CATL: Since the last lithium carbonate price cycle, the company has established and improved a price transmission mechanism with downstream customers.

On March 10th, CATL (300750.SZ) released an investor relations activity record showing that during the reporting period, the company’s lithium battery sales reached 661 GWh, a year-on-year increase of 39.2%; net profit attributable to shareholders was 72.2 billion yuan, up 42.3%; net operating cash flow was 133.2 billion yuan, up 37.4%; and at the end of the period, total cash and trading financial assets were close to 392.5 billion yuan.

Regarding profitability issues amid rising prices of raw materials such as lithium carbonate, the company stated that since Q4 2025, despite the external environment of rising lithium carbonate prices, overall profitability has remained stable thanks to mechanisms linking product prices, proactive supply chain planning, and increased long-term agreements. Compared to the unit gross profit, which is affected by multiple factors and fluctuates significantly, the unit net profit more objectively reflects the company’s overall operational quality.

In response to the difficulty in transmitting the lithium carbonate price linkage mechanism, the company said that since the last lithium carbonate price cycle, it has established and improved a price transmission mechanism with downstream customers, which is currently operating well. Unless there are extreme market conditions, existing rebate policies and commercial terms will remain stable.