CBAK Energy(US:CBAT) Globenewswire·2025-11-10 11:00Core Insights - CBAK Energy Technology, Inc. reported a strong recovery in its third quarter of 2025, with net revenues reaching $60.92 million, a 36.5% increase from $44.63 million in the same period of 2024, primarily driven by the recovery in the battery raw materials segment [3][4][14]. Financial Performance - Third Quarter 2025 Results: - Net revenues were $60.92 million, up 36.5% year-over-year from $44.63 million [3][4]. - Net income attributable to CBAK Energy was $2.65 million, a significant increase of 150.2% from $17,647 in the same period of 2024 [9][4]. - The battery business generated net revenues of $33.71 million, a slight increase of 0.7% from $33.46 million in Q3 2024, but gross profits decreased by 42.4% to $4.42 million, resulting in a gross margin of 13.1% [3][4][8]. - The raw materials segment, Hitrans, saw net revenues of $27.22 million, a 143.7% increase from $11.17 million in Q3 2024 [3][4]. - First Nine Months 2025 Results: - Total net revenues were $136.39 million, a decrease of 9.8% from $151.24 million in the same period of 2024, primarily due to weaker performance in the battery business [10][11]. - Net income for the first nine months was $2.80 million, down 87.1% from $21.61 million in the same period of 2024 [10][13]. - The battery business reported net revenues of $75.16 million, a decline of 34.0% year-over-year [10][11]. Segment Performance - Battery Business: - The battery segment's net income was $4.53 million, up 122.7% from $2.04 million in Q3 2024, driven by strong demand for the Model 32140 [4][9]. - The transition to upgraded products has temporarily affected sales, leading to a decrease in gross profit and a modest increase in net revenues [6][8]. - Hitrans Segment: - Hitrans achieved a gross profit of $460,438, a turnaround from a gross loss of $710,452 in Q3 2024, indicating improved profitability [3][4][11]. - The segment's net loss narrowed to $2.11 million, an 18.8% improvement from $2.60 million in the same period of 2024 [4][11]. Operational Developments - The company is undergoing a product portfolio upgrade, which has temporarily impacted sales of legacy products [6][15]. - The new Model 40135 production line is expected to add 2.3 GWh of annual capacity, while the Nanjing production lines will contribute an additional 2 GWh for the Model 32140 [15][14].