Chinese battery Kolos Catl messages jump into the annual win
The Chinese battery giant Catl announced on Friday and increased annual profit despite a decrease in income, because delaying demand for electric vehicles lower the price of lithium.
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.
Catl has been helped by robust financial support from Beijing, who has sought in recent years to strengthen domestic power in certain strategic high-tech sectors.
The net profit increased by more than 15 percent in 2024 compared to 2023.
Last year Catl achieved a profit of 50.74 billion Yuan ($ 7.01 billion), showed a request in the Shenzhen Stock Exchange Friday.
The figure came under a Bloomberg forecast of 51.47 billion Yuan.
In the meantime, the turnover fell 9.7 percent on an annual basis to 362 billion Yuan in 2024, the submission showed.
Catl had warned in January that last year’s turnover dia was probably due to a “decrease in raw materials such as lithium carbonate”, which the company had forced to adjust the prices.
Last year the lithium prizes fell considerably, partly due to the superflection of the market and less fervent consumer question to EVs.
– Overseas expansion –
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 shares of Catl are traded listed in Shenzhen, although it now intends to find a secondary list in Hong Kong.
Last month the company started a Hong Kong application process – a first step towards what analysts say that a blockbuster could be initial public offer for the financial hub.
Funds collected from a secondary list can be used to speed up CATL’s overseas expansion, especially in Europe.
The battery giant builds his second factory on the continent in Hungary after launching his first in Germany in January 2023.
In December Catl announced that it would work with Autogigant Stellantis at a factory of $ 4.3 billion to make EV batteries in Spain, planned production to start by the end of 2026.
The international push of the company comes as challenges on the domestic market.
After years of rapid growth, the world’s largest EV market started to show signs of marking the sale in the midst of a broader delay in consumption.
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.
