CATL's Fourth-Largest Shareholder Plans to Sell 1.27% Stake, Dropping Below 5% Ownership

On the evening of April 17, Contemporary Amperex Technology Co., Limited (CATL) announced that Ningbo United Innovation New Energy Investment Management Partnership (Limited Partnership), the company's fourth-largest shareholder, plans to sell 58 million shares—equivalent to 1.27% of CATL’s total share capital—via a book-building offering. The actual controller of this shareholder is Pei Zhenhua. Based on CATL’s closing share price of RMB 444.2 per share on April 17, the transaction would amount to approximately RMB 25.76 billion in market value. The day following the announcement, CATL’s share price fell by more than 2%. Just one day earlier, its market capitalization had surpassed RMB 2 trillion, making it the first privately owned manufacturing company listed on China’s A-share market to reach this milestone. In 2025, CATL reported net profit of RMB 72.2 billion, an increase of 42.28% year-over-year; in the first quarter of 2026, its net profit reached RMB 20.7 billion, translating to average daily earnings of about RMB 230 million. As of 2025, CATL held a 39.2% global market share in the power battery segment, maintaining its position as the world’s top supplier for the ninth consecutive year. Its battery business accounts for nearly 40% of the total cost of electric vehicles, granting the company significant pricing power within the supply chain. In recent years, CATL’s gross margin has remained above 26%. Pei Zhenhua acquired a 15% stake in CATL for RMB 89 million prior to the company’s share restructuring in 2015, when CATL was valued at approximately RMB 6 billion, implying a cost basis of roughly RMB 0.3 per share. At current share prices, his holdings are now worth over RMB 126 billion, representing an investment return exceeding 1,400 times his initial outlay. Following this divestment, his ownership stake will drop to 4.96%, falling below the 5% disclosure threshold, meaning any future sales will no longer require public announcements. Previously, other major shareholders of CATL, such as Huang Shilin, have also reduced their stakes. With slowing growth in new energy vehicle (NEV) adoption rates and intensifying industry competition, market participants are increasingly scrutinizing the sustainability of CATL’s future growth.