Shanghai (ZXZC)- China's largest automotive lithium-ion battery maker CATL forecast a 20% to 30% year-on-year decrease in the first-quarter (Q1) net profit attributable to shareholders due to the impact of COVID-19 outbreak.

The company's Q1 net profit is projected to stand between RMB733,063,300 and RMB837,786,600, versus RMB1,047,233,200 for the same period a year ago, according to an official announcement.

(Photo source: CATL)

CATL attributed the net profit downturn to the decline in power battery sales, which resulted from the coronavirus-caused plunge in Q1 installed capacity of NEV power batteries.

“We will be watching closely to the coronavirus spread, and strive to alleviate the impact of the disease and the volatility in market on company’s operation and profitability by conducting industrial cooperation, tapping new resources of supply, reducing consumption, cutting and controlling costs, etc.,” said CATL.

According to the CPCA (China Passenger Car Association), China’s new energy passenger vehicle wholesale volume reached roughly 56,000 units in March, slumping 49.2% year on year, while skyrocketing over 400% month on month. Of those, the all-electric wholesales tumbled 48% to around 47,000 units. The volume of hybrid passenger vehicles (excluded from NEV) amounted to 21,000 units, falling 37% over a year ago.

China will extend the subsidies and tax exemption provided for the purchase of NEVs, which were due to be removed by the end of this year, for another two years in a bid to boost automobile consumption, state media reported on March 31, quoting an executive meeting of the State Council chaired by Chinese Premier Li Keqiang.