- CATL’s net profit attributable to shareholders in the first half was 43.28 billion yuan ($6.37 billion), with a gross margin of 23.93%.
- The battery maker announced a plan to buy back 20 billion yuan to 40 billion yuan worth of its A-shares, which will be canceled.
CATL (SZSE: 300750) reported strong net profit growth for the first half of the year and announced a massive share buyback plan to boost investor confidence.
The world’s largest power battery maker posted a net profit attributable to shareholders of 43.28 billion yuan ($6.37 billion) in the first half of 2026, up 41.98% year-on-year, according to its half-year report released today.
CATL’s revenue in the first half was 276.92 billion yuan, up 54.80% year-on-year.
Although the power battery business remains dominant, the energy storage business is contributing an increasing share of revenue.
In the first half of the year, CATL’s power battery business generated revenue of 192.12 billion yuan, up 46.02% year-on-year, with a gross margin of 20.63%.
During the same period, the energy storage business generated revenue of 53.26 billion yuan, up 87.54% year-on-year, with a gross margin of 23.96%.
Its overall gross profit in the first half was 66.26 billion yuan, up 48.03% year-on-year. That means its gross margin was 23.93%, down 1.09 percentage points from a year earlier.
The company’s net profit excluding non-recurring items was 39.01 billion yuan in the first half, up 43.44% year-on-year.
CATL’s net cash generated from operating activities in the first half was 60.22 billion yuan, up 2.61% year-on-year.
Its basic earnings per share in the first half were 9.51 yuan, up 37.43% year-on-year. Its weighted average return on equity was 12.08 percent, up 0.45 percentage points from a year earlier.
As of June 30, CATL’s total assets were 1,138.88 billion yuan, up 16.83% from the end of last year. Its cash holdings were 372.05 billion yuan, and its debt-to-asset ratio was 63.65 percent.
Alongside the earnings report, CATL’s board of directors today approved a share buyback plan, under which the company intends to use no less than 20 billion yuan and no more than 40 billion yuan of its own or self-raised funds to repurchase some of its A-shares through centralized bidding.
The buyback price will not exceed 573 yuan per share, or 150% of the average trading price of the stock in the 30 trading days before the board resolution.
Based on the 40 billion yuan buyback cap and the 573 yuan price ceiling, the number of shares to be repurchased is expected to be about 69.81 million, or about 1.51% of the company’s current total share capital.
CATL said the repurchased shares will be canceled to reduce its registered capital, boosting earnings per share and improving returns for shareholders.
Based on the buyback cap, the repurchase funds would account for about 10.75% of CATL’s cash holdings as of June 30, and the company’s management believes it will not have a material impact on its operations and financial position.
The buyback plan is subject to approval at a shareholders’ meeting, and the implementation period will be within 12 months from the date of approval.
CATL remained China’s largest power battery maker in June, though its market share fell 3.43 percentage points from May.
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