% in any of the four years. The company is not earning its cost of equity.
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Leverage improved in FY2025: gearing fell to 102.8% and short-term debt dropped by RMB291m as part of the borrowing was termed out. Net debt/EBITDA nonetheless rose to about 6x because cash fell.
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The cash conversion cycle has two weak points: very long customer terms (112–127 days) and shrinking supplier credit (payable days fell from 79 to 60). In effect, Veson finances its customers.
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View Subscription PlansFinancial Detail
Income Statement and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue (CNY Mn) | 7,091.6 | 6,359.2 | 6,145.2 | 5,344.9 | 5,225.6 |
Cost of sales (CNY Mn) | 6,577.0 | 5,902.5 | 5,726.5 | 4,966.1 | 4,830.3 |
Gross profit (CNY Mn) | 514.7 | 456.7 | 418.8 | 378.8 | 395.3 |
Finance costs (CNY Mn) | 77.5 | 77.8 | 71.3 | 65.9 | 52.0 |
Profit attributable to owners (CNY Mn) | 42.2 | 24.0 | 20.1 | -12.0 | 21.5 |
Basic EPS (MYR Bn cents) | 3.87 | 2.21 | 1.84 | -1.10 | 1.98 |
Dividend per share (MYR Bn cents) | 0 | 0 | 0 | 0 | 0 |
Gross margin (%) | 7.26 | 7.18 | 6.82 | 7.09 | 7.56 |
Net margin, attributable (%) | 0.59 | 0.38 | 0.33 | -0.22 | 0.41 |
Income Statement and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Profit for the year incl. NCI (CNY Mn) | 20.1 | 14.2 | -9.9 | 15.8 |
EBITDA, company-reported (CNY Mn) | 222.3 | 205.6 | 162.4 | 158.6 |
Selling & distribution expenses (CNY Mn) | 94.7 | 83.2 | 66.2 | 65.6 |
Administrative expenses incl. R&D (CNY Mn) | 294.7 | 265.7 | 245.7 | 249.8 |
Core operating profit, derived GP less S&D and admin (CNY Mn) | 67.3 | 69.9 | 66.9 | 79.9 |
Other revenue (CNY Mn) | 58.6 | 40.5 | 43.5 | 26.4 |
EBITDA margin, derived (%) | 3.50 | 3.35 | 3.04 | 3.03 |
Core operating margin, derived (%) | 1.06 | 1.14 | 1.25 | 1.53 |
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View Subscription PlansPre-tax Income by Year
| Year | Pre-tax income (CNY Mn) |
|---|---|
FY2021 | 64.5 |
FY2022 | 26.9 |
FY2023 | 10.9 |
FY2024 | -4.8 |
Balance Sheet
| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Total assets (CNY Mn) | 5,041.7 | 4,870.4 | 4,368.8 | 4,374.8 |
Current assets (CNY Mn) | 4,043.1 | 4,001.3 | 3,582.3 | 3,600.7 |
Current liabilities (CNY Mn) | 3,649.2 | 3,511.1 | 3,056.5 | 2,826.5 |
Net working capital (CNY Mn) | 393.9 | 490.2 | 525.9 | 774.2 |
Cash and cash equivalents (CNY Mn) | 200.9 | 133.8 | 333.0 | 187.8 |
Pledged bank deposits (CNY Mn) | 711.0 | 709.1 | 597.8 | 633.7 |
Total interest-bearing borrowings (CNY Mn) | 1,186.5 | 1,299.8 | 1,222.2 | 1,137.5 |
Borrowings due within 12 months (CNY Mn) | 879.4 | 1,036.8 | 1,003.1 | 711.9 |
Borrowings due after 12 months, derived (CNY Mn) | 307.1 | 263.0 | 219.1 | 425.6 |
Net debt excl. pledged deposits, derived (CNY Mn) | 985.6 | 1,166.0 | 889.2 | 949.7 |
Net debt incl. pledged deposits, derived (CNY Mn) | 274.6 | 456.9 | 291.4 | 316.0 |
Total equity (CNY Mn) | 1,069.3 | 1,086.1 | 1,087.8 | 1,106.9 |
Total liabilities, derived (CNY Mn) | 3,972.4 | 3,784.3 | 3,281.0 | 3,267.9 |
Investment properties (CNY Mn) | 45.9 | 95.5 | 92.8 | 62.7 |
Property, plant & equipment and others (CNY Mn) | 775.4 | 630.5 | 562.0 | 572.4 |
Fixed-rate Borrowings by Date
| Date | Fixed-rate borrowings (CNY Mn) | Floating-rate borrowings (CNY Mn) |
|---|---|---|
31 Dec 2025 | 918.3 | 219.2 |
31 Dec 2024 | 903.2 | 319.0 |
Cash Flow
| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Net cash from operating activities (CNY Mn) | -177.9 | -102.1 | 256.0 | 83.7 |
Net cash from investing activities (CNY Mn) | 224.8 | -11.7 | 89.2 | -96.8 |
Net cash from financing activities (CNY Mn) | -58.8 | 42.1 | -140.6 | -135.4 |
Dividends paid (CNY Mn) | 0 | 0 | 0 | 0 |
Share buybacks (CNY Mn) | 0 | 0 | 0 | 0 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
ROE, attributable profit / closing total equity (%) | 2.25 | 1.85 | -1.10 | 1.95 |
ROA, attributable profit / total assets (%) | 0.48 | 0.41 | -0.27 | 0.49 |
Asset turnover (x) | 1.26 | 1.26 | 1.22 | 1.19 |
Current ratio, company (x) | 1.1 | 1.1 | 1.2 | 1.3 |
Gearing: borrowings / total equity, company (%) | 111.0 | 119.7 | 112.4 | 102.8 |
Net debt excl. pledged / EBITDA (x) | 4.43 | 5.67 | 5.47 | 5.99 |
EBITDA / finance costs (x) | 2.86 | 2.88 | 2.46 | 3.05 |
Trade receivable days, company | 124 | 121 | 127 | 112 |
Inventory days, company | 41 | 43 | 41 | 40 |
Trade payable days, company | 79 | 75 | 67 | 60 |
Cash conversion cycle, derived (days) | 86 | 89 | 101 | 92 |
Operating Areas
| Area | Change | Driver (management explanation) |
|---|---|---|
Power banks | +86% (and +62.6% in H1 2026) | Stricter PRC quality controls and airline rules on non-compliant power banks favour quality ODMs |
Tablets | +7.3% in FY2025, then -29.3% in H1 2026 | Weak consumer demand and intensifying competition in tablets |
Mobile phones | -6.1% in FY2025, then +27.6% in H1 2026 | Volume and price declines in FY2025; renewed growth in H1 2026 from customer demand and allocation |
New power products | -14.3% | Lumpy programmes in wearables, automotive and storage |
Share Price History
| Date | Price | Source / context |
|---|---|---|
21 Dec 2006 | 2.02 | IPO offer price (etnet) |
24 Sep 2018 | 1.04 | Fang Jin off-market purchase from Guo Quan Zeng (Webb-site) |
About Sep 2025 (12-month range) | 0.12–0.22 | TipRanks 12-month low/high |
27 Mar 2026 | 0.198 | etnet quote |
16 Jun 2026 | 0.46 | etnet quote (+7.0% on the day) |
Latest snapshot (Oct 2026) | about 0.35 | Simply Wall St (market cap HK$381.5m) |
Share Price & Returns
| Period | Return |
|---|---|
YTD | +64.9% |
1-year | +61.5% |
3-year | +47.6% |
5-year | +14.8% |
Valuation Multiples
| Multiple | Veson | Source |
|---|---|---|
P/E (trailing) | about 15.3x | Simply Wall St (TTM earnings about HK$24.9m) |
EV/EBITDA | about 7.0x | StockAnalysis |
EV/Sales | about 0.25x | StockAnalysis |
P/B | about 0.32x | Derived: HK$0.35 vs NBV RMB1.007 (about HK$1.10) per share |
Dividend yield | 0% | No dividend since 2014 |
Balance Sheet (FY2023–FY2025)
| Bucket | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Due within 12 months (CNY Mn) | 1,036.8 | 1,003.1 | 711.9 |
Due after 12 months, derived (CNY Mn) | 263.0 | 219.1 | 425.6 |
Total borrowings (CNY Mn) | 1,299.8 | 1,222.2 | 1,137.5 |
Analyst Conclusions
Management guidance
No quantitative guidance is given. The qualitative priorities are profit over revenue, stable core-customer order share, a higher-margin mix, cost and procurement control, and no major capex plans.
Consensus
Not available (no coverage).
Bull case
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Operating leverage on growth. H1 2026 revenue rose 16.1% and attributable profit reached RMB21.3m in six months, equal to all of FY2025. If H2 holds, FY2026 profit could roughly double, re-rating a stock that trades at about 0.3x book.
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Structural power-bank tailwind. Power-bank revenue grew 86% in FY2025 and 62.6% in H1 2026, helped by PRC safety rules that exclude low-end competitors. Veson's long safety record positions it to gain share.
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Insider buying and deleveraging. The founder bought on market in April 2026, taking his stake to 53.85%. Finance costs fell 21% in FY2025 and short-term debt was cut sharply, lowering the break-even point.
Bear case
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Margin dilution undermines growth quality. H1 2026 gross margin fell to 6.5% from 7.5%, with growth concentrated in price-competitive phone packs. Tablets fell 29.3%. Revenue growth may not translate into sustainable earnings.
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Balance-sheet fragility. Cash was only RMB72.2m against RMB1.157bn of secured debt at June 2026, operating cash flow was negative, and receivable days run at about 112. Growth consumes cash, and refinancing or customer-payment shocks could force dilutive equity issuance under the 20% mandate.
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Structural squeeze. Cell makers are integrating forward (CosMX), scale players dominate (Sunwoda revenue is 12x Veson's), customers are concentrated (largest 23.5%), and assembly is migrating out of China. Veson lacks the scale, R&D budget (no separate disclosure) and geographic footprint to defend share over time.
Key catalysts and monitorables (next 12 months)
| Catalyst / monitorable | Timing | What to watch |
|---|---|---|
| FY2026 annual results | About end-Mar 2027 | Whether H2 profit matches H1; gross margin back above 7%; any dividend resumption |
| Working capital and liquidity | Ongoing / FY2026 | Cash, operating cash flow, receivable days; renewal of short-term facilities |
| Power-bank regulation | 2026–27 | Enforcement of PRC standards; Veson's share of customer programmes |
| Customer allocation | Each half-year | Phone-battery volume and ASP; top-five concentration |
| Fang Jin's stake activity | Ongoing | Further creeping purchases; any privatisation signal (unconfirmed, speculative) |
| Connected transactions | Dec 2026 lease renewals | Rental levels; processing and sales caps with Scud Power and Vietnam Scud Power |
| Governance | 2027 AGM | INED tenure refresh (Audit Committee chair has 10+ years) |
Analyst verdict
Veson Holdings is a classic deep-value, low-quality microcap. On the positive side, it has proved over two decades that it can stay qualified in demanding OEM supply chains, shipping roughly 90–110 million smartphone packs a year. It has also shown real cost discipline: gross margin rose from 6.8% to 7.6% between FY2023 and FY2025 while revenue fell. The FY2025 return to profit, the 16% revenue rebound in H1 2026 and the founder's April 2026 purchase together mark a genuine cyclical turn. The equity trades at roughly a third of book value and about 7x EV/EBITDA, so the market is pricing in little.
The weaknesses are equally clear. Net margins have not exceeded 0.6% in five years and ROE has stayed below 2.3%. Finance costs consistently exceed net profit. The balance sheet carries more than RMB1.1bn of secured debt against cash that had fallen to RMB72m by mid-2026, and growth absorbs working capital rather than generating it. Veson is a price-taker squeezed between powerful customers and cell suppliers, competing against peers ten times its size and against cell makers integrating forward. Governance is acceptable on paper but depends on the controlling shareholder: related-party leases and processing arrangements with Fang-family entities require continuous scrutiny, and no dividend has been paid since 2014.
Net view: the stock is a trading-oriented turnaround with meaningful upside if H2 2026 confirms the H1 profit run-rate and power banks keep scaling. Three conditions would be needed for a more constructive long-term stance:
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Sustained positive operating cash flow.
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Gearing below 90%.
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Gross margin re-established above 7.5% alongside growth.
The rating would be "Speculative / Watch," with the FY2026 annual results (about March 2027) as the decisive checkpoint.
*End of dossier. Figures are as reported in Veson Holdings' HKEX filings unless marked derived or aggregator-sourced.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Role | Board tenure | Age (FY2025 AR) | Background and education |
|---|---|---|---|---|
Ni Chen Hui (倪晨暉) | Chairman (since 27 May 2025); Executive Director (since 9 Oct 2023) | Joined group Jun 2019 | 39 | Previously assistant to the CEO, Director of the President's Office, and executive director of Scud Electronics and Scud Battery. More than 10 years in the financial industry before 2019. BMgt (Financial Management), Yang-En University (2009) |
Lian Xiu Qin (連秀琴) | Executive Director; CEO (since Sep 2018) | Joined group Mar 1998 | 54 | Engineering Manager, Production Head, Deputy GM and Division Head at Scud Electronics. Co-inventor of a polymer-battery metal shell structure patent. Senior technician in cell production. Applied Electronics, Shenyang University of Technology (1995); Business English, Fujian Normal University (2009); part-time MBA, Seton Hall University (2021) |
Feng Ming Zhu (馮明竹) | Non-Executive Director (re-designated 27 May 2025); former Chairman | Joined group Mar 2007 | 62 | Former Investment Director, Administration Director, GM of the SMT business unit, and VP (2013). Former Chairman of the Battery Technology Association of Fujian Province. BEng, Anhui University of Finance and Economics |
Heng Ja Wei Victor (邢家維) | INED; Chair of Audit and Remuneration Committees | Since 1 Sep 2016 | 48 | Partner, Morison Heng CPA. Company secretary of China Life Insurance (2628). INED of Lee & Man Chemical, Matrix Holdings and TradeGo FinTech. BEng, Warwick; MSc, Imperial College. Nephew-in-law of former NED Dr. Loke Yu |
Cheung Wai Kwok Gary (張為國) | INED; Chair of Nomination Committee | Since 19 May 2020 | 72 | More than 40 years in financial services. Former ED of Sun Hung Kai & Co. Permanent honorary president of the HK Securities Association. Associate director of Luk Fook Securities since Jul 2025. York University (Canada) |
Ho Wai Ping Linda (何慧萍) | INED (appointed 2 Jun 2026); Audit Committee member; Corporate Governance Committee member | Since 2 Jun 2026 | — | — |
“—” = not publicly disclosed.
Executive Leadership Team
| Name | Title | Background |
|---|---|---|
Yeung Mun Tai | CFO and Company Secretary (age 49) | Ex-Deloitte auditor. Joined in 2005 and led the 2006 IPO. FCCA, HKICPA |
Chen Yao Shu | Information Management Director (born 1980) | — |
Directors' Remuneration
| Director | Reported total pay | Note |
|---|---|---|
Lian Xiu Qin | 962,130 | Aggregator |
Feng Ming Zhu | 863,120 | Aggregator; covers the period as Executive Chairman |
Ni Chen Hui | 313,180 | Aggregator. Contractual director's fee of HK$160,000 p.a. at appointment (HKEX, 9 Oct 2023) |
Directors' Remuneration by Committee
| Committee | Members |
|---|---|
Audit | All INEDs; chaired by Heng |
Remuneration | INEDs; chaired by Heng |
Nomination | INEDs; chaired by Cheung |
Corporate Governance | INEDs plus Feng and Ni. Chair reassigned after Lam's resignation; the HKEX announcement names the new chair, but this was not confirmed in the extract reviewed |
Major Shareholders
| Holder | Shares | Stake | Date / source |
|---|---|---|---|
Swift Joy Holdings Limited (100% owned by Fang Jin) | 423,770,000 | 38.88% | FY2025 AR |
Right Grand Holdings Limited (100% owned by Fang Jin) | 163,254,000 | 14.98% | Derived: 128,568,000 plus 34,686,000 bought on 24 Apr 2026 |
Fang Jin, total indirect | 587,024,000 | 53.85% | HKEX disclosure, 28 Apr 2026 |
Public float | about 502,977,246 | about 46.15% | Derived |
Institutional holders | Not publicly disclosed; TipRanks reports no hedge-fund holders | — | TipRanks |
Directors / insiders (other than Fang Jin, who is not a director) | Nil | 0% | FY2025 AR |
Competitive Landscape
Key Competitors
| Competitor | Listing | Overlap with Veson | Relative positioning |
|---|---|---|---|
Sunwoda Electronic (欣旺达) | 300207.SZ | Phone, notebook and wearable packs (consumer batteries RMB31.4bn in 2025) | Scale leader in consumer packs; vertically integrated into cells; diversified into EV and storage |
Desay Battery (德赛电池) | 000049.SZ | Phone, notebook, tablet and wearable packs; BMS; SIP | Tier-1 pack integrator with Apple-ecosystem exposure; expanding into storage cells |
Zhuhai CosMX Battery (珠海冠宇) | 688772.SH | Cells and packs for notebooks, tablets and phones | Cell-maker moving into packs (43% self-supply of consumer cell packs) |
ATL (Amperex Technology, TDK group) | Unlisted subsidiary of TDK (6762.T) | Phone and tablet cells (supplier and competitor) | Global cell leader for phones |
BYD (consumer battery and electronics units) | 1211.HK / 0285.HK | Phone batteries and components | Diversified giant |
EVE Energy (亿纬锂能) | 300014.SZ | Consumer and small cells | Cell supplier and competitor |
Scud Power Technology (connected) | Private | Motive and 3C batteries | Related-party competitor and customer; potential conflict |
Anker Innovations (安克创新) | 300866.SZ | Power banks (brand) | Brand-led; outsources and in-sources manufacturing |
Highpower International / other Shenzhen pack makers | Various | Packs and power banks | Fragmented low-cost tier described by management as aggressive on price |
OEM in-house pack operations | — | Phone packs | Insourcing risk |
Peer Comparison FY2025
| Metric | Veson (1399.HK) | Sunwoda (300207.SZ) | Desay Battery (000049.SZ) | Zhuhai CosMX (688772.SH) |
|---|---|---|---|---|
Revenue (CNY Bn) | 5.23 | 63.25 | 22.40 | 14.41 |
Revenue growth YoY | -2.2% | +12.9% | +7.4% | +24.9% |
Net profit attributable (CNY Mn) | 21.5 | 1,057 | 292 | 472 |
Net margin | 0.4% | 1.7% | 1.3% | 3.3% |
Gross margin | 7.6% | 13.9% (consumer 19.4%) | — | 23.3% (H1 2025) |
R&D intensity | — | — | — | About 12.9% (RMB1.858bn) |
“—” = not publicly disclosed.
Recent Developments
Litigation, regulatory actions and layoffs: * The headcount reduction from 3,023 (2022) to 2,415 (2025) reflects restructuring; no discrete layoff announcement was found.
