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CBAK Energy Technology Reports Second Quarter and First Half 2024 Unaudited Financial Results

DALIAN, China, Aug. 9, 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 second quarter and the first half of 2024 ended June 30, 2024.

First Half of 2024 Financial Highlights

  • Net revenues from sales of batteries were $80.4 million, an increase of 55% from $51.8 million in the same period of 2023.

    -    Net revenues from batteries used in light electric vehicles were $3.3 million, an increase of 7% from $3.1 million in the same period of 2023.

    -    Net revenues from batteries used in electric vehicles were $0.7 million, a decrease of 65% from $2.0 million in the same period of 2023.

    -    Net revenues from residential energy supply & uninterruptible supplies were $76.4 million, an increase of 63% from $46.8 million in the same period of 2023.

  • Gross margin for the battery business was 39.0%, an increase of 26.2 percentage points from 12.8% in the same period of 2023.
  • Net income from the battery business was $19.6 million, compared to net loss of $1.0 million in the same period of 2023.

Yunfei Li, Chairman and Chief Executive Officer of the Company, commented, "We are thrilled to share with our shareholders and investors that we have achieved a remarkable 55% increase in net revenues from our battery business, reaching $80.4 million for the first half of the year. This significant growth is particularly notable given the broader industry challenges and declining sales volumes faced by our competitors. Our strategic pivot towards residential energy solutions and diverse energy storage applications has been a key driver of this success, with the bulk of our revenue increase coming from these sectors. Our major clients remain highly satisfied with the performance of our products and continue to show strong loyalty. We are confident that this exceptional sales momentum will continue to drive our success in the future."

Jiewei Li, Chief Financial Officer and Secretary of the Board of the Company, added, "In addition to the remarkable surge in net revenues from our battery business, we are thrilled to report an impressive gross margin of 39% for the first half of the year. This outstanding performance not only highlights our efficiency but also places us ahead of all our competitors in battery manufacturing. Consequently, our net income from the battery sector has reached $19.6 million, surpassing the figures from the previous fiscal year.

We are confident that our gross margin will remain robust due to high client satisfaction with our battery products, and we anticipate continued growth in net income in the upcoming quarters. Furthermore, we are engaged in discussions with several private equity investors regarding both our sodium and lithium battery segments. These investors are showing interest in contributing capital at a significantly higher valuation. We expect to finalize these transactions and deliver positive news to the market."

Second Quarter of 2024 Business Highlights & Recent Developments

  • In June, CBAK Energy announced that its subsidiary, CBAK Power, had secured an order valued at almost USD7.0 million from a Renowned European Client.
  • In June, CBAK Energy unveiled a significant advancement in fast-charging technology with the enhanced model 32140 battery, achieving a full charge in just 35 minutes.

Second Quarter of 2024 Financial Results

Net revenues[1] were $47.8 million, representing an increase of 13% 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

Second

Quarter

  

2024
Second

Quarter

  

% Change
YoY

 

Net Revenues ($)

  

22,232,003

   

35,598,124

   

60

 

Gross Profits ($)

  

3,425,147

   

12,912,293

   

276

 

Gross Margin

  

15.4

%

  

36.3

%

  

-

 

Net (Loss) Income ($)

  

(1,126,224)

   

7,892,641

   

-

 

Net Revenues from Battery Business on
Applications ($)

            

Electric Vehicles

  

135,731

   

199,258

   

46

 

Light Electric Vehicles

  

1,147,902

   

1,825,501

   

59

 

Residential Energy Supply &
Uninterruptable supplies

  

20,948,370

   

33,573,365

   

60

 

Total

  

22,232,003

   

35,598,124

   

60

 

[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 $35.1 million, representing a slightly decrease of 9% from $38.5 million in the same period of 2023. The decrease in the cost of revenues corresponds to the Company's higher gross profit from the battery business.

Gross profit was $12.7 million, representing an increase of 227% from $3.9 million in the same period of 2023. Gross margin was 26.6%, compared to 9.2% in the same period of 2023.

Total operating expenses were $6.8 million, representing a decrease of 12% from $7.7 million in the same period of 2023.

  • Research and development expenses was $3.0 million for the three months ended June 30, 2024 and 2023.
  • Sales and marketing expenses were $1.4 million, an increase of 42% from $1.0 million in the same period of 2023.
  • General and administrative expenses were $3.1 million, a slightly decrease of 14% from $3.6 million in the same period of 2023.
  • Recover of doubtful accounts was $0.67 million, compared to a provision of doubtful accounts of $0.13 million in the same period of 2023.

Operating income amounted to $5.9 million, compared to an operating loss of $3.8 million in the same period of 2023.

Finance income, net amounted to $0.7, compared to $0.3 million in the same period of 2023.

Change in fair value of warrants was nil, compared to $0.04 million in the same period of 2023.

Net income attributable to shareholders of CBAK Energy was $6.45 million, compared to net loss attributable to shareholders of CBAK Energy of $2.6 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 $6.45 million, compared to a net loss of $2.7 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 $0.07, compared to basic and diluted loss per share of $0.03 in 2023.

First Half of 2024 Financial Results

Net revenues[1] were $106.6 million, representing an increase of 26% compared to $84.8 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

Half

  

2024
First

Half

  

% Change
YoY

 

Net Revenues ($)

  

51,835,386

   

80,435,993

   

55

 

Gross Profits ($)

  

6,638,505

   

31,375,815

   

372

 

Gross Margin

  

12.8

%

  

39.0

%

  

-

 

Net (Loss) Income ($)

  

(1,017,300)

   

19,575,070

   

-

 

Net Revenues from Battery Business on
Applications ($)

            

Electric Vehicles

  

1,955,979

   

679,439

   

-65

 

Light Electric Vehicles

  

3,115,959

   

3,335,793

   

7

 

Residential Energy Supply &
Uninterruptable supplies

  

46,763,448

   

76,420,761

   

63

 

Total

  

51,835,386

   

80,435,993

   

55

 

[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 $75.0 million, representing a slightly decrease of 4% from $78.0 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 $31.5 million, representing an increase of 22% from $6.8 million in the same period of 2023. Gross margin was 29.5%, compared to 8.0% in the same period of 2023.

Total operating expenses were $15.3 million, representing an increase of 14% from $13.4 million in the same period of 2023.

  • Research and development expenses were $5.8 million, an increase of 6% from $5.4 million in the same period of 2023.
  • Sales and marketing expenses were $3.1 million, an increase of 8.4% from $1.7 million in the same period of 2023.
  • General and administrative expenses were $7.2 million, an increase of 19% from $6.1 million in the same period of 2023.
  • Recover of doubtful accounts was $0.8 million, compared to a provision of doubtful accounts of $0.26 million in the same period of 2023.

Operating income amounted to $16.2 million, compared to an operating loss of $6.7 million in the same period of 2023.

Finance income, net amounted to $0.7, compared to $0.3 million in the same period of 2023.

Change in fair value of warrants was nil, compared to $0.12 million in the same period of 2023.

Net income attributable to shareholders of CBAK Energy was $16.3 million, compared to net loss attributable to shareholders of CBAK Energy of $4.0 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 loss of $4.1 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 $0.05 in 2023.

Conference Call

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

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

https://edge.media-server.com/mmc/p/etm9tt44

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/BI88cb5143d85b4257ac2ba1e1f0e4d8e2

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/etm9tt44

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: This email address is being protected from spambots. You need JavaScript enabled to view it.

CBAK Energy Technology, Inc. and Subsidiaries

Condensed consolidated Balance Sheets

As of December 31, 2023 and June 30, 2024

(Unaudited)

(In US$ except for number of shares)

        
   

December 31,
2023

  

June 30,
2024

 
      

(Unaudited)

 

Assets

       

Current assets

       

Cash and cash equivalents

  

$

4,643,267

  

$

9,709,059

 

Pledged deposits

   

54,179,549

   

10,418,508

 

Short-term deposits

   

-

   

34,342,812

 

Trade and bills receivable, net

   

28,653,047

   

32,710,720

 

Inventories

   

33,413,422

   

31,226,831

 

Prepayments and other receivables

   

7,459,254

   

5,017,982

 

Receivables from a former subsidiary, net

   

74,946

   

12,620

 

Total current assets

   

128,423,485

   

123,438,532

 
          

Property, plant and equipment, net

   

91,628,832

   

86,966,492

 

Construction in progress

   

37,797,862

   

36,086,788

 

Long-term investments, net

   

2,565,005

   

2,256,386

 

Prepaid land use rights

   

11,712,704

   

11,281,490

 

Intangible assets, net

   

841,360

   

599,350

 

Deposit paid for acquisition of long-term investments

   

7,101,492

   

15,934,172

 

Operating lease right-of-use assets, net

   

1,084,520

   

3,053,819

 

Total assets

  

$

281,155,260

  

$

279,617,029

 
          

Liabilities

         

Current liabilities

         

Trade and bills payable

  

$

82,429,575

  

$

71,644,150

 

Short-term bank borrowings

   

32,587,676

   

35,077,469

 

Other short-term loans

   

339,552

   

338,623

 

Accrued expenses and other payables

   

41,992,540

   

33,431,784

 

Payables to a former subsidiary, net

   

411,111

   

418,499

 

Deferred government grants, current

   

375,375

   

482,714

 

Product warranty provisions

   

23,870

   

17,888

 

Operating lease liability, current

   

691,992

   

994,562

 

Finance lease liability, current

   

1,643,864

   

1,424,535

 

Income tax payable

   

-

   

798,715

 

Total current liabilities

   

160,495,555

   

144,628,939

 
          

Deferred government grants, non-current

   

6,203,488

   

5,700,353

 

Product warranty provisions

   

522,574

   

434,724

 

Operating lease liability, non-current

   

475,302

   

2,326,064

 

Total liabilities

   

167,696,919

   

153,090,080

 
          

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 89,939,190 outstanding as of June 30, 2024

   

90,063

   

90,083

 

Donated shares

   

14,101,689

   

14,101,689

 

Additional paid-in capital

   

247,465,817

   

247,674,563

 

Statutory reserves

   

1,230,511

   

1,230,511

 

Accumulated deficit

   

(134,395,762)

   

(118,113,850)

 

Accumulated other comprehensive loss

   

(11,601,403)

   

(14,326,079)

 
    

116,890,915

   

130,656,917

 

Less: Treasury shares

   

(4,066,610)

   

(4,066,610)

 

Total shareholders' equity

   

112,824,305

   

126,590,307

 

Non-controlling interests

   

634,036

   

(63,358)

 

Total equity

   

113,458,341

   

126,526,949

 

Total liabilities and shareholder's equity

  

$

281,155,260

  

$

279,617,029

 

CBAK Energy Technology, Inc. and Subsidiaries

Condensed consolidated Statements of Operations and Comprehensive Income (Loss)

For the three and six months ended June 30, 2023 and 2024

(Unaudited)

(In US$ except for number of shares)

 
        
   

Three months ended
June 30,

  

Six months ended
June 30,

 
   

2023

  

2024

  

2023

  

2024

 

Net revenues

  

$

42,420,870

  

$

47,793,045

  

$

84,817,571

  

$

106,615,477

 

Cost of revenues

   

(38,536,228)

   

(35,065,019)

   

(78,027,185)

   

(75,106,404)

 

Gross profit

   

3,884,642

   

12,728,026

   

6,790,386

   

31,509,073

 

Operating expenses:

                 

Research and development expenses

   

(2,980,718)

   

(2,955,509)

   

(5,436,046)

   

(5,771,027)

 

Sales and marketing expenses

   

(963,588)

   

(1,368,373)

   

(1,684,592)

   

(3,092,405)

 

General and administrative expenses

   

(3,582,893)

   

(3,129,994)

   

(6,062,028)

   

(7,222,521)

 

Recovery of (provision for) doubtful
   accounts

   

(130,493)

   

673,330

   

(261,660)

   

787,343

 

Total operating expenses

   

(7,657,692)

   

(6,780,546)

   

(13,444,326)

   

(15,298,610)

 

Operating income (loss)

   

(3,773,050)

   

5,947,480

   

(6,653,940)

   

16,210,463

 

Finance (expenses) income, net

   

252,472

   

688,721

   

257,783

   

698,384

 

Other income, net

   

238,040

   

141,975

   

421,253

   

509,413

 

Share of loss of equity investee

   

-

   

18,824

   

-

   

-

 

Gain on disposal of equity investee

   

-

   

26,912

   

-

   

26,912

 

Change in fair value of warrants

   

36,000

   

-

   

121,000

   

-

 

Income before income tax

   

(3,246,538)

   

6,823,912

   

(5,853,904)

   

17,445,172

 

Income tax credit (expenses)

   

307,311

   

(800,727)

   

710,195

   

(1,849,513)

 

Net income (loss)

   

(2,939,227)

   

6,023,185

   

(5,143,709)

  

$

15,595,659

 

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

   

304,237

   

422,277

   

1,128,364

   

686,253

 

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

  

$

(2,634,990)

  

$

6,445,462

  

$

(4,015,345)

  

$

16,281,912

 
                  

Net income (loss)

   

(2,939,227)

   

6,023,185

   

(5,143,709)

   

15,595,659

 

Other comprehensive loss

                 

      – Foreign currency translation
          adjustment

   

(6,639,109)

   

(829,769)

   

(5,890,330)

   

(2,735,817)

 

Comprehensive (loss) income

   

(9,578,336)

   

5,193,416

   

(11,034,039)

   

12,859,842

 

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

   

643,620

   

423,171

   

1,373,641

   

697,394

 

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

  

$

(8,934,716)

  

$

5,616,587

  

$

(9,660,398)

  

$

13,557,236

 
                  

Income (loss) per share

                 

      – Basic

  

$

(0.03)*

  

$

0.07

  

$

(0.05)

  

$

0.18

 

      – Diluted

  

$

(0.03)*

  

$

0.07

  

$

(0.05)

  

$

0.18

 
                  

Weighted average number of shares of common stock:

                 

      – Basic

   

89,029,399

   

89,931,617

   

89,021,424

   

89,931,727

 

      – Diluted

   

89,029,399

   

90,111,613

   

89,021,424

   

90,289,544

 

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