CATL (1Q25 Minutes): Tariff impact relatively limited, actively negotiating solutions with clients

Below is the $CATL(300750.SZ) Q1 2025 earnings call Minutes. For financial report analysis, please refer to《CATL: Surviving the "Tariff Bandit" Storm》

I. Key Financial Highlights

II. Management Discussion

1. Financial Performance

Q1 key metrics: Revenue reached RMB 84.7 billion (+33% YoY), net profit RMB 14.9 billion, with net margin hitting 17.5% (+3.5pp YoY). Operating cash flow remained robust at RMB 32.9 billion, with cash reserves exceeding RMB 320 billion.

Shipments vs revenue recognition: Q1 shipments exceeded 120GWh (recognized revenue), with power/energy storage ratio at 80:20. Inventory increased slightly for pre-sales preparation, expected to normalize next quarter.

Profitability: Gross margin improved QoQ, achieving highest quarterly net margin since 2018. Middle East/Australia energy storage orders demonstrated strong profitability.

2. Market & Customers

Global power battery share: Ranked #1 globally for 8 consecutive years (2017-2024). European market share reached 43% in Jan-Feb 2024 (+8pp YoY).

Europe: Q1 sales grew 20% YoY with 38% market share. German factory turned profitable. US impact minimal (single-digit % of shipments).

3. Partnerships

Zero-carbon ecosystem: Signed agreements with Sinopec (500+ battery swap stations), Nio (swapping network), and Dongying City (green energy industrial park).

4. Energy Storage

Business model evolved from cell supplier to system integrator. AI data centers driving new demand growth.

5. Other Segments

Commercial vehicles: 80%+ market share in buses, 60-70% in heavy trucks. Overseas expansion accelerating.

III. Q&A

Q: 120GWh shipment breakdown?

A: Power 80%, storage 20%.

Q: US tariff impact?

A: Minimal exposure (single-digit % shipments). Customers absorbing most tariff costs.

Q: European outlook?

A: 38% share growing steadily. Local production profitable.

Q: Commercial vehicle growth?

A: 20% of power battery volume, faster growth than passenger vehicles.

Disclosure: Dolphin Research Disclaimer