– Net revenues up 752% year over year in the
first quarter –
DALIAN,
China, May 19, 2022 /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, 2022.
First Quarter 2022 Financial Highlights
- Net revenues were $80.2
million, an increase of 752% from $9.4 million in the same period of 2021.
- Gross profit was $5.3
million, an increase of 189% from $1.8 million in the same period of 2021.
- Net income attributable to
shareholders of CBAK Energy was $0.4 million, compared to a net income
attributable to CBAK Energy shareholders of $29.6 million in the same period of 2021.
Yunfei Li, Chairman and Chief
Executive Officer of the Company, commented: "We are very excited
to kick off 2022 with our net revenues surging more than eight-fold
year over year to reach $80.2 million
in the first quarter, primarily driven by the material business
brought by the Hitrans merger and robust demand for our high power
lithium batteries."
Mr. Li continued: "We will continue attentive operations in the
material business with additional strategies to enhance its core
competitiveness while actively combining them with other
alternatives to counter the impact of increased raw material costs
on the battery production. Additionally, we remain focused on
product innovations to meet various demands and drive higher
lithium battery sales. With our expansion into producing key
materials for battery products and our relentless efforts into
addressing the dynamic market, we are very confident in our
capabilities to grow and thrive in the battery industry."
Xiangyu Pei, Interim Chief Financial Officer of the Company,
noted: "Our significant revenue expansion exemplified the
efficacies of our growth strategies. Despite short-term challenges
from raw material price hikes, we furthered our investments for our
infrastructure to propel higher revenue levels. Looking
ahead, we will remain committed to driving our next phase of growth
by leveraging and building upon our solid financial position and
competitive advantages."
First Quarter 2022 Business Highlights & Recent
Developments
- In May, CBAK Energy received an order from a leading European
provider of heating, cooling and renewable energy systems (the
"Customer"), for a supply of lithium-ion batteries worth
EUR 28.2 million ($29.3 million). The Customer has a global
presence with annual sales of billions of Euros. CBAK Energy has
been collaborating with the Customer since 2020.
First Quarter 2022 Financial Results
Net revenues were $80.2
million, an increase of 752% from $9.4 million in the same period of 2021. The
increase was driven by additional revenues from lithium battery
materials brought by the acquisition of Hitrans, and strong sales
of high power lithium batteries.
Net Revenues by
End-product Applications
($ thousands)
|
|
2022
First
Quarter
|
|
2021
First
Quarter
|
|
%
Change
YoY
|
|
Segment
1
High power lithium
batteries used in:
|
|
|
|
|
|
|
|
Uninterruptable supplies
|
|
$14,875
|
|
$8,764
|
|
70
|
Light electric vehicles
|
|
146
|
|
34
|
|
329
|
Electric vehicles
|
|
-
|
|
101
|
|
-100
|
Segment 2
(Hitrans)
Materials for use in
manufacturing of lithium battery
cell
Precursor
Cathode
|
|
36,813
28,363
|
|
-
-
|
|
-
-
|
Trading of raw
materials used in lithium batteries
|
|
-
|
|
517
|
|
-100
|
Total
|
|
$80,196
|
|
$9,416
|
|
752
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues was $74.9 million, an increase of
888% from $7.6 million in the same
period of 2021. This was primarily due to increased net
revenues.
Gross profit was $5.3
million, an increase of 189% from $1.8 million in the same period of 2021. Gross
margin was 6.6%, compared to 19.5% for the same period of 2021. The
decrease in gross margin was primarily due to the increase in raw
material costs.
Total operating expenses were $6.7 million, an increase of 256% from
$1.9 million in the same period of
2021, primarily due to growing headcount and the consolidation of
Hitrans.
- Research and development expenses were $3.3 million, an increase of 585% from
$0.5 million in the same period of
2021.
- Sales and marketing expenses were $0.8 million, an increase of 290% from
$0.2 million in the same period of
2021.
- General and administrative expenses were $2.2 million, an increase of 69% from
$1.3 million in the same period of
2021.
- Provision for doubtful accounts was $0.3 million, compared to recovery of doubtful
accounts of $0.2 million in the same
period of 2021.
Operating loss was $1.3
million, compared to $27,882
in the same period of 2021.
Finance income, net was $5,014, compared to finance expenses of
$7,598 in the same period of
2021.
Change in fair value of warrants was $1.6 million, compared to $28.4 million in the same period of 2021. The
change in fair value of the warrants liability is mainly due to
share price decline.
Net income attributable to
shareholders of CBAK Energy was $0.4 million, compared to a net income
attributable to CBAK Energy shareholders of $29.6 million in the same period of 2021.
Basic and diluted income per share were both
$0.01, compared to both $0.35 in the same period of 2021.
Cash and cash equivalents were $5.6 million as of March
31, 2022, compared to $7.4
million as of December 31,
2021.
Conference Call
CBAK Energy's management will host an earnings conference call
at 8:00 AM U.S. Eastern Time on
Thursday, May 19, 2022 (8:00 PM Beijing/Hong Kong Time on May 19, 2022).
Details of the conference call are as follows:
International:
|
+61-2-9253-5921
|
United
States:
|
+1-855-824-5644 / +1
646-722-4977
|
Hong Kong,
China:
|
+852-3027-6500
|
Mainland,
China:
|
+86-800-988-0563 /
+86-400-821-0637
|
Event ID:
|
EV00135062
|
Participants
Pin:
|
36584787#
|
Additionally, a live and archived webcast of the conference
call will be available
at:
https://edge.media-server.com/mmc/p/bgp5bgms
A replay of the conference call may be accessed by phone within
seven days after the conclusion of the live call at the following
numbers. To access the replay, please reference the Access code:
520002274#
International:
|
+61-2-8325-2405
|
United
States:
|
+1-646-982-0473
|
Hong Kong,
China:
|
+852-3027-6520
|
Mainland,
China:
|
+86-400-821-0623
|
About CBAK Energy
CBAK Energy Technology, Inc. is a leading high-tech enterprise
in China engaged in the
development, manufacturing, and sales of new energy high power
lithium batteries and raw materials used for manufacturing high
power lithium batteries. The applications of the Company's battery
products and solutions include light electric vehicles, electric
vehicles, electric tools, energy storage, uninterruptible power
supply (UPS), 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 and Shaoxing, as well as a large-scale
R&D and production base in Dalian.
For more information, please visit www.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, 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, trading in our
securities may be prohibited under the Holding Foreign Companies
Accountable Act if the PCAOB determines our audit work is performed
by auditors that the PCAOB is unable to inspect or investigate
completely for three consecutive years, the effects of the global
Covid-19 pandemic, changes in domestic and foreign laws,
regulations and taxes, uncertainties related to China's legal system and economic, political
and social events in China, 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 market for the Company's
lithium battery cells 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 investor and media inquiries, please contact:
In China:
CBAK Energy Technology, Inc.
Investor Relations Department
Mr. Thierry Jiewei Li
Phone: 86-18675423231
Email: ir@cbak.com.cn
The Blueshirt Group
Ms. Feifei Shen
Phone: +86 13466566136
Email: feifei@blueshirtgroup.com
The Blueshirt Group
Ms. Suwen Feng
Phone: +86 13917110134
Email: suwen@blueshirtgroup.com
In the United States:
The Blueshirt Group
Ms. Julia Qian
Phone: +1 973-619-3227
Email: Julia@blueshirtgroup.com
Related Links
https://ir.cbak.com.cn/
CBAK Energy
Technology, Inc. and Subsidiaries
|
Unaudited Condensed
Consolidated Balance Sheets
|
(In $ except for number
of shares)
|
|
|
|
December 31,
2021
|
|
March 31,
2022
|
|
|
|
|
|
|
|
(Unaudited)
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
7,357,875
|
|
|
$
|
5,608,465
|
|
Pledged
deposits
|
|
|
18,996,749
|
|
|
|
25,142,097
|
|
Trade accounts and
bills receivable, net
|
|
|
49,907,129
|
|
|
|
50,265,784
|
|
Inventories
|
|
|
30,133,340
|
|
|
|
41,871,149
|
|
Prepayments and other
receivables
|
|
|
12,746,990
|
|
|
|
14,516,068
|
|
Receivables from former
subsidiary
|
|
|
2,263,955
|
|
|
|
1,134,585
|
|
Amount due from
non-controlling interest, current
|
|
|
125,883
|
|
|
|
126,161
|
|
Amount due from related
party, current
|
|
|
472,061
|
|
|
|
473,104
|
|
Income tax
recoverable
|
|
|
47,189
|
|
|
|
47,295
|
|
Investment in
sales-type lease, net
|
|
|
790,516
|
|
|
|
792,262
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
122,841,687
|
|
|
|
139,976,970
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
90,042,773
|
|
|
|
88,532,811
|
|
Construction in
progress
|
|
|
27,343,092
|
|
|
|
28,410,293
|
|
Non-marketable equity
securities
|
|
|
712,930
|
|
|
|
714,504
|
|
Prepaid land use
rights
|
|
|
13,797,230
|
|
|
|
13,737,871
|
|
Intangible assets,
net
|
|
|
1,961,739
|
|
|
|
1,834,351
|
|
Operating lease
right-of-use assets, net
|
|
|
1,968,032
|
|
|
|
1,659,214
|
|
Investment in
sales-type lease, net
|
|
|
838,528
|
|
|
|
714,933
|
|
Amount due from related
party, non-current
|
|
|
62,941
|
|
|
|
63,081
|
|
Deferred tax assets,
net
|
|
|
1,403,813
|
|
|
|
1,500,564
|
|
Goodwill
|
|
|
1,645,232
|
|
|
|
1,650,629
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
262,617,997
|
|
|
$
|
278,795,221
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Trade accounts and
bills payable
|
|
$
|
65,376,212
|
|
|
$
|
79,270,001
|
|
Short-term bank
borrowings
|
|
|
8,811,820
|
|
|
|
14,674,721
|
|
Other short-term
loans
|
|
|
4,679,122
|
|
|
|
746,699
|
|
Accrued expenses and
other payables
|
|
|
22,963,700
|
|
|
|
24,477,309
|
|
Payables to former
subsidiaries, net
|
|
|
326,507
|
|
|
|
325,624
|
|
Deferred government
grants, current
|
|
|
3,834,481
|
|
|
|
2,270,463
|
|
Product warranty
provisions
|
|
|
127,837
|
|
|
|
104,122
|
|
Warrants
liability
|
|
|
5,846,000
|
|
|
|
4,214,000
|
|
Operating lease
liability, current
|
|
|
801,797
|
|
|
|
711,034
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
112,767,476
|
|
|
|
126,793,973
|
|
|
|
|
|
|
|
|
|
|
Deferred government
grants, non-current
|
|
|
6,189,196
|
|
|
|
7,207,728
|
|
Product warranty
provisions
|
|
|
1,900,429
|
|
|
|
1,923,542
|
|
Operating lease
liability, non-current
|
|
|
876,323
|
|
|
|
837,930
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
121,733,424
|
|
|
|
136,763,173
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
Common stock $0.001 par
value; 500,000,000
authorized; 88,849,222 issued and 88,705,016
outstanding as of December 31, 2021 and March
31, 2022
|
|
|
88,849
|
|
|
|
88,849
|
|
Donated
shares
|
|
|
14,101,689
|
|
|
|
14,101,689
|
|
Additional paid-in
capital
|
|
|
241,946,362
|
|
|
|
241,981,141
|
|
Statutory
reserves
|
|
|
1,230,511
|
|
|
|
1,230,511
|
|
Accumulated
deficit
|
|
|
(122,498,259)
|
|
|
|
(122,053,806)
|
|
Accumulated other
comprehensive loss
|
|
|
2,489,017
|
|
|
|
2,880,201
|
|
|
|
|
137,358,169
|
|
|
|
138,228,585
|
|
|
|
|
|
|
|
|
|
|
Less: Treasury
shares
|
|
|
(4,066,610)
|
|
|
|
(4,066,610)
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
133,291,559
|
|
|
|
134,161,975
|
|
Non-controlling
interests
|
|
|
7,593,014
|
|
|
|
7,870,073
|
|
Total equity
|
|
|
140,884,573
|
|
|
|
142,032,048
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholder's equity
|
|
$
|
262,617,997
|
|
|
$
|
278,795,221
|
|
CBAK Energy
Technology, Inc. and Subsidiaries
|
Unaudited Condensed
Consolidated Statements of Operations and Comprehensive
Income (Loss)
|
(In $ except for number
of shares)
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
|
Note
|
|
2021
|
|
|
2022
|
|
Net revenues
|
|
25
|
|
$
|
9,416,049
|
|
|
$
|
80,196,298
|
|
Cost of
revenues
|
|
|
|
|
(7,576,620)
|
|
|
|
(74,879,944)
|
|
Gross profit
|
|
|
|
|
1,839,429
|
|
|
|
5,316,354
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
|
|
|
|
(483,749)
|
|
|
|
(3,313,124)
|
|
Sales and marketing
expenses
|
|
|
|
|
(213,142)
|
|
|
|
(829,674)
|
|
General and
administrative expenses
|
|
|
|
|
(1,324,481)
|
|
|
|
(2,237,374)
|
|
Recovery of (Provision
for) doubtful accounts
|
|
4
|
|
|
154,061
|
|
|
|
(271,443)
|
|
Total operating
expenses
|
|
|
|
|
(1,867,311)
|
|
|
|
(6,651,615)
|
|
Operating
loss
|
|
|
|
|
(27,882)
|
|
|
|
(1,335,261)
|
|
Finance (expenses)
income, net
|
|
|
|
|
(7,598)
|
|
|
|
5,014
|
|
Other income,
net
|
|
|
|
|
1,217,648
|
|
|
|
285,204
|
|
Changes in fair value
of warrants liability
|
|
|
|
|
28,426,000
|
|
|
|
1,632,000
|
|
Income before
income tax
|
|
|
|
|
29,608,168
|
|
|
|
586,957
|
|
Income tax
credit
|
|
18
|
|
|
-
|
|
|
|
93,546
|
|
Net income
|
|
|
|
|
29,608,168
|
|
|
|
680,503
|
|
Less: Net loss (income)
attributable to non-controlling
interests
|
|
|
|
|
1,114
|
|
|
|
(236,050)
|
|
Net income attributable to shareholders of
CBAK
Energy Technology, Inc.
|
|
|
|
$
|
29,609,282
|
|
|
$
|
444,453
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
29,608,168
|
|
|
|
680,503
|
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
– Foreign currency
translation adjustment
|
|
|
|
|
89,138
|
|
|
|
432,193
|
|
Comprehensive
income
|
|
|
|
|
29,697,306
|
|
|
|
1,112,696
|
|
Less: Comprehensive
loss (income) attributable to non-
controlling interests
|
|
|
|
|
6,017
|
|
|
|
(277,059)
|
|
Comprehensive
income attributable to CBAK Energy
Technology, Inc.
|
|
|
|
$
|
29,703,323
|
|
|
$
|
835,637
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per
share
|
|
26
|
|
|
|
|
|
|
|
|
– Basic
|
|
|
|
$
|
0.35
|
|
|
$
|
0.01
|
|
- Diluted
|
|
|
|
$
|
0.35
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares of common stock:
|
|
20
|
|
|
|
|
|
|
|
|
– Basic
|
|
|
|
|
84,283,605
|
|
|
|
88,713,841
|
|
– Diluted
|
|
|
|
|
84,933,913
|
|
|
|
88,734,957
|
|
View original
content:https://www.prnewswire.com/news-releases/cbak-energy-reports-first-quarter-2022-unaudited-financial-results-301550849.html
SOURCE CBAK Energy Technology, Inc.