CBAK Energy Reports Third Quarter & First Nine Months Of 2024 Unaudited Financial Results


(MENAFN- PR Newswire)

DALIAN, China, Nov. 12, 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 third quarter 2024 ended September 30, 2024.

First nine
months
of 2024 Financial Highlights

  • Net revenues from sales of batteries were $113.9 million, an increase of 18.4% from $96.2 million in the same period of 2023.
    • Net revenues from batteries used in light electric vehicles were $8.2 million, an increase of 95% from $4.2 million in the same period of 2023.
    • Net revenues from batteries used in electric vehicles were $1.0 million, a decrease of 57.1% from $2.4 million in the same period of 2023.
    • Net revenues from residential energy supply & uninterruptible supplies were $104.6 million, an increase of 16.8% from $89.5 million in the same period of 2023.
  • Gross margin for the battery business was 34.3%, an increase of 15.2 percentage points from 19.1% in the same period of 2023.
  • Net income from the battery business was $21.6 million, an increase of 222% from $6.7 million in the same period of 2023.

Zhiguang Hu, Chief Executive Officer of the Company, commented, "We are pleased to report a remarkable 18.4% increase in battery sales revenue during the first nine months of the year, especially given the intense competition within the industry. Our battery business has also delivered an impressive gross margin of 34.6% for the same period, positioning us well ahead of all competitors in the battery manufacturing sector, including internationally recognized industry leaders. Despite broader economic challenges, we have successfully achieved a net income of $21.6 million from our battery operations for the first three quarters of the year. We are proud to present this exceptional performance to our shareholders and investors and remain highly confident in our continued growth for the following quarters in this and next years."

Jiewei Li, Chief Financial Officer and Secretary of the Board of the Company, added, "As Mr. Hu highlighted, our financial performance for the first three quarters has been exceptionally strong, setting a new benchmark within the industry. While our Dalian facility has continued to generate consistent profits, we are particularly pleased to report that our Nanjing facility-just operating for less than three years with a new battery model-has become profitable as of Q3. The demand and order volumes at the Nanjing plant have far surpassed its current capacity, leading to full-day operations across all production lines. In response to this robust client demand, we have secured procurement agreements with our equipment suppliers and are set to expand the production at our Nanjing Phase II project, adding an additional 2.5 to 3 GWh of capacity by next year."

Third Quarter of 2024 Financial Results

Net revenues [1] were $44.6
million, representing a decrease of 29.7% compared to $63.4 million in the same period of 2023. This decrease in revenues was due to the fact that the Dalian factory had been operating at full capacity since the beginning of the year, which resulted in a one-month suspension for maintenance in the third quarter.
In addition to that, Hitrans is facing suboptimal business performance.

Among these revenues, detailed revenues from our battery business are:

Battery Business


2023

Third

Quarter


2024
Third

Quarter


% Change
YoY


Net Revenues ($)



44,327,653




33,461,793




(25)


Gross Profits ($)



11,698,226




7,665,009




(31)


Gross Margin



26.4

%



22.9

%



-


Net Income ($)



7,770,711




2,035,338




-


Net Revenues from Battery Business on
Applications ($)













Electric Vehicles



402,863




333,216




(17)


Light Electric Vehicles



1,114,107




4,913,644




341


Residential Energy Supply &
Uninterruptable supplies



42,810,683




28,214,934




(34)


Total



63,441,109




44,628,241




(30)


[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 $37.7 million, representing a decrease of 26.4% from $51.2 million in the same period of 2023. The decrease in the cost of revenues corresponds to the decrease of net revenues.

Gross profit was $7.0
million, representing a decrease of 43% from $12.2
million in the same period of 2023. Gross margin was 15.6%, compared to 19.3% in the same period of 2023.

Total operating expenses were $7.8 million, representing an increase of 12% from $7.0 million in the same period of 2023.

  • Research and development expenses was $3.4 million, an increase of 36% from $2.5 million in the same period of 2023.
  • Sales and marketing expenses were $1.0 million, a slightly decrease of 8% from $1.1 million in the same period of 2023.
  • General and administrative expenses were $2.8 million, a decrease of 14% from $3.2 million in the same period of 2023.
  • Recover of doubtful accounts was $0.55 million, compared to a provision of doubtful accounts of $0.25 million in the same period of 2023.

Operating loss amounted to $0.83
million, compared to an operating income of $5.3 million in the same period of 2023.

Finance income, net amounted to $40,350, compared to $0.4 million in the same period of 2023.

Change in fair value of warrants was nil, compared to $15,000
in the same period of 2023.

Net loss
attributable to shareholders of CBAK Energy
was $0.2 million, compared to net income
attributable to shareholders of CBAK Energy of $6.3 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 $17,647, compared to a net income of $6.2
million in the same period of 2023, mainly due to the fact that our acquired raw material manufacturing unit, Hitrans, is in net loss.

Basic and diluted income per share were both nil, compared to basic and diluted loss per share of $0.07
in 2023.

First nine months of 2024 Financial Results

Net revenues [1] were $151.2
million, representing an increase of 2.0% compared to $148.3 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

nine months


2024
First

nine months


% Change
YoY


Net Revenues ($)



96,163,040




113,897,786




18.4


Gross Profits ($)



18,336,732




39,040,824




109.5


Gross Margin



19.0

%



34.3

%



-


Net (Loss) Income ($)



6,746,883




21,610,408




-


Net Revenues from Battery Business on
Applications ($)













Electric Vehicles



2,358,842




1,012,655




-57.0


Light Electric Vehicles



4,230,066




8,249,437




95.0


Residential Energy Supply &
Uninterruptable supplies



89,574,132




104,635,694




16.8


Total



96,163,040




113,897,786




18.4


[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 $112.8 million, representing a decrease of 12.7% from $129.2 million in the same period of 2023. The decrease in the cost of revenues corresponds to theCompany's higher gross profit from the battery business.

Gross profit was $38.5 million, representing an increase of 102.0% from $19.0 million in the same period of 2023. Gross margin was 25.4%, compared to 12.8% in the same period of 2023.

Total operating expenses were $23.1
million, representing an increase of 13.1% from $20.4 million in the same period of 2023.

  • Research and development expenses were $9.2 million, an increase of 14.9% from $8.0 million in the same period of 2023.
  • Sales and marketing expenses were $4.1 million, an increase of 46.9% from $2.8 million in the same period of 2023.
  • General and administrative expenses were $10.0 million, an increase of 7.5% from $9.3 million in the same period of 2023.
  • Recovery of doubtful accounts was $0.2 million, compared to a provision for doubtful accounts of $0.3 million in the same period of 2023.

Operating income amounted to $15.4 million, compared to an operating loss of $1.4 million in the same period of 2023.

Finance income, net amounted to $0.6, compared to $0.2 million finance expenses in the same period of 2023.

Change in fair value of warrants was nil, compared to $0.14 million in the same period of 2023.

Net income attributable to shareholders of CBAK Energy was $16.3 million, compared to net income attributable to shareholders of CBAK Energy of $2.3 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 $16.3
million, compared to a net income of $2.1 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 $0.18, compared to basic and diluted loss per share of $0.03 in 2023.

Conference Call

CBAK Energy's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Tuesday, November 12, 2024 (9:00 PM Beijing/Hong Kong Time on November 12, 2024).

For participants who wish to join our call online, please visit:

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:

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:

The earnings release and the link for the replay are available at href="" rel="nofollow" co .

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 href="" rel="nofollow" co .

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 , 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: [email protected]

CBAK Energy Technology, Inc. and Subsidiaries


Condensed consolidated Balance Sheets


As of December 31, 2023 and September 30, 2024


(Unaudited)


(In US$ except for number of shares)







December
31,
2023



September 30,
2024










(Unaudited)



Assets











Current assets










Cash and cash equivalents






$

4,643,267



$

10,448,362


Pledged deposits







54,179,549




37,415,946


Short-term deposits







-




13,788,170


Trade and bills receivable, net







28,653,047




34,910,784


Inventories







33,413,422




23,938,925


Prepayments and other receivables







7,459,254




9,950,350


Receivables from a former subsidiary, net







74,946




7,580


Total current assets







128,423,485




130,460,117















Property, plant and equipment, net







91,628,832




89,365,457


Construction in progress







37,797,862




38,993,618


Long-term investments, net







2,565,005




2,336,537


Prepaid land use rights







11,712,704




11,601,078


Intangible assets, net







841,360




507,113


Deposit paid for acquisition of long-term investments







7,101,492




16,500,192


Operating lease right-of-use assets, net







1,084,520




3,713,242


Total assets






$

281,155,260



$

293,477,354















Liabilities













Current liabilities













Trade and bills payable






$

82,429,575



$

89,773,942


Short-term bank borrowings







32,587,676




25,708,098


Other short-term loans







339,552




337,147


Accrued expenses and other payables







41,992,540




35,144,908


Payables to a former subsidiary, net







411,111




407,560


Deferred government grants, current







375,375




499,861


Product warranty provisions







23,870




17,099


Operating lease liability, current







691,992




1,527,829


Finance lease liability, current







1,643,864




762,694


Income tax payable







-




343,856


Total current liabilities







160,495,555




154,522,994















Deferred government grants, non-current







6,203,488




5,778,875


Product warranty provisions







522,574




410,350


Operating lease liability, non-current







475,302




2,683,772


Total liabilities







167,696,919




163,395,991















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
90,083,396 issued and 89,919,190 outstanding as of September 30,
2024







90,063






90,083


Donated shares







14,101,689




14,101,689


Additional paid-in capital







247,465,817




247,732,612


Statutory reserves







1,230,511




1,230,511


Accumulated deficit







(134,395,762)




(118,096,203)


Accumulated other comprehensive loss







(11,601,403)




(10,127,774)









116,890,915




134,930,918


Less: Treasury shares







(4,066,610)




(4,066,610)


Total shareholders' equity







112,824,305




130,864,308


Non-controlling interests







634,036




(782,945)


Total equity







113,458,341




130,081,363


Total liabilities and shareholder's equity






$

281,155,260



$

293,477,354



CBAK Energy Technology, Inc. and Subsidiaries


Condensed consolidated Statements of Operations and Comprehensive Income (Loss)


For the three and
nine

months ended
September
30, 2023 and 2024


(Unaudited)


(In US$ except for number of shares)









Three months ended
September
30,



Nine
months ended
September 30,







2023



2024



2023



2024


Net revenues






$

63,441,109



$

44,628,241



$

148,258,680



$

151,243,718


Cost of revenues







(51,192,531)




(37,673,684)




(129,219,716)




(112,780,088)


Gross profit







12,248,578




6,954,557




19,038,964




38,463,630


Operating expenses:





















Research and development expenses







(2,577,714)




(3,434,351)




(8,013,760)




(9,205,378)


Sales and marketing expenses







(1,116,377)




(1,022,549)




(2,800,969)




(4,114,954)


General and administrative expenses







(3,240,770)




(2,779,519)




(9,302,798)




(10,002,040)


(Provision for) recovery of doubtful
accounts







(24,623)




(546,011)




(286,283)




241,332


Total operating expenses







(6,959,484)




(7,782,430)




(20,403,810)




(23,081,040)


Operating income (loss)







5,289,094




(827,873)




(1,364,846)




15,382,590


Finance (expense) income, net







(447,031)




(40,350)




(189,248)




658,034


Other income, net







601,654




521,916




1,022,907




1,031,329


Gain on disposal of equity investee







-




55




-




26,967


Change in fair value of warrants







15,000




-




136,000




-


Income (loss) before income tax







5,458,717




(346,252)




(395,187)




17,098,920


Income tax credit (expenses)







305,431




(339,287)




1,015,626




(2,188,800)


Net income (loss)







5,764,148




(685,539)




620,439




14,910,120


Less: Net loss attributable to non-
controlling interest







570,644




703,186




1,699,008




1,389,439


Net income (loss) attributable to CBAK
Energy Technology, Inc.






$

6,334,792



$

17,647



$

2,319,447



$

16,299,559























Net income (loss)







5,764,148




(685,539)




620,439




14,910,120


Other comprehensive loss






















– Foreign currency translation adjustment







(515,279)




4,181,904




(6,405,609)




1,446,087


Comprehensive (loss) income







5,248,869




3,496,365




(5,785,170)




16,356,207


Less: Comprehensive (loss) income
attributable to non-controlling interest







553,874




719,587




1,927,515




1,416,981


Comprehensive (loss) income attributable
to CBAK Energy Technology, Inc.






$

5,802,743



$

4,215,952



$

(3,857,655)



$

17,773,188























Income (loss) per share






















– Basic






$

0.07



$

0.00



$

0.03



$

0.18



– Diluted






$

0.07



$

0.00



$

0.03



$

0.18























Weighted average number of shares of
common stock:






















– Basic







89,473,026




89,931,617




89,171,988




89,929,477



– Diluted







89,904,319




90,229,849




89,582,401




90,267,431


SOURCE CBAK Energy Technology, Inc.

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE? 440k+
Newsrooms &
Influencers 9k+
Digital Media
Outlets 270k+
Journalists
Opted In GET STARTED

MENAFN12112024003732001241ID1108875577


PR Newswire

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.