CATL(SZ:300750) Zhi Tong Cai Jing·2025-07-31 08:10Core Viewpoint - The company is making significant progress in the battery exchange business for passenger vehicles and heavy trucks, with a target of building 1,000 passenger vehicle stations and 300 heavy truck stations this year, all funded by its own capital [1][17]. Group 1: Battery Exchange Business - The company has established approximately 400 passenger vehicle exchange stations and about 40 heavy truck stations, with no issues expected in meeting the annual targets [1][16]. - The initial slow pace of building exchange stations is expected to improve as the network develops, and the company is committed to investing in this area [1][17]. - The company plans to introduce more partners for the exchange network in the future, having already initiated planning with Sinopec [1][17]. Group 2: Market Share and Production - The company's global market share for power batteries reached 38.1% from January to May, an increase of 0.6 percentage points year-on-year, with a significant rise in the European market share [1]. - The company achieved the highest global production of energy storage batteries from January to June, with cumulative installations of power batteries reaching approximately 20 million vehicles and energy storage batteries applied in over 2,000 projects [1]. Group 3: Production Capacity and Financials - In Q2, the company shipped nearly 150 GWh of batteries, with energy storage accounting for over 20% of the total, and prices remained stable compared to Q1 [3]. - The company reported a slight decline of about 1 percentage point in the gross margin for power batteries year-on-year, while the gross margin for energy storage batteries increased by 1 percentage point [6]. - The company’s sales net profit margin exceeded 18%, reaching a recent high, indicating stable profitability [6]. Group 4: European Operations - The European electric vehicle market has resumed rapid growth since last year, and the company’s factories in Germany and Hungary are ramping up production to meet local demand [2][10]. - The German factory has achieved profitability in the first half of the year, and production capacity is gradually increasing [11]. Group 5: Future Product Development - The company is advancing in solid-state battery technology, with a focus on engineering implementation, and aims for small-scale production by 2027 [4]. - New competitive products, including the second-generation Shenxing battery and sodium-ion batteries, are expected to be launched in the second half of this year to early next year [5][6]. Group 6: Supply Chain and Investment - The company plans to increase capital expenditure by approximately 30% this year to support battery expansion and supply chain layout [12]. - The company is optimistic about the renewal of its lithium mining license and is actively engaging with local authorities [11][12].