- CATL reported net income of RMB 13.96 billion ($1.9 billion) in the first quarter, up 32.85 percent year-on-year, albeit down 5.30 percent from the fourth quarter of 2024.
- It had a gross margin of 24.41 percent in the first quarter, up 1.16 percentage points from a year ago and up 9.37 percentage points from the fourth quarter.
CATL (SHE: 300750) reported a significant increase in net income for the first quarter, with gross margins also seeing a boost.
The battery maker posted net income of RMB 13.96 billion ($1.9 billion) in the first quarter, higher than analysts' estimates of RMB 13.8 billion in a Bloomberg survey, according to an exchange announcement today.
That's a 32.85 percent year-on-year increase, albeit a 5.30 percent decrease from the fourth quarter of 2024.
CATL reported revenue of RMB 84.7 billion in the first quarter, up 6.18 percent year-on-year, but 17.74 percent lower than the fourth quarter last year.
It reported operating costs of RMB 64.03 billion in the first quarter, up 4.59 percent year-on-year but down 26.81 percent from the fourth quarter of last year.
That means gross margin was 24.41 percent in the first quarter, up 1.16 percentage points from 23.25 percent in the same period last year and up 9.37 percentage points from 15.04 percent in the fourth quarter of last year.
Notably, CATL began adopting new accounting standards when it announced its 2024 annual report a month ago, resulting in adjustments to operating costs.
In today's latest earnings report, CATL reported higher operating costs for the first quarter of 2024 than the RMB58.7 billion previously reported. This resulted in the gross margin for the same period last year becoming an adjusted 23.25 percent from the previously reported 26.42 percent.
CATL spent RMB 4.81 billion on research and development in the first quarter of this year, up 10.92 percent year-on-year.
The company generated net cash flow from operating activities of RMB 32.87 billion in the first quarter of the year, up 15.91 percent year-on-year.
As of the end of the first quarter, CATL's cash and cash equivalents balance was RMB 286.3 billion.
CATL is the world's largest power battery maker with 49.6 GWh installed in January-February, ranking first in the world with a 38.2 percent share, according to South Korean market researcher SNE Research.
The company is moving ahead with a planned listing in Hong Kong, with its application having been approved by the Chinese mainland's securities regulator last month and by the Hong Kong Stock Exchange earlier this month.
($1 = RMB 7.3127)
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