Shanghai (ZXZC)- Contemporary Amperex Technology Limited (CATL) announced its profit forecast saying that excluding the non-recurring items, the company will see its net profits in the third quarter reach around RMB1.26 billion to RMB1.33 billion with year-on-year surge of 119.88% to 133.48%.

Excluding non-recurring items, CATL's cumulative profits for the first three quarters will surge 80.57% to 87.75% from a year ago to around RMB1.95 billion to RMB2.03 billion. The profits attributable to shareholders from January to September may reach some RMB2.33 billion to RMB2.42 billion.

According to the announcement, CATL attributed its profit leap to the rising demands for power batteries in China market, the evident growth of capacity and sales in the wake of the company's strengthened market expansion and the lowered percentage of cost thanks to the optimized expenditure management. 

Relevant data show that the power battery provider shipped 2.3Gwh, 4.2Gwh and 5.5Gwh of lithium-ion batteries in the first, second and third quarter this year, earning net profits of RMB269 million, RMB428 million and RMB1.3 billion respectively.

Apart from the above reasons given by the company, the reduction of the raw materials also largely contributed to its profit increase. It is reported that the unit price of the lithium carbonate declined to RMB80,000 per ton in September from RMB130,000 per ton in June. In addition, the price of cobalt fell from RMB600,000/ton in June to RMB480,000/ton in September.