The full analysis of the semi-annual report of CATL focuses on the energy storage business whose revenue has increased by more than 7 times year-on-year. The gross profit margin of the power battery business is also worth considering.
After all the calls came out, the semi-annual report of the lithium battery leader Ningde Times finally came out. In the first half of the year, CATL achieved operating income of 440.75 billion yuan, a year-on-year increase of 134.07%; net profit attributable to parent companies was 4.48 billion yuan, a year-on-year increase of 131.45%. The provision of impairment of 810 million yuan has dragged down the company’s business to a certain extent. Among them, Q2 realized operating income of 24.908 billion yuan, an increase of 30% from the previous month; net profit was 2.53 billion yuan, 130% of the month. In terms of business segments, CATL’s main businesses include power battery systems, energy storage systems and lithium battery materials. The sales revenue of power battery systems in the first half of the year was 30.45 billion yuan, a year-on-year increase of 125.94%; the sales revenue of energy storage systems was 4.69 billion yuan, a year-on-year increase. 727.36%; the sales revenue of lithium battery materials was 4.98 billion yuan, a year-on-year increase of 303.89%.
The energy storage business has grown by more than 7 times, and the proportion of profits and revenue has increased significantly
In addition to the tremendous development in the field of power batteries, CATL is also actively promoting the development of the future trillion-dollar market of energy storage. In the first half of the year, CATL’s energy storage business revenue was 4.69 billion yuan, a year-on-year increase of 727.36%. Such a rapid growth rate makes the energy storage business is expected to quickly become the second largest business after the power battery system business, and overseas high-margin energy storage products The large increase in shipments has resulted in a gross profit margin of 36.6%, a 12% year-on-year increase, far exceeding the power system business and the lithium battery materials business.
Driven by multiple favorable energy storage policies, the high-growth development of the Ningde era’s energy storage business may have just begun. Since July, the energy storage industry has frequently ushered in favorable policies. It has not only determined the independent identity of energy storage power stations, and is no longer a subsidiary function of thermal power and new energy. At the same time, it has increased the peak-to-valley price difference to benefit the development of energy storage. The “Guiding Opinions on Accelerating the Development of New Energy Storage” issued by the National Development and Reform Commission and the National Energy Administration on July 15 stated that the installed capacity will reach 30 GW by 2025 (3.8 GW in 2020, which is a nearly 10-fold increase). It is said that the compound growth rate of the industry will reach 51% in the next five years).
In order to meet the rapid development of energy storage in the next five years, CATL is also accelerating its layout and expansion. In the latest round of fixed increase plans of CATL on August 12, it has specially deployed 6.5 billion yuan. Investment in energy storage projects such as 30Gwh energy storage cabinets.
The gross profit margin of the power battery business fell by 3.5pcts, but the bargaining power was not reduced
The power battery system business is still the most important business of the CATL, with revenue of 30.45 billion yuan, a year-on-year increase of 125.94%, but the proportion of revenue has fallen below 70%, and the proportion of profit has dropped to 58.3%. On the contrary, the energy storage business and The proportion of lithium battery materials business revenue has continued to increase. It can be seen that the CATL is no longer a single power battery business support, but a coordinated development of multiple businesses.
In the first half of the year, CATL’s power battery system gross profit margin was 23%, a year-on-year decrease of 3.5 pcts and a month-on-month decrease of 3.56 pcts. Last year, due to the epidemic and limited capacity utilization, CATL was able to maintain a gross profit margin of 26%. However, in the first half of this year, the capacity utilization rate increased to 92%, and the gross profit margin fell by 3 points.
The Wall Street Institute of Knowledge and Wisdom believes that this is mainly caused by the continuous price increase on the upstream material side. Since the beginning of this year, the prices of raw materials for power batteries have increased by different degrees, including hexafluoro, lithium carbonate and even the most upstream spodumene. The doubled increase has also affected the gross profit margin of battery manufacturers to a certain extent, but the cash flow from operating activities reached 25.742 billion yuan, an increase of 341.81% year-on-year. At the same time, the turnover days of accounts receivable reached a record low of 51.61 days, which shows the Ningde era. Although the gross profit margin of the power battery business is under pressure, the bargaining power is still strong. The impact of upstream price increases The Wall Street Institute will continue to pay attention to the results of other second-tier battery manufacturers’ interim reports, and then make specific analysis.
Of course, as the global leader in power batteries, CATL’s position is undoubtedly. It has maintained the number one domestic and international installed capacity for 4 consecutive years. In the first half of this year, CATL’s power battery installed capacity reached 28.4Gwh, +295% year-on-year, and it is close to the full year of 2020. 90% of the installed capacity of power batteries (to achieve 31.79GWh of power battery installed capacity in 2020), continue to occupy nearly half of the national market (50% in 2020, 50.6% in 2019), and at the same time increase the share of global power battery installed capacity to 30 % (24% in 2020, 27.9% in 2019).
Ningde era power battery planned production capacity has exceeded 600Gwh
According to the latest data, from January to July this year, the cumulative domestic production and sales of new energy vehicles reached 1.50.4 / 1.478 million, which is +195.6%/+197.1% year-on-year, which has exceeded the production and sales of new energy vehicles for the whole year of last year. The domestic retail penetration rate of new energy vehicles is even closer to 15%, which is only one step away from China’s goal of 2025 for the sales of new energy vehicles to reach 20% of the total sales of new vehicles. The surge in terminal sales has also triggered an upsurge in the expansion of upstream power battery manufacturers, and the CATL is one of the most important players.
In fact, the Ningde era completely embarked on the road of production expansion as early as last year, and it also triggered other battery manufacturers to start expansion together, leading the global power battery industry into the “TWh” era. In February, July and December 2020, CATL had three large-scale capital increase and production expansion, investing 26 billion yuan to increase 52GWh capacity, 20 billion yuan to increase 52GWh, and 39 billion yuan to increase 130GWh capacity. This year 2 In August and August, it invested 29 billion yuan and 58 billion yuan to increase 95GWh and 77GW of power battery production capacity, and added some PACK production lines and 30GWh energy storage cabinets, making CATL’s planned power battery production capacity in 2025 directly exceed 600Gwh.
Of course, CATL is not unprepared for blind expansion. From the perspective of upstream equipment and materials, CATL has signed agreements with upstream raw material companies such as Tianci Materials, Tianci Co., Ltd., Yongtai Technology and other companies on the supply of lithium hexafluorophosphate from the perspective of upstream equipment and materials. For long-term orders ranging from 2 to 5 years, billions of orders have been signed with equipment companies such as Pioneer Intelligence, Yinghe Technology, Han’s Laser, etc., which shows that relevant preparations have been made for the expansion of production in the next five years.
From the downstream demand side, the effective catalogue of new energy vehicles published by the Ministry of Industry and Information Technology from January to June 2021 has a total of more than 2,400 models. Among them, there are more than 1,200 models equipped with power batteries from Ningde Times, accounting for about 50%, and they are supporting models. The largest number of power battery manufacturers include not only new power car companies such as Weilai, Xiaopeng, and Ideal, which have repeatedly set new monthly sales this year, but also traditional car companies such as Great Wall, SAIC, and FAW. The absolute leader of energy vehicles, Tesla, has renewed its long-term order and will provide Tesla with lithium-ion power battery products between January 2022 and December 2025.
As the global leader in electric vehicles, Tesla’s Model 3 and Model Y sales are the top mainstream models, but before this Tesla’s main suppliers were Panasonic and LG Chem, mostly ternary lithium batteries. And this wavelength list not only extends the single contract time from 2 years to 4 years, but the main battery is a lithium iron phosphate battery. According to Tesla’s statement at the 2021Q2 conference call, Tesla will have two-thirds of the future. The model uses lithium iron phosphate batteries, which will also greatly increase the Ningde era’s share of Tesla.
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