Core Viewpoint - CBAK Energy Technology, Inc. has successfully upgraded its product portfolio with the launch of the new Model 40135 battery, which offers larger size and higher capacity compared to its previous flagship product, Model 32140 [1][4]. Group 1: Product Development and Production - Dalian CBAK has invested in a new production line to transition from the older Model 26650 to the new Model 40135, which is currently being tested by major customers [2]. - The new production line has achieved an initial daily production capacity of approximately 20,000 cells, with around 500,000 cells delivered in the first month, generating about US$2 million in revenue [3]. - The company anticipates ramping up production to about 100,000 cells per day by the end of the year, with pending orders totaling approximately 1.2 million cells, representing an estimated US$5 million in revenue [3]. Group 2: Market Position and Future Outlook - CBAK Energy's product portfolio now includes both small and large cylindrical cell models, indicating a commitment to continuous R&D and adaptation to market needs [4]. - The strong inflow of orders for the Model 40135 has bolstered the company's confidence in achieving new sales performance highs [4]. - The company is also looking forward to completing the first phase of expansion at its Nanjing facility, with further updates expected [4]. Group 3: Company Background - CBAK Energy Technology, Inc. is a leading high-tech enterprise in China focused on the development, manufacturing, and sales of new energy high power lithium batteries and related raw materials [5]. - The company's products are utilized in various applications, including electric vehicles, energy storage, and uninterruptible power supply systems [5].

Company Overview and Milestones - CBAK was among the first to research lithium battery applications in cars, positioning itself as a pioneer in the EV era[9] - Model 32140 cells captured 19% of the global market share, while Model 26650 captured 64% of the global market share in 2024[12] - Nanjing Branch reported a net income of RMB 2846 million with a gross margin of 2751% for the first 6 months of 2025[13] Production Capacity and Expansion - Dalian Branch's production capacity is expected to reach 33 GWh by 2025, mainly for Model 40135 cells[19] - Nanjing Branch has two production lines with a capacity of 13 GWh for lithium-ion batteries, or 06 GWh with one line for lithium-ion batteries and 048 GWh with the other line for sodium-ion batteries[24] - CBAK is planning to expand Nanjing Branch's capacity up to 20 GWh once fully constructed[24] Product Portfolio and Development - Model 40135 is about 5 times the capacity of Model 26650, 15% higher in energy density and 12% lower in cost[37] - Model 32140 sales volume captured 19% of global market share, Model 26650 for 64% of global market share[12] Financial Performance and Projections - Net revenues from battery business in the first half of 2025 totaled $7546 million, with residential energy supply & uninterruptable supplies accounting for 4704%[49] - Sales forecast for the battery segment in 2025 is projected to reach RMB 14 billion, a 4098% increase over 2024[69] - Net income for the battery segment is projected to reach RMB 100 million in 2025[70]

Company Milestones & Market Position - CBAK was among the first to manufacture large cylindrical cells using Model 32140 and small cylindrical cells, Model 26650[61] - Model 32140 cells captured 19% of the global market share in 2024, while Model 26650 captured 64%[12] - The company maintains an average A-grade product yield of 9892%, higher than competitors[62] Production Capacity & Expansion - Dalian Branch's production capacity is expected to reach 33 GWh by 2025, mainly for Model 40135 cells[19] - Nanjing Branch's production capacity is expected to reach 43 GWh by mid-2025[24] - The company is exploring setting up a new production base in Southeast Asia[40] Financial Performance & Projections - Net revenues from the battery business increased by 171% from 2021 to 2024[48] - Net income from the battery business increased from $14 million in 2023 to $1943 million in 2024[54] - The company projects net revenues for the battery segment to reach RMB 14 billion in 2025, a 4098% increase over 2024[70] - The company projects net income for the battery segment to reach RMB 100 million in 2025[71] - In the first quarter of 2025, Residential Energy Supply & Uninterruptable Supplies accounted for 8338% of the battery business revenue[49]