CBAK Energy(CBAT) - 2025 Q1 - Quarterly Results

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]