Shares in China's Contemporary Amperex Technology Co., Limited (CATL) plunge 12% amid concerns over EV battery demand

[Financial News] Shares in Chinese EV battery maker CATL plunged 12% on the 21st, taking them to around half their May peak. The company's third-quarter results, announced the previous day, fell far short of market expectations.
CATL shares listed on the Shenzhen Stock Exchange in China closed at 227.9 yuan, down 12.03% from the previous session. Based on closing prices, that was around half the May 6 peak of 460 yuan, a decline of 50.4%. CATL shares listed in Hong Kong also fell 11.41% that day.
CATL said the previous day that its net income for the third quarter rose 14.54% year on year to 21.25 billion yuan (about 4.2 trillion won). That was well below both the second-quarter net income growth rate of 36.5% and the market forecast of 41.2%, compiled by the UK-based London Stock Exchange Group (LSEG). It was also the lowest rate since the fourth quarter of 2024, when it was 13.6%.
Third-quarter revenue grew 58.58% year on year to 165.22 billion yuan (about 32.8 trillion won). The growth rate was higher than the 56.9% recorded in the previous quarter, but fell short of the 60.2% market forecast.
The Hong Kong-based English-language newspaper South China Morning Post (SCMP) reported that CATL shares have been weak since Chinese EV makers Xiaomi and Li Auto announced last month that they would work with other battery manufacturers. U.S. investment bank JPMorgan said recent tax changes and other factors have caused profitability in China's EV industry to deteriorate faster than expected, potentially affecting demand for CATL's battery products. It also downgraded its investment rating on CATL's Hong Kong-listed shares to “Neutral.”


[email protected] Park Jong-won Reporter