CATL’s profit growth trails revenue gains in third quarter, dragged down by rising debt
Leading electric vehicle (EV) battery maker Contemporary Amperex Technology Co. Ltd. (CATL)(3750.HK; 300750.SZ) on Tuesday reported its revenue grew 58.6% year-on-year to 165 billion yuan ($24.7 billion) in the third quarter. But its profit rose by a slower 14.5% to 21.2 billion yuan, as its debt and other financial obligations rose to fund expansion.
Most notably, the company’s bond debt rose to 52.7 billion yuan at the end of September from just 3.4 billion yuan at the end of last year, following its recent issue of medium-term notes and corporate bonds. Its short-term borrowings also tripled to 39.9 billion yuan from 12.9 billion yuan over that period.
For the first nine months of the year, CATL’s revenue rose 56.2% year-on-year to 442.1 billion yuan, while its profit rose 31.6% to 64.5 billion yuan.
CATL’s Hong Kong-listed stock fell 10.1% on Wednesday morning after the announcement to close at HK$370.20 by the midday break. The stock has lost more than half its value from a peak in early June, but is still up about 40% from its IPO price of HK$263 in May 2025.
By Doug Young
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