The growth is mainly due to increased penetration in the NEV and energy storage markets in 2021, boosting battery sales.
The rapid growth of the global new energy vehicle (NEV) industry has allowed Chinese power battery giant Contemporary Amperex Technology Co Ltd (CATL) to have a substantially profitable year.
CATL's net profit in 2021 was RMB 14 billion ($2.2 billion) to RMB 16.5 billion, up 150.75 percent to 195.52 percent year-on-year, according to an earnings preview released today by the supplier to Tesla and NIO.
This was significantly higher than analysts' expectations of RMB 11.23 billion on the Chinese financial data terminal Wind.
The company's net profit in 2021 after non-recurring gains and losses was RMB 12 billion - 14 billion, an increase of 181.38 percent to 228.28 percent year-on-year.
The growth is mainly due to increased penetration of the NEV and energy storage markets in 2021, which boosted battery sales, CATL (SHE: 300750) said.
In addition, the company's market development progressed and new production capacity began to be released, allowing for higher production and sales, it said.
Based on the company's previously announced information, the net profit of CATL in the fourth quarter was stood at RMB 6.25 billion to RMB 8.75 billion, up 91 percent to 167 percent from the third quarter.
In the Chinese power battery market, CATL is absolutely dominant and was so for the whole year 2021.
CATL's power battery installed base in China for the full year 2021 is 80.51 GWh, capturing 52.1 percent of the market, according to data released earlier this month by the China Automotive Battery Innovation Alliance.
In 2021, China's cumulative power battery installed base was 154.5 GWh, up 142.8 percent year-on-year, the data showed.
BYD ranked second with 25.06 GWh of power batteries installed in 2021, with a 16.2 percent market share, and CALB ranked third with 9.05 GWh of power batteries installed in 2021, with a 5.9 percent market share.
(Graphic by CnEVPost)