(Yicai Global) June 10 -- Contemporary Amperex Technology has denied rumors that China's largest electric car battery maker is about to declare losses of more than CNY1 billion (USD150 million) from poor nickel futures investments in its semi-annual report.

The rumors are not true, CATL said yesterday. Futures trading has little impact on the Ningde, southeastern Fujian-based company’s financial results as its hedging strategy is based on spot position so any profit or loss in the futures contracts is hedged by spots, it added.

Several market insiders, though, told Yicai Global earlier this week that CATL is likely to have racked up CNY1 billion in losses from nickel futures in the first quarter as the result of a global nickel market crisis during which the London Metals Exchange halted all trading of the metal for five days in March due to wild fluctuations in prices.

“This must be hearsay,” company insiders said. “We are still in the second quarter so how can we publish a semi-annual report?”

In response to a separate rumor that Vice Chairman Huang Shilin is paring his stake, CATL said Huang transferred two million shares to six private securities funds he controls. The transfer does not lead to any change in his shareholding in the company as he is the only investor in these funds, it added.

CATL’s share price [SHE:300750] was trading up 2.7 percent at CNY443 (USD66) as of 1 p.m. China time today. The stock has dropped 5.8 percent in value this week since the rumors broke.

Editor: Kim Taylor