CATL(SZ:300750) Zheng Quan Shi Bao Wang·2025-04-15 03:03Core Viewpoint - Ningde Times reported strong Q1 performance with significant growth in revenue and profit, while addressing the impact of tariff policies on its operations [1][2][3] Financial Performance - In Q1 2025, the company achieved total revenue of 84.7 billion yuan and a net profit of 14 billion yuan, representing a year-on-year growth of 33% [2] - Operating cash flow remained robust at 32.9 billion yuan, with cash reserves exceeding 32 billion yuan [2] - Battery sales surpassed 120 GWh, with a year-on-year increase of over 30%, and energy storage sales accounting for nearly 20% of total sales [2] - The company's gross profit per Wh improved quarter-on-quarter, and the net profit margin reached 17.5%, a recent high [2] Response to Tariff Impact - The company assessed that the impact of U.S. tariffs on its operations is minimal, as U.S. business accounts for a small portion of its shipments [3] - The company has proactively prepared for environmental changes since last year and is actively negotiating solutions with clients [3] - The demand for energy storage batteries is increasing in emerging markets like the Middle East and Australia, with the company securing significant projects in these regions [3] Market Expansion - Ningde Times has increased its market share in the European power battery market from 17% in 2021 to 38% in 2024, maintaining the top position [3] - The company’s factory in Germany has begun to turn a profit [3] Energy Storage Projects - The company has been selected as the preferred battery storage system supplier for the UAE RTC 19 GWh 8-hour data center project [4] - A collaboration with Quinbrook to develop the world's first 8-hour battery storage system, EnerQB, is underway, with a total deployment of 24 GWh planned in Australia [4] Battery Swapping Initiatives - The company plans to build 1,000 battery swapping stations this year and expects more models from manufacturers to be released [5] - A framework agreement with Sinopec aims to establish a nationwide battery swapping network, targeting at least 500 stations by 2025, with a long-term goal of 10,000 stations [5] - A joint venture with Didi is also in place to expand the battery swapping market [5] Charging Solutions - The company advocates for battery swapping as a more suitable solution for the mass market, significantly reducing initial purchase costs for end users [6] - The company has developed fast-charging technologies, including the Shunxing PLUS battery, which can achieve a charging rate of 6C, peaking at 12C [6]