CATL, the world’s largest power battery maker, recently announced its financial results for the first quarter of the year. The company reported a net income of RMB 13.96 billion ($1.9 billion), marking a significant 32.85 percent increase compared to the same period last year. However, this figure represents a slight decrease of 5.30 percent from the fourth quarter of 2024.
In terms of gross margin, CATL saw a notable improvement, reaching 24.41 percent in the first quarter. This is a 1.16 percentage point increase from the previous year and a significant 9.37 percentage point increase from the fourth quarter of last year.
The company’s revenue for the first quarter stood at RMB 84.7 billion, showing a 6.18 percent year-on-year increase but a 17.74 percent decrease from the previous quarter. Operating costs also saw a rise, reaching RMB 64.03 billion in the first quarter, up 4.59 percent from the same period last year.
CATL’s focus on research and development is evident, with the company investing RMB 4.81 billion in R&D during the first quarter, reflecting a 10.92 percent year-on-year increase. The company also reported a net cash flow from operating activities of RMB 32.87 billion, up 15.91 percent year-on-year.
As of the end of the first quarter, CATL’s cash and cash equivalents balance stood at RMB 286.3 billion, highlighting the company’s strong financial position. CATL’s dominance in the market was further solidified by its installation of 49.6 GWh in January-February, accounting for a 38.2 percent share globally.
Looking ahead, CATL is progressing with its planned listing in Hong Kong, having received approval from both the Chinese mainland’s securities regulator and the Hong Kong Stock Exchange. This move is expected to further enhance the company’s visibility and strategic positioning in the market.
CATL’s recent offer to acquire a controlling stake in Nio Power further demonstrates the company’s commitment to expanding its presence in the electric vehicle ecosystem. This offer follows CATL’s previous investment of up to RMB 2.5 billion in Nio Power in March, as reported by Reuters.
In conclusion, CATL’s strong financial performance, focus on innovation, and strategic investments position the company as a key player in the global battery market. With a solid foundation and a clear growth trajectory, CATL is poised for continued success in the evolving landscape of electric mobility.
