Is this a brief pulse or the start of a new wave of growth? Leading lithium battery companies are earning nearly 200 million yuan daily!

After two consecutive years of explosive growth in 2021 and 2022, battery giant CATL (300750.SZ/03750.HK) slowed down in 2023, and in 2024, it even experienced its first year-over-year revenue decline since listing, despite net profit still growing by nearly 15% that year.

In the past 2025, global new energy vehicle sales surpassed 21.47 million units, a year-over-year increase of 21.5%. The use of power batteries reached 1187 GWh, up 31.7%. Energy storage battery shipments grew by 79% to 550 GWh. The latest full-year report from “Ning Wang,” the industry leader, shows that during this new wave of industry expansion, the company experienced at least one performance boost.

According to CATL’s 2025 annual report released on the evening of March 9, the company’s total revenue for the year was 423.702 billion yuan, a 17.04% increase compared to the previous year. Net profit attributable to shareholders was 72.201 billion yuan, a significant increase of 42.28%. Foreign sales accounted for 30.60% of total revenue, similar to the previous year.

In terms of gross profit margin, the company’s power battery and energy storage segments were 23.84% and 26.71%, respectively, slightly down by 0.10 and 0.13 percentage points year-over-year. Domestic and international gross margins were 24.00% and 31.44%, respectively.

The annual report shows that net cash flow from operating activities reached 133.2 billion yuan, a 37.35% increase year-over-year, mainly due to increased sales scale and receivables. As of the end of the reporting period, the company’s cash and tradable financial assets totaled 392.5 billion yuan, an increase of 74.7 billion yuan from the end of 2024. Meanwhile, net cash flow from investing activities decreased by 45.6 billion yuan compared to the previous year, a drop of 93.30%, mainly due to increased purchases of financial products.

Notably, the company’s contract liabilities at the end of the period rose to 49.233 billion yuan, an increase of nearly 21.4 billion yuan or 77% from the end of 2024. This growth typically reflects higher prepayment ratios or increased order volume, often seen as an industry demand indicator. Under strong market demand, battery companies’ contract liabilities have surged significantly since last year.

Additionally, it is worth mentioning that in 2025, CATL’s R&D investment was 22.147 billion yuan, accounting for 5.23% of revenue, a 19.02% increase year-over-year, outpacing revenue growth during the period. Over the past three years, total R&D expenditure has exceeded 59 billion yuan.

Behind these impressive financial figures is CATL’s unshakable dominance in the global market.

In 2025, the company’s global lithium battery sales exceeded 660 GWh, a 39.16% increase. Power battery sales reached 541 GWh, up 41.85%, setting a new record for global market share. According to market research firm SNE Research, CATL’s share of global power battery installations increased by 1.2 percentage points to 39.2%, maintaining the top spot for nine consecutive years.

In the domestic market, according to the China Automotive Power Battery Industry Innovation Alliance, CATL’s domestic power battery installation share in 2025 was 43.42%. This means that nearly one out of every two new energy vehicles sold in China is equipped with CATL batteries.

Energy storage has become a second growth curve for many power battery manufacturers. In 2025, CATL’s energy storage battery shipment market share reached 30.4%, maintaining the global number one position for five consecutive years. The shipment scale of energy storage system integration increased by over 160% year-over-year, with more than 70 projects delivered worldwide. During the reporting period, revenue from CATL’s energy storage battery system business was 62.44 billion yuan, accounting for 14.74% of total revenue, an 8.99% increase. However, this growth rate is significantly lower than the 25.08% growth in power battery systems.

In fierce market competition, CATL is no longer just maintaining its core business. In 2025, the company repeatedly announced its intention to extend into every possible area of electrification, aiming to build a “full-domain incremental” business empire. The annual report also mentioned that the company is expanding electrification into broader fields such as low-altitude, maritime, and data centers, rapidly developing battery swapping networks and services, promoting a zero-carbon ecosystem, and extending the industrial ecosystem and value chain.

CATL Chairman Zeng Yuqun stated in a letter to shareholders that the company’s lithium battery sales increased by nearly 40% year-over-year to 661 GWh, and the “full-domain incremental” business engine is taking shape.

It is also worth noting that this “winner-takes-all” Matthew effect is vividly reflected in capacity scale. CATL currently owns the world’s largest capacity of 772 GWh, with an additional 321 GWh under construction. This means the company’s total capacity is about to enter the TWh level.

In terms of shareholder returns, CATL is equally generous. The company plans to distribute a cash dividend of 69.57 yuan per 10 shares (tax included), totaling approximately 31.528 billion yuan. The annual report states that the company will continue its high dividend payout policy, distributing 50% of net profit in cash for three consecutive years. After this year’s dividend, total distributions will approach one trillion yuan.

Regarding industry development, Zeng Yuqun emphasized in his letter that the current global new energy industry is still in its infancy, and the industry should focus on value competition rather than price competition.

He also mentioned that in the next-generation energy systems based on renewable energy, batteries will no longer just be components of transportation or storage devices but will become fundamental units supporting energy system buffering, stability, and dispatch. New energy will no longer be a cyclical investment but a long-term, systematic infrastructure.