Contemporary Amperex Technology Co., Ltd. (CATL), which recently surpassed a market capitalization of 2 trillion yuan, is facing another large-scale share reduction plan by a major shareholder. Ningbo Lianchuang New Energy Investment Management Partnership, controlled by Pei Zhenhua, founder of Tianhua New Energy, intends to transfer 58 million shares of CATL at a price of 410.34 yuan per share, with a total transaction value of approximately 23.8 billion yuan.
This transaction sets a record for the largest block transfer via inquiry in A-share history, surpassing the previous record also held by CATL. In mid-November of last year, Huang Shilin, co-founder and third-largest shareholder of CATL, planned to transfer approximately 45.63 million shares through an inquiry process, with a total value of 17.163 billion yuan.
Combined, these two shareholders have cashed out nearly 41 billion yuan within less than half a year. Despite the减持, CATL's stock price recently reached a new high. On April 16, CATL's market capitalization exceeded 2 trillion yuan, making it the first technology company in A-share history to achieve this milestone.
The strong market performance is supported by robust financial results. In the first quarter of this year, CATL reported revenue of 129.131 billion yuan and a net profit attributable to shareholders of 20.738 billion yuan, both representing year-on-year growth of around 50%. This translates to a daily profit of approximately 230 million yuan during the quarter.
As CATL achieves success in both performance and stock price, it continues to create wealth for its stakeholders. According to the Hurun Global Rich List released in March, seven individuals associated with CATL were listed among the world's wealthiest. Founder Zeng Yuqun ranked fourth among Chinese billionaires with a fortune of 380 billion yuan.
Ningbo Lianchuang, CATL's fourth-largest shareholder, cited "its own capital needs" as the reason for the减持. The shares to be transferred represent 20.41% of its holdings and 1.27% of CATL's total share capital. After the transfer, its stake will decrease from 6.23% to 4.96%, meaning it will no longer be a shareholder holding more than 5% of the company.
The inquiry process was organized by China International Capital Corporation Limited and China Securities Co., Ltd. A total of 50 institutional investors participated in the subscription, including fund management companies, qualified foreign institutional investors, insurance companies, securities firms, private equity funds, and trust companies. The effective subscription amount reached 121 million shares, representing an oversubscription rate of 2.1 times. The transfer was fully subscribed by 30 institutions.
CATL emphasized that this transfer does not involve secondary market sales and will not affect the company's control or ongoing operations. The shares acquired by the new investors will be subject to a six-month lock-up period.
Ningbo Lianchuang's ultimate beneficial owner is Pei Zhenhua, who holds a 79.91% stake in the partnership. As an early investor in CATL, Ningbo Lianchuang held 284 million shares as of April 16, including 158 million pre-IPO shares. This is not its first减持 of CATL shares; in 2020, it sold approximately 8.3 million shares, cashing out over 1.5 billion yuan.
Despite earlier claims that Pei's investment in CATL was a personal financial decision unrelated to Tianhua New Energy, the two companies later established strategic cooperation in the lithium battery industry. In 2021, CATL became a shareholder of Tianhua New Energy through a private placement. Last October, Pei and his spouse agreed to transfer a 12.95% stake in Tianhua New Energy to CATL for 2.635 billion yuan. Following the transaction, CATL's stake in Tianhua New Energy increased to 13.54%, making it the second-largest shareholder.
Backed by CATL's continued support, Tianhua New Energy's stock price has surged, rising over 170% since late October last year to close at 84.86 yuan per share on April 22.
The recent large-scale减持 by major shareholders comes amid CATL's strong financial and market performance. In 2025, the company reported revenue of 423.702 billion yuan, a year-on-year increase of 17.04%, reversing the previous year's decline. Net profit attributable to shareholders reached 72.201 billion yuan, up 42.28% year-on-year, equivalent to a daily profit of nearly 2 billion yuan.
In the power battery segment, CATL sold 541 GWh of batteries in 2025, a 41.85% increase year-on-year, with global market share reaching a record high. Revenue from this segment grew by approximately 25% to 316.5 billion yuan, though the gross margin slightly decreased by 0.1 percentage points to 23.84%. In the energy storage segment, battery sales reached 121 GWh, up 29.13% year-on-year, maintaining the top global position for the fifth consecutive year. Revenue increased by about 9% to 62.4 billion yuan, with a gross margin of 26.71%, down 0.13 percentage points.
During an earnings conference in March, CATL stated that its profitability remained stable due to full capacity utilization and economies of scale from expanded delivery volumes. The strong growth continued into the first quarter of 2026, with revenue rising 52.45% year-on-year to 129.131 billion yuan and net profit increasing 48.52% to 20.738 billion yuan.
However, concerns remain over CATL's growing inventory. As of the end of 2025, inventory expanded by nearly 60% year-on-year to 94.526 billion yuan. By the end of the first quarter of 2026, it had further increased to 108.941 billion yuan.
Whether CATL can sustain its stock market success amid ongoing减持 by major shareholders remains to be seen.
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