Battery Giant CATL Will Invest CNY 23 Bn in Financial Management

Automotive Author: Beibei Wei Editor: Xiangqun Ji Jun 30, 2022 09:17 AM (GMT+8)

CATL will invest up to CNY 23 billion in principle-guaranteed investment products from the company's private placement, about CNY 45 billion。


Contemporary Amperex Technology Co. Ltd (CATL), the world's biggest batteries maker, sold 109.76 million shares at CNY 410 in a private placement, which raised a total of CNY 45 billion (USD 6.7 billion). 

The proceeds are intended for the production and upgrade of lithium-ion batteries as well as the Research and Development (R&D) and application of new energy advanced technologies in CATL.

CATL's latest announcement shows CNY 23 million from its recently raised fund to invest in capital-guaranteed investment products with high security and liquidity. The primary purpose of this investment is to improve the efficiency of the use of funds and increase revenue without influence on project development and other operations, CATL said.  

CATL has consistently maintained a substantial NEV battery global market share of 35% and over 50% market share in China for two consecutive years. However, according to a recent performance report released by CATL, the market share declined to only 47.05%, and net profits decreased by 23.62% to CNY 1.493 billion year-on-year.

Moreover, the gross profit margin of CATL has dropped to 14.48%. A decrease of 11.8% points compared to 26.28% last year, reaching a new low point on record.