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Contemporary Amperex Technology Co., Limited (300750) released its third-quarter report for 2026 on October 20, 2026, delivering a strong set of results.

During the first three quarters, the company achieved operating revenue of 442.137 billion yuan, surging 56.19% year on year, while net profit attributable to shareholders of the listed company reached 64.530 billion yuan, up 31.60% year on year.

On a quarterly basis, third-quarter revenue stood at 165.221 billion yuan, representing a year-on-year increase of 58.58%, extending the strong growth momentum.

Earnings quality was equally solid. Net profit after deducting non-recurring gains and losses for the first three quarters was 57.876 billion yuan, up 32.68% year on year, broadly in line with the net profit growth rate, indicating that the company's core business profitability continues to improve and is not reliant on one-off gains to inflate profits.

Basic earnings per share reached 14.13 yuan, up 28.22% year on year, and the weighted average return on equity was 17.64%, placing profitability at a leading level in the industry.

Alongside scale expansion, the company's asset base also swelled significantly. As of September 30, 2026, total assets reached 1,183.174 billion yuan, up 21.37% from the beginning of the year, while owners' equity attributable to shareholders of the listed company was 386.881 billion yuan, up 14.76% from the beginning of the year.

At the same time, the company actively broadened its financing channels through H-share placements and bond issuance, with net cash flow from financing activities surging 724% year on year, providing ample ammunition for subsequent capacity expansion and strategic positioning.

It is worth noting that, alongside rapid growth, the company also launched an A-share buyback program totaling 20 billion to 40 billion yuan and introduced a second-phase employee stock ownership plan, demonstrating management's strong confidence in the company's long-term value and providing solid support for the share price.

Revenue and Profit: Volume and Price Both Rising, Growth Exceeding Expectations

First-three-quarter revenue of 442.137 billion yuan, up 56.19% year on year, far exceeded previous market expectations. In terms of quarterly rhythm, third-quarter revenue alone was 165.221 billion yuan, with a year-on-year growth rate of 58.58%, also maintaining growth on a sequential basis, indicating strong and continuously accelerating demand.

On the profit side, first-three-quarter net profit was 64.530 billion yuan, up 31.60% year on year. It is worth noting that net profit growth was lower than revenue growth, mainly because operating cost growth (61.61%) slightly exceeded revenue growth (56.19%), putting some pressure on gross margin. This is closely related to the company's rapid business expansion and corresponding increases in raw material and manufacturing costs.

Regarding non-recurring gains and losses, the total for the first three quarters was approximately 6.654 billion yuan, mainly sourced from: 2.990 billion yuan in fair value changes and disposal gains on financial assets, 6.393 billion yuan in other income (primarily government subsidies), and 304 million yuan in gains and losses from disposal of non-current assets. After excluding these items, net profit after deducting non-recurring gains and losses was 57.876 billion yuan, up 32.68% year on year, with core profitability remaining robust.

Investment Income and Financial Expenses: Two Highlights Worth Watching

First-three-quarter investment income reached 9.066 billion yuan, surging 73.11% year on year, mainly from net profits of investee companies recognized according to shareholding ratios, of which investment income from associates and joint ventures was 8.436 billion yuan. This data reflects that the strategic value of CATL's extensive layout across the upstream and downstream of the industry chain is accelerating its realization.

On the financial expenses front, first-three-quarter financial expenses were -1.447 billion yuan (a negative value represents net income), significantly narrowed from -7.016 billion yuan in the same period last year, mainly because foreign-currency monetary items were affected by exchange rate movements, generating relatively large exchange losses that eroded the contribution of net interest income. Interest income was 7.413 billion yuan, interest expenses were 2.529 billion yuan, and net interest income still reached 4.884 billion yuan, reflecting the financial advantage brought by the company's massive cash reserves.

Balance Sheet: Scale Expansion with Significant Structural Changes

On the asset side, accounts receivable grew 47.78% from the beginning of the year to 112.912 billion yuan, and inventory rose 53.15% to 144.770 billion yuan, with the two combined exceeding 250 billion yuan, both directly related to the rapid expansion of business scale. Construction in progress increased 44.73% to 43.032 billion yuan, and fixed assets grew to 184.126 billion yuan, reflecting the company's continued increase in capacity investment. Prepayments rose 85.26% to 26.460 billion yuan, indicating that the company is actively locking in upstream supplier resources.

On the monetary funds side, the period-end monetary funds balance was 369.814 billion yuan, and together with 62.780 billion yuan in trading financial assets, the company holds extremely abundant liquid assets, providing a solid guarantee for responding to market fluctuations and seizing investment opportunities.

On the liability side, short-term borrowings surged 208.43% from the beginning of the year to 39.898 billion yuan, while bonds payable jumped from 3.443 billion yuan at the beginning of the year to 52.738 billion yuan, an increase of 1,431.55%, mainly due to the newly issued medium-term notes and corporate bonds during the period. Notes payable grew 48.08% to 152.930 billion yuan, and accounts payable increased to 180.442 billion yuan, with the overall liability scale growing in tandem with business expansion.

Cash Flow: Operating Cash Flow Under Pressure, Financing Provides Major Replenishment

Net cash flow from operating activities in the first three quarters was 61.625 billion yuan, down 23.60% year on year. Although cash received from sales of goods was 407.231 billion yuan, up 20.4% year on year, cash paid for purchases of goods (296.207 billion yuan), employee compensation (32.042 billion yuan), and taxes and fees (30.544 billion yuan) all increased substantially, causing net operating cash flow to narrow. This phenomenon is relatively common during periods of rapid expansion, and subsequent improvement needs to be continuously monitored.

Net cash flow from investing activities was -57.426 billion yuan, basically flat compared with the same period last year, mainly due to 42.167 billion yuan in expenditures for the purchase and construction of fixed assets and 38.815 billion yuan in external investment expenditures, reflecting that the company's capital expenditure remains at a high level. Net cash flow from financing activities was 35.240 billion yuan, surging 724.03% year on year, mainly thanks to funds raised from H-share placements and bond issuance (499.85 billion yuan in cash received). The period-end balance of cash and cash equivalents was 333.398 billion yuan, an increase of 33.468 billion yuan from the beginning of the period, with ample liquidity.

Shareholder Structure and Capital Operations: Buyback Demonstrates Confidence, H-Share Expansion Draws Attention

As of the end of the reporting period, the company's total number of common shareholders was 345,175. Among the top ten shareholders, Xiamen Ruiting Investment Co., Ltd. held 22.04%, making it the largest shareholder; Hong Kong Securities Clearing Company Limited held 17.30%, ranking second, with total H-share investor shareholding exceeding 22%, indicating an increasingly mature international shareholder structure.

At the capital operations level, the company launched an A-share buyback program of 20 billion to 40 billion yuan in July 2026. As of September 30, it had cumulatively repurchased approximately 10.9452 million shares, with a transaction amount of approximately 3.303 billion yuan, at a repurchase price range of 286.53 yuan to 331.61 yuan per share.

At the same time, the company introduced the second phase of its 2026 A-share employee stock ownership plan, intending to grant no more than 8.0816 million shares to incentive recipients at a transfer price of 158.42 yuan per share, approximately half of the current market price. The incentive intensity is relatively strong and helps bind core talent.

In addition, the company also approved its subsidiary Guangdong Brunp Recycling Technology Co., Ltd. to register and issue no more than 5 billion yuan in bonds, further optimizing the debt structure of its recycling business, reducing financing costs, and reflecting a refined management approach in group operations.

R&D Investment: Continued Increase, Moat Continually Deepened

First-three-quarter R&D expenses were 18.517 billion yuan, up 22.9% year on year, accounting for approximately 4.19% of revenue. Although the R&D expense ratio declined due to dilution by rapid revenue growth, the absolute amount still maintained rapid growth, showing that the company's investment in technological innovation has not diminished. Administrative expenses were 9.315 billion yuan, up 13.2% year on year, with relatively stable expense control. Selling expenses were 3.371 billion yuan, up 40% year on year, broadly matching business scale expansion.

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