CATL Submitted a Listing Application to the Hong Kong Stock Exchange to Raise Funds for the Hungary Project

CATL (300750.SZ) submitted an application today for the issuance of H-shares and listing on the main board of the Hong Kong Stock Exchange. Part of the funds raised will be used to advance the company's Hungary project, potentially accelerating its overseas expansion.

According to the listing application materials disclosed by CATL, part of the funds raised from the Hong Kong listing will be used for the construction of the first and second phases of the Hungary project, while the remaining funds will be allocated for working capital and other general corporate purposes. The sponsors and coordinators for this Hong Kong listing include Bank of America, CICC, JPMorgan, Goldman Sachs, and UBS.

From the latest application materials disclosed by CATL, the company is intensifying its efforts to expand in overseas markets.

In the application materials, CATL stated that in 2024, the company plans to collaborate with Stellantis N.V. to invest in and build a battery factory in Spain, marking a significant milestone in its business development for 2024.

According to the announcement, CATL disclosed in 2022 that it plans to construct a power battery system production line with an annual capacity of 100GWh in phases at its Debrecen site in Hungary. The total investment is expected to not exceed 7.34 billion euros (approximately 55.34 billion yuan at today's exchange rate), with a total construction period of no more than 64 months.

CATL stated in the aforementioned application materials that the preliminary preparations for the Hungary project have been completed, and construction has already commenced. As of December 31, 2024, the company had invested approximately 700 million euros (approximately 5.28 billion yuan). The total investment for the first and second phases of the Hungary project is approximately 4.9 billion euros, with the remaining funds to be invested gradually to complete the construction as planned.

CATL noted that the demand for power batteries and ESS batteries in overseas markets, including the EU, continues to grow. To better meet customer needs, strengthen relationships with clients, and establish localized production capacity in the EU, this is of significant importance to the company's international business layout and development. "We may continue to build production sites for batteries and related materials overseas in the future."

From the perspective of overseas revenue, the importance of the company's overseas markets is also gradually increasing. In the first three quarters of 2024, overseas revenue accounted for about 30% of the total. Meanwhile, in January-November 2024, CATL's global market share was 36.8%, with a market share of 26.8% outside China, ranking first globally.

According to the application materials, CATL's overseas automaker clients include BMW, Mercedes-Benz, Stellantis, Volkswagen, Ford, Toyota, Hyundai, Honda, and Volvo. Its overseas ESS clients include NextEra, Synergy, Wärtsilä, Excelsior, Jupiter Power, and Flexgen.

As of the end of September 2024, CATL's lithium battery capacity exceeded 700GWh, with approximately 240GWh under construction, and the company operates 13 production sites globally.