Contemporary Amperex Technology Co Ltd (CATL) is considering a second listing in Hong Kong that could raise at least $5 billion, according to a recent report by Bloomberg. The potential listing, which could take place as early as the first half of 2025, would mark the biggest listing in the city since early 2021.
CATL, the world’s largest maker of electric vehicle (EV) batteries, was originally listed on the Shenzhen Stock Exchange in 2018 and currently boasts a market capitalization of RMB 1.19 trillion ($163 billion). The company is now in discussions with potential advisers regarding the Hong Kong listing, although plans are subject to approval from China’s securities regulator.
Based in Ningde, Fujian province in southeastern China, CATL has seen significant growth in its Shenzhen-traded shares, rising approximately 70 percent this year. In the third quarter of 2024, the company reported revenue of RMB 92.28 billion, representing a 12.48 percent decrease year-on-year but a 6.07 percent increase from the previous quarter.
Operating costs in the third quarter were well-controlled at RMB 63.52 billion, down 22.34 percent year-on-year and slightly lower than the second quarter. CATL’s net income for the same period reached RMB 13.14 billion, marking a 25.97 percent increase year-on-year and a 6.32 percent increase from the previous quarter.
The company achieved a record gross margin of 31.17 percent in the third quarter, surpassing 30 percent for the first time. This represents an 8.75 percentage point increase from the same period last year and a 4.53 percentage point increase from the second quarter.
CATL holds the title of the world’s largest EV battery maker, with 252.8 GWh of power batteries installed between January and October, accounting for a global market share of 36.8 percent according to SNE Research. In China specifically, CATL maintained its leading position with a 42.71 percent share of 28.7 GWh of installed power batteries in November.
The company’s ongoing success and plans for a potential Hong Kong listing reflect its commitment to innovation and growth in the rapidly evolving EV market. Stay tuned for more updates on CATL’s future endeavors.
