CBAK Energy Reports Second Quarter and First Half 2023 Unaudited Financial Results
- Net revenues from sales of batteries increased by 27.2% to $51.8 million.
- Gross margin for the battery business increased to 12.8%.
- The company has entered into partnerships with Echom, HiNa Battery, Viessmann Group, and Hello Tech.
- None.
First Half of 2023 Financial Highlights
- Net revenues from sales of batteries were
, an increase of$51.8 million 27.2% from in the same period of 2022.$40.7 million - Net revenues from batteries used in light electric vehicles were
, an increase of$3.1 million 309.9% from in the same period of 2022.$0.8 million - Net revenues from batteries used in electric vehicles were
, an increase of 6454.4 times from$2.0 million in the same period of 2022.$303.0 - Net revenues from uninterruptible supplies were
, an increase of$46.8 million 17.0% from in the same period of 2022.$40.0 million - Gross margin for the battery business was
12.8% , an increase of 3.4 percentage points from9.4% in the same period of 2022.
Yunfei Li, Chairman and Chief Executive Officer of the Company, commented, "During the first half of 2023, our battery business had strong revenue growth of
Xiangyu Pei, Interim Chief Financial Officer, added, "We are pleased to report strong half year results marked by sustainable growth and increased profitability. Thanks to our product's strength and optimized operating efficiency, our gross margin rose to
Second Quarter of 2023 Business Highlights & Recent Developments
- In July, CBAK Energy announced that its subsidiary, Dalian CBAK, reached agreements with the Shangqiu Urban-Rural Integration Demonstration Zone and partnering entities, which will increase Dalian CBAK's capacity by approximately
RMB300 million worth of the 26700 cylindrical batteries. - In July, CBAK Energy announced that its subsidiary, Nanjing CBAK, entered a 3-year strategic partnership for a
RMB180 million lithium-ion battery order with Echom, a well-known industrial design group inChina . - In June, CBAK Energy announced a strategic agreement with HiNa Battery, a unicorn and leading player in the sodium electricity industry, and Hello Tech, the parent company of Jackery, a premier global portable power supplier, respectively, during its first Corporate Open Day.
- In June, CBAK Energy announced that it is the first company worldwide to achieve mass production of large cylindrical sodium batteries and full-scale commercialization along the entire value chain from upstream to downstream during the Corporate Open Day.
- In June, CBAK Energy received an order worth
EUR116.5 million (approximatelyUSD124.5 million ) of lithium-ion batteries from the Viessmann Group, a leading European heating, cooling, and renewable energy system provider, for 2024. - In June, CBAK Energy entered into a strategic agreement and secured
RMB25 million in funding from Hello Tech, the parent company of Jackery, a leading global portable power supplier, for the sodium-ion battery R&D program.
Second Quarter of 2023 Financial Results
Net revenues were
Among these revenues, detailed revenues from our battery business are:
Battery Business | 2022 Second Quarter | 2023 Quarter | % | |||
Net Revenues ($) | 25,715,415 | 22,232,003 | -13.5 | |||
Gross Profits ($) | 2,836,287 | 3,425,147 | 20.8 | |||
Gross Margin | 11.0 % | 15.4 % | - | |||
Net Revenues from Battery Business | ||||||
Electric Vehicles | (6) | 135,731 | - | |||
Light Electric Vehicles | 671,444 | 1,147,902 | 71.0 | |||
Uninterruptable supplies | 25,043,977 | 20,948,370 | -16.4 | |||
Total | 25,715,415 | 22,232,003 | -13.5 |
Cost of revenues was
Gross profit was
Total operating expenses were
- Research and development expenses were
, an increase of$3.0 million 29.6% from in the same period of 2022.$2.3 million - Sales and marketing expenses were
million, an increase of$1.0 38.1% from million in the same period of 2022.$0.7 - General and administrative expenses were
, an increase of$3.6 million 46.0% from in the same period of 2022.$2.5 million - Provision for doubtful accounts was
, compared to a recovery of doubtful accounts of$0.13 million in the same period of 2022.$0.06 million
Operating loss amounted to
Finance income, net amounted to
Change in fair value of warrants was
Net loss attributable to shareholders of CBAK Energy was
Net loss attributable to shareholders of CBAK Energy (after deducting the change in fair value of warrants) was
Basic and diluted loss per share were both
First Half of 2023 Financial Results
Net revenues were
Battery Business | 2022 First Half | 2023 | % Change | |||
Net Revenues ($) | 40,736,101 | 51,835,386 | 27.2 | |||
Gross Profits ($) | 3,819,211 | 6,638,505 | 73.8 | |||
Gross Margin | 9.4 % | 12.8 % | - | |||
Net Revenues from Battery Business on | ||||||
Electric Vehicles | 303 | 1,955,979 | 645,437.6 | |||
Light Electric Vehicles | 760,208 | 3,115,959 | 309.9 | |||
Uninterruptable supplies | 39,975,590 | 46,763,448 | 17.0 | |||
Total | 40,736,101 | 51,835,386 | 27.2 |
Cost of revenues was
Gross profit was
Total operating expenses were
- Research and development expenses were
, a decrease of$5.4 million 3.1% from in the same period of 2022.$5.6 million - Sales and marketing expenses were
, an increase of$1.7 million 10.3% from in the same period of 2022.$1.5 million - General and administrative expenses were
, an increase of$6.1 million 29.2% from in the same period of 2022.$4.7 million - Provision for doubtful accounts was
, compared to$0.26 million in the same period of 2022.$0.21 million
Operating loss was
Finance income, net was
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 8:30 AM
For participants who wish to join our call online, please visit:
https://edge.media-server.com/mmc/p/6uzum5dv
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/BI83386b12da554bf7abfbd186831164cd
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/6uzum5dv
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
Mr. Thierry Jiewei Li
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 | |||||||||
Condensed consolidated Balance Sheets | |||||||||
As of December 31, 2022 and June 30, 2023 | |||||||||
(Unaudited) | |||||||||
(In US$ except for number of shares) | |||||||||
December 31, | June 30, | ||||||||
(Unaudited) | |||||||||
Assets | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 6,519,212 | $ | 3,449,446 | |||||
Pledged deposits | 30,836,864 | 40,189,167 | |||||||
Trade and bills receivable, net | 27,413,575 | 29,322,723 | |||||||
Inventories | 49,446,291 | 41,818,660 | |||||||
Prepayments and other receivable | 5,915,080 | 5,267,046 | |||||||
Receivables from former subsidiary, net | 5,518,052 | 323,973 | |||||||
Income tax recoverable | 57,934 | 55,182 | |||||||
Total current assets | 125,707,008 | 120,426,197 | |||||||
Property, plant and equipment, net | 90,004,527 | 88,084,125 | |||||||
Construction in progress | 9,954,202 | 25,945,637 | |||||||
Long-term investments, net | 945,237 | 900,334 | |||||||
Prepaid land use rights | 12,361,163 | 11,616,881 | |||||||
Intangible assets, net | 1,309,058 | 1,017,171 | |||||||
Operating lease right-of-use assets, net | 1,264,560 | 1,082,209 | |||||||
Deferred tax assets, net | 2,486,979 | 3,101,858 | |||||||
Total assets | $ | 244,032,734 | $ | 252,174,412 | |||||
Liabilities | |||||||||
Current liabilities | |||||||||
Trade and bills payable | $ | 67,491,435 | $ | 75,570,051 | |||||
Short-term bank borrowings | 14,907,875 | 26,813,901 | |||||||
Other short-term loans | 689,096 | 352,482 | |||||||
Accrued expenses and other payables | 25,605,661 | 27,869,385 | |||||||
Payables to former subsidiaries, net | 358,067 | 387,263 | |||||||
Deferred government grants, current | 1,299,715 | 367,271 | |||||||
Product warranty provisions | 26,215 | 23,355 | |||||||
Warrants liability | 136,000 | 15,000 | |||||||
Operating lease liability, current | 575,496 | 366,391 | |||||||
Finance lease liability, current | 844,297 | 114,884 | |||||||
Total current liabilities | 111,933,857 | 131,879,983 | |||||||
Deferred government grants, non-current | 5,577,020 | 5,129,127 | |||||||
Product warranty provisions | 450,613 | 451,739 | |||||||
Operating lease liability, non-current | 607,222 | 539,742 | |||||||
Accrued expenses and other payables, non-current | 1,085,525 | - | |||||||
Total liabilities | 119,654,237 | 138,000,591 | |||||||
Commitments and contingencies | |||||||||
Shareholders' equity | |||||||||
Common stock | 89,135 | 89,151 | |||||||
Donated shares | 14,101,689 | 14,101,689 | |||||||
Additional paid-in capital | 246,240,998 | 247,070,345 | |||||||
Statutory reserves | 1,230,511 | 1,230,511 | |||||||
Accumulated deficit | (131,946,705) | (135,962,050) | |||||||
Accumulated other comprehensive income (loss) | (8,153,644) | (13,798,697) | |||||||
121,561,984 | 112,730,949 | ||||||||
Less: Treasury shares | (4,066,610) | (4,066,610) | |||||||
Total shareholders' equity | 117,495,374 | 108,664,339 | |||||||
Non-controlling interests | 6,883,123 | 5,509,482 | |||||||
Total equity | 124,378,497 | 114,173,821 | |||||||
Total liabilities and shareholder's equity | $ | 244,032,734 | $ | 252,174,412 |
CBAK Energy Technology, Inc. and Subsidiaries | |||||||||||||||||
Condensed consolidated Statements of Operations and Comprehensive Loss | |||||||||||||||||
For the three and six months ended June 30, 2022 and 2023 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(In US$ except for number of shares) | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
2022 | 2023 | 2022 | 2023 | ||||||||||||||
Net revenues | $ | 56,349,660 | $ | 42,420,870 | $ | 136,545,958 | $ | 84,817,571 | |||||||||
Cost of revenues | (50,814,352) | (38,536,228) | (125,694,296) | (78,027,185) | |||||||||||||
Gross profit | 5,535,308 | 3,884,642 | 10,851,662 | 6,790,386 | |||||||||||||
Operating expenses: | |||||||||||||||||
Research and development expenses | (2,299,466) | (2,980,718) | (5,612,590) | (5,436,046) | |||||||||||||
Sales and marketing expenses | (697,664) | (963,588) | (1,527,338) | (1,684,592) | |||||||||||||
General and administrative expenses | (2,453,515) | (3,582,893) | (4,690,889) | (6,062,028) | |||||||||||||
Recovery of (provision for) doubtful | 59,826 | (130,493) | (211,617) | (261,660) | |||||||||||||
Total operating expenses | (5,390,819) | (7,657,692) | (12,042,434) | (13,444,326) | |||||||||||||
Operating income (loss) | 144,489 | (3,773,050) | (1,190,772) | (6,653,940) | |||||||||||||
Finance (expenses) income, net | (620,490) | 252,472 | (615,476) | 257,783 | |||||||||||||
Other (expenses) income, net | (458,946) | 238,040 | (173,742) | 421,253 | |||||||||||||
Change in fair value of warrants | 2,131,000 | 36,000 | 3,763,000 | 121,000 | |||||||||||||
Income before income tax | 1,196,053 | (3,246,538) | 1,783,010 | (5,853,904) | |||||||||||||
Income tax (expenses) credit | (179,788) | 307,311 | (86,242) | 710,195 | |||||||||||||
Net income (loss) | 1,016,265 | (2,939,227) | 1,696,768 | $ | (5,143,709) | ||||||||||||
Less: Net (income) loss attributable | (211,075) | 304,237 | (447,125) | 1,128,364 | |||||||||||||
Net income (loss) attributable to | $ | 805,190 | $ | (2,634,990) | $ | 1,249,643 | $ | (4,015,345) | |||||||||
Net income (loss) | 1,016,265 | (2,939,227) | 1,696,768 | (5,143,709) | |||||||||||||
Other comprehensive loss | |||||||||||||||||
– Foreign currency translation | (7,126,920) | (6,639,109) | (6,694,727) | (5,890,330) | |||||||||||||
Comprehensive loss | (6,110,655) | (9,578,336) | (4,997,959) | (11,034,039) | |||||||||||||
Less: Comprehensive (loss) income | (205,075) | 643,620 | (482,134) | 1,373,641 | |||||||||||||
Comprehensive loss attributable to | $ | (6,315,730) | $ | (8,934,716) | $ | (5,480,093) | $ | (9,660,398) | |||||||||
Income (loss) per share | |||||||||||||||||
– Basic | $ | 0.00 | * | $ | (0.03) | $ | 0.01 | $ | (0.05) | ||||||||
– Diluted | $ | 0.00 | * | $ | (0.03) | $ | 0.01 | $ | (0.05) | ||||||||
Weighted average number of shares | |||||||||||||||||
– Basic | 89,007,924 | 89,030,137 | 88,852,594 | 89,021,795 | |||||||||||||
– Diluted | 89,019,818 | 89,030,137 | 88,865,263 | 89,021,795 |
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SOURCE CBAK Energy Technology, Inc.
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