CATL H1 2026 Revenue Up 55%, Net Profit Up 42%, Storage Share Hits 19%

CATL reported total revenue of RMB276.917 billion for the first half of 2026, up 54.80% year on year. Net profit attributable to shareholders was RMB43.284 billion, up 41.98%. In the second quarter, revenue reached RMB147.79 billion, up 56.9% year on year, a record for a single quarter. Battery production in H1 was 498GWh and sales were 434GWh, both up 61% year on year, with storage battery sales up 102%. Storage business revenue was RMB53.26 billion, accounting for 19.2% of total revenue. Power battery revenue was RMB192.1 billion, up 46%, while the production growth rate of new energy vehicles in the same period was 6.7%.

Gross margin declined noticeably. In Q2, overall gross profit was RMB34.22 billion, with a gross margin of 23.2%, close to the lowest level since 2024. Lithium carbonate prices rose from a low of RMB58,000 per tonne in 2025 to nearly RMB190,000 per tonne. CATL did not fully pass on cost pressure to downstream customers; battery unit price was about RMB0.56 per Wh, roughly flat with 2025. Expense ratios remained stable, with the combined three expense ratios in Q2 not exceeding 7%.

Contract liabilities declined sequentially. At the end of 2025, the balance was RMB49.2 billion; at the end of Q1 2026, it was RMB45.6 billion; and by the end of June, it had fallen to RMB36.5 billion. Capacity utilization rose to 95%, and capital expenditure remained high, absorbing part of the existing orders. Inventory balance exceeded RMB130 billion, with the share of finished goods rising from 26% at the beginning of the year to 37%.

The new energy vehicle market growth slowed, with production growth of only 6.7% in H1 2026. The average curb weight of new energy passenger vehicles reached 1,939.3 kg, up 27.5% from 2020. The average battery capacity per vehicle remained below 65 kWh. CATL's domestic passenger vehicle market share rose to 47%.