(Yicai) April 8 -- Eve Energy's shares surged after the major Chinese battery producer said it expects profit to have risen by as much as 35 percent last quarter, thanks to effectively handling material cost fluctuations with a diversified supply chain layout, strategic procurement planning, and prudent use of financial instruments.

Eve Energy [SHE: 300014] jumped 6 percent to CNY64.33 (USD9.38) a share as of lunch break in Shenzhen today.

Net profit likely rose 25 percent to 35 percent to between CNY1.4 billion and CNY1.5 billion (USD204.2 million and USD218.7 million) in the three months ended March 31 from a year earlier, the Huizhou-based firm announced yesterday. After excluding non-recurring gains and losses, the profit likely jumped 30 percent to 40 percent to between CNY1.06 billion and CNY1.15 billion.

Eve Energy seized market growth opportunities with persistent efforts in product iteration, service upgrading, and process optimization in the first quarter of this year, it noted.

In addition, Eve Energy unveiled plans to sign a deal with the Qidong government in Jiangsu province and another with the government of Shanghang county in Fujian province to build energy storage battery plants with an annual capacity of 50 and 60 gigawatt-hours and total investment of about CNY5 billion and CNY6 billion, respectively. The second agreement may include third-party investors.

Eve Energy plans to establish a joint venture with Fujian Longking with a registered capital of CNY900 million (USD131.2 million). The environmental protection firm will hold a 20 percent stake in the JV, with a monetary contribution of CNY180 million and a cumulative investment of no more than CNY240 million, while the battery giant will own the rest.

The two investment plans will enable all parties to fully leverage their respective resources and advantages, better seize market opportunities in energy storage batteries, further expand production capacity, optimize Eve Energy's industrial structure, boost its development in the lithium-ion battery market, and enhance its influence and comprehensive competitiveness in the new energy industry, aligning with its development strategy, according to the company.

Eve Energy also said it plans to provide a guarantee of up to the equivalent of EUR42 million (USD49 million) to its subsidiary Eve Power Hungary. The proposal needs shareholders' approval.

Editor: Martin Kadiev