CATL FY25Q3 Income Statement
Unit: RMB ‘000
| Item | Jan-Sep 2025 | Jan-Sep 2024 | YoY | % of Total Rev |
| Total Revenue | 283,071,987 | 259,044,749 | 9.28% | 100.00% |
| Cost of Revenue | 211,427,147 | 194,352,589 | 8.79% | 74.69% |
| Selling Expenses | 2,408,522 | 2,608,019 | -7.65% | 0.85% |
| Administrative Expenses | 8,231,715 | 6,774,456 | 21.51% | 2.91% |
| R&D Expenses | 15,067,826 | 13,073,136 | 15.26% | 5.32% |
| Financial Expenses | -7,015,786 | -2,894,209 | 142.41% | -2.48% |
| Operating Profit | 60,552,312 | 46,125,750 | 31.28% | 21.39% |
| Net Profit Attributable to Parent | 49,034,109 | 36,001,074 | 36.20% | 17.32% |
Balance Sheet
Unit: RMB ‘000
| Asset Item | 2025/09/30 | 2024/12/31 | YoY (vs. YE) | % of Total Asset |
| Cash and Cash Equivalents | 324,241,586 | 303,511,993 | 6.83% | 36.18% |
| Trading Financial Assets | 43,260,528 | 14,282,253 | 202.90% | 4.83% |
| Accounts Receivable | 66,481,235 | 64,135,510 | 3.66% | 7.42% |
| Inventory | 80,211,558 | 59,835,533 | 34.05% | 8.95% |
| Fixed Assets | 128,622,702 | 112,589,053 | 14.24% | 14.35% |
| Construction in Progress | 37,365,635 | 29,754,703 | 25.58% | 4.17% |
| Other Non-current Assets | 23,937,431 | 19,275,483 | 24.19% | 2.67% |
| Total Assets | 896,082,131 | 786,658,123 | 13.91% | 100.00% |
Cash Flow Statement & FCF Analysis
Unit: RMB ‘000
| Item | Jan-Sep 2025 | Jan-Sep 2024 | YoY |
| Net Cash Flow from Operating Activities (OCF) | 80,660,430 | 67,443,601 | 19.60% |
| Cash Paid for Fixed/Intangible Assets (CapEx) | 30,087,780 | 21,268,347 | 41.47% |
| Free Cash Flow (FCF) | 50,572,650 | 46,175,254 | 9.52% |
Key Financial Insights
- Profitability Surge: While revenue grew by 9.28%, net profit attributable to shareholders surged by 36.20%. This was largely driven by a significant increase in financial income (exchange gains and interest income) and higher investment returns from associates.
- Asset Expansion: Trading financial assets jumped by over 200% due to increased investments in wealth management products. Inventory also saw a 34% increase, reflecting the company’s scaling operations.
- Strong Cash Position: CATL maintained a healthy cash flow, with FCF remaining robust at 50.6 billion RMB despite a 41.5% increase in capital expenditures for capacity expansion.
- Financing: The net cash flow from financing activities turned positive, primarily due to the proceeds from the H-share IPO.
Five-Year Financial Ratio Analysis
Based on CATL’s historical annual reports and the latest 2025 Q3 results, here is the analysis of key financial ratios:
Profitability Analysis
| Financial Ratio | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 Q1-Q3 |
| Gross Margin | 27.76% | 26.28% | 20.25% | 22.91% | 25.12% | 25.31% |
| Net Margin | 12.13% | 13.70% | 10.18% | 12.02% | 11.08% | 17.32% |
| Return on Equity (ROE) | 11.07% | 20.93% | 21.09% | 23.47% | 18.04% | 17.76% |
Solvency & Capital Structure
| Financial Ratio | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 Q3 |
| Debt to Asset Ratio | 55.82% | 67.89% | 70.56% | 69.17% | 65.24% | 61.27% |
| Current Ratio | 1.86 | 1.34 | 1.45 | 1.54 | 1.61 | 1.68 |
| Quick Ratio | 1.57 | 1.08 | 1.22 | 1.35 | 1.42 | 1.45 |
Efficiency (Operational) Analysis
| Financial Ratio | 2020 | 2021 | 2022 | 2023 | 2024 |
| Inventory Turnover Days | 102.61 | 75.32 | 68.31 | 82.55 | 72.14 |
| AR Turnover Days | 88.35 | 62.47 | 45.12 | 55.32 | 65.88 |
Financial Highlights & Commentary
- Margin Recovery: Gross margin bottomed out in 2022 due to the surge in raw material costs (e.g., lithium carbonate). It has since recovered to over 25% through supply chain integration and cost optimization. The spike in 2025 Q1-Q3 net margin (17.32%) is partially boosted by non-operating income, including foreign exchange gains and investment returns.
- ROE Stability: CATL has consistently maintained an ROE around 20%, demonstrating superior capital efficiency. While there was a slight dip in 2024 due to an expanded equity base following the H-share listing, the return remains industry-leading.
- Deleveraging: The debt-to-asset ratio decreased from a peak of 70.56% in 2022 to 61.27% in 2025 Q3. This improvement is driven by the successful H-share IPO proceeds and strong operational cash inflows, strengthening the balance sheet.
- Liquidity Position: Both current and quick ratios have shown a steady upward trend since 2021, indicating that the company is maintaining a robust liquidity cushion even while aggressively expanding production capacity.
In the current market environment of early 2026, the Price-to-Earnings (P/E) analysis for CATL compared to its primary global competitors (BYD, LG Energy Solution, EVE Energy, etc.) is as follows:
Global Battery Manufacturer P/E Comparison Table
Note: Data is based on February 2026 market consensus and current stock prices.
| Company | Ticker | Current P/E (TTM/2025E) | 2026E Forward P/E | Market Position & Valuation Insight |
| CATL | 300750.SZ / 03750.HK | 17x – 26x | 21x – 22x | Global leader. Premium reflects >38% market share and technological leadership. |
| BYD | 002594.SZ / 01211.HK | 18x – 22x | 16x – 18x | Vertically integrated. P/E driven by both EV sales and external battery supply. |
| LG Energy Solution | 373220.KS | Negative (Loss) | N/A | Currently in a profit recovery phase due to high manufacturing and tariff costs. |
| EVE Energy | 300014.SZ | 14x – 16x | 12x – 14x | Strong focus on Energy Storage (ESS). Significant discount compared to CATL. |
| CALB | 03931.HK | 12x – 15x | 10x – 12x | Top 5 player but lacks CATL’s scale; valuation remains relatively low. |
P/E Analysis Highlights
1. CATL’s “Premium” and “Attractiveness”
CATL’s 2026 forward P/E of approximately 21x sits higher than domestic Tier-2 peers (averaging 16x) but remains significantly lower than historical international peers (which often averaged 50x).
- Valuation Premium: Justified by its superior yield rate (>90% vs. global average of 80-85%) and 15% lower investment cost per GWh compared to LG.
- Investment Outlook: Analysts suggest a 20x P/E already prices in most geopolitical risks. Given the projected 31% net profit growth for 2026, the PEG ratio remains attractive.
2. BYD vs. CATL Valuation Divergence
The P/E ratios of BYD and CATL are closely aligned, but for different reasons. BYD is valued as an “EV + Battery” hybrid. While vehicle price wars pressure BYD’s margins, CATL maintains a higher pricing power in the high-end segment through its “Qilin” and “Shenxing” battery technologies.
3. Challenges for International Rivals (LG & Panasonic)
Compared to Chinese manufacturers, LG Energy Solution and Panasonic face higher P/E ratios (or incalculable ratios due to recent losses). This reflects the difficulty of achieving profitability in high-cost environments. CATL’s LFP batteries are approximately 20–30% cheaper than comparable Korean products, making CATL the preferred choice for investors seeking stable margins.
Source: https://file.finance.qq.com/finance/hs/pdf/2025/10/21/1224721971.PDF
Back to CATL page