Core Insights - The company reported stable improvement in profitability for H1 2025, achieving revenue of 178.886 billion yuan, a year-on-year increase of 7%, and a net profit attributable to shareholders of 30.485 billion yuan, up 33% year-on-year [1] - The company continues to innovate in technology and expand its product offerings across various scenarios, including advancements in solid-state batteries and energy storage systems [2] - The company is expected to achieve significant net profit growth from 2025 to 2027, with projected profits of 65.302 billion yuan, 77.819 billion yuan, and 92.931 billion yuan respectively [3] Financial Performance - In H1 2025, the company achieved a net profit margin of 18.09%, an increase of 3.17 percentage points year-on-year [1] - For Q2 2025, revenue reached 94.182 billion yuan, a year-on-year increase of 8%, with a net profit of 16.523 billion yuan, up 34% [1] - The company’s gross profit margin and net profit margin for Q2 were 25.58% and 18.59%, respectively, both showing improvement compared to Q1 [1] Business Segments - In the power battery segment, the company shipped approximately 220 GWh, a year-on-year increase of about 35%, contributing 1,315.73 billion yuan in revenue, a 17% increase year-on-year [1] - The energy storage segment achieved a shipment volume of 55 GWh, a year-on-year growth of about 20%, with revenue of 28.4 billion yuan, a slight decrease of 1.47% year-on-year, but with an improved gross profit margin of 25.52% [1] Technological Advancements - The company is advancing in the passenger vehicle sector with the development of the second-generation battery, sodium-ion batteries, and dual-core installations [2] - The company plans to achieve small-scale industrialization of solid-state batteries by 2027 and enter the mature market around 2030 [2] - New products in the energy storage sector include a 587Ah high-capacity cell and a 9MWh TENER Stack system, showcasing global leadership in energy density and safety [2] International Expansion - The company’s overseas revenue reached 61.2 billion yuan, accounting for 34.2% of total revenue, with profitability achieved at the German factory [2] - The company is progressing with its battery production in Hungary and joint projects in Spain and Indonesia [2] - The company raised approximately 5.29 billion USD through H-share listing, focusing on building local capacity in Europe [2] Future Projections - The company is projected to achieve earnings per share (EPS) of 14.32 yuan, 17.07 yuan, and 20.38 yuan for the years 2025, 2026, and 2027 respectively, with price-to-earnings (PE) ratios of 18, 15, and 13 [3]

Summary of CATL Conference Call Company Overview - **Company**: CATL (Contemporary Amperex Technology Co., Limited) - **Industry**: Battery manufacturing, specifically focusing on power batteries and energy storage systems Key Points Market Position and Performance - In the first five months of 2025, CATL achieved a global market share of 38.1% in power batteries, an increase of 0.6 percentage points year-on-year, with significant growth in the European market [2][5] - The company ranked first globally in energy storage battery production, with approximately 20% of its shipments in the second quarter of 2025 being energy storage batteries [2][9] - Cumulative shipments of power batteries reached about 20 million vehicles, and energy storage batteries were applied in over 2,000 projects globally [2][6] Financial Performance - For the first half of 2025, CATL reported total revenue of 178.9 billion yuan, a year-on-year increase of 7.27%, and a net profit attributable to shareholders of 30.5 billion yuan, up 33% [4] - The overall gross margin was 25%, an increase of 1.8 percentage points year-on-year, with a sales net profit margin exceeding 18%, reaching a recent high [4][15] - The company plans to allocate 15% of its net profit for the first half of 2025 (approximately 4.6 billion yuan) for cash dividends to shareholders [2][12] Research and Development - CATL has established six global R&D centers with a team of over 21,000 people, holding a total of 49,347 patents [2][7] - Significant breakthroughs in lithium metal battery research were reported, along with the launch of innovative products such as the Xiaoyao dual-core battery and sodium-ion power batteries [2][7] Product Development and Innovation - New products like the second-generation Shenxing battery and the 587 large cell product are expected to enter the market in the second half of 2025 [2][3][14] - The company is focusing on solid-state battery technology, claiming to be at the forefront of the industry, although full commercialization is still pending [8] Global Expansion and Capacity Building - CATL is actively expanding its production capacity both domestically and internationally, with projects in Germany, Hungary, Spain, and Indonesia [11] - The company aims to build 1,000 passenger car battery swap stations and 300 heavy truck swap stations by the end of 2025 [5][36] ESG and Sustainability - CATL's ESG rating has improved, achieving a CDP environmental rating of B and inclusion in the FTSE Russell Social Responsibility Index [2][12] - The company has certified 10 zero-carbon factories, reflecting its commitment to sustainability [12] Market Trends and Future Outlook - The company anticipates a stable overseas market share for energy storage, with approximately 50% of its energy storage business coming from international markets [2][13] - CATL expects capital expenditures to grow by about 30% in 2025, primarily for expanding electronic production capacity and supply chain layout [5][29] - The company is optimistic about long-term growth, focusing on maintaining competitive advantages through technological innovation rather than price competition [18][19] Challenges and Risks - CATL is addressing challenges related to lithium carbonate price fluctuations and the renewal of mining licenses for its lithium projects [25][27] - The company is managing inventory levels carefully, with a focus on turnover rates rather than absolute inventory amounts [20][22] Conclusion - CATL is positioned as a leader in the battery industry, with strong financial performance, ongoing innovation, and a commitment to sustainability. The company is focused on long-term growth and maintaining its competitive edge in a rapidly evolving market.

2025 年上半年，公司营业收入1,789 亿元，同比增长7.27%；归母净利润305亿元，同比增长33.33%；综 合毛利率25.0%，同比增长1.8 个百分点；经营性现金流达587 亿元；现金储备充裕，期末货币资金超过 3,500 亿元；拟每10股派发现金分红10.07 元（含税），合计金额45.73 亿元。 单季度来看，25Q2 收入942 亿元，同比增长8.26%，环比增长11.19%，归母净利润165 亿元，同比增长 33.73%，环比增长18.33%，扣非净利润154亿元，同比增长42.21%，环比增长29.92%。 欧洲动力复苏，产能利用率高位。Q2 公司动力和储能电池出货近150GWh，同比增长超30%。单Wh 扣 非净利0.10 元，环比略增。公司产能利用率90%，市场需求旺盛，CAPEX 同比有一定增长以支撑出货 增长。 分结构来看，（1）25Q2 动力电池出货近120GWh，同比增长超40%，主因欧洲动力增长好于预期，根 据欧洲汽车制造商协会数据，2025 年1-6 月欧洲新能源乘用车销量为178.2 万辆，同比增长23.6%，渗透 率达26.1%。 动力和储能电池份额领先。动力电池领域 ...

Core Viewpoint - CATL reported strong financial performance for the first half of 2025, with significant revenue and profit growth, highlighting its dominant position in the battery market and the profitability of its operations compared to domestic automakers [1][5][29]. Financial Performance - The company achieved a revenue of 178.89 billion yuan, a year-on-year increase of 7.27% [2][5]. - Net profit attributable to shareholders reached 30.49 billion yuan, up 33.33% year-on-year [2][5]. - The net profit margin improved, with a basic earnings per share of 6.92 yuan, reflecting a 33.08% increase [2][5]. - Operating cash flow increased by 31.26% to 58.69 billion yuan [2][9]. Market Position - CATL maintained a global market share of 38.1% in the power battery sector, solidifying its leadership position [2][13]. - The company's profitability outperformed most domestic automakers, with its half-year net profit exceeding the full-year profits of many competitors [1][5]. Business Segments - The power battery system remains the core growth driver, generating approximately 131.57 billion yuan in revenue, a 16.8% increase year-on-year, accounting for 73.55% of total revenue [12][13]. - The energy storage battery segment saw a slight revenue decline of 1.47%, but production remained the highest globally [3][13]. - Revenue from battery materials and recycling dropped significantly by 44.97% [15]. Research and Development - R&D investment reached approximately 10.1 billion yuan, a 17.48% increase, supporting technological advancements and future product development [3][9]. - The company is advancing in solid-state battery technology, expecting small-scale production by 2027 and larger-scale production by 2030 [17][19]. Global Expansion - International revenue accounted for 34.22% of total revenue, up from 30.48% in the previous year, indicating successful global market penetration [9][10]. - The company is actively building a network of battery swap stations, with plans to establish 1,000 stations by the end of 2025 [28]. Future Outlook - CATL anticipates continued growth in the AI data center market, which is expected to drive long-term demand for lithium batteries [24]. - The company is focused on maintaining high capacity utilization rates and exploring new product innovations to stay ahead of competitors [21][29].

Core 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].