CATL Earnings Drop as Battery Giant Posts Large Derivatives Position

(Bloomberg) — Contemporary Amperex Technology Co. Ltd. posted its sharpest-ever drop in quarterly earnings and disclosed a sizable derivatives liability, the first time since going public that it recorded such a large charge.

Net income fell 24% to 1.49 billion yuan ($226 million) for the three months ended March 31 from a year earlier, CATL, as the Chinese battery giant is better known, said Friday in an exchange filing. First-quarter underlying profit tumbled 41% to 977 million yuan.