CATL (3750) full-year performance exceeded expectations, with net profit increasing by 42.3% year-on-year, planning to distribute a high cash dividend

CATL (3750.HK) announced that its full-year results for 2025 exceeded market expectations, with a net profit of RMB 72.2 billion for the year ending last year, representing a year-on-year growth of 42.3%. Including a special dividend, the company proposed a cash dividend of RMB 69.57 per 10 shares, equivalent to approximately HKD 78.83. Benefiting from increased overseas shipments and rapid expansion of its energy storage business, the impact of slowing demand in the domestic electric vehicle market was offset, resulting in an annual operating revenue of approximately RMB 423.7 billion, a year-on-year increase of 17%. By product segment, the power battery system remains the core pillar of performance, with revenue reaching RMB 316.5 billion, a year-on-year growth of about 25%; revenue from energy storage battery systems was RMB 62.44 billion, up about 9% year-on-year, with growth momentum continuing to be released; revenue from battery materials and recycling was RMB 21.86 billion, a year-on-year decrease of 23.8%; revenue from battery mineral resources was approximately RMB 5.98 billion, a year-on-year increase of 8.8%. Dividing the business by region, domestic revenue reached RMB 294 billion, a year-on-year increase of 16.8%; overseas revenue was RMB 129.6 billion, a year-on-year increase of 17.5%, slightly exceeding domestic growth. In terms of profitability, the gross profit margins for domestic and overseas businesses were 24% and 31.44%, respectively, with overseas business showing significantly stronger profitability; the net profit after deducting non-recurring gains and losses was RMB 64.5 billion, a year-on-year increase of 43.4%. In the fourth quarter alone, CATL's net profit reached RMB 23.167 billion, with operating revenue of RMB 140.63 billion, also exceeding market expectations. CATL Chairman Zeng Yuqun stated that the company continues its high dividend payout policy, distributing 50% of net profit as cash dividends for three consecutive years. After the annual dividend distribution, the cumulative dividend amount will approach RMB 100 billion. He emphasized that while the company drives business expansion through high-intensity technological innovation, it continues to provide substantial returns to shareholders through cash dividends. Additionally, CATL announced a capital plan to issue bonds not exceeding RMB 40 billion, primarily to support production operations, optimize debt structure, and reduce financing costs. As the world's largest electric vehicle battery manufacturer, analysts have pointed out that in the context of overall slowing demand for electric vehicles, leading companies are actively shifting towards new tracks such as energy storage systems. The results announced by CATL further demonstrate its leading strength in the power battery field, while the steady growth of its energy storage business also consolidates its core position in the global green energy transition