By Jiahui Huang and Tracy Qu

Contemporary Amperex Technology Co., the world's largest electric-vehicle battery maker, reported a 33% rise in net profit for the first quarter amid solid demand for its products.

Net profit was 13.96 billion yuan, equivalent to $1.91 billion, up from 10.51 billion yuan a year ago, the company said late on Monday

Revenue rose 6.2% on the year to 84.70 billion yuan.

CATL's quarterly results represent 22% of Citi analysts' full-year estimate and were in line with expectations. Battery shipment volumes rose more than 30% year-on-year, the analysts wrote in a note, citing the company's management.

Analysts view CATL as relatively insulated from the tariff turmoil around the Trump administration's trade policies due to its smaller exposure to the U.S. market.

The Citi analysts said that CATL expects total battery shipments to the U.S. market, including both direct and indirect sales, to cover a single-digit percentage of total battery sales, or around 2%-3%, lower than previously anticipated.

"We understand that the company might have made adjustments amid the tariff uncertainties," they wrote in a note.

Previously, customers paid the tariff for battery sales to the U.S., but after recent tariff hikes, CATL is negotiating with clients for terms in future battery orders, the Citi analysts said.

CATL has a strong position in its home market of China, where it commands an almost 40% share of the EV-battery industry, according to data from the China Automotive Battery Innovation Alliance.

It maintains that advantage by being a top battery supplier for major automakers, including Tesla, Volkswagen, BMW and Geely.

Analysts at S&P Global Ratings wrote in a recent note that they expect CATL to ramp up capital expenditure over the next two years as it looks to maintain a leading position in the global battery market.

CATL said in March that it has obtained regulatory approval for a secondary listing in Hong Kong, which is aimed at raising funds to advance its global expansion and improve competitiveness.

Write to Jiahui Huang at jiahui.huang@wsj.com and Tracy Qu at tracy.qu@wsj.com

(END) Dow Jones Newswires

April 14, 2025 21:06 ET (01:06 GMT)

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