Contemporary Amperex Technology Co Ltd. expects its net income to rise to as much as 9.8 billion Yuan ($1.4 billion) in the third quarter, as the largest maker of electric vehicle batteries benefits from strong sales to the auto industry.
CATL, which is investing heavily in expanding its production capacity, predicted a profit jump of up to 200% in a stock filing on Monday. The Ningde, Fujian-based Company also said net income could exceed 18 billion Yuan in the nine months to September, up 132% from the same period last year.
CATL has made spending commitments in the region of $20 billion to build new, larger factories at home and abroad, including in Hungary with Mercedes-Benz AG, and also plans to leverage resource-rich Indonesia for expansion. In August, the manufacturer released half-year results that marked a recovery from a disastrous start to the year. Earnings for the six months to June rose 82% to 8.17 billion Yuan as CATL better coped with volatility in commodity costs.
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South Korean battery maker LG Energy Solution Ltd. reported third-quarter earnings last week that comfortably beat expectations for profits and sales, driven by demand for electric vehicles and a weak Korean won offsetting high commodity prices.
CATL is expected to release third-quarter results on Oct. 21.