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CATL said that its revenue in H1 2022 rose 156% year-over-year.
Chinese battery manufacturer and technology company Contemporary Amperex Technology Company (CATL) saw its net profit surge in the first half (H1) of 2022. The company announced its net profit in H1 2022 stood at 8.17 billion yuan ($1.192 billion). This represents an 82.17% surge YoY. The increase came after the batter giant started the year on a rocky note, leading to its sharpest ever fall in quarterly earnings. The company reported a 24% drop during the first quarter in addition to a 41% decline in underlying profit. For the first time, CATL announced that impairment losses on assets shed 665 to 256.6 million yuan. After recovering from the rough start, CATL surpassed analysts’ estimate of 6.39 billion yuan.
CATL is continually expanding and achieving feats. As of June ending, Seoul-based research revealed that the company had a global market share of 34.8%. The percentage is about 1% in addition to 33.9% in May. Following CATL are LG Energy with 14.4% and Chinese electric car chip and battery manufacturer BYD with 11.8%. After recording a remarkable gain in H1 2022, CATL is positioned to continue to soar with increasing demand for EVs in China and Europe. BloombergNEF reported that electric vehicles are predicted to hit 10.6 million this year. The BNEF analysts wrote:
“The passenger EV market in China grew 105% in the second quarter. We expect EV sales in China to reach 6 million in 2022 as a result of booming demand spurred by new models coming to market and regulatory support on municipal and national levels. South Korea will remain the second-biggest market in the region, but we also expect sales in India to nearly triple in 2022.”
CATL Surges in H1 2022
In addition, CATL said revenue in H1 2022 rose 156% year-over-year. The growth in its business scale contributed largely to the increase, pushing the revenue to approximately 113 billion yuan. More so, the surge exceeded expectations of $102.6 billion. Even without the impact of certain non-recurring gains and losses, the company still boasts a 79.95% spike compared to the previous year to over 7 billion yuan.
Furthermore, CATL said its basic earnings per share in H1 2022 was 3.5233 yuan, a jump over the 1.9416 yuan for H1 2021. The company added that its operating cost between January and June 2022 pumped 186.55% YoY to 91 billion yuan. According to the battery maker, the operating cost soared due to the rise in product sales and some upstream raw materials prices.
Coinspeaker reported last year that CATL and Apple (NASDAQ: AAPL) were talking about the supply of Lithium Iron phosphate batteries. CATL was to supply the batteries to Apple for its proposed self-driving cars.