Chinese EV -battery giant Catl places a 33% increase in Q1 profit
The leading maker of electric vehicles, the Chinese company Catl, booked a jump of 32.9 percent in the winning of the first quarter, even if the demand for electric vehicles slows down.
The company produces more than a third of all worldwide batteries of electric vehicles (EV) and works together with major brands, including Tesla, Mercedes-Benz, BMW and Volkswagen.
Founded in 2011 in the eastern Chinese city of Ningde, Contemporary Amperex Technology Co., Limited (CATL) was initially powered to success through rapid growth on the domestic market.
The net profit in the first quarter increased by 32.9 percent on an annual basis to 13.96 billion Yuan ($ 1.91 billion), according to a statement that Catl released on Monday on the Shenzhen Stock Exchange.
In the same period, CATL’s turnover increased by 6.2 percent on an annual basis to 84.7 billion Yuan, the application showed.
Catl has been helped by strong financial support from Beijing, who has sought in recent years to strengthen domestic power in certain strategic high-tech sectors.
But after years of rapid growth, the world’s largest EV market shows signs of marking sales in the light of a broader delay in consumption.
Catl warned in January that the DIA of the turnover last year was probably due to a “decrease in raw materials such as lithium carbonate”, which the company had forced to adjust prices.
Last year the lithium prizes fell considerably, partly due to the supernuction of the market and the weaker demand for consumers for EVs.
The trends have fueled a fierce price war in the extensive EV sector of the country, which puts smaller companies under enormous pressure to compete and remain financially viable.
Catl is building his second factory in Hungary after launching his first in Germany in January 2023.
ISK/OHO/MTP
