CATL Reports Decrease in Revenue but Increase in Net Profit in Q3 2024
Chinese battery giant CATL recently released its financial results for the third quarter of 2024, showing a revenue of 92.278 billion yuan, which is a 12.48% decrease compared to the same period last year. Despite the drop in revenue, the net profit attributable to shareholders saw a significant jump of 25.97% to 13.136 billion yuan. Excluding non-recurring items, the net profit increased by 28.58% year-on-year to 12.122 billion yuan.
For the first three quarters of 2024, CATL reported a total revenue of 259.045 billion yuan, down 12.09% from the previous year. However, the net profit attributable to shareholders grew by 15.59% to 36.001 billion yuan. Excluding non-recurring items, the net profit still showed a solid increase of 19.26% year on year to 32.176 billion yuan.
CATL’s strong cost control measures played a significant role in its profit growth, with operating costs decreasing by 19.15% over the previous year in the first three quarters.
The company also focused on increasing market promotion efforts, as evidenced by the 6.9% increase in sales expenses and a 2.07% decrease in administrative expenses compared to the same period last year.
CATL took a cautious approach to research and development, with R&D expenses for the first three quarters totaling 13.07 billion yuan, a 12.12% decrease from the previous year in line with the decline in revenue.
During the Q3 earnings call, CATL CFO Zheng Shu attributed the improved gross profit margin to lower prices of key materials like lithium carbonate and reduced sales prices. The company’s advanced technologies such as the Shenxing ultra-fast charging battery and the Qilin battery have been well-received by major clients, contributing positively to gross margins. CATL expects its gross profit margin to remain stable in the future.
Overall, despite a decrease in revenue, CATL’s focus on cost control, market promotion, and innovation has resulted in a significant increase in net profit, positioning the company for continued success in the battery industry.
