CALB (China Aviation Lithium Battery Technology) Company Limited Detailed Research Report ,Financial and Business Status

CALB (China Aviation Lithium Battery Technology, HKEX: 3931) is one of China’s major battery manufacturers. In recent years, it has achieved steady revenue growth but with thin profit margins.
In 2024, CALB’s revenue reached RMB 27.75 billion, a 2.8% increase from 2023acnnewswire.com. Net profit for 2024 was RMB 843.6 million, a sharp 93% rise from the prior yearacnnewswire.com, reflecting economies of scale and improved cost control. However, the net profit margin remains only around 3%, indicating profitability is still low relative to sales.
Gross profit margin improved to 15.9% (up ~2.9 percentage points year-on-year) and operating profit was RMB 1.2 billion (up 57%)finance.sina.com.cn, showing some margin recovery after a difficult 2023.

Notably, 2023 had been a year of “profitless growth” for CALB: revenue was RMB 27.0 billion (+32.5% YoY) but net income dropped to RMB 294 million (–57% YoY)chinaventure.com.cn.
This was due to intense price competition in EV batteries and the loss of profitability despite higher sales volumes. In 2024, the business mix shifted significantly.
EV battery sales brought in RMB 19.55 billion, a 12.1% decline from the previous year despite increasing volumesfinance.sina.com.cness-news.com.
This decline was caused by lower average selling prices amid industry price wars. In contrast, the energy storage system (ESS) battery segment surged to RMB 8.2 billion in revenue, up 72.4% from RMB 4.76 billion in 2023finance.sina.com.cn. ESS now makes up nearly 30% of CALB’s sales (up from ~18% a year prior)ess-news.com, partially offsetting the slowdown in EV battery revenue.
This diversification into stationary storage helped CALB post a much stronger overall profit in 2024.

On the balance sheet, CALB has been aggressively investing in capacity, leading to rising debt.
Total borrowings as of end-2024 stood at RMB 46.1 billion, up from RMB 29.2 billion a year earlierfinance.sina.com.cn. Of this, about RMB 18.96 billion is due within one year, with the remainder long-termfinance.sina.com.cn.
The company’s cash and bank balances were RMB 12.4 billion (vs 9.2 billion in 2023)finance.sina.com.cn, bolstered by its IPO proceeds and financing to fund expansion. While leverage is high, these investments aim to secure future growth.
Overall, CALB’s financial state reflects a company in scale-up mode – modest top-line growth and a focus on improving margins, while balancing heavy capital expenditure through debt and equity financing.