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China’s CATL sees faster profit growth in Q3

China’s CATL sees faster profit growth in Q3

BEIJING, Oct 18 (Reuters) – Chinese electric vehicle c reported a 26% year-on-year rise in third-quarter profit, a stock filing showed on Friday, accelerating from the previous quarter as it maintains a lead over smaller rivals.

CATL made a net profit of 13.14 billion yuan ($1.85 billion) in July-September, while its revenue fell 12.5% year-on-year to 92.3 billion yuan.

The profit increase followed a 13.4% rise in the second quarter, while revenues have now fallen for four consecutive quarters.

CATL had a 44% market share as measured by batteries in Chinese-made EVs in September, down 0.4 percentage points from the previous month. The combined market share of second-ranked BYD (002594.SZ), and third placed CALB (3931.HK), shrank by 1.4 percentage points to 30.9%, according to data from the China Automotive Battery Innovation Alliance.

CATL is also gaining traction in building out overseas capacity, including its lucrative LRS model, Jefferies said in a research report last month, referring to the company sharing battery technology through licensing, royalty and service.

The investment bank said.

CATL will be in a position to begin booking LRS revenues as quick as end 2024,

CATL opened an international research and development centre in Hong Kong on Tuesday, its sixth R&D facility globally, seven months after its Chairman Robin Zeng revealed such plans to underpin technology exports.

($1 = 7.1025 Chinese yuan renminbi)

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Reporting by Qiaoyi Li, Zhang Yan, Ethan Wang and Kevin Krolicki; Editing by Tomasz Janowski and Mark Potter

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China’s CATL sees faster profit growth in Q3, source

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