CBAT - 2021 Marked A Year of Turnaround, Backed By Strong Market Demands, Increasing Production Capacity & Integrated Supply of Lithium-Battery Materials
CBAK Energy (Nasdaq: CBAT) reported a profitable 2021 with net revenues of $52.7 million, a growth of 40% year-over-year, and $27.8 million in Q4, reflecting an 80% increase. Sales of high power lithium batteries surged 92% in Q4, with LEV-specific sales skyrocketing 3631% year-over-year. The company benefitted from stable lithium-ion battery raw materials post-acquisition of Zhejiang Hitrans. Gross margin improved to 9.7%, with net income reaching $61.5 million. CBAT is investing in R&D and increasing production capacity to meet growing battery demands.
- Net income of $61.5 million in 2021, compared to a net loss of $7.8 million in 2020.
- 80% revenue growth in Q4 2021, driven by a 92% increase in high power lithium battery sales.
- Acquisition of Hitrans secured stable supply of raw materials, enhancing production capabilities.
- Gross margin expanded to 9.7%, up 250 bps from 2020.
- Significant increase in battery orders, with $36 million outstanding from the Dalian facility.
- Gross margin decreased to 3.7% in Q4 2021 from 6.8% in Q4 2020 due to rising raw material costs.
NEW YORK, April 21, 2022 /PRNewswire/ -- CBAK Energy (Nasdaq: CBAT) released its fourth quarter and full year earnings ended Dec. 31, 2021 on April 14, 2022.
2021 marked a major year for CBAK Energy as the Company gained significant traction across its product lines, powered by strengthened technology and product competitiveness, and amplified by further expanded production capacity catered to increasing battery demands for light electric vehicles ("LEV") and electric vehicles ("EV").
According to press release, CBAT turned profitable in 2021 on GAAP basis, with revenues growing
The demonstrated strong financial and operational performance was also attributed to the stable supply of lithium-ion batteries raw materials, secured by CBAT's acquisition of majority stake in Zhejiang Hitrans Lithium Battery Technology Co. in November 2021, allowing the Company to build out its battery product ecosystem and scale the business. Having stable raw materials supply is especially crucial in an environment of rising commodity prices.
With the growth momentum in LEVs and EVs expected to remain strong in the foreseeable future, the Company has been mindful of the rising battery demands, and will continue to focus on scaling its battery production capacity, as well as expanding its battery material business to drive growth and cement its industry position as a frontrunner and leader in lithium-ion battery production and electric energy solutions. According to the Company, CBAT's Dalian lithium battery manufacturing plant is producing the model 26650/26700 battery at full capacity. As of March, CBAT had ~
CBAT's material business is expected to be benefited by the rising material price; According to the Company, CBAT's material business unit is at full capacity. Considering the rising prices and the fact that the market is getting hotter, CBAT's material business is expected to grow quickly.
For the full year of 2021, on top of the
Additionally, CBAT continues to invest in new headcounts, new business and R&D (up
Fourth Quarter and Full Year of 2021 Financial Highlights
Net revenues were
In terms of net revenues by end-product applications, revenues from high power lithium batteries used in LEV were
Gross margin down from
Net income attributable to CBAT shareholders increased to
Basic and fully-diluted net income per share were both
Cash and cash equivalents were
4Q-2021 Business Highlights and Recent Developments
In November 2021, CBAT completed the acquisition of ~
On December 21, 2021, CBAT subsidiary CBAK New Energy announced that the Company has agreed to develop a customized battery pack with AZAPA R&D China for the Sino-Japan joint venture, which designs and produces electronic control systems and battery and control systems for electric vehicles. Deal terms were not disclosed.
The battery pack will initially be used for testing low-speed electric vehicles produced by Daihatsu Motor Co., a subsidiary of Toyota Motor Corp. Meanwhile, CBAK Nanjing will cooperate with AZAPA to jointly explore international markets. CBAK targeted to deliver three sample battery pack sets to AZAPA by February 2022.
The designation of developing the battery pack demonstrates new recognition and trust from the industry in CBAT's technology capabilities, while empowering the Company to broaden product offerings for electric vehicles.
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