Contemporary Amperex Technology Co. Ltd. (CATL), the world's largest electric vehicle (EV) battery manufacturer, reported a significant full-year net income that surpassed estimates, benefiting from a slump in input costs despite facing its first quarterly profit decline in nearly two years. This decline was attributed to a slowdown in EV demand and increased competition. However, CATL's stock rose over 7% in China following the earnings announcement and declared a special dividend, reflecting investor confidence. The company's performance comes amid intense competition in the EV market, particularly in China, where companies like Tesla and Xpeng are making strategic moves to capture market share. Tesla is positioned to increase its market share as EV startups falter and legacy automakers focus on hybrids. Xpeng is launching a cheaper EV brand to compete in the fiercely competitive Chinese market, where innovative features like built-in camera drones are becoming standard.