Chinese battery giant CATL posts annual revenue drop ahead of Hong Kong listing

China’s Contemporary Amperex Technology posted a 9.7% drop in annual revenue, a stock exchange filing showed on Friday, as a price war in the mainland electric vehicle market ensnared the world’s largest battery maker.

Revenue for the 12-month period ending December came in at 362 billion yuan ($50.01 billion), just under a LSEG mean estimate of 368.7 billion yuan. It marked the company’s first drop in yearly revenue since the company started releasing its operating figures in 2015.

Despite the annual drop in revenue, net profit went up by 15% year -over-year to 50.74 billion yuan.

The earnings come as the company is slated for a listing on the Hong Kong’s stock exchange. Reuters reported that the deal is expected to raise at least $5 billion in what would be the city’s largest initial public offering since Chinese TikTok rival Kuaishou’s $5.32 billion public offering in early 2021.

Chinese sales of electric vehicles — a key market for CATL — shifted to a higher gear last year as a mix of subsidies and consumer purchase incentives supported sales. EV sales in China jumped 40% on year to hit 11 million vehicles in 2024, according to data from U.K. research firm Rho Motion.

CATL — the world’s largest electric-vehicle battery maker, known for producing lower-cost but durable cells — counts Tesla, Volkswagen, Li Auto, NIO as key customers and enjoys a dominant 45% market share in China last year in terms of EV battery installations, according to data from China Automotive Battery Innovation Alliance.

Shenzhen-listed CATL has a market cap of 1.12 trillion yuan as of Thursday, according to data from LSEG.

In January, the U.S. Department of Defense put CATL and Chinese internet giant Tencent on its list of “Chinese Military Companies,” which would prohibit the department from procuring goods and services from these companies starting June 2026. The company has denied any engagement in military-related business and said it will work with DoD to address the “false designation.”

The company also sounded caution last month that uncertainties over tariffs were also a risk to the business given its global operation.

The battery maker has pressed ahead with investments overseas, including a battery factory in Hungary to sell to the likes of Mercedes and BMW, as well as a joint venture with automaker Stellantis to build a lithium iron phosphate battery plant in Spain.

— CNBC’s Lee Ying Shan contributed to this report.