CATL forecasts powerful profit growth

Published:

On: Jan 2020

Chinese biggest automotive lithium-ion battery manufacturer, Contemporary Amperex Technology Cooperation Ltd(CATL), recently predicted a 20-25 % growth in its net profit credited to given shareholders in 2019. The company estimates that its total net profit, excluding non-persisting elements, credited to listed shareholders was between 3.6 billion to 4.22-billion-yuan last year and its increased by 15 % to 35 % over 2018.

CATL attributed the growth of the rapid manufacturing of the new energy vehicle(NEV) industry in the Chinese continent, growing demand for its products and the company’s industrial expansion. It also credited the growth to its rising development capacity and effective attempts to monitor costs.

In the year 2018, the overall net profit of CATL was recorded as 3.39 billion yuan. CATL is indexed on the Shenzhen stock exchange. Last year, China developed and sold around 1.24 million and 1.21 million units of NEVs, drop to 2.3 % and 4.0 % respectively, as reported by the China Association of Automobile Manufacturers. The small decline is indicated to the subsidy drop and the inclusive declining vehicle industry in China.

However, researchers hope that Chinese NEV industry is still on the faster track. Statistics represent in 2019, the installed capacity of lithium-ion batteries in the country aggregated to nearly 62.2 GWh, a yearly increase of 9.2 %. Around 51 % of the batteries are developed by CATL.

Over the last decades, CATL has developed a bunch of major technological breakthroughs such as self-heating technology that allows batteries to warm up from 20 degrees Celsius below 0 to 10 degrees Celsius in 15 mins and cell-to-pack(CTP)batteries that can boost mass-energy density by 10 to 15 %.