Shanghai (ZXZC)- Chinese EV battery maker CATL forecast a net profit of RMB2,004,099,400 to RMB2,277,385,700 attributable to shareholders of the public company for the first half of 2019, a year-on-year leap of 120% to 150%, according to an announcement CATL released on July 15.

(Photo source: CATL)

Excluding the impact of certain no-recurring gains and losses, CATL still expected a 150% to 180% surge with its semi-annual net profit amounting to RMB1,743,109,000 to RMB1,952,282,100, the company said.

CATL attributed its anticipated profit growth to three main reasons: (1) the fast-growing new energy vehicle (NEV) industry boosted the market demands over power batteries; (2) company's strengthened market exploration made its battery capacity gradually released, thus improving the outputs and sales accordingly; (3) The continuous reinforcement on expense control lowered the ratio of cost to income.

The EV battery giant has kept expanding its partnership with OEMs during the first two quarters of 2019. Aside from the agreement about building a power battery joint venture with China's state-owned FAW Group, it also formed cooperation with automakers like Volvo Cars and Toyota.

As part of efforts to deepen the company's global strategy, CATL approved a decision in June, saying it would increase its investment in battery production and R&D in Europe to not more than €1.8 billion after it agreed to dip a toe into the European battery manufacturing market last year with a planned investment of €240 million.