>/n/n/n/n/n(Yicai Global) Nov. 29 -- The world's largest electric vehicle cell maker, Contemporary Amperex Technology, plans to apply for up to CNY110 billion (USD16 billion) in credit as it looks to retain its top spot in the increasingly competitive EV battery sector.
The Fujian province-based firm, known as CATL, and a subsidiary will be looking to banks for the money, the parent said in a statement yesterday. It would seek to borrow via working capital and fixed asset loans, acceptance bills, letters of guarantee and credit, financial derivate instruments and other forms of credit.
CATL's main line of business, electric vehicle batteries, becoming intensely competitive as some of the world's biggest auto markets -- including China, India, Germany, France and the United Kingdom -- look to put an end to combustion engines. It will be looking to use the borrowed cash to keep abreast of industry innovation so it can fend off rivals like Panasonic, which makes Tesla's batteries, Samsung and local competitor BYD, and retain the 42 percent market share it held over the first six months.
The firm already has supply contracts with the likes of Volkswagen, BMW and Daimler, and has more than doubled its share price [SHE:300750] to CNY78.68 (USD11.3) since lting in Shenzhen th June. It snagged CNY9.4 billion in revenue over the first half, up nearly 49 percent from a year earlier, but net profit dived 46 percent to CNY1.1 billion after it sold shares in Beijing Pride Power Battery Technology. Ignoring the stock divestment, net profit gained 36.6 percent.
It had an installed capacity of 15.45 gigawatt-hours in the first half, two and a half times as much as a year earlier, according to data from the China Automotive Technology and Research Center. That covered 40 percent of capacity in the electric car battery sector and 49 percent in the new-energy bus segment, the figures showed.
Editor: James Boynton