DALIAN, China, June 30, 2025 (GLOBE NEWSWIRE) -- CBAK Energy Technology, Inc. (NASDAQ: CBAT) ("CBAK Energy" or the "Company"), a leading manufacturer of lithium-ion and sodium-ion batteries and comprehensive electric energy solutions in China, today announced that its wholly-owned subsidiary, China BAK Asia Holdings Limited ("China BAK"), has entered into a significant strategic partnership (the “Partnership”) with Anker Innovations Technology Co., Ltd. (Shenzhen Stock Exchange: 300866, “Anker Innovations”) ...

Core Viewpoint - CBAK Energy Technology, Inc. is actively pursuing collaboration opportunities with FAW Group to supply its upcoming Model 46950 battery cell, indicating a strategic move to re-enter the electric vehicle (EV) battery market [1][5]. Group 1: Company Developments - CBAK Energy's delegation, led by the Principal of the Academy of Research & Development, visited FAW Group to discuss potential collaboration [2]. - The Model 46950 cell, designed for EV applications, features two variants with NCM and a hybrid of LMFP and NCM chemistry, offering energy density improvements of approximately 65.64% and 22.70% over the current flagship Model 32140 [3]. - The Model 46950 supports 4C fast charging, which is double the 2C capability of the Model 32140, enhancing its appeal for EV applications [3]. Group 2: Market Positioning - The introduction of the Model 46950 is expected to position CBAK Energy favorably in the EV battery market, with an official launch anticipated next year [4]. - The CEO of CBAK Energy emphasized the importance of reestablishing connections with former partners, highlighting the strategic intent to return to the EV market [5]. Group 3: Company Background - CBAK Energy is a leading high-tech enterprise in China focused on the development and manufacturing of lithium batteries for various applications, including electric vehicles and energy storage [6].

Core Viewpoint - CBAK Energy Technology, Inc. has secured a significant order from Africa's largest electric vehicle player, valued at approximately US$11.6 million, for its advanced lithium-ion batteries, indicating strong demand for sustainable mobility solutions in emerging markets [2][4]. Company Overview - CBAK Energy is a leading lithium-ion battery manufacturer in China, engaged in the development, manufacturing, and sales of high-power lithium batteries and raw materials [5]. - The company was the first lithium battery manufacturer in China to be listed on the Nasdaq Stock Market in January 2006 [5]. Order Details - The order consists mainly of CBAK Energy's Model 32140 large LFP cylindrical batteries, with potential follow-on orders from the customer totaling up to US$55 million [2]. - This strategic partnership aims to support the customer's rapidly expanding fleet of electric motorcycles across Africa, promoting sustainable mobility solutions [2][3]. Customer Profile - The customer is recognized as Africa's leading electric vehicle company, known for its innovative battery-swapping technology and electric motorcycles tailored for African conditions [3]. - The collaboration emphasizes the delivery of affordable and locally manufactured electric mobility solutions, contributing to a shift away from fossil fuel-based transport [3]. Strategic Focus - CBAK Energy's CEO highlighted the importance of this order in reinforcing the company's strategic focus on expanding its market presence in emerging regions [4]. - The partnership aligns with the company's commitment to the sustainable development of the electric mobility sector in Africa and beyond [4].

Core Insights - CBAK Energy Technology, Inc. has received a follow-up order valued at approximately USD 3 million from Livguard, increasing the total order value from Livguard to USD 7.9 million since the partnership began [1][4]. Company Overview - CBAK Energy is a leading lithium-ion battery manufacturer in China, engaged in the development, manufacturing, and sales of high-power lithium batteries and raw materials [5]. - The company's products are utilized in various applications, including electric vehicles, energy storage, and uninterruptible power supplies [5]. - CBAK Energy became the first lithium battery manufacturer in China to be listed on the Nasdaq Stock Market in January 2006 [5]. Partnership Details - Livguard, an Indian energy storage solutions provider, has a strong market presence supported by the SAR Group and offers a wide range of energy solutions [2]. - Livguard sources Model 32140 cylindrical lithium-ion batteries from CBAK Energy, which are known for their high performance and reliability [3]. Strategic Growth - The CEO of CBAK Energy highlighted the importance of the recent order from Livguard as a validation of the company's battery technology and a step towards strengthening its presence in India's energy market [4].

Core Viewpoint - CBAK Energy Technology, Inc. has announced a share repurchase program authorized to buy up to $20 million of its common stock to return value to shareholders and support compliance with Nasdaq's minimum bid price requirement [1][2]. Group 1: Share Repurchase Program - The share repurchase program aims to return value to shareholders and assist in regaining compliance with Nasdaq's minimum bid price requirement [2]. - The company may repurchase shares through various means, including open market purchases and privately negotiated transactions, with the program set to terminate on May 20, 2026 [2]. - The timing and total amount of stock repurchases will depend on various factors, including market conditions and corporate requirements [2]. Group 2: Financial Performance - CBAK Energy reported a gross margin of 31.5% in its battery segment and 23.7% across the entire business for 2024 [3]. - The company's flagship product, the Model 32140, captured 19% of the global market share in 2024, indicating strong market presence [3]. - The management believes the current stock price significantly undervalues the company, reinforcing the decision to initiate the share repurchase program [3]. Group 3: Company Overview - CBAK Energy is a leading lithium-ion battery manufacturer in China, engaged in the development, manufacturing, and sales of high-power lithium and sodium batteries [4]. - The company's products are used in various applications, including electric vehicles and energy storage [4]. - CBAK Energy became the first lithium battery manufacturer in China to be listed on the Nasdaq Stock Market in January 2006 [4].

Core Viewpoint - CBAK Energy Technology, Inc. is actively participating in The Battery Show Europe 2025, highlighting its role as a leading manufacturer in the lithium-ion battery sector and its commitment to innovation in energy solutions [1][2]. Company Overview - CBAK Energy is a prominent high-tech enterprise in China focused on the development, manufacturing, and sales of new energy high power lithium and sodium batteries, as well as raw materials for high power lithium battery production [3]. - The company's products are utilized in various applications, including electric vehicles, light electric vehicles, and energy storage systems [3]. - CBAK Energy was the first lithium battery manufacturer in China to be listed on the Nasdaq Stock Market in January 2006 [3]. - The company operates multiple subsidiaries in Dalian, Nanjing, Shaoxing, and Shangqiu, with a significant R&D and production base located in Dalian [3]. Event Details - The Battery Show Europe 2025 is scheduled from June 3 to June 5, 2025, at Messe Stuttgart, Germany [2]. - CBAK Energy will have a presence at Booth Hall 9-E40, where its sales team, R&D department, and key management members will engage with attendees [2]. - The event will feature over 1,000 exhibitors showcasing innovations across the entire battery supply chain, from raw materials to recycling [4].

Company Milestones & Market Position - CBAK was among the first to manufacture large cylindrical cells using Model 32140 and small cylindrical cells, Model 26650[61] - Model 32140 cells captured 19% of the global market share in 2024, while Model 26650 captured 64%[12] - The company maintains an average A-grade product yield of 9892%, higher than competitors[62] Production Capacity & Expansion - Dalian Branch's production capacity is expected to reach 33 GWh by 2025, mainly for Model 40135 cells[19] - Nanjing Branch's production capacity is expected to reach 43 GWh by mid-2025[24] - The company is exploring setting up a new production base in Southeast Asia[40] Financial Performance & Projections - Net revenues from the battery business increased by 171% from 2021 to 2024[48] - Net income from the battery business increased from $14 million in 2023 to $1943 million in 2024[54] - The company projects net revenues for the battery segment to reach RMB 14 billion in 2025, a 4098% increase over 2024[70] - The company projects net income for the battery segment to reach RMB 100 million in 2025[71] - In the first quarter of 2025, Residential Energy Supply & Uninterruptable Supplies accounted for 8338% of the battery business revenue[49]

Financial Performance - Net revenues decreased by $23.9 million, or 41%, to $34.9 million for the three months ended March 31, 2025, from $58.8 million for the same period in 2024[247] - Gross profit was $4.8 million, representing a decrease of $14.0 million, or 74.4%, for the three months ended March 31, 2025, compared to $18.8 million for the same period in 2024[247] - Operating loss was $2.9 million for the three months ended March 31, 2025, reflecting an increase of $13.1 million from an operating income of $10.3 million for the same period in 2024[247] - Net loss was $2.1 million for the three months ended March 31, 2025, compared to a net income of $9.6 million for the same period in 2024[247] Revenue Breakdown - Net revenues from sales of batteries for light electric vehicles increased by $1.3 million, or 88%, to $2.8 million for the three months ended March 31, 2025, compared to $1.5 million in the same period of 2024[254] - Net revenues from sales of batteries for residential energy supply and uninterruptable power supplies decreased by $25.8 million, or 60%, to $17.0 million for the three months ended March 31, 2025, from $42.8 million for the same period in 2024[255] Cost and Expenses - Cost of revenues decreased to $30.1 million for the three months ended March 31, 2025, compared to $40.0 million for the same period in 2024, a decrease of $9.9 million, or 25%[257] - Gross profit margin for the three months ended March 31, 2025, was 13.7%, down from 31.9% for the same period in 2024[258] - Research and development expenses increased to approximately $3.0 million for the three months ended March 31, 2025, up from approximately $2.8 million for the same period in 2024, representing a 9% increase[259] - Sales and marketing expenses decreased to approximately $0.9 million for the three months ended March 31, 2025, down from approximately $1.7 million for the same period in 2024, a decrease of 48%[260] - General and administrative expenses decreased to $3.8 million, or 11% of revenues, for the three months ended March 31, 2025, compared to $4.1 million, or 7% of revenues, for the same period in 2024, a decrease of 7%[261] Cash Flow and Working Capital - As of March 31, 2025, cash and cash equivalents were $47.5 million, total current assets were $143.2 million, and total current liabilities were $175.5 million, resulting in a net working capital deficit of $32.3 million[267] - The accumulated deficit as of March 31, 2025, was $126.1 million, raising substantial doubts about the company's ability to continue as a going concern[268] - As of March 31, 2025, the company had net cash used in operating activities of $9.7 million, primarily due to an increase in inventories of $8.7 million and trade and bills receivable of $7.4 million[302] - The net cash provided by operating activities for the three months ended March 31, 2024, was $7.4 million, attributed to a net income of $12.4 million[303] - Net cash used in investing activities was $9.9 million for the three months ended March 31, 2025, mainly for purchases of property, plant, and equipment[304] - The company reported net cash provided by financing activities of $5.9 million in the three months ended March 31, 2025, primarily from $24.3 million in bank borrowings[306] Debt and Financing - The company entered into new banking facilities with Bank of Communications for a maximum loan amount of RMB155.8 million (approximately $21.5 million) on January 22, 2025[270] - The company incurred finance expenses, net of $39,093 for the three months ended March 31, 2025, compared to finance income of $9,663 for the same period in 2024[263] - The company entered into a short-term credit-guaranteed loan agreement with Zhejiang Shangyu Rural Commercial Bank for RMB5 million (approximately $0.7 million) at an interest rate of 4.1% per annum, which was early repaid on September 27, 2024[281] - A short-term loan agreement with China Zheshang Bank Co., Ltd Shangyu Branch was established for RMB5.5 million (approximately $0.8 million) at an interest rate of 4.05% per annum, with early repayment on January 24, 2025[282] - The company borrowed RMB10 million (approximately $1.4 million) from Bank of China at an interest rate of 3.0% per annum, which was early repaid on August 23, 2024[283] - A new short-term credit-guaranteed loan agreement for RMB15 million (approximately $2.1 million) was entered into with Zhejiang Shangyu Rural Commercial Bank, bearing an interest rate of 4.00%[284] - As of March 31, 2025, the total principal amounts outstanding under credit facilities and lines of credit were $91.5 million, with a maximum available amount of $100.4 million[309] Future Outlook and Investments - The company expects gross profit margins to gradually recover upon the upgrade from Model 26650 to Model 40135[258] - The company plans to expand product lines and manufacturing capacity, requiring additional funding and potential future equity or debt financing[299] - Capital expenditures for Q1 2025 were $12.6 million, up from $7.9 million in Q1 2024, primarily for facility upgrades in Dalian, Nanjing, and Zhejiang[310] - Total capital expenditures for fiscal year 2025 are estimated to reach approximately $50 million, focused on constructing new plants and battery module packing lines[310] Accounting Policies - There were no material changes to critical accounting policies from the previous year, as disclosed in the audited consolidated financial statements for the year ended December 31, 2024[312]

Financial Performance - Net revenues for Q1 2025 were $34.9 million, a decrease of 41% from $58.8 million in Q1 2024[3] - Battery business net revenues fell to $20.36 million, down 54.6% year-over-year from $44.84 million[4] - Gross profit for the battery business decreased by 74.4% to $4.72 million, with a gross margin of 23.2% compared to 41.2% in Q1 2024[4] - Operating loss was $2.86 million, a significant decline from an operating income of $10.3 million in the same period last year[6] - Net loss attributable to shareholders was $1.58 million, compared to net income of $9.8 million in Q1 2024[6] - Gross profit for the three months ended March 31, 2024, was $18.78 million, compared to $4.80 million in 2025, indicating a significant decline[21] - Operating income for the three months ended March 31, 2024, was $10.26 million, while the company reported an operating loss of $2.86 million in 2025[21] - Net income attributable to shareholders of CBAK Energy Technology, Inc. for the three months ended March 31, 2024, was $9.84 million, contrasting with a net loss of $1.58 million in 2025[21] - Comprehensive income attributable to CBAK Energy Technology, Inc. was $7.94 million for the three months ended March 31, 2024, compared to a comprehensive loss of $908,322 in 2025[21] - Basic earnings per share for the three months ended March 31, 2024, were $0.11, while the diluted earnings per share were also $0.11, compared to a loss of $0.02 in 2025[21] Operational Developments - The transition from Model 26650 to Model 40135 is expected to lead to a gradual recovery in revenues as customers complete product validation[8] - Nanjing facilities are experiencing strong growth driven by demand for Model 32140, the company's flagship product[8] - The company anticipates completing the construction of new manufacturing lines for Model 40135 in the second half of 2025[8] Financial Position - Cash and cash equivalents decreased from $6.72 million at the end of 2024 to $4.05 million by March 31, 2025[18] - Total liabilities increased from $182.15 million at the end of 2024 to $192.72 million by March 31, 2025[19] Research and Development - Research and development expenses increased to $2.82 million in 2024 from $3.02 million in 2025, indicating a focus on innovation despite financial challenges[21] Marketing and Currency Impact - Sales and marketing expenses decreased significantly to $1.72 million in 2024 from $896,050 in 2025, reflecting a strategic shift in expenditure[21] - The company reported a foreign currency translation adjustment loss of $1.91 million in 2024, contrasting with a gain of $699,844 in 2025, highlighting currency volatility impacts[21]

Financial Data and Key Metrics Changes - The company reported a year-over-year decline of 41% in net revenues, totaling $34.9 million compared to the same period last year [6] - A net loss of $1.64 million was reported, contrasting with a net income of $9.8 million in the same period last year [12] Business Segment Data and Key Metrics Changes - The battery business recorded net revenue of $20.36 million, representing a 54.6% decrease from $44.84 million in the prior year [6] - The electric vehicle business achieved an 11.9% increase, while the light electric vehicle segment saw significant growth of 88.4% [7] - The home energy storage business experienced a 60.4% decline [7] Market Data and Key Metrics Changes - The Nanjing facility continues to maintain strong growth momentum, producing the highly competitive model 32,140, which has emerged as the company's flagship product [8] - The Dalian facility is undergoing a product portfolio upgrade, transitioning to the model 41,35, which is expected to have strong market potential [7][8] Company Strategy and Development Direction - The company is establishing a manufacturing line for model 41,35, with construction expected to be completed in the second half of the year [8] - Plans to expand into Southeast Asia are driven by customer demand, with an agreement in principle for a four-year high-volume purchase agreement [10] - The new Southeast Asian facility is expected to begin production by mid-next year, designed for flexible manufacturing of both model 32,140 and model 41,35 cells [11] Management's Comments on Operating Environment and Future Outlook - Management anticipates a significant recovery beginning next year once the Dalian facility upgrade is completed and model 41,35 is launched [12][13] - The company remains committed to maintaining a healthy gross margin to support the recovery of net income [13] Other Important Information - The company is evaluating the establishment of an overseas manufacturing facility in Southeast Asia and the feasibility of expanding production capacity to the United States [9] - The decision to expand into Southeast Asia is entirely customer-driven, with favorable terms being negotiated [10] Q&A Session Summary Question: Confirmation of expansion goals - The capacity for the Dalian facility remains at 2.3 gigawatt hours, with the Nanjing project adjusted to 1.5 gigawatt hours due to the relocation of an assembly line to Southeast Asia [17][18] Question: Customer confidence in cylindrical cells - The main market for home energy storage systems favors cylindrical cells due to design requirements for high voltage applications [20][21] Question: Demand pull from portable energy customers - Customers are seeking solutions to relocate manufacturing lines overseas, driven by favorable terms and the current tariff situation [24]