CBAK Energy(US:CBAT)2025-11-10 12:31Financial Performance - Net revenues increased by $16.3 million, or 37%, to $60.9 million for the three months ended September 30, 2025, compared to $44.6 million for the same period in 2024[274]. - Gross profit decreased by $2.1 million to $4.9 million for the three months ended September 30, 2025, down from $7.0 million for the same period in 2024, representing a decline of 30%[274]. - Operating loss increased to $4.0 million for the three months ended September 30, 2025, compared to an operating loss of $0.8 million for the same period in 2024, reflecting a 387% increase in loss[274]. - Net income was $2.7 million for the three months ended September 30, 2025, compared to $0.02 million for the same period in 2024, marking a significant improvement[274]. - Net revenues decreased by $14.9 million, or 10%, to $136.4 million for the nine months ended September 30, 2025, from $151.2 million for the same period in 2024[310]. - Operating loss was $10.4 million for the nine months ended September 30, 2025, compared to an operating income of $15.4 million for the same period in 2024, representing a decrease in income of $25.8 million, or 168%[322]. - Net income attributable to shareholders of CBAK Energy Technology, Inc. was a loss of $2.0 million for the nine months ended September 30, 2025, compared to a net income of $16.3 million for the same period in 2024, a decrease of $18.3 million, or 112%[309]. - The company incurred a net loss of $2.0 million for the nine months ended September 30, 2025, compared to a net income of $16.3 million for the same period in 2024, indicating a substantial decline in profitability[325]. Revenue Breakdown - Net revenues from sales of batteries for light electric vehicles increased by $13.3 million, or 270%, to $18.2 million for the three months ended September 30, 2025, compared to $4.9 million in the same period of 2024[292]. - Net revenues from sales of materials used in manufacturing lithium batteries rose by $16.0 million, or 144%, to $27.2 million for the three months ended September 30, 2025, compared to $11.2 million for the same period in 2024[295]. - Net revenues from sales of batteries for residential energy supply and uninterruptible power supplies decreased by $12.7 million, or 45%, to $15.5 million for the three months ended September 30, 2025, compared to $28.2 million in the same period in 2024[294]. - Net revenues from sales of batteries for light electric vehicles increased to $23.4 million for the nine months ended September 30, 2025, compared to $8.2 million in the same period of 2024, marking an increase of $15.2 million, or 184%[313]. - Net revenues from sales of materials used in manufacturing of lithium batteries increased to $61.2 million for the nine months ended September 30, 2025, compared to $37.3 million for the same period in 2024, an increase of $23.9 million, or 64%[315]. Expenses - Research and development expenses increased by $0.4 million, or 12%, to $3.9 million for the three months ended September 30, 2025, compared to $3.4 million for the same period in 2024[287]. - General and administrative expenses rose by $1.1 million, or 39%, to $3.9 million for the three months ended September 30, 2025, compared to $2.8 million for the same period in 2024[287]. - Research and development expenses increased to $10.5 million for the nine months ended September 30, 2025, compared to approximately $9.2 million for the same period in 2024, an increase of $1.3 million, or 14%[318]. - Sales and marketing expenses decreased to approximately $3.2 million for the nine months ended September 30, 2025, compared to approximately $4.1 million for the same period in 2024, a decrease of approximately $0.9 million, or 23%[319]. - General and administrative expenses increased to $11.0 million, or 8.1% of revenues, for the nine months ended September 30, 2025, compared to $10.0 million, or 6.6% of revenues, for the same period in 2024, representing an increase of $1.0 million, or 10%[320]. Cash Flow and Financing - Net cash provided by operating activities was $18.7 million for the nine months ended September 30, 2025, primarily due to a net income of $5.8 million[378]. - Net cash used in investing activities was $29.1 million for the nine months ended September 30, 2025, mainly for purchases of property, plant, and equipment[380]. - Net cash provided by financing activities was $10.2 million for the nine months ended September 30, 2025, primarily from $45.8 million in bank borrowings[382]. - The company reported a net cash increase of $2.6 million in cash and cash equivalents for the nine months ended September 30, 2025[377]. - The company plans to renew existing loans upon maturity and raise additional funds through bank borrowings and equity financing[374]. Financial Position - As of September 30, 2025, the company had cash and cash equivalents of $63.3 million, total current assets of $157.7 million, and total current liabilities of $228.0 million, resulting in a net working capital deficit of $70.3 million[327]. - The accumulated deficit as of September 30, 2025, was $126.4 million, raising substantial doubts about the company's ability to continue as a going concern[328]. - As of September 30, 2025, total principal amounts outstanding under credit facilities were $103.8 million, with maximum available credit of $124.0 million[385]. - The company has $70.7 million in other lines of credit, with $69.5 million borrowed[385]. - The company incurred $47.9 million in bank borrowings repayment in the nine months ended September 30, 2024[383]. Banking and Loans - Hitrans renewed banking facilities with a maximum amount of RMB160.0 million (approximately $22.1 million) in January 2023, with a term extending to December 2027[330]. - Nanjing CBAK obtained a one-year term facility from Agricultural Bank of China for RMB10 million (approximately $1.4 million) in January 2022, which was repaid early in January 2023[331]. - On March 28, 2024, CBAK New Energy entered into a short-term loan agreement for RMB5 million (approximately $0.7 million) with Bank of China, which was repaid on March 27, 2024[337]. - Hitrans entered into a short-term credit-guaranteed loan agreement for RMB5 million (approximately $0.7 million) with Zhejiang Shangyu Rural Commercial Bank on January 24, 2024, which was repaid early on September 27, 2024[341]. - On September 29, 2024, Hitrans borrowed RMB15 million (approximately $2.0 million) under a short-term credit-guaranteed loan agreement, which was repaid on September 26, 2025[345]. - Hitrans entered into a long-term Maximum Pledge Agreement with a maximum facility amount of RMB76.56 million (approximately $10.54 million) secured by land use rights and buildings[348]. - Nanjing CBAK obtained a RMB30 million facility (approximately $4.1 million) from Jiangsu Gaochun Rural Commercial Bank, with an interest rate of 2.98% per annum[350]. - CBAK Power obtained a banking facility from China Guangfa Bank Co., Ltd with a maximum amount of RMB100 million (approximately $14 million) for short-term borrowings[353]. - As of September 30, 2025, the company had unutilized committed banking facilities of $20.2 million[369]. - Hitrans borrowed a series of acceptance bills totaling RMB20.0 million (approximately $2.8 million) secured by pledged deposits[363]. - Nanjing CBAK borrowed a series of acceptance bills from Bank of Nanjing totaling RMB40.5 million (approximately $5.7 million) secured by pledged deposits[359]. Capital Expenditures - Capital expenditures increased from $11.5 million in the nine months ended September 30, 2024, to $32.1 million in 2025, mainly for facility upgrades[386]. - Total capital expenditures for fiscal year 2025 are estimated to reach approximately $50.0 million, aimed at constructing new plants and product lines[387]. Accounting Policies - There were no material changes to critical accounting policies from the previous year[389]. - The company’s financial information is prepared in accordance with U.S. GAAP, which involves significant judgments and estimates[388]. - No quantitative and qualitative disclosures about market risk were applicable[391].