- Expected net income from the battery
business to be between RMB220 million
and RMB250 million for the full year
of 2024
DALIAN,
China, May 10, 2024 /PRNewswire/ -- CBAK Energy
Technology, Inc. (NASDAQ: CBAT) ("CBAK Energy," or the "Company") a
leading lithium-ion battery manufacturer and electric energy
solution provider in China, today
reported its unaudited financial results for the first quarter
ended March 31, 2024.
First Quarter of 2024 Financial Highlights
- Net revenues from sales of batteries were $44.8 million, an increase of 51.5% from
$29.6 million in the same period of
2023.
-Net revenues from batteries used in
light electric vehicles were $1.5
million, a decrease of 23.3% from $2.0 million in the same period of 2023.
-Net revenues from batteries used in
electric vehicles were $0.5
million, a decrease of 73.6% from $1.8 million in the same period of 2023.
-Net revenues from residential energy
supply & uninterruptible supplies were $42.8 million, an increase of 66.0% from
$25.8 million in the same period of
2023.
- Gross margin for the battery business was 41.2%, an
increase of 30.3 percentage points from 10.9% in the same period of
2023.
- Net income from the battery business was
$11.7 million, compared to
$0.1 million in the same period of
2023.
Yunfei Li, Chairman and Chief
Executive Officer of the Company, commented, "Last year, we
strengthened the foundation of development and continued our growth
strategy centered on expanding our battery business. In the first
quarter, we accelerated this strategy and achieved promising
results with a total net income from the battery business of
$11.7 million, equivalent to the net
income for the full year of 2023. At the same time, we further
reduced losses at Hitrans, our acquired and independently operated
materials company, reaching a consolidated net income of
$9.6 million for the first quarter,
an outstanding achievement during an industry-wide downturn. We
expect even faster growth for the rest of the year while remaining
committed to our higher profitability goals for our battery
business."
Jiewei Li, Chief Financial
Officer and Secretary of the Board of the Company, added, "In the
first quarter, we continued to see strong top-line growth. Total
net revenues increased by 38.7% year over year, while net revenues
from our battery business saw a significant uplift of 51.5% year
over year. In addition, the gross margin jumped to 31.9% from 6.9%
a year ago, with the gross margin of our battery business surging
30.3 percentage points year over year to 41.2%. As a result, our
bottom line turned positive with a net income of $9.6 million and a net income from the battery
business of $11.7 million, positive
for the third consecutive quarter. For the full year of 2024, we
expected net income from the battery business to reach between RMB220
million (or approximately $30.5
million) and
RMB250 million (or approximately
$34.6 million) for the full year of
2024. We will continue prudently investing while maintaining cost
discipline as we aim to ensure long-term sustainable growth."
First Quarter of 2024 Financial Results
Net revenues[1] were $58.8 million, representing an increase of 38.7%
compared to $42.4 million in the same
period of 2023. This increase was primarily attributable to an
increase in revenue from the Company's battery business.
Among these revenues, detailed revenues from our battery
business are:
Battery
Business
|
|
2023
First
Quarter
|
|
|
2024
First
Quarter
|
|
|
% Change
YoY
|
|
Net Revenues
($)
|
|
|
29,603,383
|
|
|
|
44,837,869
|
|
|
|
51.5
|
|
Gross Profits
($)
|
|
|
3,213,358
|
|
|
|
18,458,522
|
|
|
|
474.4
|
|
Gross Margin
|
|
|
10.9
|
%
|
|
|
41.2
|
%
|
|
|
-
|
|
Net Income
($)
|
|
|
108,924
|
|
|
|
11,682,429
|
|
|
|
-
|
|
Net Revenues from
Battery Business on
Applications ($)
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric
Vehicles
|
|
|
1,820,248
|
|
|
|
480,181
|
|
|
|
-73.6
|
|
Light Electric
Vehicles
|
|
|
1,968,057
|
|
|
|
1,510,292
|
|
|
|
-23.3
|
|
Residential Energy
Supply &
Uninterruptable supplies
|
|
|
25,815,078
|
|
|
|
42,847,396
|
|
|
|
66.0
|
|
Total
|
|
|
29,603,383
|
|
|
|
44,837,869
|
|
|
|
51.5
|
|
[1]
|
Net revenues consist of
the Company's self-operated battery business and Hitrans, which was
acquired
in 2021, an independently managed raw materials
business.
|
Cost of revenues was $40.0
million, representing a slightly increase of 1.4% from
$39.5 million in the same period of
2023. The increase in the cost of revenues corresponds to the
Company's higher gross profit from the battery business.
Gross profit was $18.8
million, representing an increase of 546.3% from
$2.9 million in the same period of
2023. Gross margin was 31.9%, compared to 6.9% in the same period
of 2023.
Total operating expenses were $8.5
million, representing an increase of 47.2% from $5.8 million in the same period of 2023.
- Research and development expenses were $2.8 million, an increase of 14.7% from
$2.5 million in the same period of
2023.
- Sales and marketing expenses were $1.7 million, an increase of 139.1% from
$0.7 million in the same period of
2023.
- General and administrative expenses were $4.1 million, an increase of 65.1% from
$2.5 million in the same period of
2023.
- Recover of doubtful accounts was $0.11 million, compared to a provision of
doubtful accounts of $0.13 million in
the same period of 2023.
Operating income amounted to $10.3
million, compared to an operating loss of $2.9 million in the same period of 2023.
Finance income, net amounted to $9,663, compared to $5,311 in the same period of 2023.
Change in fair value of warrants was nil, compared to
$0.09 million in the same period of
2023.
Net income attributable to shareholders of CBAK Energy
was $9.8 million, compared to net
loss attributable to shareholders of CBAK Energy of $1.4 million in the same period of 2023.
Net income attributable to shareholders of CBAK Energy (after
deducting the change in fair value of warrants) was
$9.8 million, compared to a net loss
of $1.5 million in the same period of
2023, mainly due to the strong performance of our battery
business.
Basic and diluted income per share were both $0.11, compared to basic and diluted loss per
share of $0.02 in 2023.
Conference Call
CBAK Energy's management will host an earnings conference call
at 9:00 AM U.S. Eastern Time on
Friday, May 10, 2024 (9:00 PM Beijing/Hong Kong Time on May 10, 2024).
For participants who wish to join our call online, please
visit:
https://edge.media-server.com/mmc/p/v9opxnit
Participants who plan to ask questions during the call will need
to register at least 15 minutes prior to the scheduled call start
time using the link provided below. Upon registration, participants
will receive the conference call access information, including
dial-in numbers, a unique pin, and an email with detailed
instructions.
Participant Online Registration:
https://register.vevent.com/register/BIe4ae5869aa8e48ecaaaaf0ac51ddc7ec
Once completing the registration, please dial-in at least 10
minutes before the scheduled start time of the conference call and
enter the personal pin as instructed to connect to the call.
A replay of the conference call may be accessed within seven
days after the conclusion of the live call at the following
website: https://edge.media-server.com/mmc/p/v9opxnit
The earnings release and the link for the replay are available
at ir.cbak.com.cn.
About CBAK Energy
CBAK Energy Technology, Inc. (NASDAQ: CBAT) is a leading
high-tech enterprise in China
engaged in the development, manufacturing, and sales of new energy
high power lithium and sodium batteries, as well as the production
of raw materials for use in manufacturing high power lithium
batteries. The applications of the Company's products and solutions
include electric vehicles, light electric vehicles, energy storage
and other high-power applications. In January 2006, CBAK Energy became the first
lithium battery manufacturer in China listed on the Nasdaq Stock Market. CBAK
Energy has multiple operating subsidiaries in Dalian, Nanjing, Shaoxing and Shangqiu, as well as a
large-scale R&D and production base in Dalian.
For more information, please visit ir.cbak.com.cn.
Safe Harbor Statement
This press release contains "forward-looking statements" that
involve substantial risks and uncertainties. All statements other
than statements of historical facts contained in this press
release, including statements regarding our future results of
operations and financial position, strategy and plans, and our
expectations for future operations, are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended. We have attempted to identify forward-looking statements
by terminology including "anticipates," "believes," "can,"
"continue," "could," "estimates," "expects," "intends," "may,"
"plans," "potential," "predicts," "should," or "will" or the
negative of these terms or other comparable terminology. Our actual
results may differ materially or perhaps significantly from those
discussed herein, or implied by, these forward-looking
statements.
Any forward-looking statements contained in this press release
are only estimates or predictions of future events based on
information currently available to our management and management's
current beliefs about the potential outcome of future events.
Whether these future events will occur as management anticipates,
whether we will achieve our business objectives, and whether our
revenues, operating results, or financial condition will improve in
future periods are subject to numerous risks. There are a
significant number of factors that could cause actual results to
differ materially from statements made in this press release,
including: significant legal and operational risks associated with
having substantially all of our business operations in China, that the Chinese government may
exercise significant oversight and discretion over the conduct of
our business and may intervene in or influence our operations at
any time, which could result in a material change in our operations
and/or the value of our securities or could significantly limit or
completely hinder our ability to offer or continue to offer
securities to investors and could cause the value of such
securities to significantly decline or be worthless, the effects of
the global Covid-19 pandemic or other health epidemics, changes in
domestic and foreign laws, regulations and taxes, the volatility of
the securities markets; and other risks including, but not limited
to, the ability of the Company to meet its contractual obligations,
the uncertain markets for the Company's products and business,
macroeconomic, technological, regulatory, or other factors
affecting the profitability of our products and solutions that we
discussed or referred to in the Company's disclosure documents
filed with the U.S. Securities and Exchange Commission (the "SEC")
available on the SEC's website at www.sec.gov, including the
Company's most recent Annual Report on Form 10-K as well as in our
other reports filed or furnished from time to time with the SEC.
You should read these factors and the other cautionary statements
made in this press release. If one or more of these factors
materialize, or if any underlying assumptions prove incorrect, our
actual results, performance or achievements may vary materially
from any future results, performance or achievements expressed or
implied by these forward-looking statements. The forward-looking
statements included in this press release are made as of the date
of this press release and the Company undertakes no obligation to
publicly update or revise any forward-looking statements, other
than as required by applicable law.
For further inquiries, please contact:
In China:
CBAK Energy Technology, Inc.
Investor Relations Department
Phone: +86-18675423231
Email: ir@cbak.com.cn
Piacente Financial Communications
Ms. Hui Fan
Tel: +86-10-6508-0677
Email: CBAK@thepiacentegroup.com
In the United
States:
Piacente Financial Communications
Ms. Brandi Piacente
Tel: +1-212-481-2050
Email: CBAK@thepiacentegroup.com
CBAK Energy
Technology, Inc. and Subsidiaries
|
Condensed
consolidated Balance Sheets
|
As of December 31,
2023 and March 31, 2024
|
(Unaudited)
|
(In US$ except for
number of shares)
|
|
|
|
|
|
December 31,
2023
|
|
|
March 31,
2024
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
$
|
4,643,267
|
|
|
$
|
3,033,376
|
|
Pledged
deposits
|
|
|
|
|
54,179,549
|
|
|
|
33,223,384
|
|
Term
deposits
|
|
|
|
|
-
|
|
|
|
20,756,497
|
|
Trade and bills
receivable, net
|
|
|
|
|
28,653,047
|
|
|
|
36,415,217
|
|
Inventories
|
|
|
|
|
33,413,422
|
|
|
|
28,260,340
|
|
Prepayments and other
receivables
|
|
|
|
|
7,459,254
|
|
|
|
8,438,534
|
|
Receivables from a
former subsidiary, net
|
|
|
|
|
74,946
|
|
|
|
35,947
|
|
Total current
assets
|
|
|
|
|
128,423,485
|
|
|
|
130,163,295
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
|
|
91,628,832
|
|
|
|
88,961,277
|
|
Construction in
progress
|
|
|
|
|
37,797,862
|
|
|
|
37,654,290
|
|
Long-term investments,
net
|
|
|
|
|
2,565,005
|
|
|
|
2,502,537
|
|
Prepaid land use
rights
|
|
|
|
|
11,712,704
|
|
|
|
11,433,966
|
|
Intangible assets,
net
|
|
|
|
|
841,360
|
|
|
|
720,339
|
|
Deposit paid for
acquisition of long-term investments
|
|
|
|
|
7,101,492
|
|
|
|
11,883,163
|
|
Operating lease
right-of-use assets, net
|
|
|
|
|
1,084,520
|
|
|
|
3,140,214
|
|
Total assets
|
|
|
|
$
|
281,155,260
|
|
|
$
|
286,459,081
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
Trade and bills
payable
|
|
|
|
$
|
82,429,575
|
|
|
$
|
79,020,817
|
|
Short-term bank
borrowings
|
|
|
|
|
32,587,676
|
|
|
|
36,106,533
|
|
Other short-term
loans
|
|
|
|
|
339,552
|
|
|
|
338,876
|
|
Accrued expenses and
other payables
|
|
|
|
|
41,992,540
|
|
|
|
35,899,319
|
|
Payables to a former
subsidiary, net
|
|
|
|
|
411,111
|
|
|
|
416,491
|
|
Deferred government
grants, current
|
|
|
|
|
375,375
|
|
|
|
485,863
|
|
Product warranty
provisions
|
|
|
|
|
23,870
|
|
|
|
20,775
|
|
Operating lease
liability, current
|
|
|
|
|
691,992
|
|
|
|
699,745
|
|
Finance lease
liability, current
|
|
|
|
|
1,643,864
|
|
|
|
2,031,310
|
|
Income tax
payable
|
|
|
|
|
-
|
|
|
|
1,042,033
|
|
Total current
liabilities
|
|
|
|
|
160,495,555
|
|
|
|
156,061,762
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred government
grants, non-current
|
|
|
|
|
6,203,488
|
|
|
|
5,859,142
|
|
Product warranty
provisions
|
|
|
|
|
522,574
|
|
|
|
535,655
|
|
Operating lease
liability, non-current
|
|
|
|
|
475,302
|
|
|
|
2,761,173
|
|
Total
liabilities
|
|
|
|
|
167,696,919
|
|
|
|
165,217,732
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
Common stock $0.001 par
value; 500,000,000 authorized; 90,063,396
issued and 89,919,190 outstanding as of
December 31, 2023 and
March 31, 2024
|
|
|
|
|
90,063
|
|
|
|
90,063
|
|
Donated
shares
|
|
|
|
|
14,101,689
|
|
|
|
14,101,689
|
|
Additional paid-in
capital
|
|
|
|
|
247,465,817
|
|
|
|
247,582,399
|
|
Statutory
reserves
|
|
|
|
|
1,230,511
|
|
|
|
1,230,511
|
|
Accumulated
deficit
|
|
|
|
|
(134,395,762)
|
|
|
|
(124,559,312)
|
|
Accumulated other
comprehensive loss
|
|
|
|
|
(11,601,403)
|
|
|
|
(13,497,204)
|
|
|
|
|
|
|
116,890,915
|
|
|
|
124,948,146
|
|
Less: Treasury
shares
|
|
|
|
|
(4,066,610)
|
|
|
|
(4,066,610)
|
|
Total shareholders'
equity
|
|
|
|
|
112,824,305
|
|
|
|
120,881,536
|
|
Non-controlling
interests
|
|
|
|
|
634,036
|
|
|
|
359,813
|
|
Total equity
|
|
|
|
|
113,458,341
|
|
|
|
121,241,349
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholder's equity
|
|
|
|
$
|
281,155,260
|
|
|
$
|
286,459,081
|
|
CBAK Energy
Technology, Inc. and Subsidiaries
|
|
Condensed
consolidated Statements of Operations and Comprehensive Income
(Loss)
|
|
For the three months
ended March 31, 2023 and 2024
|
|
(Unaudited)
|
|
(In US$ except for
number of shares)
|
|
|
|
|
|
|
|
Three months
ended
March 31,
|
|
|
|
|
|
|
2023
|
|
|
2024
|
|
|
Net revenues
|
|
|
|
$
|
42,396,701
|
|
|
$
|
58,822,432
|
|
|
Cost of
revenues
|
|
|
|
|
(39,490,957)
|
|
|
|
(40,041,385)
|
|
|
Gross profit
|
|
|
|
|
2,905,744
|
|
|
|
18,781,047
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses
|
|
|
|
|
(2,455,328)
|
|
|
|
(2,815,518)
|
|
|
Sales and marketing expenses
|
|
|
|
|
(721,004)
|
|
|
|
(1,724,032)
|
|
|
General and administrative expenses
|
|
|
|
|
(2,479,135)
|
|
|
|
(4,092,527)
|
|
|
(Provision for) recovery of doubtful accounts
|
|
|
|
|
(131,167)
|
|
|
|
114,013
|
|
|
Total operating expenses
|
|
|
|
|
(5,786,634)
|
|
|
|
(8,518,064)
|
|
|
Operating (loss)
income
|
|
|
|
|
(2,880,890)
|
|
|
|
10,262,983
|
|
|
Finance income,
net
|
|
|
|
|
5,311
|
|
|
|
9,663
|
|
|
Other income,
net
|
|
|
|
|
183,213
|
|
|
|
367,438
|
|
|
Share of loss of equity
investee
|
|
|
|
|
-
|
|
|
|
(18,824)
|
|
|
Changes in fair value
of warrants liability
|
|
|
|
|
85,000
|
|
|
|
-
|
|
|
(Loss) income before
income tax
|
|
|
|
|
(2,607,366)
|
|
|
|
10,621,260
|
|
|
Income tax credit
(expenses)
|
|
|
|
|
402,884
|
|
|
|
(1,048,786)
|
|
|
Net (loss)
income
|
|
|
|
|
(2,204,482)
|
|
|
|
9,572,474
|
|
|
Less: Net loss
attributable to non-controlling interests
|
|
|
|
|
824,127
|
|
|
|
263,976
|
|
|
Net (loss) income
attributable to shareholders of CBAK Energy
Technology, Inc.
|
|
|
|
$
|
(1,380,355)
|
|
|
$
|
9,836,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
|
|
|
(2,204,482)
|
|
|
|
9,572,474
|
|
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
– Foreign currency translation adjustment
|
|
|
|
|
748,779
|
|
|
|
(1,906,048)
|
|
|
Comprehensive (loss)
income
|
|
|
|
|
(1,455,703)
|
|
|
|
7,666,426
|
|
|
Less: Comprehensive
loss attributable to non-controlling interests
|
|
|
|
|
730,021
|
|
|
|
274,223
|
|
|
Comprehensive (loss)
income attributable to CBAK Energy
Technology, Inc.
|
|
|
|
$
|
(725,682)
|
|
|
|
7,940,649
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income per
share
|
|
|
|
|
|
|
|
|
|
|
|
– Basic
|
|
|
|
$
|
(0.02)
|
|
|
$
|
0.11
|
|
|
– Diluted
|
|
|
|
$
|
(0.02)
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares of common stock:
|
|
|
|
|
|
|
|
|
|
|
|
– Basic
|
|
|
|
|
89,013,359
|
|
|
|
89,925,024
|
|
|
– Diluted
|
|
|
|
|
89,013,359
|
|
|
|
90,123,965
|
|
|
View original
content:https://www.prnewswire.com/news-releases/cbak-energy-reports-first-quarter-2024-unaudited-financial-results-302142125.html
SOURCE CBAK Energy Technology, Inc.