CATL forecasts YoY drop in 2024's revenue, but net profit expected to rise

Shanghai (Gasgoo)- On January 21, CATL announced its 2024 earnings forecast, revealing a year-on-year decline in revenue but an increase in net profit attributable to shareholders.

Specifically, the company expects annual revenue for the reporting period to range between 356 billion yuan and 366 billion yuan, representing a decline of 11.20%–8.71% year-on-year. In the same span, its net profit attributable to shareholders is projected at 49 billion yuan to 53 billion yuan, reflecting a year-on-year increase of 11.06%–20.12%. Excluding non-recurring gains and losses, the annual net profit is estimated at 44 billion yuan to 47 billion yuan, up 9.75%–17.23% from the previous year.

CATL attributed the decline in revenue to price adjustments caused by falling raw material costs, such as lithium carbonate, despite higher battery sales volumes. However, the increase in net profit was credited to the company's ongoing advancements in research and development, improved product competitiveness, and strengthened partnerships with clients across various markets and applications.

CATL remains the undisputed leader in the battery industry. According to data from the China Automotive Power Battery Industry Innovation Alliance, CATL's installed volume for power batteries reached 246.01 GWh in China last year, capturing a 45.08% market share in the country—an increase of 1.89 percentage points year-on-year.

On December 26, CATL announced its intention to issue overseas-listed foreign shares (H-shares) and apply for listing on the Main Board of the Stock Exchange of Hong Kong Limited. The H-share issuance will be conducted globally. This initiative aims to support its globalization strategy, enhance international capital operations, and boost overall competitiveness.

Regarding global production capacity expansion, in December last year, CATL and Stellantis announced their plan to jointly build a factory for producing lithium iron phosphate (LFP) batteries, involving a total investment of over €4 billion. The facility, whose construction is set to be finished in four years, will provide an annual capacity of 50 GWh upon completion.