The Chinese electric vehicle battery manufacturer CATL $3750 (+3,18%) recorded accelerated net profit growth in the third quarter, despite facing increased competition from smaller rivals.
Net profit rose 41.2 percent year-on-year to 18.5 billion yuan (2.6 billion US dollars) in the July to September period, higher than the 33.7 percent increase in the second quarter, according to a stock exchange filing on June 20.
Sales rose by 12.9 percent year-on-year to 104.2 billion yuan, following an increase of 8.3 percent in the second quarter.
CATL continues to lead the global EV battery market, although its share fell to 36.8 percent in the first eight months from 37.7 percent in the same period last year, according to SNE Research. In comparison, Chinese electric vehicle manufacturer BYD, which also produces its own batteries, achieved an 18 percent share of the global market, up from 16.2 percent last year, due to expansion in the European market. CATL, which supplies car manufacturers such as Tesla, Volkswagen and Xiaomi, has also continued its expansion abroad. The new plant in Hungary is due to start production at the beginning of next year. However, Beijing has issued new export controls on lithium battery parts, requiring exporters to obtain a permit from November, creating uncertainty over CATL's future efforts to enter foreign markets.
