CATL Reports H1 Revenue of RMB 276.9B and Net Profit of RMB 43.3B, Launches Up to RMB 40B Share Buyback

CATL reported revenue of RMB 276.917 billion in the first half of 2024, an increase of 54.8% year-over-year. Net profit attributable to shareholders of the parent company reached RMB 43.284 billion, up 41.98% year-over-year. Of this, revenue from its power battery business amounted to RMB 192.12 billion, accounting for 69.38% of total revenue, while energy storage battery revenue reached RMB 53.26 billion, surging 87.5% year-over-year. The company maintained its position as the global leader in the power battery market for the eighth consecutive year, with a global market share of 40.2%. During the same period, net cash flow from operating activities totaled RMB 60.217 billion, exceeding net profit attributable to parent company shareholders. Inventory stood at RMB 130.819 billion, an increase of approximately 38.39% compared to the beginning of the year. Despite record-high revenue and profit figures, the company’s overall gross margin declined to 23.93% from 25.02% a year earlier, primarily due to rising raw material costs. The gross margin of its power battery segment fell by 1.78 percentage points to 20.63%. Nevertheless, core operating profit rose sharply by 70.1% year-over-year to RMB 45.377 billion, and core operating margin improved from 14.91% to 16.39%. Additionally, CATL announced plans to repurchase A-share stock worth between RMB 20 billion and RMB 40 billion, with all repurchased shares to be canceled. This marks the largest single share buyback program in the history of China’s A-share market.