Since disclosing its 2025 annual report on March 9, Contemporary Amperex Technology Co.,Ltd. (CATL) has seen its stock price continue to strengthen. On March 10 and March 11, CATL's share price rose by more than 5% each day. On the morning of March 12, the company's A-share price briefly returned to the 400-yuan level, closing the day at 395.5 yuan, dispelling the gloom from recent market volatility.
Dubbed by the capital markets as the "strongest in history," this annual report showcases CATL's formidable earning power. Key data from the report reveals that in 2025, CATL's operating revenue increased by 17.04% year-over-year. Its net profit attributable to shareholders reached 72.201 billion yuan, a significant increase of 42.28% compared to the previous year. Both the scale of profit and the growth rate exceeded market expectations, forming the core support for the sustained strength in its stock price.
"Earning 200 Million Yuan Daily" Financial report data shows that for the full year 2025, CATL achieved operating revenue of 423.702 billion yuan and a net profit attributable to shareholders of 72.201 billion yuan. A simple calculation indicates that CATL's average daily net profit was close to 200 million yuan, equating to an earnings rate of approximately 2290 yuan per second.
The growth in profit has directly translated into returns for shareholders. The annual report indicates that CATL plans to implement its largest-ever dividend distribution for 2025, with total cash dividends amounting to approximately 36.1 billion yuan, representing a payout ratio of 50% of its net profit. Based on his 22.45% shareholding, founder and Chairman Robin Zeng is set to receive a personal dividend of approximately 8.1 billion yuan.
Looking at the performance forecasts of A-share listed automobile manufacturers, SAIC Motor is projected to report a profit between 9 billion and 11 billion yuan for 2025; Great Wall Motor's profit is 9.912 billion yuan; and Foton Motor's profit is 1.33 billion yuan. CATL's net profit of 72.201 billion yuan already exceeds the combined profits of more than ten A-share listed vehicle manufacturers for 2025. Notably, Robin Zeng's personal dividend even surpasses the annual profits of several major automakers.
A GAC Group executive once remarked that automakers are "working for the battery companies." In recent years, to avoid this situation, many automakers have sought diversified supply chains to reduce their reliance on battery manufacturers, a trend referred to in the industry as "de-CATL-ization." However, judging by the financial data disclosed by CATL, its "order reservoir" continues to expand. By the end of 2025, CATL's contract liabilities balance reached 49.2 billion yuan, an increase of 21.4 billion yuan from the end of 2024—a sharp rise of 77%. This indicates that downstream customers are securing its 2026 production capacity through advance payments.
Energy Storage Becomes the Second Growth Curve Behind the impressive performance, the power battery business remains CATL's foundation. In 2025, CATL's lithium battery sales volume reached 661 GWh, a year-on-year increase of 39%, capturing a global market share of 39.2%. Within this, power battery sales were 541 GWh, growing by 41.9%. In 2025, power battery systems accounted for 74.70% of CATL's operating revenue.
However, as the growth rate of the domestic power battery market gradually slows, finding a second growth curve is key to expanding CATL's growth boundaries. Currently, the energy storage business has become CATL's most prominent second growth curve. In 2025, CATL's energy storage battery sales volume was 121 GWh, an increase of 29.1%. According to SNE Research, CATL's energy storage battery shipment market share reached 30.4% in 2025, ranking first globally for five consecutive years. Its energy storage systems have been deployed in approximately 2,300 projects globally, with shipments for integrated energy storage system business growing by over 160% year-on-year.
More importantly, CATL's energy storage battery system generated revenue of 62.44 billion yuan in 2025, accounting for 14.74% of the company's total revenue. Its gross profit margin of 26.71% was higher than the 23.84% margin of the power battery segment. It is understood that CATL is accelerating production expansion at its domestic energy storage bases in locations like Shandong and Fujian. The Jining base alone is expected to add over 100 GWh of new energy storage capacity in 2026.
Beyond its two main businesses of power and energy storage batteries, CATL is accelerating the development of a full lifecycle ecosystem. During an earnings conference, CATL disclosed that its EVOGO battery swap brand has now built over 1,000 swap stations, covering 45 cities across China.
Notably, Robin Zeng has recently frequently mentioned the "All Scenarios Growth" strategy in various forums. The core of this strategy is to extend the core capabilities CATL has accumulated in the power battery field to all transportation scenarios—land, sea, and air. According to CATL, key future focus areas will include aviation and low-altitude sectors, as well as globalization. For instance, the power battery developed by CATL for its affiliate, AutoFlight, for a cargo aircraft model, has passed the Manufacturing Conformity Inspection by the Civil Aviation Administration of China. The company has also obtained the AS9100D aviation quality system certification.
Still Facing Dual Challenges: Cost Cycle and Globalization Behind the performance growth, CATL also faces dual challenges in cost control and global operations. A significant rebound in upstream raw material prices represents the most direct source of cost pressure. Recently, the price of battery-grade lithium carbonate, a core raw material for power batteries, surged from around 59,900 yuan per ton in mid-2025 to 171,900 yuan per ton by March 2026. A report from UBS Global Research adjusted its lithium carbonate price forecast to $26,000 per ton (approximately 185,000 yuan per ton).
Cui Dongshu, Secretary General of the China Passenger Car Association, commented, "Global AI development is driving a surge in demand for power storage, leading to sharp increases in prices of non-ferrous metals like copper, which creates significant cost pressure for automakers. Following more than two years of explosive growth in new energy vehicle sales, soaring prices of resources like lithium carbonate are intensifying negotiations between upstream and downstream players."
The cyclical fluctuations and persistent upward pressure on raw material prices will remain a key factor testing the stability of CATL's profitability in the near future. If cost pressure is a short-term test, then global expansion is a critical long-term imperative for CATL's development. Previously, CATL's overseas business primarily relied on exports from its domestic production capacity. After 2026, as overseas factories gradually begin operations, the company's model of "overseas manufacturing, local sales" is expected to become fully operational, potentially significantly enhancing its global competitiveness.
Currently, several of CATL's key overseas projects are approaching the mass production stage. Among them, the Hungary factory is scheduled to commence mass production in the first half of 2026. The first phase of this factory, with a capacity of 34 GWh, is planned to supply European customers like Mercedes-Benz, BMW, and Volkswagen locally.
However, CATL's management has acknowledged that the unit investment intensity for overseas capacity is generally higher than in China. They stated that the company will rely on its global supply chain and operational experience to continuously optimize investment costs. Additionally, challenges such as multinational personnel management and communication with local labor unions will present new issues for CATL's overseas operations.
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