CBAK Energy(CBAT)2023-05-14 16:00Financial Performance - Net revenues decreased by $37.8 million, or 47%, to $42.4 million for the three months ended March 31, 2023, from $80.2 million for the same period in 2022[270]. - Gross profit was $2.9 million, representing a decrease of $2.4 million, for the three months ended March 31, 2023, from gross profit of $5.3 million for the same period in 2022[270]. - Operating loss increased to $2.9 million for the three months ended March 31, 2023, from an operating loss of $1.3 million for the same period in 2022[270]. - Net loss was $2.2 million for the three months ended March 31, 2023, compared to a net income of $0.7 million for the same period in 2022[270]. - Fully diluted loss per share was $0.02 for the three months ended March 31, 2023, compared to fully diluted income per share of $0.01 for the same period in 2022[271]. Revenue Breakdown - Net revenues from sales of batteries for electric vehicles reached $1.8 million in Q1 2023, a significant increase from nil in Q1 2022[282]. - Net revenues from sales of batteries for light electric vehicles surged to $2.0 million in Q1 2023, up 2,111% from $88,764 in Q1 2022[283]. - Net revenues from sales of batteries for uninterruptable power supplies increased to $25.8 million in Q1 2023, representing a 73% growth from $14.9 million in Q1 2022[284]. - Net revenues from sales of materials used in manufacturing lithium batteries dropped to $12.8 million in Q1 2023, down from $65.2 million in Q1 2022, primarily due to a rapid decrease in raw material prices[285]. Cost and Expenses - Cost of revenues decreased to $39.5 million in Q1 2023, down 47% from $74.9 million in Q1 2022, aligning with the decrease in net revenues[285]. - Research and development expenses decreased by $0.9 million, or 26%, to $2.5 million for the three months ended March 31, 2023[279]. - General and administrative expenses increased by $0.2 million, or 11%, to $2.5 million for the three months ended March 31, 2023[279]. - Gross profit for Q1 2023 was $2.9 million, representing 6.9% of net revenues, compared to $5.3 million or 6.6% in Q1 2022[286]. - Operating loss totaled $2.9 million in Q1 2023, an increase of 116% from a loss of $1.3 million in Q1 2022[290]. Cash Flow and Financing - As of March 31, 2023, the company had cash and cash equivalents of $43.1 million and total current assets of $130.0 million[292]. - Net cash provided by operating activities was $9.5 million for the three months ended March 31, 2023, compared to $5.0 million in the same period in 2022, mainly due to an increase in trade and bills payable of $9.9 million[315]. - Net cash used in investing activities was $7.2 million for the three months ended March 31, 2023, compared to $2.7 million in the same period of 2022, primarily for purchases of property, plant, and equipment[319]. - Net cash provided by financing activities was $3.2 million for the three months ended March 31, 2023, compared to $1.9 million in the same period in 2022, mainly due to $13.2 million advances from bank borrowings[321]. - The company obtained a three-year term facility from Industrial and Commercial Bank of China with a maximum amount of RMB12 million (approximately $1.7 million) and borrowed RMB10 million (approximately $1.5 million) at an interest rate of 3.95% per annum[300]. Expansion and Development - The Nanjing facilities are projected to provide a total capacity of 20 GWh to support growing customer demand once fully operational[266]. - The company expects to secure more potential orders from the new energy market due to government support for new energy facilities and vehicles[267]. - The company is expanding its business by developing new products and fostering new partnerships[266]. - The company has expanded its product lines and manufacturing capacity in Dalian and Nanjing, requiring additional funding for the expansion[313]. - Capital expenditures increased from $2.7 million in Q1 2022 to $7.2 million in Q1 2023, with an estimated total of $80 million for fiscal year 2023[324]. Debt and Credit Facilities - The company borrowed a series of acceptance bills totaling RMB102.6 million (approximately $14.9 million) from China Merchants Bank, secured by cash totaling RMB102.6 million[307]. - The company repaid RMB10 million (approximately $1.5 million) on April 19, 2023, and obtained another one-year loan of RMB10 million (approximately $1.5 million) at an interest rate of 3.90% per annum[300]. - The principal amounts outstanding under credit facilities and lines of credit as of March 31, 2023, were detailed in the financial statements[322]. - Long-term credit facilities available amount to $64,284,000, with $60,678,000 borrowed[323]. - Total short-term credit facilities amount to $5,678,000, all of which have been fully borrowed[323]. Accounting and Reporting - The company has not reported any material changes to critical accounting policies since the last annual report[327]. - The financial information is prepared in accordance with U.S. GAAP, which involves significant estimates and judgments[326]. - There were no applicable quantitative and qualitative disclosures about market risk reported[329]. - The company continues to evaluate its accounting estimates based on historical experience and current conditions[326]. - No recently adopted accounting standards were specified in the provided documents[328].