DALIAN,
China, May 10, 2023 /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 first quarter 2023
ended March 31, 2023.
First Quarter of 2023 Financial Highlights
- Net revenues from sales of batteries were $29.60 million, up by 97.1% from $15.02 million in the same period of 2022.
- Net revenues from batteries used in light electric
vehicles were $1.97 million, up
by 2,117.2% from $0.09 million in the
same period of 2022.
- Net revenues from batteries used in electric vehicles
were $1.82 million, increased by
5889.8 times from $309 in the same
period of 2022.
- Net revenues from uninterruptible supplies were
$25.82 million, up by 72.9% from
$14.93 million in the same period of
2022.
- Gross margin for battery business was 10.85%, improved
by 4.31% from 6.54% in the same period of 2022.
Yunfei Li, Chairman and Chief
Executive Officer of the Company, commented: "Our raw materials
manufacturing unit, Hitrans, experienced a decline in sales due to
the rapid decrease in raw material prices. However, our battery
business continued to grow, achieving a 97.1% increase in sales.
The benefit of the lower raw material price is expected to
positively impact our battery business later this year on both
revenues and gross profits. On client development, we are pleased
to have established a collaboration with PowerOak and its portable
power supply brand, BlueTTI, which is one of the top three players
in the portable power supply market. We are confident that as the
impact of the decreasing raw material price on Hitrans weakens, our
overall sales and client orders will quickly resume momentum."
Xiangyu Pei, our Interim Chief Financial Officer, highlighted
the following points: "The industry as a whole is currently waiting
for the raw material price to stabilize before committing to new
orders. However, despite this cautious sentiment, we achieved a
significant increase in our battery business. The gross margin for
our battery business reached 10.85%, improved by 4.31 percentage
points year on year. Furthermore, we were able to reduce our sales
and marketing expenses by 13.1%. As we look to the future, we
anticipate that the industry will recover later this year, and the
relatively lower price of raw materials will be helpful to enhance
our profitability."
First Quarter of 2023 Business Highlights & Recent
Developments
- In April, CBAK Energy announced that it had secured battery
orders worth approximately RMB18.60
million (equivalent to $2.71
million) from PowerOak, the parent company of BlueTTI, a
globally recognized brand in the portable power supply market. As
of April 18, 2023, CBAK Energy had
received orders worth approximately RMB36.85
million (equivalent to $5.36
million) from PowerOak for batteries to be used in their
portable power supply units, including their sub-brand, BlueTTI. We
anticipate that the order amount will continue to grow.
First Quarter of 2023 Financial Results
Net revenues were $42.40
million, representing a decline of 47.1% compared to the
same period in 2022. This decline was primarily attributable to a
decrease in sales at Hitrans, our indirect majority-owned
subsidiary engaged in the production and sale of battery raw
materials, which was primarily caused by the falling prices of raw
materials.
Among these revenues, detailed revenues from our battery
business are:
Battery
Business
|
|
2022
First
Quarter
|
|
2023
First
Quarter
|
|
% Change
YoY
|
Net
Revenues ($)
|
|
15,020,686
|
|
29,603,383
|
|
97.1
|
Gross Profits ($)
|
|
982,924
|
|
3,213,358
|
|
1787.0
|
Gross Margin
|
|
6.54 %
|
|
10.85 %
|
|
-
|
Net Revenues from
Battery Business on Applications ($)
|
|
|
|
|
|
|
Electric Vehicles
|
|
309
|
|
1,820,248
|
|
588,977
|
Light Electric Vehicles
|
|
88,764
|
|
1,968,057
|
|
2,117.2
|
Uninterruptable supplies
|
|
14,931,613
|
|
25,815,078
|
|
72.9
|
Total
|
|
15,020,686
|
|
29,603,383
|
|
97.1
|
Cost of revenues was $39.49 million, a decrease of
47.3% from $74.88 million in the same
period of 2022. This decrease was primarily due to the decline in
net revenues.
Gross profit was $2.91
million, representing a decrease of 45.3% from $5.32 million in the same period of 2022.
However, our gross margin improved by 0.22%, increasing from 6.63%
to 6.85%.
Total operating expenses were $5.79 million, which represented a slight
decrease of 13.0% from $6.65 million
in the same period of 2022.
- Research and development expenses were $2.46 million, a decrease of 25.9% from
$3.31 million in the same period of
2022.
- Sales and marketing expenses were $0.72 million, decreased by 13.1% from
$0.83 million in the same period of
2022.
- General and administrative expenses were $2.48 million, an increase of 10.8% from
$2.24 million in the same period of
2022.
- Provision for doubtful accounts was $0.13 million, compared to $0.27 million in the same period of 2022.
Operating loss amounted to $2.88 million, representing a significant
increase of 115.8% compared to the same period in 2022, where we
recorded an operating loss of $1.34
million.
Finance income, net amounted to $5,311, slightly increased from $5,014 recorded in the same period of 2022.
Change in fair value of warrants was $85,000, compared to $1.63
million in the same period of 2022. The change in fair value
of the warrants liability is mainly due to share price
movement.
Net loss attributable to shareholders of CBAK Energy was
$1.38 million, which was in contrast
to net income attributable to shareholders of CBAK Energy of
$0.44 million recorded in the same
period of 2022.
Net loss attributable to
shareholders of CBAK Energy (after deducting change
in fair value of warrants) was $1.47
million, compared to a net loss attributable to shareholders
of CBAK Energy of $1.19 million in
the same period of 2022.
Basic and diluted loss per share were both
$0.02, while in the same period of
2022, basic and diluted income per share were both $0.01.
Conference Call
CBAK's management will host an earnings conference call at
10:00 AM U.S. Eastern Time
on Wednesday, May 10, 2023 (10:00 PM Beijing/Hong Kong
Time on May 10, 2023).
For participants who wish to join our call online, please
visit:
https://edge.media-server.com/mmc/p/akiisaic
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 unique pin and an email with detailed instructions.
Participant Online Registration:
https://register.vevent.com/register/BI682ec97e06c84fd0806340e6165b9c0b
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/akiisaic
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 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, 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 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
|
Condensed
consolidated Balance Sheets
|
As of December 31,
2022 and March 31, 2023
|
(Unaudited)
|
(In US$ except for
number of shares)
|
|
|
|
|
|
December 31,
2022
|
|
|
March 31,
2023
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
$
|
6,519,212
|
|
|
$
|
7,535,193
|
|
Pledged
deposits
|
|
|
|
|
30,836,864
|
|
|
|
35,601,854
|
|
Trade and bills
receivable, net
|
|
|
|
|
27,413,575
|
|
|
|
28,109,643
|
|
Inventories
|
|
|
|
|
49,446,291
|
|
|
|
50,777,816
|
|
Prepayments and other
receivables
|
|
|
|
|
5,915,080
|
|
|
|
6,121,156
|
|
Receivables from a
former subsidiary, net
|
|
|
|
|
5,518,052
|
|
|
|
1,818,269
|
|
Income tax
recoverable
|
|
|
|
|
57,934
|
|
|
|
58,273
|
|
Total current
assets
|
|
|
|
|
125,707,008
|
|
|
|
130,022,204
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
|
|
90,004,527
|
|
|
|
88,433,232
|
|
Construction in
progress
|
|
|
|
|
9,954,202
|
|
|
|
15,174,189
|
|
Long-term investments,
net
|
|
|
|
|
945,237
|
|
|
|
950,770
|
|
Prepaid land use
rights
|
|
|
|
|
12,361,163
|
|
|
|
12,350,586
|
|
Intangible assets,
net
|
|
|
|
|
1,309,058
|
|
|
|
1,195,435
|
|
Operating lease
right-of-use assets, net
|
|
|
|
|
1,264,560
|
|
|
|
1,140,996
|
|
Deferred tax assets,
net
|
|
|
|
|
2,486,979
|
|
|
|
2,902,856
|
|
Total assets
|
|
|
|
$
|
244,032,734
|
|
|
$
|
252,170,268
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
Trade and bills
payable
|
|
|
|
$
|
67,491,435
|
|
|
$
|
77,765,458
|
|
Short-term bank
borrowings
|
|
|
|
|
14,907,875
|
|
|
|
18,634,717
|
|
Other short-term
loans
|
|
|
|
|
689,096
|
|
|
|
602,337
|
|
Accrued expenses and
other payables
|
|
|
|
|
25,605,661
|
|
|
|
22,372,971
|
|
Payables to a former
subsidiary, net
|
|
|
|
|
358,067
|
|
|
|
355,913
|
|
Deferred government
grants, current
|
|
|
|
|
1,299,715
|
|
|
|
847,584
|
|
Product warranty
provisions
|
|
|
|
|
26,215
|
|
|
|
24,663
|
|
Warrants
liability
|
|
|
|
|
136,000
|
|
|
|
51,000
|
|
Operating lease
liability, current
|
|
|
|
|
575,496
|
|
|
|
479,875
|
|
Finance lease
liability, current
|
|
|
|
|
844,297
|
|
|
|
485,279
|
|
Total current
liabilities
|
|
|
|
|
111,933,857
|
|
|
|
121,619,797
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred government
grants, non-current
|
|
|
|
|
5,577,020
|
|
|
|
5,513,425
|
|
Product warranty
provisions
|
|
|
|
|
450,613
|
|
|
|
471,016
|
|
Operating lease
liability, non-current
|
|
|
|
|
607,222
|
|
|
|
546,461
|
|
Accrued expenses and
other payables, non-current
|
|
|
|
|
1,085,525
|
|
|
|
1,091,878
|
|
Total
liabilities
|
|
|
|
|
119,654,237
|
|
|
|
129,242,577
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
Common stock $0.001 par
value; 500,000,000 authorized; 89,135,064
issued and 88,990,858 outstanding as of December 31,
2022;
89,151,731 issued and 89,007,525 outstanding as of
March 31, 2023
|
|
|
|
|
89,135
|
|
|
|
89,151
|
|
Donated
shares
|
|
|
|
|
14,101,689
|
|
|
|
14,101,689
|
|
Additional paid-in
capital
|
|
|
|
|
246,240,998
|
|
|
|
246,245,879
|
|
Statutory
reserves
|
|
|
|
|
1,230,511
|
|
|
|
1,230,511
|
|
Accumulated
deficit
|
|
|
|
|
(131,946,705)
|
|
|
|
(133,327,060)
|
|
Accumulated other
comprehensive loss
|
|
|
|
|
(8,153,644)
|
|
|
|
(7,498,971)
|
|
|
|
|
|
|
121,561,984
|
|
|
|
120,841,199
|
|
Less: Treasury
shares
|
|
|
|
|
(4,066,610)
|
|
|
|
(4,066,610)
|
|
Total shareholders'
equity
|
|
|
|
|
117,495,374
|
|
|
|
116,774,589
|
|
Non-controlling
interests
|
|
|
|
|
6,883,123
|
|
|
|
6,153,102
|
|
Total equity
|
|
|
|
|
124,378,497
|
|
|
|
122,927,691
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholder's equity
|
|
|
|
$
|
244,032,734
|
|
|
$
|
252,170,268
|
|
CBAK Energy
Technology, Inc. and Subsidiaries
|
Condensed
consolidated Statements of Operations and Comprehensive Income
(Loss)
|
For the three months
ended March 31, 2022 and 2023
|
(Unaudited)
|
(In US$ except for
number of shares)
|
|
|
|
|
|
Three months
ended
March 31,
|
|
|
|
|
|
2022
|
|
|
2023
|
|
Net revenues
|
|
|
|
$
|
80,196,298
|
|
|
$
|
42,396,701
|
|
Cost of
revenues
|
|
|
|
|
(74,879,944)
|
|
|
|
(39,490,957)
|
|
Gross profit
|
|
|
|
|
5,316,354
|
|
|
|
2,905,744
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses
|
|
|
|
|
(3,313,124)
|
|
|
|
(2,455,328)
|
|
Sales and marketing expenses
|
|
|
|
|
(829,674)
|
|
|
|
(721,004)
|
|
General and administrative expenses
|
|
|
|
|
(2,237,374)
|
|
|
|
(2,479,135)
|
|
Provision for doubtful accounts
|
|
|
|
|
(271,443)
|
|
|
|
(131,167)
|
|
Total operating expenses
|
|
|
|
|
(6,651,615)
|
|
|
|
(5,786,634)
|
|
Operating
loss
|
|
|
|
|
(1,335,261)
|
|
|
|
(2,880,890)
|
|
Finance income,
net
|
|
|
|
|
5,014
|
|
|
|
5,311
|
|
Other income,
net
|
|
|
|
|
285,204
|
|
|
|
183,213
|
|
Changes in fair value
of warrants liability
|
|
|
|
|
1,632,000
|
|
|
|
85,000
|
|
Income (loss) before
income tax
|
|
|
|
|
586,957
|
|
|
|
(2,607,366)
|
|
Income tax
credit
|
|
|
|
|
93,546
|
|
|
|
402,884
|
|
Net income
(loss)
|
|
|
|
|
680,503
|
|
|
|
(2,204,482)
|
|
Less: Net (income) loss
attributable to non-controlling interests
|
|
|
|
|
(236,050)
|
|
|
|
824,127
|
|
Net income (loss)
attributable to shareholders of CBAK Energy
Technology, Inc.
|
|
|
|
$
|
444,453
|
|
|
$
|
(1,380,355)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
|
|
680,503
|
|
|
|
(2,204,482)
|
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
– Foreign currency translation adjustment
|
|
|
|
|
432,193
|
|
|
|
748,779
|
|
Comprehensive income
(loss)
|
|
|
|
|
1,112,696
|
|
|
|
(1,455,703)
|
|
Less: Comprehensive
(income) loss attributable to non-controlling interests
|
|
|
|
|
(277,059)
|
|
|
|
730,021
|
|
Comprehensive income
(loss) attributable to CBAK Energy Technology, Inc.
|
|
|
|
$
|
835,637
|
|
|
$
|
(725,682)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
share
|
|
|
|
|
|
|
|
|
|
|
– Basic
|
|
|
|
$
|
0.01
|
|
|
$
|
(0.02)
|
|
– Diluted
|
|
|
|
$
|
0.01
|
|
|
$
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares of common stock:
|
|
|
|
|
|
|
|
|
|
|
– Basic
|
|
|
|
|
88,713,841
|
|
|
|
89,013,359
|
|
– Diluted
|
|
|
|
|
88,734,957
|
|
|
|
89,013,359
|
|
View original
content:https://www.prnewswire.com/news-releases/cbak-energy-reports-first-quarter-2023-unaudited-financial-results-301820698.html
SOURCE CBAK Energy Technology, Inc.