CBAK Energy Reports Third Quarter 2022 Unaudited Financial Results
CBAK Energy Technology, Inc. (NASDAQ: CBAT) reported a remarkable 504% increase in net revenues for Q3 2022, reaching $57.7 million compared to $9.6 million in Q3 2021. The company's gross profit also surged by 206% to $3.5 million. A strategic partnership with JinPeng Group enhanced their presence in the EV and LEV markets, which contributed to a 413% revenue increase in those segments. Despite these gains, the company reported a net loss of $0.9 million, an improvement from $3.0 million in the same quarter last year.
- Net revenues increased 504% year-over-year to $57.7 million.
- Gross profit rose 206% to $3.5 million.
- Revenues from EV & LEV markets grew by 413% compared to Q3 2021.
- Strategic partnership with JinPeng Group enhances market reach.
- Net loss attributable to shareholders narrowed to $0.9 million from $3.0 million, indicating ongoing losses.
- Gross margin decreased to 6% from 12% due to rising raw material prices.
--Net Revenues up
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 of504% from$9.6 million for the same period of 2021. - Gross profit was
$3.5 million , representing an increase of206% , 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 by68.6% .
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
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
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
Net Revenues by End-product Applications | 2021 Third Quarter | 2022 Quarter | % Change | |||||||
Segment 1 High power lithium batteries used in: | ||||||||||
Uninterruptible supplies | 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 | 504 % | |||||||||
Cost of revenues was
Gross profit was
Total operating expenses were
- Research and development expenses were
$2.4 million , an increase of31% from$1.8 million for the same period of 2021. - Sales and marketing expenses were
$0.8 million , an increase of64% from$0.5 million for the same period of 2021. - General and administrative expenses were
$1.9 million , a decrease of14% 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
Finance income, net was
Change in fair value of warrants was
Net loss attributable to shareholders of CBAK Energy was
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
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 | 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- | (3,487) | 848,438 | (21,995) | 401,313 | ||||||||||||||
Net income (loss) attributable to | $ | 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) | (3,404) | 1,632,419 | (16,024) | 1,150,285 | ||||||||||||||
Comprehensive income (loss) attributable | $ | 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 |
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SOURCE CBAK Energy Technology, Inc.
FAQ
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