Shanghai (Gasgoo)- On October 18, Chinese battery giant CATL released its financial results for the third quarter of 2024 (Q3 2024). The report revealed that CATL's revenue for Q3 stood at 92.278 billion yuan, marking a year-on-year decrease of 12.48%. However, its net profit attributable to shareholders jumped 25.97% to 13.136 billion yuan. Excluding non-recurring items, the net profit rose 28.6% year-on-year to 12.12 billion yuan.
For the first three quarters of 2024, CATL reported total revenue of 259.045 billion yuan, down 12.09% from the same period last year. Net profit attributable to shareholders, however, grew by 15.59% from a year earlier to 36.001 billion yuan, while excluding non-recurring items, the net profit still increased by 19.26% year on year to 32.176 billion yuan.
CATL demonstrated strong cost control measures, with operating costs decreasing by 19.15% over the previous year in the first three quarters, contributing significantly to its profit growth.
The company’s sales and administrative expenses for the period were 10.928 billion yuan and 6.774 billion yuan, reflecting a 6.9% increase in sales expenses and a 2.07% decrease in administrative expenses compared to the year-ago period. This indicates that CATL ramped up its market promotion in this period.
In terms of R&D, CATL showed a more cautious approach. Its R&D expenses for the first three quarters totaled 13.07 billion yuan, down 12.12% over a year ago, aligning with the decline in revenue.
During the Q3 earnings call on October 18, CATL CFO Zheng Shu explained that one of the reasons for the improved gross profit margin was the continued decline in the price of key materials, including lithium carbonate, and a further reduction in sales prices. Additionally, advanced technologies such as the Shenxing ultra-fast charging battery and the Qilin battery have been well received by major clients, with the premium from new technologies and products contributing positively to gross margins. Looking ahead, CATL expects its gross profit margin to remain relatively stable.
