On the evening of September 11, CATL (SZ300750, share price 330.51 yuan, market cap 153 billion yuan) disclosed that it had repurchased 604,300 A-shares through centralized bidding trading that same day, totaling approximately 200 million yuan (excluding transaction fees). This marks the official beginning of the execution phase for the company's previously announced 20 billion to 40 billion yuan share cancellation buyback program.
The buyback plan, which was approved by the board of directors on July 24 and ratified by shareholders on August 12, has a price ceiling of 573 yuan per share. All repurchased shares will be cancelled to reduce the company's registered capital. At the upper limit of 40 billion yuan, this represents the largest single cancellation-style buyback in the history of China's A-share market.
According to the announcement regarding the initial repurchase of A-shares on September 11, CATL acquired 604,293 shares through the Shenzhen Stock Exchange's centralized bidding system, accounting for 0.0131% of the company's total outstanding shares. The highest transaction price reached 331.61 yuan per share, while the lowest was 330.15 yuan per share, with total transaction value approximating 200 million yuan. The timing, pricing, and bidding periods all comply with the company's buyback plan and the relevant regulatory guidelines set by the Shenzhen Stock Exchange.
The company confirmed it did not repurchase shares during any period involving major events that could significantly affect securities or derivative prices, nor during the decision-making or disclosure process. It also confirmed compliance with all other prohibitions stipulated by the China Securities Regulatory Commission and the Shenzhen Stock Exchange.
Looking back at the background of this buyback initiative, CATL held its fourth board meeting on July 24 to review and approve the A-share repurchase plan. The company intends to use between 20 billion yuan and 40 billion yuan of its own or self-raised funds to repurchase A-shares through centralized bidding, with all repurchased shares designated for cancellation and reduction of registered capital. The buyback period spans 12 months from shareholder approval. The plan was formally ratified during a special shareholders' meeting on August 12.
CATL is a globally leading new energy technology company, primarily engaged in the research, development, production, and sales of power batteries, energy storage batteries, and battery recycling products. In the power battery segment, according to SNE Research data, the company held a 40.2% global market share from January to May. In the energy storage battery segment, based on information from Xinluo Consultants, the company ranked first globally in shipments during the first half of the year.
The 20 billion to 40 billion yuan cancellation-type buyback plan has broken the A-share historical record. Previously, the largest single buyback was Gree Electric's 15 billion yuan repurchase in 2021. Research reports from Guohai Securities suggest the plan demonstrates the company's strong confidence in its long-term development prospects, with expectations of reducing total share capital by 0.75% to 1.51%. Huatai Securities research indicates that the substantial buyback will directly reduce total share capital, potentially enhancing earnings per share, improving shareholder returns, and providing positive support for corporate valuation.
From a financial perspective, CATL generated operating revenue of 276.917 billion yuan in the first half of the year, representing 54.80% year-on-year growth, with net profit attributable to shareholders reaching 43.284 billion yuan, up 41.98%. As of the end of the first half, the company maintained ample cash reserves on its books, with the 40 billion yuan buyback ceiling representing only 10.54% of net assets attributable to listed company shareholders. The company has made it clear that its operations, cash flow conditions, and financial health remain sound, and that this buyback will not materially impact its business operations, financial position, research and development capabilities, or future growth prospects.
Additionally, alongside the buyback plan, the company has also implemented an interim dividend for the year, distributing 14.11 yuan per 10 shares (including tax), totaling approximately 6.18 billion yuan.
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