CATL boosts shareholder returns with 50% profit payout

Contemporary Amperex Technology Co. (CATL) (SZSE:300750) announced a significant boost to shareholder returns alongside plans for strategic expansion. The board approved a profit distribution plan proposing a total cash dividend payout of ¥19.98 billion, representing 50% of its 2024 net profits, including a special cash dividend, subject to shareholder approval. The remaining 2024 net profits will be used for research and development. At the same time, it is continuing with plans to add several manufacturing hubs. Despite this significant payout, CATL projects sufficient cash reserves to proceed with its expansion plans including: new manufacturing and 9 existing manufacturing bases. The business strategy will expand CATLs presence to engineering machinery, shipping, and aviation. These developments are to be supported by high cash flow.