Investing.com -- Shares in CATL, the world's leading battery manufacturer, fell by nearly 4% on Wednesday following the company's announcement of an expected decline in annual revenue for the first time since it began disclosing its operating figures in 2015. The company also reported that profit growth had slowed to its lowest rate since 2019.
The Chinese battery giant noted in a securities filing on Tuesday that its revenue had decreased between 8.7% and 11.2% last year. The company adjusted product prices to align with a drop in raw material costs, such as lithium carbonate, which led to a decline in operating income, despite an increase in sales volumes.
CATL's net profit saw an increase between 11.1% and 20.1% in 2024 from the previous year, marking the slowest profit growth since 2019. The company is expected to report its full-year results on March 15, but it is common for Chinese companies to voluntarily disclose earnings estimates when significant changes occur.
The company's shares fell by 3.8% in the morning session on Wednesday, marking its largest intraday decline since October 11. Simultaneously, the ChiNext market in Shenzhen experienced a 0.6% drop.
CATL has been expanding beyond batteries, with the launch of a new EV chassis in December and a strategic shift towards power grids. The company is also pursuing overseas investments, including a 100 GWh battery factory in Hungary to supply Mercedes-Benz (OTC:MBGAF) and BMW (ETR:BMWG), as well as a jointly owned battery plant with Stellantis (NYSE:STLA) in Spain.
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