CBAK Energy Technology, Inc. (NASDAQ:CBAT) Q4 2023 Earnings Conference Call March 15, 2024 8:00 AM ET Company Participants Thierry Li - Chief Financial Officer and Secretary of the Board Yunfei Li - Chief Executive Officer Conference Call Participants Brian Lantier - Zacks Small Cap Research Operator Good day, ladies and gentlemen. Thank you for standing by. Welcome to CBAT Energy Technology's Fourth Quarter and Full-Year of 2023 Earnings Conference Call. Currently, all participants are in listen-only mode. ...

CBAK Energy Technology, Inc. Investor Presentation March 2024 (NASDAQ: CBAT) Disclaim ...

DALIAN, China, March 15, 2024 /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 fourth quarter and full year ended December 31, 2023. Fourth Quarter of 2023 Financial Highlights Net revenues from sales of batteries were $36.8 million, an increase of 30.9% from $28.1 million in the same period of 2022. -    Net revenues ...

Financial Performance - The company generated revenues of $204.4 million for the fiscal year ended December 31, 2023, a decrease of $44.3 million, or 18%, compared to $248.7 million for the fiscal year ended December 31, 2022[313][324]. - The net loss for the fiscal year ended December 31, 2023, was $8.5 million, an improvement of $2.8 million, or 25%, from a net loss of $11.3 million in the previous year[313][324]. - The company reported a gross profit of $31.7 million for the fiscal year ended December 31, 2023, representing a 75% increase from $18.1 million in 2022[324]. - The company recorded an operating loss of $7.3 million in 2023, a decrease of 37.0% from an operating loss of $11.5 million in 2022[337]. - The net loss for the year ended December 31, 2023, was $8.5 million, compared to a net loss of $11.3 million in 2022[339]. Revenue Breakdown - Revenue from residential energy supply and uninterruptible power supply products increased to $124.5 million in 2023, up $40.9 million, or 49%, from $83.6 million in 2022[313][324]. - Net revenue from sales of batteries for light electric vehicles decreased to $5.6 million in 2023, down $0.8 million, or 13%, from $6.4 million in 2022[313][326]. - Net revenues from sales of materials for lithium battery cell manufacturing dropped to $71.4 million in 2023, down from $154.0 million in 2022, due to a rapid decrease in raw material prices[330]. - Net revenues from sales of batteries for residential energy supply increased by 49% to $124.5 million in 2023, compared to $83.6 million in 2022[329]. Operating Expenses - The company incurred total operating expenses of $39.0 million in 2023, an increase of $9.4 million, or 32%, compared to $29.6 million in 2022[324]. - Research and development expenses rose to $11.9 million in 2023, an increase of 12.2% from $10.6 million in 2022[332]. - Sales and marketing expenses surged by 144.2% to $4.9 million in 2023, compared to $2.0 million in 2022[333]. - General and administrative expenses increased by 41.6% to $13.8 million in 2023, up from $9.7 million in 2022[334]. Cash Flow and Financing - As of December 31, 2023, the company had cash and cash equivalents of $58.8 million and a net working capital deficit of $32.1 million[340]. - Net cash provided by operating activities increased to $46.5 million for the year ended December 31, 2023, compared to $15.1 million in 2022, primarily due to a net income of $17.1 million[391][392]. - Net cash used in investing activities was $42.3 million in fiscal year 2023, compared to $7.9 million in 2022, with significant investments in property, plant, and equipment totaling $31.1 million[393]. - Net cash provided by financing activities increased to $18.6 million in 2023 from $5.6 million in 2022, primarily due to bank borrowings of $36.1 million[395]. Debt and Equity Transactions - The company entered into a one-year term facility with Jiangsu Gaochun Rural Commercial Bank for a maximum amount of RMB9 million (approximately $1.2 million) at an interest rate of 4.6% per annum[350]. - A short-term loan agreement with China CITIC Bank Shaoxing Branch was established for RMB10 million (approximately $1.4 million) at an interest rate of 4.35% per annum, with repayments totaling RMB10 million (approximately $1.4 million) made[351]. - The company has engaged in private placements and registered direct offerings, raising approximately $5.52 million from the issuance of 2,206,640 shares at $2.5 per share[360]. - The company entered into agreements to cancel debts in exchange for shares, including a total of 3,431,373 shares issued to Mr. Dawei Li and 1,666,667 shares to Mr. Yunfei Li at an exchange price of $1.02 per share[363]. - The company canceled a debt of approximately $11.17 million in exchange for 3,192,291 shares at an exchange price of $3.5 per share[383]. Future Plans and Investments - The company has invested in the development of the 32140 battery and plans to invest in R&D for Series 46 batteries to enhance competitiveness in the EV and LEV markets[313]. - The company plans to expand product lines and manufacturing capacity, requiring additional funding and potential equity financing[388]. - The company estimates total capital expenditures for fiscal year 2024 will reach approximately $30.0 million for new plants and production lines[399]. - Capital expenditures rose to $30.7 million in 2023 from $12.4 million in 2022, with a focus on constructing new facilities in Dalian, Nanjing, and Zhejiang[398]. Government Support and Subsidies - The company received government subsidies from local Chinese government agencies, which are presented as part of income unless earmarked for specific expenses[415]. - Government grants applicable to land are amortized over the life of the depreciable facilities constructed on it[416]. - The company defers recognition of unearned government subsidies until the criteria for recognition are met[415]. Currency and Fair Value - The exchange rate for balance sheet items, except for equity accounts, was 6.9091 RMB per U.S. dollar as of December 31, 2022, and increased to 7.0971 RMB per U.S. dollar by December 31, 2023[423]. - The fair value of warrants not indexed to the company's stock is recorded as a liability, with changes in estimated fair value recognized as non-cash gains or losses[419]. - The company uses the Black-Scholes Option Valuation Model to estimate the fair value of option awards, considering historical volatilities and U.S. Treasury yield curves[418].

Exhibit 99.1 CBAK Energy Reports Fourth Quarter and Full Year 2023 Unaudited Financial Results DALIAN, China, March 15, 2024 /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 fourth quarter and full year ended December 31, 2023. Fourth Quarter of 2023 Financial Highlights ● Net revenues from sales of batteries were $36.8 ...

DALIAN, China, March 6, 2024 /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 announced that it will report its unaudited financial results for the fourth quarter and full year ended December 31, 2023 on Friday, March 15, 2024, before the U.S. market opens. The earnings results will be available on the Company's Investor Relations website, and will be filed with the ...

Financial Data and Key Metrics - Battery business revenue in Q3 2023 reached $44.33 million, a 71.51% YoY increase [4] - Operating income for Q3 2023 was $7.58 million, with net income at $7.77 million, 6.3 times higher than the same period last year [4] - Gross margin for the battery business in Q3 2023 was 26.4%, up 17.7 percentage points from 8.7% in Q3 2022 [14] - Net revenue for Q3 2023 was $63.4 million, a 9.9% increase from $57.7 million in Q3 2022 [14] - Gross profit in Q3 2023 was $12.2 million, a 264% increase from $3.5 million in Q3 2022 [15] Business Line Data and Key Metrics - Revenue from energy storage applications was $42.81 million, a 73.5% YoY increase [5] - Revenue from electric vehicle batteries was $0.4 million, a 19.5x YoY increase [5] - Revenue from light electric vehicle batteries was $1.11 million, down 2.8% YoY [5] - Total battery business revenue for the first nine months of 2023 was $96.16 million, a 44.43% YoY increase [5] Market Data and Key Metrics - Orders from key clients in Europe and the US have shown exceptional stability and sustainability [6] - As of November 1, 2023, the company had approximately RMB900 million in unfulfilled orders across its Dalian and Nanjing facilities [6] - Orders from PowerOak totaled around RMB43.2 million, while orders from JinPeng Group amounted to roughly RMB63.59 million [7] - Orders from Viessmann Group totaled EUR116.5 million from the beginning of 2023 to November 1 [8] - Orders from Anker Innovations amounted to RMB58.35 million, with expectations of monthly orders in the future [8] Company Strategy and Industry Competition - The company is focusing on meeting prime clients with scale, investing in production capacity and R&D [9] - The Dalian and Nanjing facilities have reached a production capacity of one gigawatt hour [9] - The company is developing new lithium battery models (46115 and 46157) with higher energy density and extended lifespan [9] - The company plans to expand the production capacity for the 46 series batteries to 15 gigawatt hours at the Dalian facility [10] - The company is the only one in China capable of mass-producing sodium-ion batteries, with plans to build a plant with a target capacity of 10 gigawatt hours [11] Management Commentary on Operating Environment and Future Outlook - The company is confident in sustaining robust performance and profit growth despite global economic slowdown [6] - The company expects to finalize private equity financing for the sodium-ion battery plant soon [11] - The company aims to achieve a twin-engine growth model with 36 gigawatt hours of lithium battery capacity and 10 gigawatt hours of sodium-ion battery capacity [12] Other Important Information - The company has engaged in discussions with major customers from Europe and the US regarding various operations, including product supply [8] - The company’s R&D expenses increased by 8.1% to $2.6 million in Q3 2023 [15] - Sales and marketing expenses increased by 33.8% to $1.1 million in Q3 2023 [15] - General and administrative expenses increased by 73.7% to $3.2 million in Q3 2023 [16] Q&A Session Summary Question: Growth in the uninterruptible power business - The growth in Q3 2023 was driven by both existing customers increasing orders and new customer contributions [18] Question: Update on the raw material business - The raw material industry is experiencing a slowdown, but the company believes Hitrans will improve sharply once the industry recovers [20] Question: Sodium-ion battery technology and project progress - The company released its first sodium-ion battery product in June 2023 and is the first in China to achieve mass production [23] - The company is selecting a location for the sodium-ion battery production line and plans to expand capacity to 10 gigawatt hours next year [24] Question: Partnership with Anker Innovations - Anker Innovations has started pilot production with the company’s batteries, and the order volume is expected to increase to 800,000-1.2 million items with an order value of about RMB14 million [26]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10−Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 001-32898 CBAK ENERGY TECHNOLOGY, INC. (Exact Name of Registrant as Specified in Its Charter) | --- | ...

Financial Data and Key Metrics Changes - In the first half of 2023, the battery business generated revenues of $51.84 million, an increase of 27.2% year-over-year [4] - The gross margin of the battery business reached 12.8%, up 3.4 percentage points year-over-year [5] - Net revenues were $42.4 million in the second quarter and $84.8 million in the first half, representing a decrease of 24.7% and 37.8% respectively from the same period in 2022 [17] - Gross profit was $3.9 million in the second quarter and $6.8 million in the first half, representing a decrease of 29.8% and 37.12% respectively from the previous year [18] - Operating loss amounted to $3.8 million in the second quarter compared to an operating income of $0.1 million in the same period of 2022 [19] Business Line Data and Key Metrics Changes - Revenues from batteries used in energy storage applications were $46.76 million, up 17% year-over-year, while batteries for light electric vehicles surged 309.9% year-over-year to $3.12 million [4] - Revenues from batteries used in electric vehicles reached $1.96 million, an increase of 6,454 times compared to the same period last year [5] - Battery sales declined by 13.5% year-over-year to $22.2 million in the second quarter, primarily due to price volatility of lithium [18] Market Data and Key Metrics Changes - As of July 31, 2023, the company recorded RMB 1.1 billion in a combined value of orders received but not yet fulfilled [6] - Collaboration with JinPeng Group resulted in orders amounting to approximately RMB 54.16 million [6] - Orders from PowerOak and BlueTTi totaled around RMB 48.05 million [7] Company Strategy and Development Direction - The company is focusing on expanding its brand influence and R&D capabilities to propel long-term revenue growth [5] - A strategic partnership with Shenzhen Hello Tech Energy Co., Ltd. aims to develop advanced sodium ion batteries, with an investment of RMB 25 million [9] - The company plans to ramp up production capacity significantly, with expectations to reach 20 gigawatt hours by 2027 [11][12] Management Comments on Operating Environment and Future Outlook - Management noted considerable macro uncertainties affecting the lithium battery market, particularly due to price fluctuations of lithium carbonate [4] - Despite short-term challenges, management remains confident in achieving strong revenue growth in the second half of 2023 as prices stabilize [18] - The company is optimistic about its future in the residential and outdoor portable energy storage segments [15] Other Important Information - The company is actively planning for capacity expansion due to overwhelming incoming orders that have exceeded supply [10] - The Nanjing facility's production capacity is expected to advance from 0.7 gigawatt hour to 2 gigawatt hour by the end of the year [11] Q&A Session Summary Question: Details on the Shangqiu lease and operational status - The Shangqiu battery plant is a state-owned facility with a current production capacity of 100,000 per day, expected to be fully operational by the end of 2023 [23] Question: Increase in battery gross margins - The increase in gross margin from 11% to 15.4% is attributed to higher production capacity utilization and a decline in raw material prices [24][26] Question: Prioritization of lithium battery models - The decision to prioritize models 46115 and 46157 over 46800 is based on the overall business portfolio and market demand considerations [27][29]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10−Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 001-32898 CBAK ENERGY TECHNOLOGY, INC. (Exact Name of Registrant as Specified in Its Charter) | --- | --- ...