CBAK Energy Reports First Quater 2025 Unaudited Financial Results

Rhea-AI Summary

CBAK Energy Technology (NASDAQ: CBAT) reported significant declines in its Q1 2025 financial results. Net revenues decreased 41% to $34.9 million from $58.8 million in Q1 2024. The company's battery business saw a 54.6% revenue decline to $20.4 million, with gross profit falling 74.4% to $4.7 million. The company reported a net loss of $1.58 million, compared to a $9.8 million profit in Q1 2024. The decline was primarily attributed to the Dalian facilities' transition from Model 26650 to the advanced Model 40135. Despite overall declines, revenues from Electric Vehicles and Light Electric Vehicles segments grew by 11.9% and 88.4% respectively. Management expects a gradual recovery once the new manufacturing lines are completed in H2 2025 and customer validation of Model 40135 is finalized.

Positive

• Growth in Electric Vehicles (11.9%) and Light Electric Vehicles (88.4%) segments
• New manufacturing lines for advanced Model 40135 to be completed in H2 2025
• Strong growth momentum at Nanjing facilities driven by Model 32140 demand
• Potential long-term order from key customer in final stages

Negative

• Net revenues declined 41% YoY to $34.9 million
• Battery business revenue dropped 54.6% to $20.4 million
• Gross margin decreased from 31.9% to 13.7%
• Net loss of $1.58 million compared to $9.8 million profit in Q1 2024
• Residential Energy Supply segment revenue declined 60.4%

Insights

Financial Analyst

CBAK Energy's Q1 2025 shows significant revenue decline (-41% YoY) during product transition from older 26650 to newer 40135 batteries.

CBAK Energy reported a substantial 41% year-over-year decline in Q1 2025 revenues to $34.9 million compared to $58.8 million in Q1 2024. This decline primarily stems from the company's strategic product transition at its Dalian facilities, where they're upgrading from the older Model 26650 battery cells (developed in 2006) to the newer Model 40135.

The battery business segment, which represents the company's core operations, experienced an even steeper 54.6% revenue decline, dropping from $44.8 million to $20.4 million. This was accompanied by a significant compression in gross margin from 41.2% to 23.2%, leading to a 97.1% collapse in net income for this segment from $11.7 million to just $336,861.

By application area, the company's residential energy supply business was hit hardest, declining 60.4% YoY. However, there were bright spots in light electric vehicles (up 88.4%) and electric vehicles (up 11.9%), though these segments represent much smaller portions of the business.

Overall profitability shifted dramatically, with the company reporting a $1.58 million net loss compared to a $9.8 million profit in the year-ago period. The company's gross margin compressed from 31.9% to 13.7%, reflecting the significant operational challenges during this transition period.

Management characterized this decline as expected and temporary, noting that customers are in a testing and validation phase for the new Model 40135. They expect a gradual recovery once production lines for the new model are completed in H2 2025. Importantly, management highlighted that their Nanjing facilities continue to show strong growth with their flagship Model 32140 batteries, and they mentioned being in final stages of securing a significant long-term order.

This transitional period reflects the challenge of operating in the rapidly evolving battery technology space, where staying current with advancing technology is essential but can create short-term financial volatility. The significant declines across all financial metrics suggest investors will need to closely monitor whether the anticipated recovery materializes in the coming quarters.

DALIAN, China, May 19, 2025 (GLOBE NEWSWIRE) -- 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, 2025.

First Quater of 2025 Financial Results

Net revenues¹ were $34.9 million, representing a decrease of 41% compared to $58.8 million in the same period of 2024. The substantial decline primarily stems from our Dalian facilities, where a major portion of customers are in the residential energy supply sector. These facilities are currently undergoing a product portfolio upgrade, transitioning from Model 26650 to Model 40135. Customers who previously purchased Model 26650 are now in a transitional phase of testing and validating the new Model 40135. We anticipate a gradual recovery as both existing and potential customers complete the validation of Model 40135.

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

Battery Business		2024 First Quater			2025 First Quater			% Change YoY
Net Revenues ($)		44,837,869			20,363,338			-54.6
Gross Profits ($)		18,458,522			4,720,102			-74.4
Gross Margin		41.2	%		23.2	%		-
Net Income ($)		11,682,429			336,861			-97.1
Net Revenues from Battery Business on Applications ($)
Electric Vehicles		480,181			537,507			11.9
Light Electric Vehicles		1,510,292			2,844,874			88.4
Residential Energy Supply & Uninterruptable supplies		42,847,396			16,980,957			-60.4
Total		44,837,869			20,363,338			-54.6

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 $30.14 million, representing a decrease of 24.7% from $40.0 million in the same period of 2024.

Gross profit was $4.8 million, representing an decrease of 74.43% from $18.78 million in the same period of 2024. Gross margin was 13.7%, compared to 31.9% in the same period of 2024.

Operating loss amounted to $2.86 million, compared to an operating income of $10.3 million in the same period of 2024.

Net loss attributable to shareholders of CBAK Energy was $1.58 million, compared to net income attributable to shareholders of CBAK Energy of $9.8 million in the same period of 2024.

Basic and diluted loss per share were both $0.02, compared to basic and diluted income per share of $0.11 in 2024.

Zhiguang Hu, Chief Executive Officer of the Company, commented, “As anticipated, we experienced a significant 41% year-over-year decline in net revenues. This decrease was expected, as Model 26650 — a cell developed in 2006 and still produced at our Dalian facilities — has become largely outdated. Both existing and potential customers are currently transitioning from Model 26650 to the more advanced Model 40135. We are confident that, upon completing the construction of new manufacturing lines for Model 40135 in the second half of this year, and as customers finalize product validation, our revenues will begin to recover gradually.”

Jiewei Li, Chief Financial Officer and Secretary of the Board, added, “As Mr. Hu emphasized, we expect to recover once the product portfolio upgrade at our Dalian facilities is completed. Meanwhile, our Nanjing facilities continue to experience strong growth momentum, driven by robust market demand for Model 32140, our most advanced and flagship product to date. Additionally, we are in the final stages of securing a long-term order from one of our key customers, which we hope to finalize and share with our shareholders in the near future.”

Conference Call

CBAK Energy’s management will host an earnings conference call at 9:00 AM U.S. Eastern Time on Monday, May 19, 2025 (9:00 PM Beijing/Hong Kong Time on May 19, 2025).

For participants who wish to join our call online, please visit:
https://edge.media-server.com/mmc/p/wfu5unoh

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-conf.media-server.com/register/BIb49b754e574a43e68068965ba0234966

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/wfu5unoh

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
Email: ir@cbak.com.cn

CBAK Energy Technology, Inc. and Subsidiaries Condensed Consolidated Balance Sheets As of December 31, 2024 and March 31, 2025 (Unaudited) (In US$ except for number of shares)
	December 31, 2024				March 31, 2025
Assets
Current assets
Cash and cash equivalents	$	6,724,360			$	4,052,010
Pledged deposits		54,061,642				43,482,693
Term deposits		4,237,090				5,530,030
Trade and bills receivable, net		32,938,918				40,835,093
Inventories		22,851,027				30,803,486
Prepayments and other receivables		20,004,966				17,991,265
Receivables from former subsidiary		12,399				9,011
Income tax recoverable		566,458				455,342
Total current assets		141,396,860				143,158,930
Property, plant and equipment, net		85,486,829				84,283,683
Construction in progress		42,526,859				51,527,443
Long-term investments, net		2,246,494				2,313,725
Prepaid land use rights		11,075,973				11,056,715
Intangible assets, net		382,962				268,398
Deposit paid for acquisition of long-term investments		15,864,318				15,949,095
Operating lease right-of-use assets, net		3,237,849				2,906,652
Total assets	$	302,218,144			$	311,464,641
Liabilities
Current liabilities
Trade and bills payable		84,724,386				93,398,948
Short-term bank borrowings		26,087,350				29,301,628
Other short-term loans		335,715				335,905
Accrued expenses and other payables		58,285,635				50,305,373
Payable to a former subsidiary, net		419,849				418,211
Deferred government grants, current		556,214				559,186
Product warranty provisions		23,426				23,000
Operating lease liability, current		1,268,405				1,159,373
Total current liabilities		171,700,980				175,501,624
Long-term bank borrowings		-				4,131,890
Deferred government grants, non-current		7,580,255				10,272,610
Product warranty provisions		420,688				417,565
Operating lease liability, non-current		2,449,056				2,397,859
Total liabilities		182,150,979				192,721,548
Commitments and contingencies
Shareholders’ equity
Common stock $0.001 par value; 500,000,000 authorized; 90,083,396 issued and 89,939,190 outstanding as of December 31, 2024; and 90,083,868 issued and 89,939,662 outstanding as of March 31, 2025		90,083				90,083
Donated shares		14,101,689				14,101,689
Additional paid-in capital		247,842,445				247,869,511
Statutory reserves		1,230,511				3,042,602
Accumulated deficit		(122,605,730	)			(125,997,055	)
Accumulated other comprehensive loss		(14,919,345	)			(14,248,434	)
		125,739,653				124,858,396
Less: Treasury shares		(4,066,610	)			(4,066,610	)
Total shareholders’ equity		121,673,043				120,791,786
Non-controlling interests		(1,605,878	)			(2,048,693	)
Total equity		120,067,165				118,743,093
Total liabilities and shareholder’s equity	$	302,218,144			$	311,464,641

 

CBAK Energy Technology, Inc. and Subsidiaries Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) For the three months ended March 31, 2024 and 2025 (Unaudited) (In US$ except for number of shares)
	Three months ended March 31,
	2024				2025
Net revenues	$	58,822,432			$	34,938,901
Cost of revenues		(40,041,385	)			(30,137,167	)
Gross profit		18,781,047				4,801,734
Operating expenses:
Research and development expenses		(2,815,518	)			(3,023,961	)
Sales and marketing expenses		(1,724,032	)			(896,050	)
General and administrative expenses		(4,092,527	)			(3,804,137	)
Allowance of credit losses and bad debts written off, net		114,013				58,395
Total operating expenses		(8,518,064	)			(7,665,753	)
Operating income (loss)		10,262,983				(2,864,019	)
Finance income, net		9,663				45,120
Other income, net		367,438				712,792
Share of (loss) income of equity investee		(18,824	)			55,125
Income (loss) before income tax		10,621,260				(2, 050,982	)
Income tax expenses		(1,048,786	)			-
Net income (loss)		9,572,474				(2, 050,982	)
Less: Net loss attributable to non-controlling interests		263,976				471,748
Net income (loss) attributable to shareholders of CBAK Energy Technology, Inc.	$	9,836,450			$	(1,579,234	)
Net income (loss)		9,572,474				(2,050,982	)
Other comprehensive income (loss)
– Foreign currency translation adjustment		(1,906,048	)			699,844
Comprehensive income (loss)		7,666,426				(1,315,138	)
Less: Comprehensive loss attributable to non-controlling interests		274,223				442,816
Comprehensive income (loss) attributable to CBAK Energy Technology, Inc.	$	7,940,649			$	(908,322	)
Income (loss) per share
– Basic	$	0.11			$	(0.02	)
– Diluted	$	0.11			$	(0.02	)
Weighted average number of shares of common stock:
– Basic		89,925,024				89,938,690
– Diluted		90,123,965				89,938,690

FAQ

What caused CBAT's revenue decline in Q1 2025?

The 41% revenue decline was primarily due to the transition from Model 26650 to Model 40135 at Dalian facilities, where customers are currently in the testing and validation phase of the new model.

How much did CBAT's battery business revenue decrease in Q1 2025?

CBAT's battery business revenue decreased by 54.6% year-over-year, from $44.8 million to $20.4 million in Q1 2025.

Which segments showed growth for CBAT in Q1 2025?

Electric Vehicles segment grew by 11.9% and Light Electric Vehicles segment grew by 88.4% year-over-year.

When does CBAT expect recovery from the revenue decline?

CBAT expects gradual recovery after completing new Model 40135 manufacturing lines in second half of 2025 and as customers complete product validation.

What was CBAT's earnings per share in Q1 2025?

CBAT reported a basic and diluted loss per share of $0.02, compared to income per share of $0.11 in Q1 2024.