On October 21, CATL announced its Q3 2025 report. In the third quarter of 2025, CATL achieved revenue of RMB 104.19 billion, representing a year-on-year growth of 12.9%. The net profit attributable to shareholders was RMB 18.549 billion, up 41.21% year-on-year; while the net profit after deducting non-recurring items attributable to the company's shareholders reached RMB 16.42 billion, a year-on-year increase of 35.47%. The net profit margin during the period was 19.1%, reflecting an increase of 4.1 percentage points compared to the previous year; the company maintained a robust cash reserve, with total monetary funds and trading financial assets exceeding RMB 360 billion by the end of the period.
Regarding the demand in the energy storage industry and the prospects of energy storage applications in data centers, CATL noted that energy storage business models are becoming increasingly mature and economically viable, leading to rapid growth in energy storage demand both domestically and internationally. The rapid expansion of global AI data centers has generated substantial electricity demand, with solar-storage systems serving as a main power source to provide long-term stable green electricity output to data centers.
Additionally, CATL disclosed that its total shipments of batteries for power and energy storage in the third quarter approached 180GWh, with energy storage representing approximately 20%, equivalent to around 36GWh. The gross and net profit margins per battery unit remained relatively stable quarter-on-quarter. It is reported that in Q1 2025, CATL's battery sales exceeded 120GWh, with energy storage contributing nearly 20%, approximately 24GWh. In Q2, battery sales approached 150GWh, with energy storage accounting for about 20%, around 30GWh.
Currently, CATL's production capacity has reached saturation, and the company is accelerating its capacity expansion efforts. Additionally, it is speeding up the mass production of its 587Ah batteries to meet market demands, with expectations that the shipment proportion of the 587Ah products will gradually increase. The Hungarian factory is also advancing in construction, with the first phase planned for over 30GWh, expected to be completed and installed by the end of 2025, and the second phase proceeding in an orderly manner.
It is noteworthy that by the end of Q3, CATL's inventory exceeded RMB 80 billion, an increase of RMB 8 billion quarter-on-quarter. The primary reasons for the rise in inventory are the delivery of certain products during transportation due to business scale expansion and preparations for future deliveries. Despite the absolute increase in inventory value, the inventory turnover days have remained relatively stable, indicating that this stock is within normal turnover and will be absorbed within the regular cycle.
CATL emphasized that energy storage batteries are more challenging to manufacture. Energy storage systems are large in scale, consisting of over a million components, and require safe operation for 15 to 20 years. Instances of accidents at overseas energy storage sites highlight the importance of safety in large-scale energy storage; the individual failure rate must reach the level of PPB (parts per billion). Especially amid the substantial energy demand driven by AI, the verification and falsification cycles of energy storage systems are significantly lengthy. In the long term, strictly delivered energy storage systems are expected to gain customer recognition and ultimately secure market share.