CBAK Energy Reports Fourth Quarter and Full Year 2023 Unaudited Financial Results
- Significant increase in net revenues for Q4 2023 and full year 2023 compared to the previous periods.
- Improved gross margins for the battery business, reaching record-high levels in Q4 2023.
- Strong performance in the battery business with positive net income for consecutive quarters.
- Expansion of client base with key partnerships in the industry.
- Introduction of a new facility to address increased demand and support growth.
- Confidence in continued growth trajectory and projected net income for 2024.
- Decrease in sales from Hitrans due to challenges in the raw materials market.
- Operating loss in Q4 2023 and full year 2023, despite improvements compared to previous periods.
- Increase in total operating expenses, research and development expenses, and sales and marketing expenses.
- Weaker performance of Hitrans affecting overall net loss attributable to shareholders of CBAK Energy.
Insights
The report from CBAK Energy Technology indicates a significant shift in the company's financial health, with a noteworthy increase in net revenues and a transition from a net loss to net income in the battery business. This performance can be attributed to the company's strategic focus on residential energy supply and uninterruptible power supplies, which saw an 84.3% increase in net revenues year-over-year. The substantial growth in gross margin, from 8.3% to 36.0%, reflects improved operational efficiency and possibly a favorable product mix or pricing strategy.
However, it is important to note the stark decrease in revenues from batteries used in electric and light electric vehicles, which may signal a shift in market demand or competitive pressures. Investors should consider the sustainability of the growth in residential energy supply revenues and the company's ability to adapt to changes in the electric vehicle market. The lack of outstanding secured bank loans as of December 31, 2023, suggests a strong balance sheet, potentially making the company more resilient to market volatility and providing flexibility for future investments.
Analyzing the financial results of CBAK Energy, the dramatic improvement in net income from a loss of $7.8 million in 2022 to a profit of $13.4 million in 2023 stands out. This turnaround is particularly impressive given the current economic challenges faced by competitors, hinting at strong operational management and possibly a unique competitive advantage. The company's decision to expand production capacity in Shangqiu city could be seen as a proactive measure to capitalize on high product demand and address supply constraints.
Investors should, however, approach the decline in sales of batteries for electric vehicles with caution. This could either represent a temporary setback or a more concerning trend that may require strategic realignment. The company's future outlook, with anticipated continued net income, should be balanced against the broader market dynamics, including raw material pricing and demand fluctuations in the EV sector.
The performance of CBAK Energy in the residential energy supply and uninterruptible power supply segments is indicative of the growing demand for energy storage solutions in residential settings. This aligns with global trends towards energy independence and the integration of renewable energy sources. The company's record-high gross margin in the last quarter reflects a potentially advantageous cost structure or value-added product offerings that resonate with the market.
The decline in the EV battery segment could be a red flag, signaling either a strategic deprioritization or a loss of market share to competitors. The energy sector's rapid evolution necessitates continuous innovation and adaptation and CBAK Energy's future performance will depend on its ability to maintain its growth in the profitable segments while addressing challenges in the EV space.
Fourth Quarter of 2023 Financial Highlights
- Net revenues from sales of batteries were
$36.8 million 30.9% from$28.1 million
- Net revenues from batteries used in light electric vehicles were
- Net revenues from batteries used in electric vehicles were
- Net revenues from residential energy supply & uninterruptible supplies were
- Gross margin for the battery business was
36.0% , an increase of 27.7 percentage points from8.3% in the same period of 2022. - Net income from the battery business was
$6.6 million $6.4 million
Full Year of 2023 Financial Highlights
- Net revenues from sales of batteries were
$133.0 million 40.4% from$94.7 million
- Net revenues from batteries used in light electric vehicles were
- Net revenues from batteries used in electric vehicles were
- Net revenues from residential energy supply & uninterruptible supplies were
- Gross margin for the battery business was
23.8% , an increase of 14.9 percentage points from8.9% in 2022.
- Net income for the battery business was
$13.4 million $7.8 million
Yunfei Li, Chairman and Chief Executive Officer of the Company, commented, "We are delighted to announce a strong performance in the fourth quarter of 2023, concluding the year on a positive note. Our primary battery business sustained its growth trajectory from the previous quarter, supported by ongoing orders from key clients, including the Viessmann Group, one of
Jiewei Li, Chief Financial Officer and Secretary of the Board of the Company, added, "We closed the year with robust fourth quarter financial results from our battery business, achieving a
Fourth Quarter of 2023 Financial Results
Net revenues[1] were
Among these revenues, detailed revenues from our battery business are:
Battery Business | 2022 Fourth Quarter | 2023 Fourth Quarter | % Change YoY | |||||||||
Net Revenues ($) | 28,133,129 | 36,830,478 | 30.9 | |||||||||
Gross Profits ($) | 2,320,001 | 13,243,436 | 470.8 | |||||||||
Gross Margin | 8.3 | % | 36.0 | % | - | |||||||
Net Income/(loss) ($) | -6,353,106 | 6,622,297 | - | |||||||||
Net Revenues from Battery Business on Applications ($) | ||||||||||||
Electric Vehicles | 4,674,703 | 524,543 | -88.8 | |||||||||
Light Electric Vehicles | 4,508,699 | 1,377,369 | -69.5 | |||||||||
Residential Energy Supply & Uninterruptable supplies | 18,947,555 | 34,928,566 | 84.3 | |||||||||
Total | 28,130,957 | 36,830,478 | 30.9 | |||||||||
[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. Hitrans had a strong client base and higher revenues at the time of acquisition. Following the acquisition, the Company maintained Hitrans' core management team and refrained from interfering in its day-to-day operations. The Company has no additional financial obligations to Hitrans, and its financial health will not significantly affect the financial standing of the Company's battery business, as it is only reflected in the Company's consolidated financial statements. |
Cost of revenues was
Gross profit was
Total operating expenses were
- Research and development expenses were
$3.9 million 48.4% from$2.6 million - Sales and marketing expenses were
$2.1 million $-0.4 million - General and administrative expenses were
$4.5 million 40.6% from$3.2 million - Provision for doubtful accounts was
$0.74 million $0.76 million
Operating loss amounted to
Finance income, net amounted to
Change in fair value of warrants was nil, compared to
Net loss attributable to shareholders of CBAK Energy was
Net loss attributable to shareholders of CBAK Energy (after deducting the change in fair value of warrants) was
Full Year of 2023 Financial Results
Net revenues were
Among these revenues, detailed revenues from our battery business are:
Battery Business | 2022 | 2023 | % Change YoY | |||||||||
Net Revenues ($) | 94,715,189 | 132,993,518 | 40.4 | |||||||||
Gross Profits ($) | 8,382,142 | 31,580,168 | 276.8 | |||||||||
Gross Margin | 8.9 | % | 23.8 | % | - | |||||||
Net Income (Loss) ($) | -7,768,248 | 13,369,180 | - | |||||||||
Net Revenues from Battery Business on Applications ($) | ||||||||||||
Electric Vehicles | 4,694,694 | 2,883,385 | -38.6 | |||||||||
Light Electric Vehicles | 6,415,277 | 5,607,435 | -12.6 | |||||||||
Residential Energy Supply & Uninterruptable supplies | 83,603,046 | 124,502,698 | 48.9 | |||||||||
Total | 94,713,017 | 132,993,518 | 40.4 | |||||||||
Cost of revenues was
Gross profit was
Total operating expenses were
- Research and development expenses were
$11.9 million 12.2% from$10.6 million - Sales and marketing expenses were
$4.9 million 144.2% from$2.0 million - General and administrative expenses were
$13.8 million 41.6% from$9.7 million - Provision for expected credit losses was
$1.0 million $0.8 million
Operating loss amounted to
Finance income, net amounted to
Change in fair value of warrants was
Net loss attributable to shareholders of CBAK Energy was
Net loss attributable to shareholders of CBAK Energy (after deducting the change in fair value of warrants) was
Basic and diluted loss per share were both
Conference Call
CBAK Energy's management will host an earnings conference call at 8:00 AM
For participants who wish to join our call online, please visit:
https://edge.media-server.com/mmc/p/p4d96jix
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/BId788502bb16b4e41b84b2528dbc6f135
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/p4d96jix
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
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
For further inquiries, please contact:
In
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
Piacente Financial Communications
Ms. Brandi Piacente
Tel: +1-212-481-2050
Email: CBAK@thepiacentegroup.com
CBAK Energy Technology, Inc. and Subsidiaries | ||||||||||
Unaudited Condensed Consolidated Balance Sheets | ||||||||||
As of December 31, 2022 and 2023 | ||||||||||
(In US$ except for number of shares) | ||||||||||
December 31, | December 31, | |||||||||
Assets | ||||||||||
Current assets | ||||||||||
Cash and cash equivalents | $ | 6,519,212 | $ | 4,643,267 | ||||||
Pledged deposits | 30,836,864 | 54,179,549 | ||||||||
Trade and bills receivable, net | 27,413,575 | 28,653,047 | ||||||||
Inventories | 49,446,291 | 33,413,422 | ||||||||
Prepayments and other receivables | 5,915,080 | 7,459,254 | ||||||||
Receivables from former subsidiary | 5,518,052 | 74,946 | ||||||||
Income tax recoverable | 57,934 | - | ||||||||
Total current assets | 125,707,008 | 128,423,485 | ||||||||
Property, plant and equipment, net | 90,004,527 | 91,628,832 | ||||||||
Construction in progress | 9,954,202 | 37,797,862 | ||||||||
Long-term investments, net | 945,237 | 2,565,005 | ||||||||
Prepaid land use rights | 12,361,163 | 11,712,704 | ||||||||
Intangible assets, net | 1,309,058 | 841,360 | ||||||||
Deposit paid for acquisition of long-term investments | - | 7,101,492 | ||||||||
Operating lease right-of-use assets, net | 1,264,560 | 1,084,520 | ||||||||
Deferred tax assets, net | 2,486,979 | - | ||||||||
Total assets | $ | 244,032,734 | $ | 281,155,260 | ||||||
Liabilities | ||||||||||
Current liabilities | ||||||||||
Trade and bills payable | $ | 67,491,435 | 82,429,575 | |||||||
Short-term bank borrowings | 14,907,875 | 32,587,676 | ||||||||
Other short-term loans | 689,096 | 339,552 | ||||||||
Accrued expenses and other payables | 25,605,661 | 41,992,540 | ||||||||
Payable to a former subsidiary, net | 358,067 | 411,111 | ||||||||
Deferred government grants, current | 1,299,715 | 375,375 | ||||||||
Product warranty provisions | 26,215 | 23,870 | ||||||||
Warrants liability | 136,000 | - | ||||||||
Operating lease liability, current | 575,496 | 691,992 | ||||||||
Finance lease liability, current | 844,297 | 1,643,864 | ||||||||
Total current liabilities | 111,933,857 | 160,495,555 | ||||||||
Deferred government grants, non-current | 5,577,020 | 6,203,488 | ||||||||
Product warranty provisions | 450,613 | 522,574 | ||||||||
Operating lease liability, non-current | 607,222 | 475,302 | ||||||||
Accrued expenses and other payables, non-current | 1,085,525 | - | ||||||||
Total liabilities | 119,654,237 | 167,696,919 | ||||||||
Commitments and contingencies | ||||||||||
Shareholders' equity | ||||||||||
Common stock | 89,135 | 90,063 | ||||||||
Donated shares | 14,101,689 | 14,101,689 | ||||||||
Additional paid-in capital | 246,240,998 | 247,465,817 | ||||||||
Statutory reserves | 1,230,511 | 1,230,511 | ||||||||
Accumulated deficit | (131,946,705) | (134,395,762) | ||||||||
Accumulated other comprehensive loss | (8,153,644) | (11,601,403) | ||||||||
121,561,984 | 116,890,915 | |||||||||
Less: Treasury shares | (4,066,610) | (4,066,610) | ||||||||
Total shareholders' equity | 117,495,374 | 112,824,305 | ||||||||
Non-controlling interests | 6,883,123 | 634,036 | ||||||||
Total equity | 124,378,497 | 113,458,341 | ||||||||
Total liabilities and shareholder's equity | $ | 244,032,734 | $ | 281,155,260 | ||||||
CBAK Energy Technology, Inc. and Subsidiaries Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) For the years ended December 31, 2022 and 2023 (In US$ except for number of shares) | ||||||||||
Year ended | Year ended | |||||||||
December 31, | December 31, | |||||||||
Net revenues | $ | 248,725,485 | $ | 204,438,365 | ||||||
Cost of revenues | (230,630,161) | (172,714,042) | ||||||||
Gross profit | 18,095,324 | 31,724,323 | ||||||||
Operating expenses: | ||||||||||
Research and development expenses | (10,635,486) | (11,928,070) | ||||||||
Sales and marketing expenses | (2,007,812) | (4,903,926) | ||||||||
General and administrative expenses | (9,737,711) | (13,789,108) | ||||||||
Impairment charge on long-lived assets | (4,831,708) | (7,070,236) | ||||||||
Impairment charge on goodwill | (1,556,078) | - | ||||||||
Provision for expected credit losses and bad debts written off | (831,132) | (1,284,795) | ||||||||
Total operating expenses | (29,599,927) | (38,976,135) | ||||||||
Operating loss | (11,504,603) | (7,251,812) | ||||||||
Finance income, net | 491,060 | 432,900 | ||||||||
Other (expenses) income, net | (7,252,475) | 3,023,238 | ||||||||
Impairment charges on equity investee | - | (2,366,080) | ||||||||
Share of loss of equity investee | - | (27,428) | ||||||||
Changes in fair value of warrants liability | 5,710,000 | 136,000 | ||||||||
Loss before income tax | (12,556,018) | (6,053,182) | ||||||||
Income tax credit (expenses), net | 1,228,207 | (2,486,145) | ||||||||
Net loss | (11,327,811) | (8,539,327) | ||||||||
Less: Net loss attributable to non-controlling interests | 1,879,365 | 7,522,337 | ||||||||
Net loss attributable to shareholders of CBAK Energy Technology, Inc. | $ | (9,448,446) | $ | (1,016,990) | ||||||
Net loss | (11,327,811) | (8,539,327) | ||||||||
Other comprehensive loss | ||||||||||
– Foreign currency translation adjustment | (11,189,175) | (3,606,576) | ||||||||
Comprehensive loss | (22,516,986) | (12,145,903) | ||||||||
Less: Comprehensive loss attributable to non-controlling interests | 2,425,879 | 7,759,779 | ||||||||
Comprehensive loss attributable to CBAK Energy Technology, Inc. | $ | (20,091,107) | $ | (4,386,124) | ||||||
Loss per share | ||||||||||
– Basic | $ | (0.11) | $ | (0.03) | ||||||
– Diluted | $ | (0.11) | $ | (0.03) | ||||||
Weighted average number of shares of common stock: | ||||||||||
– Basic | 88,927,671 | 89,252,085 | ||||||||
– Diluted | 88,927,671 | 89,252,085 | ||||||||
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SOURCE CBAK Energy Technology, Inc.
FAQ
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