Dissecting "Ning Wang"'s strongest annual report: earning 2,290 yuan per second, energy storage becoming a new growth point, Zeng Yuqun's personal dividends surpass the profits of some automakers

Everyday Economic News Reporter | Huang Xinxu Everyday Economic News Editor | Pei Jianru

Since disclosing its 2025 annual report on March 9, CATL’s stock price has continued to rise.

On March 10 and 11, CATL’s stock price increased by more than 5% each day. On the morning of March 12, CATL’s A-shares (300750.SZ) briefly returned to 400 yuan, closing at 395.5 yuan, clearing the gloom caused by previous market fluctuations.

This annual report, dubbed the “strongest in history” by the capital market, showcases CATL’s profitability. The core data from the report shows that in 2025, CATL’s operating revenue grew by 17.04% year-over-year; net profit attributable to shareholders reached 72.201 billion yuan, a 42.28% increase year-over-year. Both profit scale and growth rate exceeded market expectations, which is the main reason for its continued stock price strength.

Image source: CATL official WeChat

“Earn 2 billion yuan a day”

Financial data shows that in 2025, CATL achieved an annual operating revenue of 4.237 trillion yuan and a net profit attributable to shareholders of 722.01 billion yuan. Simple calculations suggest that CATL’s daily net profit in 2025 was close to 2 billion yuan, with an hourly profit of about 2,290 yuan.

The growth in profits directly translates into returns for shareholders. The annual report indicates that CATL plans to implement its largest-ever dividend payout in 2025, with a total cash distribution of about 36.1 billion yuan, representing a dividend ratio of 50% of net profit. Among them, founder and chairman Zeng Yuqun, holding 22.45%, can personally receive about 8.1 billion yuan.

Based on current performance forecasts from listed vehicle manufacturers in A-shares, SAIC Group expects profits between 9 billion and 11 billion yuan in 2025; Great Wall Motors expects 9.912 billion yuan; Foton Motor expects 1.33 billion yuan. CATL’s net profit of 72.201 billion yuan has already exceeded the combined profits of more than 10 listed vehicle companies in A-shares for 2025. Even Zeng Yuqun’s personal dividend is higher than the annual profit of many automakers.

GAC Group executives jokingly said, “Automakers are working for CATL.” In recent years, to avoid “working for battery companies,” many automakers have sought diversified supply sources to reduce dependence on battery suppliers. The industry calls this phenomenon “de-Ninghua.”

However, from the financial data disclosed by CATL this time, its “order water reservoir” continues to expand. As of the end of 2025, CATL’s contract liabilities reached 49.2 billion yuan, an increase of 21.4 billion yuan from the end of 2024, a growth of 77%. This indicates that downstream customers are locking in their 2026 capacity through prepayments.

Energy storage becomes the second growth curve

Behind the impressive performance, power batteries remain CATL’s core business.

In 2025, CATL’s lithium battery sales reached 661 GWh, a year-over-year increase of 39%, with a global market share of 39.2%. Among them, power battery sales were 541 GWh, up 41.9%. In 2025, the revenue share of CATL’s power battery systems was 74.70%.

However, as the domestic power battery market’s growth slows, finding a second growth curve is key for CATL to expand its growth boundaries.

Currently, energy storage is becoming CATL’s most prominent second growth curve. In 2025, CATL’s energy storage battery sales reached 121 GWh, an increase of 29.1%. According to SNE Research, CATL’s energy storage battery shipment market share in 2025 reached 30.4%, ranking first globally for five consecutive years, with approximately 2,300 projects worldwide. The shipment scale of energy storage system integration increased by over 160% year-over-year.

More importantly, in 2025, revenue from energy storage battery systems reached 62.44 billion yuan, accounting for 14.74% of the company’s total revenue, with a gross profit margin of 26.71%, higher than the 23.84% of power batteries. It is understood that CATL’s domestic energy storage bases in Shandong, Fujian, and other regions are accelerating capacity expansion. Jining’s base alone is expected to add over 100 GWh of energy storage capacity by 2026.

Beyond the two main businesses of power and energy storage, CATL is accelerating the development of a full lifecycle ecosystem. During the performance communication meeting, CATL disclosed that its chocolate battery swap brand has built over 1,000 swap stations across 45 cities nationwide.

Image source: CATL official WeChat

Notably, Zeng Yuqun has recently mentioned the “full-domain incremental” strategy in multiple occasions. The core of this strategy is to extend CATL’s core capabilities in power batteries to land, sea, and air transportation scenarios.

According to CATL, future efforts will focus on the aviation and low-altitude sectors, as well as globalization. For example, the cargo version of the power battery developed for its subsidiary Fengfei Aviation has passed the conformity review by the Civil Aviation Administration of China, and the company has also obtained the AS9100D aerospace quality system certification.

Facing cost cycles and globalization challenges

Behind the growth, CATL also faces dual challenges of cost control and global operations.

The sharp rebound in upstream raw material prices is the most direct cost pressure. Recently, the price of battery-grade lithium carbonate, a core raw material for power batteries, soared from around 59,900 yuan/ton in mid-2025 to 171,900 yuan/ton in March 2026.

According to a report by UBS Global Research, lithium carbonate prices are forecasted to reach $26,000 per ton (about 185,000 yuan/ton).

Cui Dongshu, secretary-general of the China Passenger Car Association, said, “The surge in demand driven by AI for energy storage has caused prices of non-ferrous metals like copper to skyrocket, increasing costs for automakers. With the continuous growth of new energy vehicle sales over the past two years, resource prices like lithium carbonate have surged, intensifying upstream and downstream competition.”

The cyclical fluctuations and ongoing upward pressure on raw material prices will remain key factors affecting CATL’s profitability stability in the near future.

If cost pressure is a short-term challenge, then global deployment is a long-term strategic issue for CATL. Previously, CATL’s overseas business mainly relied on exports supported by domestic capacity. After 2026, as overseas factories come online, the “overseas manufacturing and local sales” model will truly take shape, greatly enhancing global competitiveness.

Image source: CATL official WeChat

Currently, several key overseas projects are approaching mass production. Among them, the Hungary factory is scheduled to start mass production in the first half of 2026, with an initial capacity of 34 GWh, supplying European clients such as Mercedes-Benz, BMW, and Volkswagen.

However, CATL’s management admits, “The unit investment intensity of overseas capacity is generally higher than domestic. In the future, we will rely on a global supply chain and operational experience to continuously optimize investment costs.” Additionally, managing multinational personnel and communicating with local unions will become new challenges for CATL’s overseas operations.

Cover image source: Daily Economic News, stock photo