The earnings preview implies CATL returned to net profit growth in the fourth quarter, after seeing a sequential decline in the third quarter.
Chinese power battery giant CATL has previewed strong 2023 results, implying a return to net profit growth in the fourth quarter.
CATL’s net profit attributable to shareholders is expected to be between RMB 42.5 billion ($5.9 billion) and RMB 45.5 billion in 2023, representing a year-on-year increase of between 38.31 percent and 48.07 percent, according to the company’s earnings preview released today.
After non-recurring gains and losses, CATL expects 2023 net profit to be RMB 38.5 billion to RMB 41.5 billion, representing a year-on-year increase of 36.46 percent to 47.09 percent.
CATL’s net profit in the first and second quarters of 2023 was RMB 9.82 billion and RMB 10.9 billion, respectively.
However, in the third quarter, its net profit decreased by 4.29 percent from the second quarter to RMB 10.43 billion.
In the first three quarters of 2023, CATL’s net profit was RMB 31.15 billion.
The earnings preview announced today implies that CATL’s net profit in the fourth quarter will be between RMB 11.35 billion and RMB 14.35 billion, an increase of 8.85 percent to 37.61 percent from the third quarter.
CATL has introduced industry-leading product solutions and services through increased investment in research and development and innovation, it said in its earnings preview.
During the reporting period, the company’s new technologies and products began to be put into use, overseas market expansion accelerated and customer partnerships deepened, CATL said.
CATL realized good economic benefits along with faster growth in production and sales, it said.
CATL is the largest power battery maker in the world, with a 37.4 percent global share in the January-November period, making it the only battery supplier in the world with a market share of more than 30 percent, according to South Korean market researcher SNE Research.
In China, CAT was No. 1 in December with a 44.48 percent share, according to the China Automotive Battery Innovation Alliance (CABIA).
($1 = RMB 7.1796)
