The first half of 2023 has been particularly fruitful for CATL, as evidenced by remarkable growth in both net profit and revenue, while the second quarter saw a steady increase quarter-on-quarter.
During the first half of 2023, CATL achieved a substantial revenue of 189.246 billion yuan, representing an impressive year-on-year increase of 67.52%. Notably, the company’s net profit in Q2 reached 20.717 billion yuan, showing a remarkable year-on-year growth of 153.64%. In Q2 alone, CATL achieved a revenue of 100.208 billion yuan, displaying a solid year-on-year growth of 55.86% and a commendable quarter-on-quarter increase of 12.54%. Furthermore, the net profit in Q2 soared to 10.895 billion yuan, showing an impressive year-on-year growth of 63.22% and a notable quarter-on-quarter increase of 10.9%.
Enhanced Profitability and Equity Incentives Showcase Remarkable Confidence
As per the company’s recent report, the output of battery systems in the first half of the year reached an impressive 154GWh, operating at a commendable capacity utilization rate of 60.5%. This remarkable achievement follows a substantial increase in the company’s capacity, driven by the successful upgrade of its production line, which also led to a noteworthy reduction in production costs. During the first half of 2023, the company experienced a significant boost in both gross and net profitability, reaching 21.63% and 11.35%, respectively. These figures mark a substantial increase of 1.38% and 1.16% compared to 2022, indicating a stronger financial performance. Furthermore, in the same period, the expense ratios for sales, management, research and development, and financial activities were reported as 3.54%, 2.38%, 5.20%, and 1.67%, respectively. It is noteworthy that these expense ratios have experienced positive trends, with sales, management and R&D ratios rising slightly by 0.16%, 0.26% and 0.48%, while financial ratios decreased by 0.82% compared to 2022. Moreover, the company managed to minimize its expense loss to 1.105 billion yuan. In a move to further motivate the core staff and reinforce the company’s confidence, CATL recently unveiled its 2023 restricted stock incentive plan (draft) on July 25. The plan aims to grant 12,595,600 shares of restricted stock to 424 deserving incentive recipients. This strategic initiative is expected to play a significant role in boosting the enthusiasm and commitment of the company's core team members, ensuring a steadfast and dedicated workforce.
CATL Maintains Dominant Position in the Vehicle Energy Storage Industry as it Thrives
CATL’s power battery system business achieved remarkable revenue of 139.418 billion yuan, representing a substantial increase of 76.16%. Additionally, the gross margin reached 20.35%, marking an impressive year-on-year growth of 5.31%. Similarly, the energy storage battery business also witnessed impressive growth, achieving revenue of 27.985 billion yuan, with a noteworthy increase of 119.73%. The gross profit margin in this segment surged to 21.32%, showing a remarkable year-on-year increase of 14.89%. A report by SNE on the power battery industry shows that the global power battery usage reached 237.6GWh from January to May 2023, showing a notable year-on-year growth of 52.3%. In this period, CATL accounted for an impressive 86.2GWh, representing a remarkable year-on-year increase of 59.6%. CATL’s market share in this segment reached 36.3%, growing by 1.7% year-on-year, solidifying its position at the forefront of the industry. Moreover, according to data from SMM, the shipments of global energy storage batteries in the first half of 2023 surged to 87.0GWh, demonstrating an impressive year-on-year growth of 122.0%. CATL’s production capacity for energy storage batteries remained unparalleled, securing its rank as the world leader in this segment.
CATL remains at the forefront of innovation in the vehicle energy storage industry, introducing new technologies and upgrading products with impressive frequency during the first half of 2023. In a noteworthy move to promote the industrialization of M3P (manganese-based lithium-ion phosphate) batteries, CATL unveiled the debut platform for 4C Qilin battery and sodium-ion battery vehicles. Additionally, in April, CATL released the highly anticipated condensed battery, boasting an impressive energy density of 500Wh/KG. This battery not only excels in safety but also demonstrates outstanding discharge performance, particularly in low-temperature environments. The company is all set to achieve automotive-grade mass production capacity for this remarkable battery later this year. At the same time, in July, CATL and COMAC established a joint venture called COMAC CATL Aviation Co., Ltd., which is a signal that the condensed battery are expected to be used in the field of aviation. In another successful deployment, CATL’s CLTC vehicle equipped with CTP3.0 Qilin batteries was officially delivered, offering an impressive range of over 1,000Km. To fuel its continuous innovation drive, CATL significantly increased its research and development expenses, investing 9.85 billion yuan in the first half of 2023. This substantial increase of 70.77% underscores CATL’s determination to maintain its leading position in all aspects of the industry.
