Contemporary Amperex Technology Co., Limited (CATL), a major Chinese producer of batteries, released its Q3 quarterly earnings yesterday, showing revenue of 29.29 billion yuan ($4.58 billion) in the period, up 130.7% year-on-year, and net profit of 3.27 billion yuan ($510.56 million), up 130% year-on-year.
In the first three quarters, the total revenue was 73.36 billion yuan, up 132.7% year-on-year, and the net profit was 7.75 billion yuan, up 130.9% year-on-year.
In addition, the battery supplier announced the 2021 Stock Option and Restricted Stock Incentive Plan (Draft). It plans to grant 516.1 million shares to incentive recipients, of which 4,483 people will be granted for the first time with 413.6 million shares.
The incentive targets of this plan are CATL’s middle-level managers and senior employees. The exercise price of stock options granted for the first time is 612.08 yuan per share, while the grant price is 306.04 yuan per share.
Calculated by the exercise price and grant price, the above-mentioned 4,483 recipients in the company can receive an average of 283.4 thousand yuan in stock incentive plan bonuses.
From the perspective of capital investment, Hillhouse Capital has reduced its shares in CATL for two consecutive quarters. According to the Q3 quarterly earnings, Hillhouse Capital reduced its holdings in CATL by about 2.2 million shares in the third quarter, and its shareholding ratio decreased from 1.92% to 1.83%. In accordance with the stock price fluctuation in the same period, it is estimated that at least 1 billion yuan will be cashed out.
Rising commodity prices, including those of materials used in CATL’s batteries, have raised concerns about the impact of inflation on manufacturers. To ease supply chain constraints, the company is seeking to be more active in the upstream market.
Recently, CATL decided to purchase Millennium Lithium Corp. in Canada to ensure the supply of key battery manufacturing minerals. In October, its subsidiary announced plans to invest in the construction of an integrated battery materials industrial park in Yichang, Hubei Province, with the highest bid price of 32 billion yuan and a construction period spanning six years.