Chinese EV battery giant CATL reports that profits have increased
Chinese battery giant CATL reported a 26.0 percent profit increase in the third quarter on Friday, but still fell short of analyst expectations.
Founded in 2011 in the Chinese east coast city of Ningde, CATL produces more than a third of the EV batteries sold worldwide.
They are used in models from a long line of foreign manufacturers, including Mercedes-Benz, BMW, Volkswagen, Toyota, Honda and Hyundai.
A drop in the cost of raw materials used to make batteries has caused a price war among industry players, weighing on sales.
In the July-September quarter, CATL’s net profit rose 26.0 percent year-on-year to 13.14 billion yuan ($1.85 billion), according to a statement released on the Shenzhen Stock Exchange.
However, that figure still fell short of Bloomberg estimates of 14.7 billion yuan.
During the same period, CATL’s revenue fell 12.5 percent year-on-year to 92.28 billion yuan.
CATL is building its second European factory in Hungary, following the launch of the first in Germany in January 2023.
The company has received strong financial support from Beijing, which has prioritized the development of domestic high-tech industries that it sees as strategically advantageous.
Domestically, the company’s success has been reinforced in recent years by rapid growth in the domestic market.
isk/ssy
