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]

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 [13] Business Line Data and Key Metrics Changes - The battery business experienced a significant decline, with net revenue dropping 54.6% to $20.36 million from $44.84 million in the prior year [6] - The electric vehicle business saw an increase of 11.9%, while the light electric vehicle segment grew by 88.4% [7] - The home energy storage business faced a decline of 60.4% [7] Market Data and Key Metrics Changes - The Nanjing facility maintained strong growth, producing the competitive model 32,140, while the Dalian facility is undergoing a product portfolio upgrade [8] - The production line for model 32,140 in Nanjing is running at full capacity to meet robust market demand [9] Company Strategy and Development Direction - The company is transitioning from the outdated model 26,650 to the promising model 41,35, with construction of the new manufacturing line expected to be completed in the second half of the year [7][8] - Plans to establish an overseas manufacturing facility in Southeast Asia are underway, driven by customer demand [10][11] - A dedicated manufacturing line in Southeast Asia is planned to support a large-scale four-year order, expected to begin production by mid-next year [12][14] Management's Comments on Operating Environment and Future Outlook - Management anticipates a significant recovery beginning next year once the Dalian facility upgrades are completed and model 41,35 is launched [13][14] - The company remains committed to maintaining a healthy gross margin to support the recovery of net income [14] Other Important Information - The company has reached an agreement in principle with a major customer for a high-volume purchase agreement, which includes substantial prepayments [11] - The decision to expand into Southeast Asia is entirely customer-driven, with favorable terms being negotiated [10][25] Q&A Session Summary Question: Confirmation of expansion goals for Dalian and Nanjing - The capacity for the Dalian facility remains at 2.3 gigawatt hours, with construction expected to be completed by June, while the Nanjing project will have a capacity of 1.5 gigawatt hours due to relocation of an assembly line [18][19] Question: Confidence in cylindrical cells for storage - The main market is home energy storage, where cylindrical cells are preferred due to design requirements for high voltage applications [20][22] Question: Demand pull from portable energy customers - Customers are seeking solutions to relocate manufacturing lines overseas, driven by tariff considerations, with ongoing negotiations for favorable terms [25][26]

Core Viewpoint - CBAK Energy Technology, Inc. reported a significant decline in net revenues for Q1 2025, primarily due to a transition in product offerings from Model 26650 to Model 40135, which is expected to lead to a gradual recovery in revenues as customers complete validation of the new model [2][6]. Financial Performance - Net revenues for Q1 2025 were $34.9 million, a decrease of 41% from $58.8 million in Q1 2024 [2][4]. - The battery business net revenues fell to $20.36 million, down 54.6% year-over-year from $44.84 million [3][4]. - Gross profit decreased to $4.8 million, a decline of 74.4% from $18.78 million in the same period of 2024, resulting in a gross margin of 13.7% compared to 31.9% [4][17]. - Operating loss was $2.86 million, contrasting with an operating income of $10.3 million in Q1 2024 [4][17]. - Net loss attributable to shareholders was $1.58 million, compared to a net income of $9.8 million in Q1 2024 [4][17]. Product Transition and Market Outlook - The decline in revenues is attributed to the transition from the outdated Model 26650 to the advanced Model 40135, with customers currently in a testing phase [2][6]. - The company anticipates a gradual recovery in revenues as the new manufacturing lines for Model 40135 are completed in the second half of 2025 [6][7]. - The Nanjing facilities are experiencing strong growth, driven by demand for Model 32140, the company's flagship product [7]. Revenue Breakdown - Revenue from electric vehicles increased by 11.9% to $537,507, while light electric vehicles saw an 88.4% increase to $2.84 million [3]. - Revenue from residential energy supply and uninterruptable supplies dropped by 60.4% to $16.98 million [3]. Balance Sheet Highlights - Total assets increased from $302.22 million as of December 31, 2024, to $311.46 million as of March 31, 2025 [14][15]. - Current liabilities rose from $171.70 million to $175.50 million during the same period [15]. - Shareholders' equity decreased from $121.67 million to $120.79 million [15].

Core Viewpoint - CBAK Energy Technology, Inc. will report its unaudited financial results for Q1 2025 on May 19, 2025, before the U.S. market opens [1] Group 1: Financial Reporting - The earnings results will be available on the Company's Investor Relations website and filed with the SEC on a Form 8-K [1] - An earnings conference call is scheduled for May 19, 2025, at 8:00 AM U.S. Eastern Time [2] Group 2: Company Overview - CBAK Energy is a leading lithium-ion battery manufacturer and electric energy solution provider in China, engaged in the development, manufacturing, and sales of new energy high power lithium and sodium batteries [4] - The Company became the first lithium battery manufacturer in China listed on the Nasdaq Stock Market in January 2006 [4] - CBAK Energy has multiple operating subsidiaries in Dalian, Nanjing, Shaoxing, and Shangqiu, along with a large-scale R&D and production base in Dalian [4]

Company Overview - CBAK Energy Technology, Inc. is a leading lithium-ion battery manufacturer and electric energy solution provider in China [1] - The company specializes in the development, manufacturing, and sales of new energy high power lithium and sodium batteries, as well as raw materials for high power lithium batteries [3] - CBAK Energy's products are utilized in electric vehicles, light electric vehicles, energy storage, and other high-power applications [3] - The company was the first lithium battery manufacturer in China to be listed on the Nasdaq Stock Market in January 2006 [3] - CBAK Energy operates multiple subsidiaries in Dalian, Nanjing, Shaoxing, and Shangqiu, with a significant R&D and production base in Dalian [3] Event Participation - CBAK Energy will participate in the Shenzhen International Battery Technology Conference & Expo (CIBF 2025) from May 15 to May 17, 2025 [1][2] - The company's sales team, R&D department, and key management members will be present at the event [2] - Interested parties are invited to visit CBAK Energy's booth (Booth 12T008, Hall 12) during the event [5] Industry Context - CIBF 2025 is one of the largest and most influential international exhibitions in the global battery industry [4] - The event is organized by the China Industrial Association of Power Sources and is expected to cover over 300,000 square meters with more than 3,000 exhibitors and over 400,000 professional visitors [4] - CIBF 2025 will showcase advancements in power batteries, energy storage solutions, hydrogen fuel cells, battery management systems (BMS), and sustainable energy innovations [4]

Core Insights - CBAK Energy Technology, Inc. reported a 14.6% share of the global market for 32140 cylindrical cells in Q1 2025, ranking fourth among competitors [1] - The company previously held a 19% market share in 2024, indicating a slight decline in market share but continued strong performance [2] - CBAK Energy's CEO emphasized the company's commitment to high-quality energy storage solutions and ongoing innovation [3] Company Overview - CBAK Energy is a leading manufacturer of lithium-ion and sodium-ion batteries in China, focusing on high-power applications such as electric vehicles and energy storage [3] - The company was the first lithium battery manufacturer in China to be listed on the Nasdaq Stock Market in January 2006 [3] - CBAK Energy operates multiple subsidiaries and has a significant R&D and production base in Dalian, China [3]

Core Insights - Kandi Technologies Group and CBAK Energy Technology have formed a strategic partnership to establish two lithium battery production facilities in the U.S. to meet the growing demand for off-road vehicles and align with clean energy incentives under the U.S. Inflation Reduction Act (IRA) [1][2] Group 1: Partnership Details - The partnership will involve the development of two facilities: one for battery pack assembly and another for battery cell manufacturing, with the first facility being prioritized for near-term development [1][2] - Each facility will operate as a separate joint venture, with ownership structures tailored to the specific project [1][2] Group 2: Market Opportunity - The North American market for off-road vehicles, including UTVs and golf carts, was valued at $16.7 billion in 2024 and is projected to reach approximately $25.0 billion by 2030, indicating significant growth potential [6] - The partnership aims to capture a meaningful share of the battery needs in this expanding market by localizing production [6] Group 3: Strategic Goals - The collaboration enhances supply chain resilience and addresses global trade and localization pressures while unlocking long-term growth potential [2][4] - Kandi and CBAK will jointly develop high energy density battery systems optimized for off-road and powersports vehicles, ensuring a seamless production ramp-up [6]