Headline: CATL's Revenue Declines for First Time Amid Slowing Profit Growth
SEO Keywords:
* CATL
* Battery maker
* Revenue decline
* Profit growth
* Raw material prices
* Lithium carbonate
* EV chassis
* Power grids
* Foreign investments
* Hong Kong float
Body:
Shares of Contemporary Amperex Technology Ltd. (CATL), the world's largest battery manufacturer, plunged nearly 4% on Wednesday following the company's announcement of a first-time annual revenue decline and its slowest profit growth since 2019.
CATL's revenue fell between 8.7% and 11.2% in 2023, marking its first annual decline since releasing its operating figures in 2015. This decline was driven by product price adjustments to reflect the drop in raw material prices, such as lithium carbonate, which led to a decrease in operating income despite higher sales volumes.
Net profit grew between 11.1% and 20.1% in 2023 compared to the previous year, indicating the company's slowest profit increase since 2019. CATL is expected to release its full-year results on March 15, but Chinese companies often voluntarily disclose earnings estimates when significant changes occur.
CATL's intervention in the lithium market in 2022, when it established a major lithium hub in Jiangxi, has contributed to the decline in lithium prices. The company has also diversified beyond batteries, launching a new EV chassis in December and exploring opportunities in power grids.
CATL is actively pursuing investments abroad, including a 100 GWh battery factory in Hungary to supply automakers like Mercedes-Benz and BMW. The company is also planning to build a jointly owned battery plant with Stellantis in Spain.
CATL has a 45.1% market share in batteries for Chinese-made EVs, up 1.9% year-over-year. However, it faces competition from BYD and CALB, whose combined market share has declined slightly to 31.4%.
The company is reportedly hiring banks for a potential Hong Kong float, which could be one of the city's largest offerings in 2025.