Amid the current lithium battery cycle, CATL (Contemporary Amperex Technology Co., Ltd.) continues to achieve counter-cyclical growth, with its profitability steadily increasing. On the evening of October 18, CATL released its Q3 financial report, revealing a revenue of RMB 92.278 billion in the third quarter, a 12.48% year-on-year decline. However, net profit reached RMB 13.136 billion, marking a 25.97% increase. Based on calculations, CATL earned over RMB 1.4 billion per day in Q3, exceeding market expectations. This marks the sixth consecutive quarter where net profit has surpassed RMB 10 billion, second only to Q4 2022 in CATL's history for single-quarter net profit.
Given the current trend of high sales in Q4, CATL's Q4 net profit is expected to continue rising significantly, potentially setting new records.
The decline in CATL's revenue is largely attributed to falling sales prices for battery products and a drop in resource and raw material prices, including lithium carbonate. Despite this, CATL has maintained quarterly net profits above RMB 10 billion due to continued improvements in its gross profit margin. In Q3 2024, CATL's gross profit margin reached 31.17%, the highest since Q4 2018.
At CATL's Q3 earnings briefing, CFO Zeng Shu explained that the gross margin increase was driven by further declines in the prices of key materials, such as lithium carbonate, alongside reduced sales prices. Additionally, new technologies and products, including the Shenxing Superfast Charging Battery and Kirin Battery, which have been well-received by mainstream customers, have positively contributed to gross margin growth. The company expects its gross profit margin to remain relatively stable in the future.
CATL reported that its flagship products, the Kirin Battery and Shenxing Battery, are already in large-scale production for over 30 mainstream vehicle models in China. These two products are expected to account for 30% to 40% of CATL's EV battery shipments this year and could rise to 70% to 80% next year. The Kirin Battery is targeted at the high-end passenger car market, while the Shenxing Battery focuses on the value-for-money passenger car segment. These battery brands were launched in 2022 and 2023, respectively.
This year, CATL has introduced multiple new products, including the Shenxing Plus Battery, the next-generation high-power Kirin Battery, and the Tianheng Energy Storage System. Additionally, the company has launched a commercial battery brand called "CATL Tianxing," which boasts ultra-fast charging, long-range, and extended lifespan, designed to meet all-scenario needs. CATL has signed strategic cooperation agreements with companies like Shandong Heavy Industry and Shaanxi Auto for these products. In September, CATL also unveiled its overseas commercial battery brand, CATL TECTRANS, launching five new products to accelerate its global market expansion.
In Q3 2024, CATL shipped over 120 GWh of batteries, a quarter-on-quarter increase of about 15%, with less than one-fourth of this being energy storage batteries and three-fourths being EV batteries. Domestically, CATL's EV battery market share reached 45.9% in the first nine months of 2024, a year-on-year increase of 3.1 percentage points, maintaining its top rank. On the energy storage side, CATL saw a substantial increase in overseas shipments. In H1 2024, CATL shipped approximately 45 GWh of energy storage batteries, over 60% of last year's total. Combined with Q3 shipments, CATL has already shipped more than 75 GWh, and it is expected to exceed 105 GWh for the full year, securing its position as the global leader.
Regarding capacity, CATL disclosed that its capacity utilization rate was full in Q3 and is expected to be even higher in Q4. This explains why CATL continues to push forward with capacity expansion plans both domestically and internationally. For instance, on the evening of September 9, CATL announced an agreement with the Luoyang Municipal Government and Guohong Group, a subsidiary of the State-owned Assets Supervision and Administration Commission, to build the second phase of the Zhongzhou Times project, with an annual battery production capacity of 60 GWh. The first phase of the project is also ongoing. Additionally, Stellantis and CATL's jointly planned lithium iron phosphate battery plant is expected to be established in Spain in October.
Regarding the suspension of the Jiangxi lithium mine, CATL responded that it has been in communication with the government about resuming operations and is exploring cost-reduction measures. However, due to declining lithium carbonate prices and the sharp market downturn, some adjustments have been made.
Source：https://mp.weixin.qq.com/s/gW_Kaz75nGMjfNEKdWxEJg
