CATL Shenxing battery has become a new breakthrough

CATL, the global battery leader, released its 2023 annual financial report. In 2023, CATL's performance once again reached a new high, with total operating revenue for the year reaching 400.9 billion yuan, a year-on-year increase of 22%; net profit attributable to shareholders exceeded 44.1 billion yuan for the first time, a year-on-year increase of 44%.

From this point of view, in 2023, CATL will earn at least more than 100 billion yuan every quarter, make a net profit of more than 40 billion yuan a year, and make an average daily profit of 120 million yuan. This kind of earning speed is very amazing. In addition, CATL decided to distribute half of its net profit of 22.06 billion yuan as dividends. Such a large-scale dividend will subsequently attract more investors to flood into the battery market. It seems that Huang Renxun’s statement that “the end of AI is photovoltaics and energy storage” is no longer a joke. As of now, the total market value of CATL has exceeded 840 billion yuan.

CATL said that there are two main factors driving the rapid growth of performance: 1. The industry continues to grow rapidly. CATL's main products mainly involve power batteries, energy storage batteries and battery materials industries. According to SNE Research statistics, the market sizes of these three major industries will grow rapidly at double-digit growth rates in 2023, and energy storage battery shipments will grow at a rapid rate. It is as high as 53%. 2. The company’s competitive advantage is further enhanced. CATL's competitive advantages in technology research and development, extreme manufacturing, supply chain management, customer cooperation and other aspects will be further enhanced in 2023.

Regarding the business structure, CATL has hardly changed, and the majority of revenue still comes from the power battery system business. The financial report shows that power battery system products will contribute 70% of CATL’s revenue in 2023, approximately 285.253 billion yuan, a year-on-year increase of 20.57%. CATL has outstanding performance in the field of power batteries and has ranked first in the world for seven consecutive years. In 2023, CATL's global power battery installed capacity will be 259.7GWh, a year-on-year increase of 40.8%, occupying 36.8% of the market share, and the domestic market share has further increased to 44.5 %.

In terms of region, CATL will continue to make rapid breakthroughs in the European market in 2023. Companies such as Stellantis have signed cooperation agreements with CATL, allowing these multinational car companies to obtain locally supplied batteries in Europe. Benefiting from this, CATL's overseas revenue from power batteries will grow rapidly in 2023, with its overseas power battery usage market share reaching a new high of 27.5%, an increase of 4.7 percentage points from the same period last year. CATL's overseas revenue in 2023 will be 130.992 billion yuan, a year-on-year increase of 70.29%, while the domestic revenue growth rate is only 7.25%. CATL's growth rate in overseas markets is almost ten times that of China.

Recently, CATL further revealed its overseas progress at an investor relations event. In North America, the company will mainly expand its business through the innovative cooperation model LRS. LRS is a sharing model that is very popular with customers, and many customers are interested in discussing it. If customers have their own factories, mass production of the factory can be achieved faster by helping them carry out modifications. Not only car companies, but also some European battery factories, whose production capacity construction takes a long time, also hope to cooperate with us. At present, the company's Hungarian factory is expected to be able to supply products in 2026, and everything is progressing as planned.

Energy storage battery systems are CATL’s second largest source of revenue. In 2023, the demand for energy storage will continue to increase, driven by the growth of wind power and photovoltaic installed capacity and the fall in lithium carbonate prices, which will improve the economics of energy storage. The financial report shows that CATL's energy storage battery system business will achieve revenue of 59.9 billion yuan in 2023, a year-on-year increase of 33.17%. Although energy storage battery systems currently contribute less than 20% of revenue, they show a higher growth rate than power battery systems. During the current period, CATL energy storage battery system sales were 69GWh, a year-on-year increase of 46.81%. According to statistics, CATL's energy storage battery shipments will account for 40% of the market in 2023, ranking first in the world for three consecutive years.

In terms of energy storage batteries, CATL has carried out multi-regional and multi-field business cooperation with leading overseas new energy industry customers such as Fluence, Wärtsilä, Flexgen, Sungrow, and Hyosung; it has also cooperated with China Energy Group, State Power Investment Group, China Huaneng, China Huadian, China Domestic customers such as Guangdong Nuclear Power Group, China Three Gorges Corporation, and China Energy Construction Group have reached strategic agreements on cooperation in the field of new energy.

However, among the four major business segments of CATL Power, the one with the highest growth rate in business revenue in 2023 is not the power battery system or the energy storage battery system, but the battery mineral resources business. In 2023, CATL battery mineral resources business achieved revenue of 7.734 billion yuan, a year-on-year increase of 71.54%, and its performance was outstanding. CATL's successful deployment in the field of mineral resources not only helps it ensure the company's supply of raw materials, but also enhances the company's overall competitiveness.

CATL will make considerable progress in 2023. In terms of power batteries, in 2023 CATL released high specific energy and high safety condensed matter batteries, ultra-fast charging Shenxing batteries, first-generation sodium-ion batteries, and M3P battery that combine the advantages of ternary and lithium iron phosphate in Chery models The Kirin battery with peak 5C fast charging has been mass-produced in cooperation with Ideal. Shenxing Battery will become a new breakthrough for CATL’s performance in the next stage.

In terms of energy storage batteries, in 2023 CATL released a zero-auxiliary source optical storage DC coupling solution that combines the advantages of long life, high safety, and high efficiency, and launched CATL upgraded products EnerOne Plus, EnerD, etc. in super charging stations and other scenarios. , compared with the previous generation of products, the energy density and charge and discharge efficiency have been greatly improved.

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