Contemporary Amperex Technology (CATL) posted record annual earnings for 2024, the strong financials further evidence of its commanding market position at a time some rivals are faltering.
The world’s biggest maker of electric vehicle batteries posted a 15% rise in net income to 50.7 billion yuan ($9.37 billion) for the 12 months ended Dec 31, 2024, according to a statement Friday. Analysts had expected a profit of 51.5 billion yuan. Sales fell 9.7% to 362 billion yuan, worse than analysts estimates for 372 billion yuan.
CATL’s earnings strength will help in an uncertain 2025. International growth looks more two-paced between China and the rest of the world while an increasing number of automakers are easing up on their electric transitions. A broader US trade and tariff war with neighboring countries, traditional allies and foes could have far reaching implications.
Ningde, Fujian-based CATL represents a key part of the EV supply chain, and its customers include some of the world’s biggest carmakers like Tesla. It’s managing to outshine rivals during a period of pricing pressure on batteries thanks in part to its line up of other products.
Revenue from CATL’s energy storage business came in at 57.3 billion yuan for the full-year period, versus analyst estimates of about 64.7 billion yuan. The Chinese company’s power battery gross margin was 23.9%, lower than the 28.2% market watchers were looking for.
HSBC analysts have said that CATL’s energy storage products should work to help offset weaker EV demand.
See also: CATL shares trail most battery peers ahead of earnings report
In the near term, meanwhile, CATL’s energy will be focused on an expected US$5 billion ($6.69 billion) blockbuster secondary listing in Hong Kong, with the cash being used to help pay for expansion in Europe, including a mammoth 100 gigawatt-hour factory in Hungary.
In terms of market share, CATL finished the year strongly, widening its control to almost 38%. BYD, which makes mostly batteries for its own cars, also increased its standing while LG Energy Solution slipped.
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CATL’s shares are down nearly 5% since a high in February after gaining 63% in 2024.
Chart: Bloomberg
