CATL responded to investors’ questions on the impact of falling raw material prices on the company’s performance on Interactive Easy. The company stated that the company has fully considered the impact of market price factors at the end of 2022. According to the “Accounting Standards for Business Enterprises”, if the inventory cost is higher than its net realizable value, the corresponding inventory depreciation reserve will be withdrawn.
At the same time, CATL Company established an inventory management committee to control the inventory from the top level, flexibly adjust the purchase volume according to seasonal changes, and improve inventory utilization and turnover efficiency. In the downward cycle of material prices, the company has promoted rapid destocking and shortened the procurement cycle. The company continues to promote competitive products to the market while maintaining a reasonable level of profitability without significant impairment.
Some investors asked CATL, does the company have a hydrogen energy business? What do you think of the development of hydrogen energy? In this regard, CATL Company replied, “Hydrogen has a very low volume energy density at room temperature, and high-pressure storage tanks are required for storage. The energy is converted. First, the electrical energy is converted into hydrogen, and then converted into electrical energy through hydrogen combustion, which involves a lot of infrastructure. , large area, low conversion efficiency and other factors, the work is relatively complicated, and the cost is relatively high. We believe that electrochemical energy storage such as lithium batteries and sodium batteries has a cost advantage when the price of materials is appropriate.”
The price of battery-grade lithium carbonate has continued to fall this year and has now fallen below 180,000 yuan/ton. In the first quarter, CATL delivered a perfect answer: operating income of 89.038 billion CNY, a year-on-year increase of 82.91%; net profit attributable to the parent company of 9.822 billion CNY, a year-on-year increase of 557.97%.