CATL shares fall over 12% after third-quarter profit growth slows
In short
Shares of CATL (宁德时代) fell sharply on 21 October, the day after it reported third-quarter net profit up 14.54% on revenue up 58.58%. Outlets reported the A shares down more than 12% by 14:52, and more than 50% below the record high set on 7 May 2026. The company said industry demand in 2027 can still be expected.
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Shares of CATL (宁德时代) fell sharply on 21 October after the company published its third-quarter report on the evening of 20 October. CLS reported that the A shares opened 5% lower, at their lowest since July 2025, with the combined A and H share market value down to 1.16 trillion yuan. [ 1 ]
The decline deepened through the day. 36Kr reported both the A and H shares down more than 8% at 09:36, and Yicai reported both down more than 9% at 09:47. At 10:21 CLS said the fall had widened to 10%, with market value at 1.1 trillion yuan and turnover above 15.6 billion yuan. By 14:47 36Kr reported CATL down more than 12%, with the ChiNext index down more than 2%, and Yicai reported the A shares down more than 12% at 14:52. CLS said the price was more than 50% below the historic high set on 7 May 2026. [ 3 , 4 , 6 , 12 , 13 ]
The report showed third-quarter revenue of 165.221 billion yuan, up 58.58%, and attributable net profit of 21.246 billion yuan, up 14.54%, according to Jiemian. Jiemian gave a quarter-on-quarter decline of 5%, while Caixin gave 5.8%. Single-quarter consolidated gross margin fell to 20.69%, the second consecutive quarterly decline. For the first three quarters, revenue was 442.137 billion yuan, up 56.19%, and net profit was 64.53 billion yuan, up 31.60%. Caixin said cumulative net profit growth slowed from 42% in the first half to 31.6%, and that cash and trading financial assets exceeded 430 billion yuan at the end of the third quarter. [ 1 , 5 , 9 , 14 ]
Jiemian cited market analysis giving three reasons: low-priced energy storage contracts signed in the previous two years were concentrated in third-quarter deliveries; the 2% battery consumption tax resumed from September, raising taxes and surcharges by 1.6 billion yuan year on year; and lithium carbonate price swings led to 1.2 billion yuan more inventory write-downs than in the previous quarter. Jiemian also said JPMorgan cut its rating on the H shares to neutral, kept the A shares at overweight and lowered its earnings forecasts. JPMorgan said it was increasingly concerned that industry profitability was worsening faster than expected, and that CATL might be hit first but could end up a bigger winner. [ 9 ]
On 21 October the company responded to investor worries about demand next year, saying that from its own standpoint industry demand in 2027 could still be expected. It said global demand for power and energy storage batteries may be less pessimistic than the market expects. cnBeta added that CATL's board approved a 20-40 billion yuan A-share buyback plan on 24 July, with the repurchased shares to be cancelled. Jiemian said the Shanghai index slipped 0.36% on the day while new energy stocks fell sharply. [ 9 , 10 ]
Why it matters
The fall cut CATL's combined A and H share market value from 1.16 trillion yuan at the open to about 1.1 trillion yuan by mid-morning, according to CLS. Jiemian said the new energy sector fell sharply and a battery-industry index dropped more than 3%, so the move reached beyond one stock.
Key facts
- CATL published its third-quarter 2026 report on the evening of 20 October: revenue was 165.221 billion yuan (up 58.58%) and net profit attributable to shareholders was 21.246 billion yuan (up 14.54%). [ 9 , 14 ]
- Single-quarter consolidated gross margin fell to 20.69%, the second consecutive quarterly decline. [ 1 , 9 ]
- For the first three quarters, revenue was 442.137 billion yuan (up 56.19%) and attributable net profit was 64.53 billion yuan (up 31.60%). [ 5 , 14 ]
- The A shares opened down 5% on 21 October, at their lowest since July 2025, and the fall deepened through the day. [ 1 , 2 ]
- By 14:47 CATL was down more than 12%, and Yicai reported the A shares down more than 12% at 14:52. [ 12 , 13 ]
- The share price was more than 50% below the historic high set on 7 May 2026. [ 6 , 8 , 9 ]
- The company said industry demand in 2027 can still be expected. [ 9 , 10 ]
Confirmed by several sources
- CATL's third-quarter net profit rose 14.54% year on year, well below the 58.58% rise in revenue, according to the 20 October report. [ 1 , 9 , 14 ]
- CATL's A and H shares fell by more than 10% on 21 October. [ 6 , 8 , 9 , 14 ]
- The share price was more than 50% below its historic high. [ 6 , 8 , 9 ]
- Single-quarter gross margin dropped to 20.69%, the second consecutive quarterly decline. [ 1 , 9 ]
Still unclear
- Quarter-on-quarter change in third-quarter net profit. Jiemian gives a 5% decline while Caixin gives 5.8%.
- Reasons for the profit slowdown and the share fall. Jiemian attributes them to what it calls market analysis: low-priced energy storage contracts delivered in the third quarter, the 2% battery consumption tax resumed from September (adding 1.6 billion yuan to taxes and surcharges), and an extra 1.2 billion yuan of inventory write-downs linked to lithium carbonate prices. No other document in this set gives these figures.
- Closing level of the shares. The documents give intraday falls of more than 10% to more than 12%; none gives a closing price. A Caixin headline dated 22 October refers to more than 140 billion yuan of market value lost in a single day, but its text is not available.
What local media are saying
Timeline, local time
- CLS reported CATL opened 5% lower, at its lowest since July 2025. [ 1 ]
- 36Kr reported the A and H shares both down more than 8%. [ 3 ]
- Yicai reported both down more than 9%. [ 4 ]
- CLS reported the fall widened to 10%, with combined market value at 1.1 trillion yuan. [ 6 ]
- 36Kr reported CATL down more than 12% and the ChiNext index down more than 2% late in the session. [ 12 ]
- Yicai reported the A shares down more than 12%. [ 13 ]