CATL (SZSE: 300750) has made a bold move to boost investor confidence, unveiling a massive share buyback plan of up to 40 billion yuan, the largest in A-share history, alongside a significant interim dividend.
The company's latest financial report for the first half of the year shows revenue of 276.92 billion yuan, up 54.8% year-on-year, and net profit attributable to shareholders of 43.28 billion yuan, a 41.98% increase. The buyback plan, which involves repurchasing A-shares within a price range of up to 573 yuan per share, is designed to be cancelled and reduce registered capital.
Why the buyback?
According to CATL management, the company’s financial health, profitability, and market position are all strong, but the current stock price is undervalued due to market volatility. This is the core rationale behind the buyback, which is not expected to become a regular occurrence. The company emphasized that it will consider future buybacks on a case-by-case basis, depending on regulatory requirements and fundraising capabilities.
Interim dividend details
Alongside the buyback, CATL announced an interim dividend plan worth 6.49 billion yuan, representing 15% of its net profit for the first half of the year. The dividend will be paid out at 14.11 yuan per 10 shares (including tax). Based on the shareholding structure, the company's controlling shareholder, who holds a 22.04% stake through Xiamen Ruiding Investment Co., Ltd., is expected to receive over 1.4 billion yuan from this dividend payout.
Performance and challenges
The company's strong financial performance supports these generous returns. In the second quarter, revenue grew 56.92% to 147.79 billion yuan, but net profit growth slowed to 36.46%, partly due to a decline in gross margin to 23.15%, the lowest in six quarters. The company cited rising raw material costs, such as battery-grade lithium carbonate, as a potential risk to cost control and gross margins. Inventory levels also rose 40% to 130.82 billion yuan, representing 11.49% of total assets.
Market position and growth
Despite these challenges, CATL continues to expand its global market share. In the power battery sector, its global market share reached 40.2% in the first five months of 2026, up 2.2 percentage points. In the energy storage sector, the company held the top spot globally for battery shipments in the first half of 2026. Revenue from energy storage systems surged 87.54% to 53.26 billion yuan, now accounting for 19.23% of total revenue, up from 14.74% in 2025.
Impact of new tax policy
The company also addressed the new consumption tax on lithium-ion batteries, set to begin in September 2026. Management stated that the policy will favor leading companies by promoting a more orderly competitive landscape. The additional tax costs will be shared with downstream customers through negotiations, and the impact on operations is expected to be manageable.
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