CBAK Energy(CBAT)2025-05-19 20:31Financial 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]