DALIAN,
China, Nov. 9, 2023 /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
ended September 30, 2023.
Third Quarter of 2023 Financial Highlights
- Net revenues from sales of batteries were $44.3 million, an increase of 71.5% from
$25.8 million in the same period of
2022.
- Net revenues from batteries used in light electric
vehicles were $1.11 million, an
decrease of 2.8% from $1.15 million
in the same period of 2022.
- Net revenues from batteries used in electric vehicles
were $0.40 million, an increase of
19.5 times from $0.02 million in the
same period of 2022.
- Net revenues from uninterruptible supplies were
$42.8 million, an increase of 73.5%
from $24.7 million in the same period
of 2022.
- Gross margin for the battery business was 26.4%, an
increase of 17.7 percentage points from 8.7% in the same period of
2022.
- Net income attributable to shareholders of CBAK Energy
(after deducting the change in fair value of warrants) was
$6.3 million, compared to a net loss
of $0.9 million in the same period of
2022.
Yunfei Li, Chairman and Chief
Executive Officer of the Company, commented, "Amid the slowdown in
China's battery industry and macro
headwinds, we are pleased to deliver robust growth in our primary
battery business and achieve both operating and net income in the
third quarter, further improving our profitability. Looking ahead,
we anticipate sustaining our solid financial and operating
performance. This is supported by our significant order backlog,
which exceeds our production capacity. Notably, orders for the
Dalian facility have been
scheduled toward the end of 2024, and our Nanjing facility is also overwhelmed. At the
same time, we are continuing to improve production efficiency and
expand production capacity, bolstering our market-leading position
and reinforcing our growth trajectory."
Jiewei Li, Chief Financial
Officer and Secretary of the Board of the Company, added, "As the
battery business returned to year-over-year growth in the third
quarter, we also recorded the ongoing improvements in gross margin
and operating profit margin. This was underpinned by a sharp
increase in the contribution of our higher-margin battery business
and a reduction in the cost of revenues as we further leveraged our
technology to improve production efficiency. Alongside a growing
number of orders for our battery products, we will continue to find
the right balance between growth and profitability while investing
in R&D and production capacity expansion to enhance our
sustainable, long-term competitiveness."
Third Quarter of 2023 Business Highlights & Recent
Developments
- In September, CBAK Energy announced that its wholly-owned
subsidiary, Nanjing CBAK reached an agreement with BAK Battery to
acquire, from BAK Battery, a 5% stake in BAK Power, an unrelated,
well-respected power battery R&D and manufacturing
company.
- In September, CBAK Energy announced that its wholly-owned
subsidiary, Nanjing CBAK received an order worth RMB33.58 million from Anker, one of the largest
third-party accessories suppliers globally for Apple Inc.'s
products.
Third Quarter of 2023 Financial Results
Net revenues were $63.4
million, representing an increase of 9.9% compared to
$57.7 million in the same period of
2022. This increase was primarily attributable to growth in the
Company's battery business.
Among these revenues, detailed revenues from our battery
business are:
Battery
Business
|
|
2022
Third
Quarter
|
|
2023
Third
Quarter
|
|
% Change
YoY
|
Net
Revenues ($)
|
|
25,845,959
|
|
44,327,653
|
|
71.5
|
Gross Profits ($)
|
|
2,242,930
|
|
11,698,226
|
|
421.6
|
Gross Margin
|
|
8.7 %
|
|
26.4 %
|
|
-
|
Net
Income ($)
|
|
1,064,317
|
|
7,770,711
|
|
630.1
|
Net Revenues from
Battery
Business on Applications ($)
|
|
|
|
|
|
|
Electric Vehicles
|
|
19,688
|
|
402,863
|
|
1946.2
|
Light Electric Vehicles
|
|
1,146,370
|
|
1,114,107
|
|
-2.8
|
Uninterruptable supplies
|
|
24,679,901
|
|
42,810,683
|
|
73.5
|
Total
|
|
25,845,959
|
|
44,327,653
|
|
71.5
|
Cost of revenues was $51.2
million, representing a decrease of 5.7% from $54.3 million in the same period of 2022. The
decrease in the cost of revenues corresponds to the Company's
higher gross profit from the batteries' segment.
Gross profit was $12.2
million, representing an increase of 254.0% from
$3.5 million in the same period of
2022. Gross margin was 19.3%, compared to 6.0% in the same period
of 2022.
Total operating expenses were $7.0
million, representing an increase of 40.8% from $4.9 million in the same period of 2022.
- Research and development expenses were $2.6 million, an increase of 8.1% from
$2.4 million in the same period of
2022.
- Sales and marketing expenses were $1.1 million, an increase of 33.8% from
$0.8 million in the same period of
2022.
- General and administrative expenses were
$3.2 million, an increase of 73.7%
from $1.9 million in the same period
of 2022.
- Provision for doubtful accounts was $0.02 million, compared to a recovery of doubtful
accounts of $0.14 million in the same
period of 2022.
Operating income amounted to $5.3
million, compared to an operating loss of $1.5 million in the same period of 2022.
Finance expense, net amounted to $0.4 million, compared to finance income, net of
$0.7 million in the same period of
2022.
Change in fair value of warrants was $0.02 million, compared to $0.94 million in the same period of 2022. The
change in fair value of the warrants liability is mainly due to the
share price movement.
Net income attributable to shareholders of CBAK Energy
was $6.3 million, compared to net
loss attributable to shareholders of CBAK Energy of $290 in the same period of 2022.
Net income attributable to shareholders of CBAK
Energy (after deducting the change in fair value of
warrants) was $6.3 million,
compared to a net loss of $0.9
million in the same period of 2022.
Basic and diluted income per share were
both $0.07, compared to $0.00 in the same period of 2022.
Conference Call
CBAK Energy's management will host an earnings conference call
at 8:00 AM U.S. Eastern Time on
Thursday, November 9, 2023
(9:00 PM Beijing/Hong Kong Time on
November 9, 2023).
For participants who wish to join our call online, please
visit:
https://edge.media-server.com/mmc/p/imrz65fd
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/BI1f60f4340d574f159da65982159458e2
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/imrz65fd
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 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 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,
2022 and September 30, 2023
|
|
(Unaudited)
|
|
(In US$ except for
number of shares)
|
|
|
|
|
|
|
|
|
|
December 31,
2022
|
|
|
September 30,
2023
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
$
|
6,519,212
|
|
|
$
|
3,176,249
|
|
Pledged
deposits
|
|
|
|
|
30,836,864
|
|
|
|
42,511,872
|
|
Trade and bills
receivable, net
|
|
|
|
|
27,413,575
|
|
|
|
45,564,242
|
|
Inventories
|
|
|
|
|
49,446,291
|
|
|
|
37,451,597
|
|
Prepayments and other
receivable
|
|
|
|
|
5,915,080
|
|
|
|
7,266,257
|
|
Receivables from former
subsidiary, net
|
|
|
|
|
5,518,052
|
|
|
|
323,973
|
|
Income tax
recoverable
|
|
|
|
|
57,934
|
|
|
|
-
|
|
Total current
assets
|
|
|
|
|
125,707,008
|
|
|
|
136,294,190
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
|
|
90,004,527
|
|
|
|
93,587,460
|
|
Construction in
progress
|
|
|
|
|
9,954,202
|
|
|
|
35,605,326
|
|
Long-term investments,
net
|
|
|
|
|
945,237
|
|
|
|
897,635
|
|
Prepaid land use
rights
|
|
|
|
|
12,361,163
|
|
|
|
11,503,787
|
|
Intangible assets,
net
|
|
|
|
|
1,309,058
|
|
|
|
936,062
|
|
Deposit paid for
acquisition of long-term investments
|
|
|
|
|
-
|
|
|
|
3,669,851
|
|
Operating lease
right-of-use assets, net
|
|
|
|
|
1,264,560
|
|
|
|
949,192
|
|
Deferred tax assets,
net
|
|
|
|
|
2,486,979
|
|
|
|
3,397,566
|
|
Total assets
|
|
|
|
$
|
244,032,734
|
|
|
$
|
286,841,069
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
Trade and bills
payable
|
|
|
|
$
|
67,491,435
|
|
|
$
|
88,176,563
|
|
Short-term bank
borrowings
|
|
|
|
|
14,907,875
|
|
|
|
33,190,571
|
|
Other short-term
loans
|
|
|
|
|
689,096
|
|
|
|
338,581
|
|
Accrued expenses and
other payables
|
|
|
|
|
25,605,661
|
|
|
|
38,481,174
|
|
Payables to former
subsidiaries, net
|
|
|
|
|
358,067
|
|
|
|
389,250
|
|
Deferred government
grants, current
|
|
|
|
|
1,299,715
|
|
|
|
366,171
|
|
Product warranty
provisions
|
|
|
|
|
26,215
|
|
|
|
23,285
|
|
Warrants
liability
|
|
|
|
|
136,000
|
|
|
|
-
|
|
Operating lease
liability, current
|
|
|
|
|
575,496
|
|
|
|
366,391
|
|
Finance lease
liability, current
|
|
|
|
|
844,297
|
|
|
|
-
|
|
Total current
liabilities
|
|
|
|
|
111,933,857
|
|
|
|
161,331,986
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred government
grants, non-current
|
|
|
|
|
5,577,020
|
|
|
|
5,022,216
|
|
Product warranty
provisions
|
|
|
|
|
450,613
|
|
|
|
471,384
|
|
Operating lease
liability, non-current
|
|
|
|
|
607,222
|
|
|
|
462,323
|
|
Accrued expenses and
other payables, non-current
|
|
|
|
|
1,085,525
|
|
|
|
-
|
|
Total
liabilities
|
|
|
|
|
119,654,237
|
|
|
|
167,287,909
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
Common stock $0.001 par
value; 500,000,000 authorized;
89,135,064 issued and 88,990,858 outstanding as of
December
31, 2022 and 89,611,396 issued and 89,467,190 outstanding
as
of September 30, 2023
|
|
|
|
|
89,135
|
|
|
|
89,611
|
|
Donated
shares
|
|
|
|
|
14,101,689
|
|
|
|
14,101,689
|
|
Additional paid-in
capital
|
|
|
|
|
246,240,998
|
|
|
|
247,200,355
|
|
Statutory
reserves
|
|
|
|
|
1,230,511
|
|
|
|
1,230,511
|
|
Accumulated
deficit
|
|
|
|
|
(131,946,705)
|
|
|
|
(129,627,258)
|
|
Accumulated other
comprehensive loss
|
|
|
|
|
(8,153,644)
|
|
|
|
(14,330,746)
|
|
|
|
|
|
|
121,561,984
|
|
|
|
118,664,162
|
|
Less: Treasury
shares
|
|
|
|
|
(4,066,610)
|
|
|
|
(4,066,610)
|
|
Total shareholders'
equity
|
|
|
|
|
117,495,374
|
|
|
|
114,597,552
|
|
Non-controlling
interests
|
|
|
|
|
6,883,123
|
|
|
|
4,955,608
|
|
Total equity
|
|
|
|
|
124,378,497
|
|
|
|
119,553,160
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholder's equity
|
|
|
|
$
|
244,032,734
|
|
|
$
|
286,841,069
|
|
CBAK Energy
Technology, Inc. and Subsidiaries
|
Condensed
Consolidated Statements of Operations and Comprehensive Income
(Loss)
|
For the three and
nine months ended September 30, 2022 and 2023
|
(Unaudited)
|
(In US$ except for
number of shares)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September 30,
|
|
|
Nine months
ended
September 30,
|
|
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
Net
revenues
|
|
|
$
|
57,721,692
|
|
|
$
|
63,441,109
|
|
|
$
|
194,267,650
|
|
|
$
|
148,258,680
|
|
Cost of
revenues
|
|
|
|
(54,261,244)
|
|
|
|
(51,192,531)
|
|
|
|
(179,955,540)
|
|
|
|
(129,219,716)
|
|
Gross
profit
|
|
|
|
3,460,448
|
|
|
|
12,248,578
|
|
|
|
14,312,110
|
|
|
|
19,038,964
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
expenses
|
|
|
|
(2,385,591)
|
|
|
|
(2,577,714)
|
|
|
|
(7,998,181)
|
|
|
|
(8,013,760)
|
|
Sales and marketing
expenses
|
|
|
|
(834,501)
|
|
|
|
(1,116,377)
|
|
|
|
(2,361,839)
|
|
|
|
(2,800,969)
|
|
General and
administrative
expenses
|
|
|
|
(1,866,055)
|
|
|
|
(3,240,770)
|
|
|
|
(6,556,944)
|
|
|
|
(9,302,798)
|
|
Recovery of
(provision for)
doubtful accounts
|
|
|
|
142,966
|
|
|
|
(24,623)
|
|
|
|
(68,651)
|
|
|
|
(286,283)
|
|
Total operating
expenses
|
|
|
|
(4,943,181)
|
|
|
|
(6,959,484)
|
|
|
|
(16,985,615)
|
|
|
|
(20,403,810)
|
|
Operating (loss)
income
|
|
|
|
(1,482,733)
|
|
|
|
5,289,094
|
|
|
|
(2,673,505)
|
|
|
|
(1,364,846)
|
|
Finance income
(expenses), net
|
|
|
|
687,345
|
|
|
|
(447,031)
|
|
|
|
71,869
|
|
|
|
(189,248)
|
|
Other (expenses)
income, net
|
|
|
|
(991,352)
|
|
|
|
601,654
|
|
|
|
(1,165,094)
|
|
|
|
1,022,907
|
|
Change in fair value
of warrants
|
|
|
|
936,000
|
|
|
|
15,000
|
|
|
|
4,699,000
|
|
|
|
136,000
|
|
Income (loss) before
income tax
|
|
|
|
(850,740)
|
|
|
|
5,458,717
|
|
|
|
932,270
|
|
|
|
(395,187)
|
|
Income tax credit
(expenses)
|
|
|
|
2,012
|
|
|
|
305,431
|
|
|
|
(84,230)
|
|
|
|
1,015,626
|
|
Net (loss)
income
|
|
|
|
(848,728)
|
|
|
|
5,764,148
|
|
|
|
848,040
|
|
|
|
620,439
|
|
Less: Net loss
attributable to non-
controlling interest
|
|
|
|
848,438
|
|
|
|
570,644
|
|
|
|
401,313
|
|
|
|
1,699,008
|
|
Net (loss) income
attributable to
CBAK Energy Technology, Inc.
|
|
|
$
|
(290)
|
|
|
$
|
6,334,792
|
|
|
$
|
1,249,353
|
|
|
$
|
2,319,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
|
|
(848,728)
|
|
|
|
5,764,148
|
|
|
|
848,040
|
|
|
|
620,439
|
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– Foreign currency translation
adjustment
|
|
|
|
(8,925,745)
|
|
|
|
(515,279)
|
|
|
|
(15,620,472)
|
|
|
|
(6,405,609)
|
|
Comprehensive (loss)
income
|
|
|
|
(9,774,473)
|
|
|
|
5,248,869
|
|
|
|
(14,772,432)
|
|
|
|
(5,785,170)
|
|
Less: Comprehensive
loss
attributable to non-controlling
interest
|
|
|
|
1,632,419
|
|
|
|
553,874
|
|
|
|
1,150,285
|
|
|
|
1,927,515
|
|
Comprehensive (loss)
income
attributable to CBAK Energy
Technology, Inc.
|
|
|
$
|
(8,142,054)
|
|
|
$
|
5,802,743
|
|
|
$
|
(13,622,147)
|
|
|
$
|
(3,857,655)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– Basic
|
|
|
$
|
(0.00)
|
*
|
|
$
|
0.07
|
|
|
$
|
0.01
|
|
|
$
|
0.03
|
|
– Diluted
|
|
|
$
|
(0.00)
|
*
|
|
$
|
0.07
|
|
|
$
|
0.01
|
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of
shares of common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– Basic
|
|
|
|
88,996,692
|
|
|
|
89,473,026
|
|
|
|
88,900,977
|
|
|
|
89,171,988
|
|
– Diluted
|
|
|
|
88,996,692
|
|
|
|
89,904,319
|
|
|
|
88,923,265
|
|
|
|
89,582,401
|
|
View original
content:https://www.prnewswire.com/news-releases/cbak-energy-reports-third-quarter-2023-unaudited-financial-results-301982835.html
SOURCE CBAK Energy Technology, Inc.