Chinese battery maker CATL reports faster profit growth in second quarter
Net profit jumped 34 per cent from a year earlier to 16.5 billion yuan (S$3 billion), accelerating from a 32.9 per cent increase in the first quarter. Revenue was up 8.3 per cent year on year to 94.2 billion yuan, after rising 6.2 per cent in the first quarter, according to a stock filing on Wednesday (Jul 30).
For the first half of 2025, profit increased 33 per cent while revenue rose 7.3 per cent.
Fierce competition in China's auto market, the world's largest, has strained automakers, suppliers and dealerships, prompting the authorities to say they will toughen regulations to halt price wars.
Gross profit margin at CATL's core power battery business slid to 22.41 per cent in the first half from 23.48 per cent a year earlier, its filing showed.
But its battery materials and recycling business booked a gross margin of 26.42 per cent, more than triple the level in the first half of last year, contributing to a 1.57 percentage point increase in overall gross profit margin.
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CATL should be among the winners from potential industry consolidation, Morningstar analysts said in a recent note, citing the company's market leadership in EV batteries.
CATL extended its lead in global EV battery usage with a 38.1 per cent share in the first five months of 2025, up from 37.5 per cent in the same period of last year, according to SNE Research.
Chinese EV leader BYD, which also makes batteries in-house, was second with a 17.4 per cent share, up from 15.4 per cent a year earlier, while LG Energy Solution's share fell to 10 per cent from 12.1 per cent.
CATL has sought to fast-track its overseas expansion and explore other avenues for growth.
It listed in Hong Kong in May, with most of the proceeds funding its upcoming battery plant in Hungary.
CATL's lithium-ion battery joint venture in Indonesia is expected to be operational by the end of 2026, an Indonesian official said last month.
Besides the launch of a new EV chassis with an integrated battery in December, the company invested in a robotaxi firm in June. REUTERS
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