CBAK Energy(CBAT) - 2025 Q2 - Quarterly Results

Financial Performance Second Quarter of 2025 Financial Results The company's Q2 2025 net revenues declined 15% YoY to $40.52 million, resulting in a net loss of $3.07 million due to a strategic product transition Quarterly Financial Highlights | Financial Metric | Q2 2024 | Q2 2025 | YoY Change | | :--- | :--- | :--- | :--- | | Net Revenues | $47.79 million | $40.52 million | -15% | | Gross Profit | $12.73 million | $4.46 million | -64.95% | | Gross Margin | 26.6% | 11.0% | -15.6 p.p. | | Operating Income/(Loss) | $5.95 million | ($3.53 million) | - | | Net Income/(Loss) | $6.45 million | ($3.07 million) | - | | Basic & Diluted EPS | $0.07 | ($0.03) | - | - The revenue decline was mainly attributed to the Dalian facilities, where customers are transitioning from the old Model 26650 battery to testing the new Model 40135[2] - Demand for the Model 32140 battery produced at the Nanjing facilities is strong, with Phase I capacity fully booked and a Phase II facility expansion planned[2] Quarterly Battery Business Revenue by Application | Battery Business Revenue by Application | Q2 2024 ($) | Q2 2025 ($) | YoY Change | | :--- | :--- | :--- | :--- | | Electric Vehicles | 199,258 | 142,139 | -28.7% | | Light Electric Vehicles | 1,825,501 | 2,426,624 | +33.0% | | Residential Energy Supply & UPS | 33,573,365 | 18,521,374 | -44.8% | First Half of 2025 Financial Results For H1 2025, net revenues fell 29.2% to $75.46 million, leading to a net loss of $4.65 million amid ongoing operational shifts First Half Financial Highlights | Financial Metric | H1 2024 | H1 2025 | YoY Change | | :--- | :--- | :--- | :--- | | Net Revenues | $106.62 million | $75.46 million | -29.2% | | Gross Profit | $31.5 million | $9.26 million | -70.6% | | Gross Margin | 29.5% | 12.28% | -17.22 p.p. | | Operating Income/(Loss) | $16.2 million | ($6.4 million) | - | | Net Income/(Loss) | $16.3 million | ($4.65 million) | - | | Basic & Diluted EPS | $0.18 | ($0.05) | - | First Half Battery Business Revenue by Application | Battery Business Revenue by Application | H1 2024 ($) | H1 2025 ($) | YoY Change | | :--- | :--- | :--- | :--- | | Electric Vehicles | 679,439 | 679,646 | +0.03% | | Light Electric Vehicles | 3,335,793 | 5,271,498 | +58.0% | | Residential Energy Supply & UPS | 76,420,761 | 35,502,331 | -53.5% | Management Commentary and Outlook Business Operations and Strategy Management outlines a strategic transition year, with mass production of the new Model 40135 battery set for September and an expansion for Model 32140 - The Dalian facilities are scheduled to begin mass production of the new Model 40135 battery in September 2025[13] - The Phase II capacity expansion for Model 32140 at the Nanjing facilities has been postponed to Q4 2025[13] - Management expects a gradual recovery at the Dalian facility starting in Q4 and a strong rebound in overall production and sales by the end of the year[13] Financial Outlook and Customer Relations The CFO anticipates a solid near-term recovery, supported by a product portfolio upgrade and new agreements with internationally renowned customers - Management is confident that financial performance will experience a gradual and solid recovery in the near term[13] - The company is nearing final agreements with several internationally renowned customers[13] - CBAK's global customer base includes leading players such as top-five manufacturers in India's two- and three-wheeler market and top-five companies in the portable power bank sector[13] Financial Statements Condensed Consolidated Balance Sheets As of June 30, 2025, total assets grew to $333.1 million while total equity slightly decreased, reflecting increased liabilities and construction in progress Key Balance Sheet Items | Balance Sheet Item | Dec 31, 2024 ($) | June 30, 2025 ($) | | :--- | :--- | :--- | | Total Assets | 302,218,144 | 333,094,266 | | Total Liabilities | 182,150,979 | 217,250,126 | | Total Equity | 120,067,165 | 115,844,140 | - Construction in progress increased substantially from $42.5 million on December 31, 2024, to $71.6 million on June 30, 2025, reflecting ongoing capacity expansions[21] - Inventories rose to $37.4 million from $22.9 million, and trade and bills payable increased to $97.6 million from $84.7 million over the six-month period[21] Condensed Consolidated Statements of Operations The statements detail a significant downturn, with the company swinging from operating income to an operating loss in both Q2 and H1 2025 Condensed Consolidated Statements of Operations (Three Months Ended June 30) | Q2 Performance ($) | 2024 | 2025 | | :--- | :--- | :--- | | Net Revenues | 47,793,045 | 40,524,333 | | Gross Profit | 12,728,026 | 4,462,409 | | Operating Income (Loss) | 5,947,480 | (3,528,576) | | Net Income (Loss) | 6,023,185 | (3,360,398) | Condensed Consolidated Statements of Operations (Six Months Ended June 30) | H1 Performance ($) | 2024 | 2025 | | :--- | :--- | :--- | | Net Revenues | 106,615,477 | 75,463,234 | | Gross Profit | 31,509,073 | 9,264,143 | | Operating Income (Loss) | 16,210,463 | (6,392,595) | | Net Income (Loss) | 15,595,659 | (5,411,380) | Additional Information Conference Call The company will host an earnings conference call on August 18, 2025, at 8:00 AM U.S. Eastern Time - An earnings conference call is scheduled for 8:00 AM U.S. Eastern Time on Monday, August 18, 2025[14] About CBAK Energy CBAK Energy is a high-tech enterprise specializing in the development and manufacturing of high-power lithium and sodium batteries - CBAK Energy is a leading Chinese manufacturer of high-power lithium and sodium batteries for applications including EVs, light EVs, and energy storage[16] Safe Harbor Statement This section contains a forward-looking statements disclaimer, highlighting numerous risks associated with the company's operations and market conditions - The press release contains forward-looking statements that are subject to substantial risks and uncertainties[17] - Key risks include operational and legal challenges in China, potential Chinese government intervention, and market volatility[18]