CATL Reports Slowest Profit Growth in Two Years

Contemporary Amperex Technology Co. Limited (CATL) reported a third-quarter net profit of 21.2 billion yuan ($3.17 billion), representing a 14.5% year-on-year increase. This figure marks the company's slowest profit growth in nearly two years and fell significantly short of analyst expectations, which had predicted a 41.2% increase. Revenue rose 58.6% to 165.2 billion yuan, also undershooting forecasts.

Despite the financial miss, the company maintained a 39.4% share of global electric vehicle battery usage for the first eight months of the year. However, its share of the Chinese domestic installation market declined to 40.9% in September. During the same period, competitor Bydgoszcz increased its share of the Chinese power battery installation market to 21.1%.

To address a downturn in the Chinese auto market and rising competition, the company unveiled new batteries designed for heavy-duty trucks and announced plans to expand its battery-swapping network. CATL stated a long-term strategic goal for energy storage to provide half of its global revenue by 2030.