--Net Revenues up 504% year over year in the
third quarter –
DALIAN,
China, Nov. 14, 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 third quarter of
2022 ended September 30, 2022.
Third Quarter of 2022 Financial Highlights
- Net revenues were $57.7
million, an increase of 504% from $9.6 million for the same period of 2021.
- Gross profit was $3.5
million, representing an increase of 206%, for the three
months ended September 30, 2022, from
gross profit of $1.1 million for the
same period of 2021.
- Net loss attributable to shareholders of CBAK Energy (after
deducting change in fair value of warrants) was narrowed to
$0.9 million from $3.0 million for the same period of 2021, reduced
by 68.6%.
Yunfei Li, Chairman and Chief
Executive Officer of the Company, commented: "Our company managed
to maintain a strong momentum in the growth of revenues in the
third quarter of 2022. Our efforts to develop the electric vehicle
("EV") & light electric vehicle("LEV") market have achieved
noticeable progress. Our revenues contributed from the EV & LEV
market in the third quarter grew by 413% compared to the same
period in 2021. Our strategic partnership with JinPeng Group, one
of China's biggest LEV
manufacturers, and its EV manufacturing unit, Jemmell, brings our
battery products to an increasing number of electric vehicles. With
our cooperation with more EV/LEV manufacturers, we anticipate to
see our products be applied to more electric vehicles and revenues
from this market segment grow at a faster pace."
Mr. Li continued: "We are also glad to see that there is an
increasing global demand for green energy, which substantially
boost our energy storage business. We believe that our clients with
businesses all over the world will keep a strong demand for our
battery products in the near future."
Xiangyu Pei, Interim Chief Financial Officer of the Company,
noted: "In the first nine months of 2022, we managed to achieve a
year-over-year increase of 681% in revenues to $194 million. During this period, revenues from
our battery business grew by 168% to $66.6
million as compared to the same period of 2021, of which
revenues from the LEV/EV sector have posted a strong increase of
341%. Given the strong demand for our battery products, we are very
positive about our growth and development in the near term."
Third Quarter of 2022 Business Highlights & Recent
Developments
- In August 2022, CBAK Energy
announced a strategic partnership agreement with Welson Power, a China-based new energy company that has a
broad sales network in India, to
sell CBAK Energy's model 32140 batteries in the Indian market.
- In September 2022, CBAK Energy
announced that it obtained a battery order worth of approximately
EUR 28.4 million ($27.8 million) from a leading European provider
of heating, cooling and renewable energy systems. This new order
will bring the total order value that CBAK Energy has received from
the Customer in 2022 to approximately EUR
59.6 million.
Third Quarter of 2022 Financial Results
Net revenues were $57.7
million, an increase of 504% from $9.6 million for the same period of 2021. This
was driven mostly by strong sales of high-power lithium batteries
as well as from sales of materials for use in manufacturing lithium
battery, a new operating segment as a result of the acquisition of
Zhejiang Hitrans Lithium Battery Technology Co., Ltd ("Hitrans") in
November 2021. The table below breaks
down our net revenues by segment, and further breaks down the
battery segment by end application and the materials segment by
product type.
Net Revenues by
End-product Applications
($ thousands)
|
|
2021
Third
Quarter
|
|
2022
Third
Quarter
|
|
% Change
YoY
|
|
Segment
1
High power lithium
batteries used in:
|
|
|
|
|
|
|
|
Uninterruptible supplies
|
|
$9,335
|
|
$24,680
|
|
164 %
|
Light electric vehicles
|
|
227
|
|
1,146
|
|
404 %
|
Electric vehicles
|
|
-
|
|
20
|
|
-
|
Trading of raw
materials used in lithium batteries
|
|
-
|
|
-
|
|
-
|
|
|
9,562
|
|
25,846
|
|
170 %
|
Segment
2
Materials for use in
manufacturing of lithium battery cell
Precursor
Cathode
|
|
-
-
|
|
20,681
11,195
|
|
-
-
|
|
|
-
|
|
31,876
|
|
-
|
Total
|
|
$9,562
|
|
$57,722
|
|
504 %
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues was $54.3 million, an increase of
544% from $8.4 million for the same
period of 2021. This was in line with the increased net
revenues.
Gross profit was $3.5
million, representing an increase of 206% from $1.1 million in the same period of 2021. Gross
Margin was 6%, a decrease of 6% from 12% in the same period of
2021. The decrease in gross profits was primarily due to the
increase in raw material prices and the fact that our materials
segment has a lower profit margin.
Total operating expenses were $4.9
million, an increase of 14.8% from $4.3 million in the same period of 2021. Most of
the increase in all expense categories was the revenue growth and
was largely attributable to an increase in headcount as result of
the acquisition of Hitrans and additional hires in our new facility
in Nanjing.
- Research and development expenses were $2.4 million, an increase of 31% from
$1.8 million for the same period of
2021.
- Sales and marketing expenses were $0.8 million, an increase of 64% from
$0.5 million for the same period of
2021.
- General and administrative expenses were
$1.9 million, a decrease of 14% from
$2.2 million for the same period of
2021.
- Recovery of doubtful accounts was $0.2 million, compared to $0.2 million for the same period of 2021.
Operating loss was $1.5
million, compared to $3.2
million for the same period of 2021, representing a decrease
of 53.3%.
Finance income, net was $0.7
million, compared to $0.1
million for the same period of 2021, representing an
increase of 433%.
Change in fair value of warrants was $0.9 million, compared to $23.0 million for the same period of 2021. The
change in the fair value of the warrants liability is mainly due to
share price movement.
Net loss attributable to shareholders of CBAK Energy was
$290, compared to net income
attributable to shareholders of CBAK Energy of $20.0 million for the same period of 2021.
Basic and diluted loss per share were both nil. In
comparison, basic and diluted income per share for the same period
of 2021 were both $0.23.
Conference Call
CBAK's management will host an earnings conference call at
8:00 AM U.S. Eastern Time
on Monday, November 14, 2022 (9:00 PM Beijing/Hong Kong
Time on November 14, 2022).
For participants who wish to join our call online, please
visit:
https://edge.media-server.com/mmc/p/jtk2vobi
Participants who plan to ask questions at 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 personal pin and an email with detailed
instructions.
Participant Online
Registration:
https://register.vevent.com/register/BI1d48d566e44b4cc3b22602d7960df36c
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/jtk2vobi
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 batteries
and 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, 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 subsequently 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:
CBAK Energy Technology, Inc.
Investor Relations Department
Mr. Thierry Jiewei Li
Phone: 86-18675423231
Email: ir@cbak.com.cn
CBAK Energy
Technology, Inc. and Subsidiaries
Unaudited Condensed
Consolidated Balance Sheets
(In $ except for number
of shares)
|
|
|
|
|
December
31,
|
|
|
September
30,
|
|
|
|
|
|
2021
|
|
|
2022
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
$
|
7,357,875
|
|
|
|
4,045,329
|
|
Pledged
deposits
|
|
|
|
|
18,996,749
|
|
|
|
37,591,281
|
|
Trade and bills
receivable, net
|
|
|
|
|
49,907,129
|
|
|
|
21,902,180
|
|
Inventories
|
|
|
|
|
30,133,340
|
|
|
|
52,709,868
|
|
Prepayments and other
receivables
|
|
|
|
|
12,746,990
|
|
|
|
5,457,532
|
|
Receivables from former
subsidiary
|
|
|
|
|
2,263,955
|
|
|
|
6,341,988
|
|
Amount due from
non-controlling interest, current
|
|
|
|
|
125,883
|
|
|
|
112,424
|
|
Amount due from related
party
|
|
|
|
|
472,061
|
|
|
|
210,796
|
|
Income tax
recoverable
|
|
|
|
|
47,189
|
|
|
|
56,251
|
|
Investment in
sales-type lease, net
|
|
|
|
|
790,516
|
|
|
|
815,013
|
|
Total current
assets
|
|
|
|
|
122,841,687
|
|
|
|
129,242,662
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
|
|
90,042,773
|
|
|
|
88,154,577
|
|
Construction in
progress
|
|
|
|
|
27,343,092
|
|
|
|
15,839,191
|
|
Long-term investments,
net
|
|
|
|
|
712,930
|
|
|
|
917,768
|
|
Prepaid land use right-
non current
|
|
|
|
|
13,797,230
|
|
|
|
12,081,968
|
|
Intangible assets,
net
|
|
|
|
|
1,961,739
|
|
|
|
1,383,789
|
|
Operating lease
right-of-use assets, net
|
|
|
|
|
1,968,032
|
|
|
|
571,851
|
|
Investment in
sales-type lease, net
|
|
|
|
|
838,528
|
|
|
|
317,279
|
|
Amount due from
non-controlling interest, non-current
|
|
|
|
|
62,941
|
|
|
|
56,212
|
|
Deferred tax assets,
net
|
|
|
|
|
1,403,813
|
|
|
|
1,175,624
|
|
Goodwill
|
|
|
|
|
1,645,232
|
|
|
|
1,470,904
|
|
Total assets
|
|
|
|
$
|
262,617,997
|
|
|
$
|
251,211,825
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
Trade and bills
payable
|
|
|
|
$
|
65,376,212
|
|
|
$
|
70,532,360
|
|
Short-term bank
loans
|
|
|
|
|
8,811,820
|
|
|
|
17,573,866
|
|
Other short-term
loans
|
|
|
|
|
4,679,122
|
|
|
|
3,482,583
|
|
Accrued expenses and
other payables
|
|
|
|
|
22,963,700
|
|
|
|
19,602,212
|
|
Payables to former
subsidiaries, net
|
|
|
|
|
326,507
|
|
|
|
368,772
|
|
Deferred government
grants, current
|
|
|
|
|
3,834,481
|
|
|
|
1,613,838
|
|
Product warranty
provisions
|
|
|
|
|
127,837
|
|
|
|
104,053
|
|
Operating lease
liability, current
|
|
|
|
|
801,797
|
|
|
|
304,574
|
|
Finance lease
liability, current
|
|
|
|
|
-
|
|
|
|
1,173,589
|
|
Warrants
liability
|
|
|
|
|
5,846,000
|
|
|
|
1,147,000
|
|
Total current
liabilities
|
|
|
|
|
112,767,476
|
|
|
|
115,902,847
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred government
grants, non-current
|
|
|
|
|
6,189,196
|
|
|
|
5,809,485
|
|
Operating lease
liability
|
|
|
|
|
876,323
|
|
|
|
120,101
|
|
Product warranty
provision
|
|
|
|
|
1,900,429
|
|
|
|
1,776,912
|
|
Total
liabilities
|
|
|
|
|
121,733,424
|
|
|
|
123,609,345
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
89,135,064
issued and 88,990,858 outstanding as of September 30,
2022
|
|
|
|
|
88,849
|
|
|
|
89,135
|
|
Donated
shares
|
|
|
|
|
14,101,689
|
|
|
|
14,101,689
|
|
Additional paid-in
capital
|
|
|
|
|
241,946,362
|
|
|
|
243,053,288
|
|
Statutory
reserves
|
|
|
|
|
1,230,511
|
|
|
|
1,230,511
|
|
Accumulated
deficit
|
|
|
|
|
(122,498,259)
|
|
|
|
(121,248,906)
|
|
Accumulated other
comprehensive income (loss)
|
|
|
|
|
2,489,017
|
|
|
|
(12,382,483)
|
|
|
|
|
|
|
137,358,169
|
|
|
|
124,843,234
|
|
Less: Treasury
shares
|
|
|
|
|
(4,066,610)
|
|
|
|
(4,066,610)
|
|
Total shareholders'
equities
|
|
|
|
|
133,291,559
|
|
|
|
120,776,624
|
|
Non-controlling
interests
|
|
|
|
|
7,593,014
|
|
|
|
6,825,856
|
|
Total of
equities
|
|
|
|
|
140,884,573
|
|
|
|
127,602,480
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
|
|
|
262,617,997
|
|
|
|
251,211,825
|
|
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
|
|
|
Nine months
ended
|
|
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
Net revenues
|
|
|
|
$
|
9,562,190
|
|
|
|
57,721,692
|
|
|
$
|
24,867,393
|
|
|
$
|
194,267,650
|
|
Cost of
revenues
|
|
|
|
|
(8,430,808)
|
|
|
|
(54,261,244)
|
|
|
|
(20,798,931)
|
|
|
|
(179,955,540)
|
|
Gross profit
|
|
|
|
|
1,131,382
|
|
|
|
3,460,448
|
|
|
|
4,068,462
|
|
|
|
14,312,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
|
|
|
|
(1,815,756)
|
|
|
|
(2,385,591)
|
|
|
|
(3,344,817)
|
|
|
|
(7,998,181)
|
|
Sales and marketing
expenses
|
|
|
|
|
(510,386)
|
|
|
|
(834,501)
|
|
|
|
(1,262,999)
|
|
|
|
(2,361,839)
|
|
General and
administrative expenses
|
|
|
|
|
(2,158,183)
|
|
|
|
(1,866,055)
|
|
|
|
(5,823,560)
|
|
|
|
(6,556,944)
|
|
Recovery of (provision
for) doubtful accounts
|
|
|
|
|
178,897
|
|
|
|
142,966
|
|
|
|
437,475
|
|
|
|
(68,651)
|
|
Total operating
expenses
|
|
|
|
|
(4,305,428)
|
|
|
|
(4,943,181)
|
|
|
|
(9,993,901)
|
|
|
|
(16,985,615)
|
|
Operating
loss
|
|
|
|
|
(3,174,046)
|
|
|
|
(1,482,733)
|
|
|
|
(5,925,439)
|
|
|
|
(2,673,505)
|
|
Finance income,
net
|
|
|
|
|
129,340
|
|
|
|
687,345
|
|
|
|
174,442
|
|
|
|
71,869
|
|
Other income
(expenses), net
|
|
|
|
|
69,970
|
|
|
|
(991,352)
|
|
|
|
1,619,194
|
|
|
|
(1,165,094)
|
|
Impairment of
non-marketable equity securities
|
|
|
|
|
(43)
|
|
|
|
-
|
|
|
|
(690,585)
|
|
|
|
-
|
|
Change in fair value of
warrants
|
|
|
|
|
22,998,000
|
|
|
|
936,000
|
|
|
|
57,174,000
|
|
|
|
4,699,000
|
|
Income (loss) before
income tax
|
|
|
|
|
20,023,221
|
|
|
|
(850,740)
|
|
|
|
52,351,612
|
|
|
|
932,270
|
|
Income tax credit
(expenses)
|
|
|
|
|
-
|
|
|
|
2,012
|
|
|
|
-
|
|
|
|
(84,230)
|
|
Net income
(loss)
|
|
|
|
|
20,023,221
|
|
|
|
(848,728)
|
|
|
|
52,351,612
|
|
|
|
848,040
|
|
Less: Net (income) loss
attributable to non-
controlling interests
|
|
|
|
|
(3,487)
|
|
|
|
848,438
|
|
|
|
(21,995)
|
|
|
|
401,313
|
|
Net income (loss)
attributable to
shareholders of CBAK Energy Technology,
Inc.
|
|
|
|
$
|
20,019,734
|
|
|
|
(290)
|
|
|
$
|
52,329,617
|
|
|
$
|
1,249,353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
|
|
20,023,221
|
|
|
|
(848,728)
|
|
|
|
52,351,612
|
|
|
|
848,040
|
|
– Foreign currency
translation adjustment
|
|
|
|
|
243,258
|
|
|
|
(8,925,745)
|
|
|
|
1,473,992
|
|
|
|
(15,620,472)
|
|
Comprehensive income
(loss)
|
|
|
|
|
20,266,479
|
|
|
|
(9,774,473)
|
|
|
|
53,825,604
|
|
|
|
(14,772,432)
|
|
Less: Comprehensive
loss (income)
attributable to non-controlling
interests
|
|
|
|
|
(3,404)
|
|
|
|
1,632,419
|
|
|
|
(16,024)
|
|
|
|
1,150,285
|
|
Comprehensive income
(loss) attributable
to CBAK Energy Technology, Inc.
|
|
|
|
$
|
20,263,075
|
|
|
|
(8,142,054)
|
|
|
$
|
53,809,580
|
|
|
$
|
(13,622,147)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– Basic
|
|
|
|
$
|
0.23
|
|
|
$
|
0.00
|
*
|
|
$
|
0.60
|
|
|
$
|
0.01
|
|
– Diluted
|
|
|
|
$
|
0.23
|
|
|
$
|
0.00
|
*
|
|
$
|
0.60
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares of common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– Basic
|
|
|
|
|
88,419,998
|
|
|
|
88,996,692
|
|
|
|
87,043,490
|
|
|
|
88,900,977
|
|
– Diluted
|
|
|
|
|
88,709,210
|
|
|
|
89,996,692
|
|
|
|
87,349,010
|
|
|
|
88,923,265
|
|
*
|
Less than $0.01 per
share
|
View original
content:https://www.prnewswire.com/news-releases/cbak-energy-reports-third-quarter-2022-unaudited-financial-results-301676651.html
SOURCE CBAK Energy Technology, Inc.