Contemporary Amperex Technology Co., Limited (CATL) recently held its FY26Q1 earnings call. The company indicated that its production schedule for the second quarter remains fully loaded, with capacity utilization sustained within the high range of 85% to 90%. The full-year gross margin is projected to remain relatively stable. Production schedules for April and May are positive and have not been negatively impacted by geopolitical conflicts.
Regarding financial metrics, first-quarter revenue reached 129.1 billion yuan, representing a year-on-year increase of 52.45%. Net profit attributable to shareholders was 20.7 billion yuan, up 48.52% compared to the same period last year. The comprehensive gross margin was approximately 25%, showing a slight decline year-on-year, although profit per watt-hour remained relatively stable. Cash and tradable financial assets at the end of the period exceeded 410 billion yuan, while total assets surpassed 1 trillion yuan for the first time.
In terms of battery sales and market share, combined sales of power and energy storage batteries in the first quarter grew by over 60% year-on-year. From January to February 2026, the company's global market share for power battery usage reached 40.5%, an increase of 1.8 percentage points year-on-year. Its overseas market share stood at 32.1%, up 2.2 percentage points. In the first quarter, its share of the domestic power battery installation market was 47.7%, a rise of 3.4 percentage points compared to the previous year.
During the Q&A session, CATL addressed the development prospects of the energy storage market for data centers, noting that the trend has become more evident with the rise of AI applications. The company highlighted a potential energy storage demand of 15 to 20 GWh for a single data center in off-grid scenarios. CATL is actively exploring optimal energy solutions for data centers and recently invested in Zhongheng Electric to strengthen its capabilities in power electronics.
The company reported that combined sales of power and energy storage batteries exceeded 200 GWh in the first quarter, with energy storage accounting for 25% of the total. This represents a significant increase compared to previous quarters.
When asked about the impact of the Middle East conflict, CATL stated that while the situation may accelerate the transition to new energy sources in the long term, its current production schedule remains fully loaded, with capacity utilization consistently high.
Regarding supply chain concerns, the company emphasized its efforts in supply chain layout and traceability, noting that China's electric vehicle supply chain is relatively localized and less affected.
On the topic of gross margins, CATL acknowledged a slight decline compared to the previous year, attributing it to rising raw material costs and changes in product mix. However, the company expects full-year gross margins to remain relatively stable, with profit per watt-hour also holding steady.
CATL also provided updates on its Hungary factory, confirming that construction was completed late last year, with equipment installation and debugging largely finished. Production is expected to commence shortly.
The company estimates that overseas revenue accounts for approximately one-third of total revenue, consistent with the previous year. The reduction in export tax rebates from 9% to 6% is not expected to have a significant impact.
CATL highlighted that the increase in power battery sales, which reached approximately 150 GWh in the first quarter, was driven by market share gains in the passenger vehicle segment and higher battery capacity per vehicle.
The company clarified that it did not initiate price increases in the first quarter, as price adjustments were primarily driven by metal price linkage mechanisms in existing contracts.
Looking ahead, CATL expressed confidence in the medium-term outlook for the industry, citing rising electrification penetration rates in passenger vehicles, rapid growth in commercial vehicle adoption, and strong demand in the energy storage sector, particularly for data centers driven by AI development. The company anticipates the combined market for power and energy storage batteries could exceed 4 TWh by 2030, with a compound annual growth rate of 25% to 30% in the coming years.
CATL also explained the rationale behind establishing Times Resource Group with a registered capital of 30 billion yuan, emphasizing the need to secure upstream resources to support future battery production capacity.
The company dismissed market rumors about financing activities, clarifying that a general financing authorization is a routine practice for Hong Kong-listed companies and does not imply immediate plans for fundraising.
Finally, CATL attributed the nearly tenfold increase in fair value gains in the first quarter to a shift from deposits to wealth management products, following an increase in its wealth management quota.
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