Shares of CATL, China’s largest battery maker, plummeted again. On Feb. 10, its stock price plunged by nearly 9%. Since February, its market value has evaporated by more than $31 billion.
Contemporary Amperex Technology Co. Limited (CATL) was founded in Ningde and used its Chinese name—’Ningde era’ or ‘Ningde Times.’ According to public information, as of Sept. 30, 2021, CATL had 134,200 shareholders with over $157 billion market capitalization on the Growth Enterprise Market (GEM).
On Feb. 10, the Ningde Times stock price fell below the $79 mark in early trading. The decline narrowed at the end of the day and finally closed down 5.32% at $81.50. Affected by the slump in heavyweight stocks such as Ningde Times, the A-share ChiNext Index fell 2.36%.
According to the Daily Economic News, since the beginning of February, Ningde Times has repeatedly plummeted. Within ten trading days, 3 out of 4 trading days saw a sharp drop in CATL stock price with a slight recovery on the 9th. The maximum cumulative decline exceeded 15% during this period, leaving the total market value shrunk by $32.5 billion.
On Dec. 24, 2021, Ningde Times’ share price had crashed. After reaching a peak of $109/share intraday on Dec. 3, it fell all the way, losing approximately $47 billion within less than a month.
CATL disclosed its 2021 annual performance forecast, predicting that the annual net profit will be $2.2 billion to 2.6 billion, a year-on-year increase of 150.75% to 195.52%. This figure is the highest profit level of CATL since its listing in 2018.
According to the “Securities Times” report, in addition to the Ningde Times, many leading stocks in the new energy industry experienced the same pattern. For example, Enjie shares, with a market value of more than $31.5 billion, fell by about 7%. Yiwei Lithium Energy dropped by more than 5%. Similarly, many related concept stocks such as Foster, JA Technology, and Sunshine Power decreased by more than 4%.