Electric-car battery maker CATL’s profits jump 200%

CONTEMPORARY Amperex Technology Co Ltd (CATL) expects its net income to surge to as much as 9.8 billion yuan (S$1.63 billion) in the third quarter, as the biggest maker of electric-vehicle batteries benefits from strong sales to the automotive industry.

CATL, which is investing heavily in expanding its production capacity, predicted the profit jump of as much as 200 per cent in a stock filing on Monday (Oct 10). The Ningde, Fujian-based company also said net income could top 18 billion yuan in the nine months through September, up 132 per cent on the same period last year.

CATL has made spending commitments in the region of US$20 billion to build new, bigger factories at home and abroad including in Hungary with Mercedes-Benz, and also plans to tap resource-rich Indonesia for expansion. In August, the manufacturer unveiled half-year results that marked a recovery from a disastrous start to the year. Profit for the six months through June climbed 82 per cent to 8.17 billion yuan, as CATL coped better with the volatility in raw-material costs.

South Korean battery maker LG Energy Solution Ltd reported third-quarter earnings last week that comfortably beat profit and sales expectations, bolstered by demand for EVs and a weak Korean won offsetting high commodity prices.

CATL is expected to release third-quarter results on Oct 21. BLOOMBERG