(Yicai) July 27 -- Shares of Contemporary Amperex Technology rose after the Chinese battery giant unveiled plans to launch a share repurchase scheme that it set to become the largest in the Chinese mainland.

CATL [SHE: 300750] surged 4.4 percent to CNY400 (USD59.09) in Shenzhen today.

CATL will buy back shares at a price of up to CNY573 apiece for a total of CNY20 billion to CNY40 billion (USD3 billion to USD5.9 billion), the Ningde-based firm said in an exchange filing on July 24. The share price is close to a 50 percent premium over CATL’s closing price on the day of the announcement.

The company’s development, finance, profitability, and market position are improving, but its stock price is undervalued due to market turbulence, which is the core reason behind this repurchase, the management said, adding that CATL will not buy back shares on a regular basis but will do so when it sees fit based on regulatory requirements, financing capabilities, and other factors.

On July 24, CATL also released its first-half financial report. The company saw its operating revenue grow 55 percent to CNY276.9 billion (USD40.9 billion) from a year earlier, with net profit up 42 percent to CNY43.3 billion.

Revenue from the power battery system business climbed 46 percent to CNY192.1 billion in the six months ended June 30 from the same period last year, accounting for over 69 percent of the company’s total revenue.

According to data from SNE Research, CATL’s share of the global battery market by usage exceeded 40 percent in the first five months of the year, up from 38 percent a year ago.

Energy storage was CATL’s fastest-growing segment, with related revenue up 88 percent to CNY53.3 billion in the first half from a year earlier. Its share to the overall revenue rose to over 19 percent in the period from nearly 15 percent in 2025.

CATL’s domestic energy storage business accounts for just over half of the total, with the remainder coming from foreign markets, executives told investors. The firm expects its overseas energy storage business to gradually expand with the promotion of electric vehicles outside China.

CATL’s production capacity of battery systems was 525 gigawatt-hours as of June 30, with another 764 GWh under construction. Its capacity utilization rate was close to 95 percent in the first half.

CATL is investing in artificial intelligence data center energy solutions. The explosive demand for AI computing power has accelerated the construction of AIDC infrastructure, which has higher and more specific requirements for the energy supply system, the executives noted, adding that this creates clear structural market opportunities for CATL.

Editor: Futura Costaglione