Chinese battery producer Contemporary Amperex Technology Co Ltd posted a record second-quarter profit, with its outlook further buoyed by a blockbuster share sale in Hong Kong that will fund its global expansion.

Net income rose 34 percent to 16.6 billion yuan ($2.3 billion) in the three months ended June 30, according to Bloomberg News calculations, beating analyst estimates.

For the first half, earnings jumped 33 percent to 30.5 billion yuan, according to a filing late Wednesday.

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Second-quarter revenue fell slightly short of the consensus estimate of 94.2 billion yuan, and the company will pay an interim dividend of 1.007 yuan per share.

The results defy shaky global demand for electric vehicles and a drop in battery prices.

CATL’s Hong Kong-traded shares were down around 3 percent on Thursday morning, continuing a slide that started on Wednesday after one of its key customers, Tesla Inc, signed a $4.3 billion battery supply deal with South Korea’s LG Energy Solution Ltd.

Analysts at banks including JPMorgan Chase & Co and Citigroup Inc raised their price targets on the strength of the earnings.

Morgan Stanley’s Jack Lu said that while battery gross margins were affected by volatile currency and metal prices, the company has mostly hedged through battery recycling integration and financial tools.

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But Goldman Sachs Group Inc analyst Eric Shen cut his recommendation for CATL’s Hong Kong-traded shares to neutral.

The company completed the world’s biggest listing so far this year in May, when it raised HK$35.7 billion in Hong Kong. The proceeds will help fund a $7.6 billion expansion in Europe, where CATL can localize production through factories in Germany and Hungary to avoid import tariffs and gain greater exposure to more profitable markets than the Chinese mainland.

US tariffs have added to the uncertainties facing Chinese suppliers like CATL, whose customers include many of the world’s major automakers including Tesla, Volkswagen AG, and Ford Motor Co.

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CATL is also dealing with a decline in battery prices as the cost of key raw materials tumble. The company is countering the challenge by diversifying its business, including an EV chassis that it can help automakers speed up their vehicle development.

The battery maker also said its Yichun mines continued normal operation and it has submitted an application to extend the mining license, which expires Aug 9, to the local government and local resource bureau.