CATL increased net income by approximately 82% in the first half of 2022

The company was able to further expand its position in the battery market for electric vehicles


An editor at eMobilCar

  • 2 min read

Chinese battery leader CATL increased its net profit by about 82% to 8.17 billion yuan ($1.2 billion) in the first half of 2022 compared to the same period last year.

Revenue rose 156% to 112.97 billion yuan, or 16.5 billion euros. CATL's gross margin was 18.68%, up 4.2 percentage points from the first quarter of 2022, although a record low. From 2019 to 2021, CATL grossed 29.06%, 27.76% and 26.28%, respectively. The pressure on margins was caused by a sharp increase in raw material prices, which CATL could not directly pass on to buyers. The published minutes of the investor relations event say that negotiations with the majority of clients regarding price increases for the second quarter are largely completed. Discussions with some customers in the energy storage sector about price adjustments are still ongoing.

Especially in the second quarter, the company was able to grow in terms of profitability, with sales of 48.68 billion yuan in the first quarter and net profit of 1.49 billion yuan. In the second quarter, sales were already 64.29 billion yuan and net income was 6.68 billion yuan. Only in the fourth quarter of 2021 did the company earn more, with a profit of 8.18 billion yuan on sales of 56.99 billion yuan.

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