(Yicai Global) Aug. 26 -- Contemporary Amperex Technology, the world’s biggest maker of electric car batteries, reported a 132 percent gain in net profit in the first half from the same period last year amid strong demand for new energy vehicles.

Net profit was CNY4.48 billion (USD691.7 million) in the six months ended June 30, the Fujian province-based firm said in an earnings report released yesterday. Revenue jumped 134 percent to CNY44 billion (USD6.8 billion), buoyed by a surge in sales of batteries, energy storage systems and lithium-ion battery materials.

China’s new energy vehicle market is booming, driving up demand for the power packs that CATL makes. The country’s NEV sales doubled to more than 1.2 million units in the first half of this year, according to the China Association of Automobile Manufacturers.

CATL’s operating costs jumped 134 percent to CNY32.06 billion, as the price of metal materials increased due to rising commodity prices.

The company did not publish an earnings forecast for the current quarter, but CATL implied that its gross profit margin is likely to narrow if competition or supply chain fluctuations cause adverse changes in its product prices or raw materials costs. The margin had already shrunk to 27.8 percent last year from 43.7 percent in 2016.

CATL’s battery and energy storage system capacity is 65.45 gigawatt hours, and capacity under construction is 92.5 GWh, with a utilization rate of 92.2 percent. The company announced on Aug. 12 that it was planning to raise CNY58.2 billion (USD9 billion) in a new share sale to more than double its electric vehicle battery production.

The global installed capacity of EV batteries of its reached 34.1 GWh in the first half, up 234 percent from last year, consolidating its leading position in the international market, with a 29.9 percent share, according to statistics from energy market analysis firm SNE Research.

Four of CATL’s top 10 shareholders trimmed their stakes by 1.3 percent in the second quarter, while Hong Kong Securities Clearing’s holding rose to 6.65 percent from 6.53 percent in the first quarter.

CATL’s financial performance failed to boost its shares today. The stock [SHE:300750] closed down 1.7 percent at CNY521 (USD80.34), after earlier rising as much as 5.4 percent. CATL has gained 50 percent so far this year.

Editor: Futura Costaglione