CBAK Energy(CBAT)2024-05-14 20:06Financial Performance - Net revenues increased by $16.4 million, or 39%, to $58.8 million for the three months ended March 31, 2024, compared to $42.4 million for the same period in 2023[285]. - Gross profit was $18.8 million, representing an increase of $15.9 million, or 546% for the three months ended March 31, 2024, from $2.9 million for the same period in 2023[286]. - Operating income was $10.3 million for the three months ended March 31, 2024, reflecting an increase of $13.1 million from an operating loss of $2.9 million for the same period in 2023[286]. - Net income was $9.6 million for the three months ended March 31, 2024, compared to a net loss of $2.2 million for the same period in 2023[286]. - Fully diluted income per share was $0.11 for the three months ended March 31, 2024, compared to a fully diluted loss per share of $0.02 for the same period in 2023[286]. - Gross profit for the three months ended March 31, 2024, was $18.8 million, representing a gross profit margin of 31.9%, up from $2.9 million and 6.9% in the same period in 2023[305]. - Net income for the three months ended March 31, 2024, was $9.6 million, compared to a net loss of $2.2 million for the same period in 2023[311]. - Net cash provided by operating activities was $7.4 million for the three months ended March 31, 2024, compared to $9.5 million in the same period in 2023[341]. - The company reported a net income of $12.4 million for the three months ended March 31, 2024, excluding non-cash items[341]. Revenue Sources - Net revenues from sales of batteries for residential energy supply & uninterruptable power supplies increased by $17.0 million, or 66%, to $42.8 million for the three months ended March 31, 2024[302]. - Net revenues from sales of materials used in manufacturing lithium batteries increased by $1.2 million, or 9%, to $14.0 million for the three months ended March 31, 2024[303]. Expenses - Research and development expenses increased by $0.3 million, or 15%, to approximately $2.8 million for the three months ended March 31, 2024[306]. - Sales and marketing expenses rose by approximately $1.0 million, or 139%, to approximately $1.7 million for the three months ended March 31, 2024[307]. - General and administrative expenses increased by $1.6 million, or 65%, to $4.1 million for the three months ended March 31, 2024[308]. - The cost of revenues slightly decreased by $0.3 million, or 0.8%, to $40.0 million for the three months ended March 31, 2024[305]. Manufacturing and Capacity Expansion - The Nanjing facilities are projected to provide a total capacity of 20 GWh to support customer demand once fully operational[284]. - The company has expanded its manufacturing capabilities by renting additional space in Shangqiu, with a capacity of 0.5 GWh per year[284]. - The company is expanding product lines and manufacturing capacity in Dalian, Nanjing, and Zhejiang facilities, requiring additional funding[338]. - Capital expenditures were $7.9 million for the three months ended March 31, 2024, with an estimated total of approximately $30 million planned for fiscal year 2024 to construct new plants and product lines[348]. Financing and Cash Management - As of March 31, 2024, the company had cash and cash equivalents of $36.3 million and total current assets of $130.1 million, resulting in a net working capital deficit of $26.0 million[312]. - The company renewed acceptance bills facilities from Bank of Ningbo Co., Ltd with a maximum amount of RMB71.6 million ($9.9 million) and borrowed a total of RMB45.4 million (approximately $6.4 million) as of December 31, 2023[316]. - The company obtained a one-year term facility from Agricultural Bank of China with a maximum amount of RMB10 million (approximately $1.4 million) and repaid RMB10 million (approximately $1.4 million) early on January 5, 2023[317]. - The company borrowed a one-year term loan of RMB10 million (approximately $1.4 million) from Jiangsu Gaochun Rural Commercial Bank, bearing interest at 129% of the benchmark rate of PBOC, which is 4.70% per annum[318]. - The company entered into a three-year term facility from Industrial and Commercial Bank of China with a maximum amount of RMB12 million (approximately $1.7 million) and repaid RMB10 million (approximately $1.4 million) on April 19, 2023[319]. - The company obtained a short-term loan agreement with China CITIC Bank for a maximum amount of RMB10 million (approximately $1.4 million) and repaid RMB5 million (approximately $0.7 million) on November 16, 2022[322]. - The company has unutilized committed banking facilities of $1.3 million as of March 31, 2024, and plans to renew these loans upon maturity[333]. - The company issued an aggregate of 9,489,800 shares of common stock at a per share purchase price of $5.18, resulting in gross proceeds of approximately $49.16 million[334]. - The company raised approximately $70 million through a registered direct offering and concurrent private placement, issuing 8,939,976 shares at a price of $7.83 per share[335]. - Net cash used in investing activities increased to $12.8 million for the three months ended March 31, 2024, from $7.2 million in the same period in 2023, primarily for property, plant, and equipment[343]. - Net cash used in financing activities was $16.4 million for the three months ended March 31, 2024, compared to a net cash provided of $3.2 million in the same period in 2023[344]. - As of March 31, 2024, the total principal amounts outstanding under credit facilities were $81.5 million, with $82.8 million available[346]. - The company plans to renew bank loans upon maturity and may seek additional equity or debt financing to meet cash demands[338]. Market Outlook - The clean energy industry is strategically important, with anticipated growth due to government support for new energy facilities and vehicles in China[285]. - The company is optimistic about future prospects due to growing demand for high-power lithium-ion and sodium-ion products[285]. - The company entered the business of developing and manufacturing NCM precursor and cathode materials after acquiring 81.56% of Hitrans in November 2021[280]. Other Information - The Series B warrants expired on September 1, 2021, with no notices received from investors to exercise them as of December 31, 2023[337].