BUSINESS

CATL Shares Tumble as Profit Growth Lags Surging Revenue

Published: Oct. 21, 2026 5:44 p.m. GMT+8

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CATL shares fell on Wednesday after third-quarter profit rose just 14.5% despite a big jump in revenue.

Shares of Contemporary Amperex Technology Co. Ltd. (CATL) (300750.SZ) plunged on Wednesday after the battery giant reported quarterly profit growth that lagged a surge in revenue, as lower-margin energy-storage deliveries and new policy costs weighed on profitability.

CATL said third-quarter revenue jumped 58.6% from a year earlier to 165.2 billion yuan ($24.7 billion), while net profit rose 14.5% year-on-year to 21.2 billion yuan. Profit fell 5.8% from the previous quarter.

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CATL's Q3 revenue surged 58.6% to 165.2B yuan, but net profit rose only 14.5% to 21.2B yuan, causing shares to fall ~12%.
Profitability was hit by low-margin energy-storage deliveries, a new 2% consumption tax on lithium batteries, and reduced export VAT rebates.
JPMorgan downgraded CATL shares, citing faster profit deterioration, while CATL expects 20-30% battery market growth in 2027.

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Contemporary Amperex Technology Co. Limited (CATL): CATL, the world's largest EV battery maker, saw its shares plunge over 12% after Q3 net profit rose just 14.5% to ¥21.2B despite revenue surging 58.6% to ¥165.2B. Profit fell 5.8% quarter-over-quarter due to lower-margin energy-storage deliveries, a new 2% lithium-battery consumption tax, and reduced export tax rebates. The company remains upbeat on 2027 demand growth of 20–30%.

JPMorgan: JPMorgan downgraded CATL's Hong Kong-listed shares to neutral from overweight before its quarterly results, cutting the price target to HK$500 from HK$725. The bank said profitability was deteriorating faster than expected and that profits were being redistributed across the auto supply chain, making it harder for CATL to pass new policy costs on to customers.

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