Chinese electric vehicle battery giant CATL reported a 26% year-on-year increase in net profit for the third quarter, according to a stock filing released on Friday.
The company achieved a net profit of 13.14 billion yuan ($1.85 billion) for the July-September period, marking an acceleration from the previous quarter. However, revenue fell by 12.5% year-on-year to 92.3 billion yuan, continuing a trend of declining revenues for the fourth consecutive quarter.
This profit increase follows a 13.4% rise in the second quarter, indicating CATL’s ability to sustain profitability despite ongoing revenue challenges. As of September, CATL held a 44% market share in batteries for Chinese-made electric vehicles, down 0.4 percentage points from the previous month.
In contrast, the combined market share of second-ranked BYD (002594.SZ) and third-placed CALB (3931.HK) decreased by 1.4 percentage points to 30.9%, according to data from the China Automotive Battery Innovation Alliance.
CATL is also making strides in expanding its overseas capacity, particularly through its LRS (Licensing, Royalty, and Service) model. Jefferies highlighted in a recent research report that CATL could begin generating revenue from LRS as soon as the end of 2024.
Further bolstering its international presence, CATL opened a new research and development center in Hong Kong on Tuesday, marking its sixth global R&D facility.
This initiative comes seven months after Chairman Robin Zeng announced plans to support technology exports, reinforcing CATL’s commitment to innovation and market leadership in the EV battery sector.
