TREE NEWS update: CATL said it began actively adjusting payments to suppliers from the third quarter, prioritizing partners with R&D capabilities and innovation that support its capacity expansion. The measures include shortening payment cycles, paying advances and providing R&D funding support. The company said the support may continue for some time and could have a phased impact on operating cash flow, but will not affect long-term cash profitability, which should return to a relatively healthy level.
CATL adjusts supplier payment terms from Q3 to ease upstream cash flow
AI take
The move signals that CATL is using its balance-sheet strength to stabilize upstream suppliers, particularly those with R&D capabilities tied to its expansion. It matters for smaller suppliers facing tight cash flow, and it implicitly acknowledges that stretched payment terms have been a strain in the battery supply chain. The open question is whether the phased cash-flow impact CATL flags stays contained, and whether other large buyers follow with similar terms.
Generated by AI for reference only.
Share on WeChat
Open WeChat → Scan → then tap "…" to send to a chat or Moments.
Tap "…" in the top-right corner to send to a chat or share to Moments.
Related News
5m ago
China’s Finance Ministry issues 91-day and 7-year bonds totaling 180 billion yuan
35m ago
China’s September electricity consumption rises 1.2% to 899.7 TWh
37m ago
ChiNext Index falls over 1% after earlier gain; CATL drops nearly 11%
42m ago
SHIBOR: Overnight Rate Falls 0.10bp to 1.2610%
54m ago
Starbucks China to Require Purchases for Seating Starting October 22
56m ago
China’s national carbon market cumulative trading volume tops 1 billion tonnes