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Investing.com -- Chinese battery maker CATL reported its highest quarterly net profit on record for the second quarter of 2025, despite revenues coming in below estimates.
The company posted an adjusted net profit of 18.4 billion yuan, exceeding Bloomberg and market estimates by 32% and 31% respectively. The strong profit performance was driven by better margins and foreign exchange gains of 2.3 billion yuan from the euro.
Battery shipments reached 150 gigawatt-hours (GWh), surpassing market expectations of 141 GWh, supported by stronger electric vehicle battery demand both in China and overseas, particularly in the European Union.
CATL’s gross profit margin improved sequentially to 25.6% in the second quarter, beating Bloomberg estimates of 24.9% and market expectations of 25.1%, thanks to better cost controls.
However, revenues fell short of expectations at 94.2 billion yuan, missing Bloomberg and market estimates of 102.6 billion yuan and 103.4 billion yuan respectively. The revenue miss was attributed to lower unit average selling prices driven by raw material linked decreases.
The company announced it will pay an interim dividend of 1.104 Hong Kong dollars per H-share and 1.007 yuan per A-share, representing a 15% payout ratio. The ex-dividend date is set for August 12.
Analysts noted that the large foreign exchange gain contributing to the profit beat is not sustainable and creates higher sequential comparison challenges heading into the second half of 2025.
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