Chinese power battery giant, Contemporary Amperex Technology CO. Limited (CATL) expects a third-quarter net profit of RMB 8.8 billion to 9.8 billion ($1.22 billion – $1.36 billion), up 169.33 percent to 199.94 percent year-on-year, according to an earnings preview today, as per CnEVPost.
CATL’s net profit attributable to shareholders of the listed company in the Q3 was RMB 8.3 billion to RMB 9.3 billion ($1.29 billion), after deducting non-recurring gains and losses, up 209.11 percent to 246.36 percent year-on-year, according to its announcement.
Meanwhile, in the first three quarters, CATL expects a net profit to be RMB 18 billion ($2.5 billion), an increase of 132.22 percent year-on-year. CATL said that it has strengthened market developments efforts to achieve rapid growth in profit scale. Additionally in late March, it announced that it had adjusted prices of some battery products. Since the beginning of the year, the price of lithium carbonate, one of the main raw materials needed to produce batteries, has continued to stay high, and the current highest price has exceeded 520,000 yuan ($72,338) per ton. And in the first eight months of the year, CATL’s share in the global power battery market was 35.5%, an increase of 5.9% from the same period last year.
Furthermore, CATL’s rise in Q3 was primarily due to continuous market growth in the power battery and energy storage industries as the global new energy industry develops quickly.
“The company continued to launch industry-leading product solutions and strengthen its market development efforts, coupled with the release of production capacity laid out in the early stages, allowing for a significant increase in production and sales” the company stated. “These factors have helped achieved rapid growth in earnings scale while pushing the company’s continued leadership in the global market position”
CATL’s battery capacity in the first half of the year was 154 GWh, with more than 100 GWh of capacity under construction. The company currently has 13 battery production bases located in China, such as Ningde in Fujian Province, Liyang in Jiangsu Province, and Yibin in Sichuan Province. CATL is now on its way to accelerate its layout in the European market. As it plans to build a new energy battery industrial base project in Debrecen, Hungary, with a total investment of no more than 7.35 billion euros, exceeding its factory in Germany, with an investment totalling 1.8 billion euros.
Being the world’s largest manufacturer of power batteries, with ten production sites worldwide, the company installed 12.99 GWh in China in August, continuing to rank No. 1 with a 46.79% share, according to the China Automotive Battery Innovation Alliance (CABIA).
Moreover, in the first three quarters of 2022, battery giants such as CATL and EVE Energy have accelerated efforts to develop mining operations and overcome raw material supply challenges. EVE Energy expected the net profit attributable to the parent company in Q3 of 2020 will increase by 50% to 80% year-on-year. The two companies also have won large battery orders from BMW Group.