We are a globally leading innovative new energy technology company, primarily engaged in the research, development, production, and sales of EV batteries and ESS batteries. We promote the transition from mobile and stationary fossil energy sources to sustainable alternatives, as well as creating integrated innovative solutions for new applications through advancements in electrification and intelligent technologies. As of December 31, 2024, we had established six major R&D centers and 13 battery manufacturing bases worldwide, with service outlets spanning 64 countries and regions. We have the broadest coverage of customer and end-user base globally. As of December 31, 2024, our EV batteries were installed in over 17 million vehicles, which represents one in every three EVs worldwide, and our ESS batteries were deployed in over 1,700 projects across the globe.
Leveraging decades of extensive experience we have accumulated in the lithium-ion battery industry, we have developed proprietary full-chain and highly efficient R&D capabilities, which lead to our comprehensive and advanced matrix of products and solution. It can be applied to passenger vehicle (PV), commercial vehicle (CV), front-of-the-meter (FTM) energy storage system, behind-the-meter (BTM) energy storage system, and emerging applications such as machinery, vessels, aircraft and others. Our products effectively meet the evolving and diverse needs of global customers.
We actively participate in the development of industry standards and subject matter research in the global lithium-ion battery industry, driving the industry’s sustainable development. By the end of 2024, we are part of over 160 domestic and international industry associations, among others: the Global Battery Alliance, International Renewable Energy Agency, European Battery Alliance, and China Association of Automobile Manufacturers.
Our Business
We are dedicated to providing best-in-class EV and ESS batteries and related solutions for global new energy applications.
Our Innovations
Our innovation has three strategic directions: (i) replacing mobile fossil energy sources, (ii) replacing stationary fossil energy sources and (iii) integrated innovation of new applications. We focus our efforts on innovation around battery materials and electro-chemistries, system structures, and green extreme manufacturing, as well as business model innovation. We have consistently launched new technologies, products and business models that drive the industry forward. For details, see “Business — Our Innovations.”
Our Global Presence
Our business spans the globe. We adopt a “customer-centric” approach and established various long-term and in-depth strategic partnerships with globally renowned automotive OEMs, ESS integrators, project developers or operators. By the end of 2024, nine out of the top ten global automotive OEMs by EV sales volume are our customers, according to the GGII Report. Our automotive OEM customers include BMW, Mercedes-Benz, Stellantis, Volkswagen, Ford, Toyota, Hyundai, Honda, Volvo, SAIC, Geely, NIO, Li Auto, Yutong, and Xiaomi. Our ESS customers and partners include NextEra, Synergy, Wrtsil, Excelsior, Jupiter Power, Flexgen, China Energy Group, State Power Investment Corporation, China Huaneng Group, China Huadian Group and China National Petroleum Corporation. We further strengthen our collaboration with global customers through equity investments, JVs, and technology licensing. In 2024, 30.5% of our revenue was generated from overseas markets. As of December 31, 2024, we had established a global network of over 770 after-sales service stations, among which 169 are located overseas, continuously providing high-quality service to our global customers.
We have been expanding our global footprint in response to evolving customer demands. As of December 31, 2024, we operated 13 battery manufacturing bases around the world including 11 major domestic manufacturing bases located in Ningde (Fujian), Xining (Qinghai), Liyang (Jiangsu), Yibin (Sichuan), Zhaoqing (Guangdong), Shanghai, Xiamen (Fujian), Yichun (Jiangxi), Guiyang (Guizhou), Jining (Shandong), and Luoyang (Henan), and two overseas manufacturing bases — the Thuringia factory in Germany and the Debrecen factory in Hungary. Our manufacturing base in Thuringia, Germany, has become the world’s first battery manufacturer to obtain Volkswagen module certification and the first in Europe to receive Volkswagen cell certification. Furthermore, we are actively preparing and advancing our JV factory with Stellantis N.V. in Spain, and our battery value chain projects in Indonesia.
To actively advance our globalization, we emphasize our efforts on overseas operational support, supply chain expansion, resources and recycling, and international talent acquisition. These efforts aim to create an efficient multinational operational structure.
Our Financial Performance
We have achieved solid and high quality financial performance over the years. For the years ended December 31, 2022, 2023 and 2024, our revenue was RMB328.6 billion, RMB400.9 billion and RMB362.0 billion, respectively. Our revenue decreased by 9.7% from RMB400.9 billion in 2023 to RMB362.0 billion in 2024, mainly due to a reduction in our average selling price in response to decrease in the prices of raw materials, including lithium carbonate, despite increased sales volumes of our EV batteries and ESS batteries. During this period, our profitability continued to improve, with profit for the year consistently increasing.
For the years ended December 31, 2022, 2023 and 2024, our profit for the year was RMB33.5 billion, RMB47.3 billion and RMB55.3 billion, respectively, representing a year-on-year growth of 41.5% and 16.8%, respectively. Our net profit margin for the years ended December 31, 2022, 2023 and 2024 was 10.2%, 11.8% and 15.3%, respectively. In the same years, our weighted average ROE was 24.7%, 24.3% and 24.7%, respectively.
We have consistently maintained a robust cash flow position. The net cash flow generated from operating activities for the years ended December 31, 2022, 2023 and 2024 was RMB61.2 billion, RMB92.8 billion, and RMB97.0 billion, respectively.
Our Sustainability Initiatives
We actively promote the United Nations Sustainable Development Goals. As a member of the United Nations Global Compact (“UNGC”), we fully support its ten principles across four key areas: human rights, labor, environment, and anti-corruption. We have established a sustainability governance structure that integrates these principles into our daily operations, ensuring the effective advancement of our sustainability efforts.
Meanwhile, we continuously enhance the transparency of our external communications, conveying our sustainability values and concepts to a broader range of stakeholders. As of the Latest Practicable Date, we had published annual Corporate Social Responsibility and/or ESG reports for seven consecutive years. We conduct regular identification and analysis of material ESG topics, and conduct a review of material topic results of the previous year in accordance with the latest ESG regulations and policies, while also considering external stakeholder focus and industry practices.
We consider climate change and carbon emissions as essential factors for our sustainable development. In 2023, we released our “Zero Carbon Strategy” setting clear carbon neutrality goals: achieving carbon neutrality by 2025 in our core operations and by 2035 across the value chain. We continue to enhance our ecosystem and biodiversity protection strategies, formulating and publishing our “Biodiversity Commitment” and “Forest Resource Conservation Commitment.” Adhering to a philosophy of seamlessly integrating business development with social responsibility, we actively participate in community development, educational support, disaster relief, environmental protection, and social welfare initiatives. Through dedicated charitable funds and financial donations, we fulfill our corporate citizenship responsibilities and promote social value cocreation.
We continuously enhance our ESG practice and have achieved steady improvement of ESG rating in recent years. We successfully maintain industry-wide leading positions in various mainstream ESG ratings.
Source: CATL (03750) Prospectus (IPO Date : 2025/05/12) |