CATL reports higher revenue and profits in Q3

Core Insights - Contemporary Amperex Technology Co Ltd (CATL) reported increased sales and profitability in Q3 2025, with revenue reaching 104.18 billion yuan ($14.63 billion), a year-on-year increase of 12.9% [1] - Net profit attributable to shareholders rose by 41.2% to 18.55 billion yuan, with basic and diluted EPS both at 4.10 yuan, reflecting a 37% increase from the previous year [1] - For the first nine months of 2025, CATL's revenue increased by 9.3% to 283.07 billion yuan [1] Financial Performance - In Q3 2025, net profit attributable to shareholders increased by 36.2% to 49.03 billion yuan, with basic and diluted EPS at 11.02 yuan, up around 35% [2] - The company's revenue from EV battery systems constituted 73.55% of total revenue, while energy storage batteries accounted for 15.88% [3] - International markets contributed 34.22% of sales, an increase from 30.30% in the same period last year [3] Business Operations - CATL focuses on developing, manufacturing, and selling batteries for electric vehicles and energy storage applications [2] - As of June 2025, the company has established six R&D hubs and 13 battery production sites globally [2] - Management plans to allocate 90% of the IPO proceeds, approximately HK$35.7 billion (about $4.6 billion), towards constructing a new plant in Hungary to supply batteries to European automakers [4] Market Context - CATL has been affected by US-China trade tensions, with the US Department of Defense adding the firm to a watchlist over alleged military ties, which the company denies [4]