Chinese battery giant Contemporary Amperex Technology Co. Ltd (CATL) reported a 32.85% rise in first-quarter net income, supported by improved gross margins and steady revenue growth, despite a quarter-on-quarter decline in both metrics.
Net profit for the January-March period reached RMB 13.96 billion ($1.9 billion), exceeding analyst expectations. While earnings rose sharply from the same period a year earlier, they fell 5.30% from the fourth quarter of 2024. Revenue stood at RMB 84.7 billion, up 6.18% year-on-year, but 17.74% lower than the previous quarter.
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Gross margin improved to 24.41% in the first quarter, compared with an adjusted 23.25% for the same period in 2023 and 15.04% in the previous quarter. The improvement followed CATL’s adoption of new accounting standards, which led to changes in the way operating costs are reported.
Research and development spending increased 10.92% year-on-year to RMB 4.81 billion, while net cash flow from operating activities rose 15.91% to RMB 32.87 billion. At the end of March, the company held RMB 286.3 billion in cash and cash equivalents.
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CATL remained the world’s leading power battery producer, with 49.6 GWh installed globally in January and February, giving it a 38.2% market share, according to South Korean market research firm SNE Research. The company is also moving forward with a planned Hong Kong listing, after receiving regulatory approvals from both mainland China and Hong Kong authorities.
