Contemporary Amperex Technology has reported a 7 percent jump in net profit in the first quarter of the year thanks to shrinking raw material costs. The Chinese battery giant also said that its factory in Germany's Arnstadt will likely break even this year.
Net profit was CNY10.5 billion (USD1.5 billion) in the three months ended March 31, while profit after deducting non-recurring gains and losses surged 19 percent to CNY9.2 billion (USD1.3 billion) from a year ago, the Ningde-based firm said in an earnings report yesterday. Revenue fell 10.4 percent to CNY79.8 billion (USD11 billion), down for a second straight quarter.
CATL's battery shipments jumped more than 25 percent, but its revenue dropped because of lower battery prices due to the decline in raw material costs, according to the company. Its operating costs dipped 16 percent to CNY58.7 billion.
CATL stays optimistic about overseas markets, with its first such plant in Germany gradually improving its production capacity last year, it noted. The European market's demand has fluctuated in the short run, but the company remains confident about the market with the gradual improvement in local infrastructure and European carmakers launching new-generation electric vehicle models, it added.
Following the financial report, international ratings agency Moody's upgraded CATL's issuer rating from Baa1 to A3 and expects its revenue to rise 4 percent to CNY417 billion (USD57.6 billion) this year from 2023. Morgan Stanley also raised CATL's rating to overweight from equal-weight last month.
CATL ranked first in the world by battery shipments for seven straight years. Its shipments surged 45 percent to 35.5 gigawatt hours in January and February from a year earlier, with its global market share rising to 38.4 percent from 33.4 percent, according to data from the South Korean market researcher SNE Research.
Shares of CATL [SHE: 300750] rose 0.4 percent to CNY197.87 (USD27.34) apiece as of 1.35 p.m. in Shenzhen today, after jumping by as much as 1 percent in the morning trading session.
（Picture: Veer）
