Correction: Revised operating cost figure for the fourth quarter. A previous version incorrectly used the third quarter figure.
- CATL reported revenue of RMB 102.97 billion in the fourth quarter, a decrease of 3.08 percent year-on-year.
- Its revenue declined in 2024 due to lower product prices brought about by lower prices of raw materials such as lithium carbonate.
CATL (SHE: 300750) saw record net income last quarter, as battery installations grew, but gross margin fell significantly.
The Chinese power battery giant reported net income of RMB 14.74 billion ($2.04 billion) in the fourth quarter, up 13.62 percent year-on-year and up 12.24 percent from the third quarter, according to its 2024 annual report released today.
The company's revenue in the fourth quarter was RMB 102.97 billion, down 3.08 percent year-on-year, though up 11.58 percent from the third quarter.
It reported an operating cost of RMB 87.49 billion in the fourth quarter, down 6.82 percent year-on-year but up 37.74 percent from the third quarter.
Gross margin for the fourth quarter was 15.04 percent, an increase of 3.41 percentage points from 11.63 percent in the same period last year, but a decrease of 16.13 percentage points from 31.17 percent in the third quarter.
It is worth noting that CATL said in its 2024 annual report that it adjusted the accounting of past operating costs, saying that this was based on an accounting standard interpretation by the Ministry of Finance of China in December 2024.
It raised the operating cost for the full year of 2023 from the previously reported RMB 309,070,434,000 to a higher number of RMB 323,982,130,000.
The adjustment resulted in a lower gross margin of 11.63 percent in the fourth quarter of 2023 from the previously reported 25.66 percent.
CATL installed 88.31 GWh of electric vehicle (EV) batteries in the fourth quarter, up 52.79 percent year-on-year and up 37.15 percent from the third quarter, according to data compiled by CnEVPost.
For the full year 2024, it saw 246.01 GWh of EV battery installations, up 47.21 percent from 2023.
For the full year of 2024, CATL's net income was RMB 50.75 billion, an increase of 15.01 percent year-on-year.
Its revenue in 2024 was RMB 362.01 billion, down 9.70 percent year-on-year.
CATL did not mention the reason for the revenue decline in its annual report. In its January 21 earnings preview, the company said that despite the growth in sales of battery products, adjustments in product prices led to a year-on-year decline in revenue due to lower prices of raw materials such as lithium carbonate.
The power battery systems business generated revenue of RMB 253.04 billion in 2024, contributing 69.90 percent of total revenue, down from 71.15 percent in 2023.
The energy storage battery systems business generated revenue of RMB 57.29 billion in 2024, contributing 15.83 percent of total revenue, up from 14.94 percent in 2023.
The battery materials and recycling business generated revenue of RMB 28.7 billion in 2024, contributing 7.93 percent of total revenue, down from 8.38 percent in 2023.
In terms of different regions, CATL's revenue within China amounted to RMB 251.68 billion in 2024, accounting for 69.52 percent of total revenue, up from 67.33 percent in 2023.
Its revenue from overseas markets was RMB 110.34 billion in 2024, contributing 30.48 percent, down from 32.67 percent in 2023.
($1 = RMB 7.2387)
Global EV battery market share in Jan 2025: CATL 38.9%, BYD 16.9%
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