Chinese battery giant CATL hit by profit slowdown as EV headwind fears grow

Chinese battery giant Contemporary Amperex Technology Limited (CATL) has recorded a surprise slowdown in third-quarter net profits, as analysts warned the company could be hit by slowing demand from China’s electric car industry next year.
The world’s largest electric vehicle battery maker posted a net profit of 21.25 billion yuan (US$3.18 billion) for the July-September period, up 14.54 per cent from a year earlier, according to an exchange filing on Tuesday.
The increase marked a sharp slowdown from the 36 per cent jump recorded in the second quarter of the year and a peak of 57 per cent in the final quarter of 2025.
The company’s third-quarter revenue grew 58.58 per cent year on year, reaching 165.22 billion yuan.
Both the earnings and revenue figures missed analysts’ consensus forecasts of 26.03 billion yuan and 175.05 billion yuan, respectively.
CATL’s shares slumped 6.58 per cent to HK$411.80 in Hong Kong and 2.97 per cent to 259.08 yuan in Shenzhen on Tuesday, before the earnings results were announced.
The company’s stock price has plunged since Chinese EV makers Xiaomi and Li Auto announced they were partnering with tier-two battery manufacturers in September, with CATL’s shares down over 20 per cent in Hong Kong and 31 per cent in Shenzhen since the start of the year.
On Tuesday, JPMorgan lowered its rating of CATL’s Hong Kong-traded shares to neutral, as the bank is increasingly worried about a faster-than-expected deterioration of profitability in the Chinese EV industry, which could affect demand for CATL’s batteries.
The bottom lines of Chinese EV makers were already under pressure due to China’s resumed battery consumption tax, export tax rebate pullback and heavier external trade barriers, according to the investment bank, though it added that CATL would emerge as a winner in the battery industry over the long term.
Market concerns over weaker-than-expected demand for energy storage systems (ESS) have also fuelled the sell-off over the past few weeks.
Citigroup said it expected global battery demand growth to slow to 26 per cent next year, citing smaller room for EV penetration in China and potential ESS growth on higher base effects, according to a note published earlier this month.
CATL’s inventory surged 53 per cent to 144.77 billion yuan for the first nine months of the year, while projects under construction grew by 44.7 per cent to 43 billion yuan over the same period. The battery maker attributed the rises to its business expansion and capacity growth, respectively.
CATL continued its share buy-back spree on Monday by repurchasing nearly 50 million yuan of Shenzhen-listed shares. In July, the firm announced its largest-ever buy-back scheme worth up to 40 billion yuan on the mainland stock markets.
For the first three quarters of the year, CATL’s revenue grew 56 per cent year on year to 442 billion yuan and its net profit expanded 31.6 per cent to 64.5 billion yuan.