Chinese battery giant CATL expects its net income for 2024 to rise between 11.06% and 20.12%, reaching an estimated RMB 49 billion ($6.7 billion) to RMB 53 billion, according to an earnings preview released by the company today.
The expected growth is largely attributed to advancements in the company’s technological research and development, along with improvements in product competitiveness.
See also: CATL to Launch New EV Battery Plant Joint Venture in Europe
After excluding non-recurring gains and losses, CATL forecasts a net income of RMB 44 billion to RMB 47 billion for the year, marking an increase of 9.75% to 17.23% compared to 2023. “The rise in net profit was mainly attributed to the company’s continued enhancement of its technological research and development capabilities and product competitiveness,” CATL stated.
However, despite the increase in battery product sales, the company anticipates a decline in revenue, estimating a range between RMB 356 billion and RMB 366 billion for 2024, which would represent a decrease of 8.71% to 11.20% from RMB 400.9 billion in 2023. The revenue decline is mainly due to adjustments in product pricing, driven by lower raw material costs such as lithium carbonate.
See also: CATL Unveils Plans for 10 EV Models with Swappable Batteries, Targets Infrastructure Expansion
CATL also expects its fourth-quarter net income to reach a record RMB 17 billion, marking a 31.01% year-on-year increase and a 29.41% improvement from the third quarter of 2024.
For the fourth quarter, the company predicts revenue could hit RMB 107 billion, nearly flat compared to Q4 2023 but up 15.91% from the third quarter of 2024.
