China’s CATL sees Q3 net profit grow 4.24% year on year

Shanghai (Gasgoo)- China power battery giant Contemporary Amperex Technology Limited (CATL) said its revenue reached 12.693 billion yuan ($1.890 billion) for the third quarter (Q3) of 2020, edging up 0.8% over a year ago.

During the same period, CATL's net profit attributable to shareholders rose 4.24% year on year to 1.42 billion yuan ($211.388 million). Excluding the impact of certain non-recurring gains and losses, the company's Q3 net profit still climbed 3.91% to 1.191 billion ($177.315 million).

Photo credit: CATL

Meanwhile, the Q3 net cash flow generated by operating activities stood at 4.479 billion yuan ($667.01 million), surging 46.93% from the previous year.

This was 2020's first-time growth CATL posts for quarterly revenue and net profit. For the first half of the year, CATL’s revenue and net profit dropped 7.08% and 7.86% year over year respectively, proceeding from the decrease in the power battery income, which was caused by the plunge in domestic NEV outputs and sales as the coronavirus pandemic hit the market demands.

Thanks to the increase in the Q3's financial index, the decrease in CATL’s Jan.-Sept. revenue and net profit shrank to 4.06% and 3.1%.

In the third quarter, CATL introduced some significant investors such as Honda and Hillhouse Capital Group. Honda has acquired approximately 1% of CATL shares through the non-public issuance of stocks, which makes Honda a leading strategic partner of CATL.

In July, CATL and Honda signed an agreement to form a comprehensive strategic alliance on new energy vehicle (NEV) batteries to strengthen their strategic partnership and promote the popularization of electrified vehicles. This agreement will enable the two companies to begin discussions on a broad range of areas including joint development, stable supply, and the recycling and reuse of batteries.

Under the agreement, CATL will provide stable supply of NEV batteries to Honda, mainly for battery electric vehicles (BEVs). The first model equipped with a CATL battery is scheduled to be launched in the Chinese market in 2022.