The company’s net profit rose 34 per cent year on year to 16.5 billion yuan (US$2.3 billion) in the three months to June, beating market estimates. That was up from a 32.9 per cent increase in the March quarter.

Second-quarter revenue grew 8.3 per cent to 94.2 billion yuan, following a 6.2 per cent gain in the previous quarter, according to a Hong Kong stock exchange filing on Wednesday.

CATL’s battery materials and recycling business showed a 26.42 per cent increase in gross margin, more than triple the number a year ago, according to the filing. This increase contributed to a 1.57 percentage point rise in the overall gross profit margin.

The strong results go against weak global demand for EVs and declining battery prices, as economic and geopolitical uncertainties saw consumers become hesitant to make significant purchases. A fierce domestic price war also continues to rage in mainland China, the world’s largest EV market.

Still, CATL’s gross profit margin in its core power battery business fell 22.41 per cent in the first half, down from 23.48 per cent a year earlier.