DALIAN, China, Nov. 12, 2021 /PRNewswire/ -- CBAK Energy
Technology, Inc. (NASDAQ: CBAT) ("CBAK Energy," or the "Company") a
leading lithium-ion battery manufacturer and electric energy
solution provider in China, today
reported its unaudited financial results for the third quarter
ended September 30, 2021.
Third Quarter 2021 Financial Highlights
- Net revenues were $9.6
million. Excluding revenues from raw material trades,
approximately $9.6 million was from
high power lithium batteries business, a 51% year-over-year growth
in high power lithium battery revenues over the same period of
2020.
- Gross profit was $1.1
million, a decrease of 17% from $1.4
million in the same period of 2020.
- Gross margin was 12%, a decrease of 1 percentage point
from the same period of 2020.
- Net Income was $20.0
million, compared to net income of $41,715 in the same period of 2020.
Yunfei Li, Chairman and Chief
Executive Officer of the Company, noted: "We are very pleased with
our robust battery sales in the third quarter. Notably, revenues
from high-power lithium batteries totaled $9.6 million, representing 51% year-over-year
growth. These results attest to the quality and level of
recognition our industry-leading products have in the
market.
Mr. Li continued: "As scheduled, we are expanding our production
capacity despite global energy shortage and commodity price hikes.
This is a much-needed action as the new capacity will yield
positive business outcomes and augment our ability to supply.
Additionally, in order to address growing and diversified demands
for batteries, we made meaningful progress in research and
development while extending our product portfolio. Our operations
and growth strategies are well on track, which we believe
solidifies our market-leading position and capabilities to deliver
long-term growth in this thriving industry."
Xiangyu Pei, Interim Chief Financial Officer of the Company,
noted: "Our financial performance for high-power lithium batteries
remained solid in the third quarter, a testament to the strong
demand for our advanced and dependable products. Despite the
increase in commodity prices, raw material cost was carefully
managed through our previous contracts that have locked prices for
certain materials. As evidenced by our healthy financial position
and vigorous growth, we have the capabilities for executing our
growth strategies that will push us further on the path to
consistent, sustainable success."
Third Quarter 2021 Business Highlights & Recent
Developments
- In August, the Company secured performance certification from
the world's leading testing, inspection and certification company
SGS for its special 26650 lithium-ion battery, specifically
designed for use in ultra-low temperatures.
Third Quarter 2021 Financial Results
Net revenues were $9.6
million. Revenues from high power lithium batteries was
approximately $9.6 million,
representing 51% year-over-year growth compared to the same period
of 2020. The Company did not have new raw material trades in this
quarter and had a minor adjustment in revenues from previous raw
material trades, and the new production line installation in
Dalian plant had a temporarily
adverse impact on existing production.
Net Revenues by
End-product Applications
($ thousands)
|
|
2021
Third
Quarter
|
|
2020
Third
Quarter
|
|
% Change
YoY
|
High power lithium
batteries used in:
|
|
|
|
|
|
|
Uninterruptable supplies
|
|
$9,336
|
|
$5,920
|
|
58
|
Light electric vehicles
|
|
227
|
|
23
|
|
887
|
Electric vehicles
|
|
1
|
|
408
|
|
(100)
|
Total high power
lithium batteries
|
|
$9,563
|
|
$6,351
|
|
51
|
Raw materials used
in lithium batteries
|
|
(1)
|
|
4,269
|
|
(100)
|
Total
|
|
$9,562
|
|
$10,620
|
|
(10)
|
Cost of revenues was $8.4 million, a decrease of 9%
from $9.2 million in the same period
of 2020.
Gross profit was $1.1
million, a decrease of 18% from $1.4
million in the same period of 2020. Gross margin was 12%, a
decrease of 1 percentage point from the same period of 2020. The
inflation in raw material prices resulted in the increase in
production costs.
Total operating expenses were $4.3 million, an increase of 339% from
$1.0 million in the same period of
2020. Most of the increase in all expense categories was due to
growing headcount and research and development expenses associated
with the Nanjing production
facility, along with the expiration of the Chinese government's
COVID-19 relief policy that had reduced social insurance
contributions during the pandemic.
- Research and development expenses were $1.8 million, an increase of 307% from
$0.4 million in the same period of
2020. The increase in research and development expenses was
also due to the Company's efforts in optimizing performance and
cost-efficiency for battery products.
- Sales and marketing expenses were $0.5 million, an increase of 223% from
$0.2 million in the same period of
2020. Given the growth in revenues from high power lithium
batteries, we increased salaries and benefits for sales and
marketing employees.
- General and administrative expenses were
$2.2 million, an increase of 191%
from $0.7 million in the same period
of 2020. The Company's rental expenses increased as it rented
spaces for manufacturing, warehouse, and staff accommodation for
the Nanjing production
facility.
- Recovery of doubtful accounts was $0.2 million, compared to a recovery of doubtful
accounts of $0.4 million in the same
period of 2020.
Operating Loss was $3.2
million, compared to operating profit of $0.4 million in the same period of 2020.
Finance income, net was $0.1
million, compared to finance expenses of $0.4 million in the same period of 2020, and was
a result of lower loan balances and interest income generated from
vehicle leasing in 2021.
Change in fair value of warrant liabilities was
$23.0 million, compared to nil in the
same period of 2020. The change in fair value of warrant
liabilities is mainly due to share price decline.
Net Income was $20.0
million, compared to net income of $41,715 in the same period of 2020.
Basic and diluted earnings per share were both
$0.23. In comparison, basic and
diluted earnings per share in the same period of 2020 were both
$0.00.
Cash and cash equivalents were $2.0 million as of September 30, 2021, compared to $33.3 million as of June
30, 2021.
Conference Call
CBAK's management will host an earnings conference call at
8:00 AM U.S. Eastern Time
on Friday, November 12, 2021 (9:00 PM Beijing/Hong Kong
Time on November 12, 2021).
For participants who wish to join the call, please register in
advance for the conference using the link provided below at least
15 minutes prior to the scheduled call start time. Upon
registration, participants will receive the conference call access
information, including dial-in numbers, Direct Event passcode, a
unique registrant ID and an email with detailed instructions to
join the conference call.
Participant Online Registration:
http://apac.directeventreg.com/registration/event/9955106
Once completing the registration, please dial-in at least 10
minutes before the scheduled start time of the earnings call and
enter the Direct Event passcode and registrant ID as instructed to
connect to the call.
Additionally, a live and archived webcast of the conference call
will be available at:
https://edge.media-server.com/mmc/p/3k3p9eyw.
A replay of the conference call may be accessed by phone
approximately two hours after the conclusion of the live call at
the following numbers until November 20,
2021. To access the replay, please reference the conference
ID 5182755.
International
|
+61-2-8199-0299
|
United
States
|
+1-855-452-5696
|
Hong Kong,
China
|
+852-800-963-117
|
Mainland,
China
|
+86-800-870-0206
|
|
+86-400-632-2162
|
About CBAK Energy
CBAK Energy Technology, Inc. (NASDAQ:CBAT)is a leading high-tech
enterprise in China engaged in the
development, manufacturing, and sales of new energy high power
lithium batteries. The applications of the Company's products and
solutions include light electric vehicles, electric vehicles,
electric tools, energy storage, uninterruptible power supply (UPS),
and other high-power applications. In January 2006, CBAK
Energy became the first lithium battery manufacturer
in China listed on the Nasdaq Stock Market. CBAK Energy
has multiple operating subsidiaries
in Dalian and Nanjing, as well as a large-scale
R&D and production base in Dalian.
For more information, please visit www.cbak.com.cn.
Safe Harbor Statement
This press release contains forward-looking statements, which
are subject to change. The forward-looking statements are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All "forward-looking statements"
relating to the business of CBAK Energy Technology, Inc. and its
subsidiary companies, which can be identified by the use of
forward-looking terminology such as "believes", "expects" or
similar expressions, involve known and unknown risks and
uncertainties which could cause actual results to differ
materially. These factors include but are not limited to: the
ability of the Company to meet its contract or agreement
obligations; the uncertain market for the Company's lithium battery
cells; business, macroeconomic, technological, regulatory, or other
factors affecting the profitability of battery cells designed for
energy storage; and risks related to CBAK Energy's business and
risks related to operating in China. Please refer to CBAK
Energy's most recent Annual Report on Form 10-K, as well as other
SEC reports that have been filed since the date of such annual
report, for specific details on risk factors. Given these risks and
uncertainties, you are cautioned not to place undue reliance on
forward-looking statements. CBAK Energy's actual results could
differ materially from those contained in the forward-looking
statements. CBAK Energy undertakes no obligation to revise or
update its forward-looking statements in order to reflect events or
circumstances that may arise after the date of this release unless
expressly requested by applicable law.
For investor and media inquiries, please contact:
In China:
CBAK Energy Technology, Inc.
Investor Relations Department
Phone: 86-411-39185985
Email: ir@cbak.com.cn
The Blueshirt Group
Ms. Feifei Shen
Phone: +86 13466566136
Email: feifei@blueshirtgroup.com
The Blueshirt Group
Ms. Suwen Feng
Phone: +86 13917110134
Email: suwen@blueshirtgroup.com
In the United States:
The Blueshirt Group
Ms. Julia Qian
Phone: +1 973-619-3227
Email: Julia@blueshirtgroup.com
CBAK Energy
Technology, Inc. and Subsidiaries
|
Unaudited
Condensed Consolidated Balance Sheets
|
(In $ except for
number of shares)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
September 30,
|
|
|
|
|
2020
|
|
|
2021
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
|
11,681,750
|
|
|
$
|
1,993,531
|
|
Pledged
deposits
|
|
|
|
8,989,748
|
|
|
|
15,552,996
|
|
Trade accounts and
bills receivable, net
|
|
|
|
29,571,274
|
|
|
|
22,231,442
|
|
Inventories
|
|
|
|
5,252,845
|
|
|
|
9,249,455
|
|
Prepayments and other
receivables
|
|
|
|
7,439,544
|
|
|
|
9,715,578
|
|
Investment in
sales-type lease, net
|
|
|
|
235,245
|
|
|
|
838,649
|
|
Total current
assets
|
|
|
|
63,170,406
|
|
|
|
59,581,651
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
|
41,040,370
|
|
|
|
42,050,589
|
|
Construction in
progress
|
|
|
|
30,193,309
|
|
|
|
49,246,115
|
|
Non-marketable equity
securities
|
|
|
|
-
|
|
|
|
702,807
|
|
Deposit paid for
acquisition of a subsidiary
|
|
|
|
-
|
|
|
|
8,349,118
|
|
Loan to unrelated third party -
Hitrans
|
|
|
|
-
|
|
|
|
20,326,775
|
|
Operating lease
right-of-use assets, net
|
|
|
|
-
|
|
|
|
1,981,422
|
|
Prepaid land use
right- non current
|
|
|
|
7,500,780
|
|
|
|
7,465,426
|
|
Intangible assets,
net
|
|
|
|
11,807
|
|
|
|
21,418
|
|
Investment in
sales-type lease, net
|
|
|
|
850,407
|
|
|
|
980,731
|
|
Total assets
|
|
|
$
|
142,767,079
|
|
|
$
|
190,706,052
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
Trade accounts and
bills payable
|
|
|
$
|
28,352,292
|
|
|
$
|
21,050,320
|
|
Current maturities of
long-term bank loans
|
|
|
|
13,739,546
|
|
|
|
-
|
|
Other short-term
loans
|
|
|
|
1,253,869
|
|
|
|
680,563
|
|
Accrued expenses and
other payables
|
|
|
|
11,645,459
|
|
|
|
15,796,594
|
|
Payables to former
subsidiaries, net
|
|
|
|
626,990
|
|
|
|
361,874
|
|
Deferred government
grants, current
|
|
|
|
151,476
|
|
|
|
153,402
|
|
Product warranty
provisions
|
|
|
|
155,888
|
|
|
|
124,670
|
|
Operating lease
liability, current
|
|
|
|
-
|
|
|
|
753,404
|
|
Warrants
liability
|
|
|
|
17,783,000
|
|
|
|
10,474,000
|
|
Total current
liabilities
|
|
|
|
73,708,520
|
|
|
|
49,394,827
|
|
|
|
|
|
|
|
|
|
|
|
Deferred government
grants, non-current
|
|
|
|
7,304,832
|
|
|
|
8,833,848
|
|
Operating lease
liability
|
|
|
|
-
|
|
|
|
801,266
|
|
Product warranty
provision
|
|
|
|
1,835,717
|
|
|
|
1,873,626
|
|
Long term tax
payable
|
|
|
|
7,511,182
|
|
|
|
7,606,677
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
|
90,360,251
|
|
|
|
68,510,244
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
Common stock $0.001
par value; 500,000,000 authorized; 53,220,902
issued and 53,076,696 outstanding as of December
31, 2020, 88,555,390
issued and 88,411,184 outstanding as of
September 30, 2021
|
|
|
|
79,310
|
|
|
|
88,555
|
|
Donated
shares
|
|
|
|
14,101,689
|
|
|
|
14,101,689
|
|
Additional paid-in
capital
|
|
|
|
225,278,113
|
|
|
|
241,232,244
|
|
Statutory
reserves
|
|
|
|
1,230,511
|
|
|
|
1,230,511
|
|
Accumulated
deficit
|
|
|
|
(183,984,311)
|
|
|
|
(131,654,694)
|
|
Accumulated other
comprehensive loss
|
|
|
|
(239,609)
|
|
|
|
1,240,354
|
|
|
|
|
|
56,465,703
|
|
|
|
126,238,659
|
|
Less: Treasury
shares
|
|
|
|
(4,066,610)
|
|
|
|
(4,066,610)
|
|
Total shareholders'
equities
|
|
|
|
52,399,093
|
|
|
|
122,172,049
|
|
Non-controlling
interests
|
|
|
|
7,735
|
|
|
|
23,759
|
|
Total of
equities
|
|
|
|
52,406,828
|
|
|
|
122,195,808
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
|
$
|
142,767,079
|
|
|
$
|
190,706,052
|
|
CBAK Energy
Technology, Inc. and Subsidiaries
|
Unaudited
Condensed Consolidated Statements of Operations and Comprehensive
Income (Loss)
|
(In $ except for
number of shares)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September 30,
|
|
|
Nine months
ended
September 30,
|
|
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
Net
revenues
|
|
|
$
|
10,620,656
|
|
|
$
|
9,562,190
|
|
|
$
|
22,146,177
|
|
|
$
|
24,867,393
|
|
Cost of
revenues
|
|
|
|
(9,245,811)
|
|
|
|
(8,430,808)
|
|
|
|
(20,477,719)
|
|
|
|
(20,798,931)
|
|
Gross
profit
|
|
|
|
1,374,845
|
|
|
|
1,131,382
|
|
|
|
1,668,458
|
|
|
|
4,068,462
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
|
|
|
(446,162)
|
|
|
|
(1,815,756)
|
|
|
|
(1,130,316)
|
|
|
|
(3,344,817)
|
|
Sales and marketing
expenses
|
|
|
|
(157,485)
|
|
|
|
(510,386)
|
|
|
|
(351,963)
|
|
|
|
(1,262,999)
|
|
General and
administrative expenses
|
|
|
|
(741,785)
|
|
|
|
(2,158,183)
|
|
|
|
(2,614,349)
|
|
|
|
(5,823,560)
|
|
Recovery of
(provision for) doubtful accounts
|
|
|
|
364,168
|
|
|
|
178,897
|
|
|
|
(63,534)
|
|
|
|
437,475
|
|
Total operating
expenses
|
|
|
|
(981,264)
|
|
|
|
(4,305,428)
|
|
|
|
(4,160,162)
|
|
|
|
(9,993,901)
|
|
Operating profit
(loss)
|
|
|
|
393,581
|
|
|
|
(3,174,046)
|
|
|
|
(2,491,704)
|
|
|
|
(5,925,439)
|
|
Finance (expenses)
income, net
|
|
|
|
(357,739)
|
|
|
|
129,340
|
|
|
|
(1,171,030)
|
|
|
|
174,442
|
|
Other income,
net
|
|
|
|
5,873
|
|
|
|
69,970
|
|
|
|
152,171
|
|
|
|
1,619,194
|
|
Impairment of
non-marketable equity securities
|
|
|
|
-
|
|
|
|
(43)
|
|
|
|
-
|
|
|
|
(690,585)
|
|
Change in fair value
of warrants
|
|
|
|
-
|
|
|
|
22,998,000
|
|
|
|
-
|
|
|
|
57,174,000
|
|
Income (loss) before
income tax and
discontinued operations
|
|
|
|
41,715
|
|
|
|
20,023,221
|
|
|
|
(3,510,563)
|
|
|
|
52,351,612
|
|
Income tax
expense
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Net income
(loss)
|
|
|
|
41,715
|
|
|
|
20,023,221
|
|
|
|
(3,510,563)
|
|
|
|
52,351,612
|
|
Less: Net income
(loss) attributable to non-
controlling interests
|
|
|
|
2,532
|
|
|
|
(3,487)
|
|
|
|
(2,386)
|
|
|
|
(21,995)
|
|
Net income (loss)
attributable to shareholders
of CBAK Energy Technology, Inc.
|
|
|
$
|
44,247
|
|
|
$
|
20,019,734
|
|
|
$
|
(3,512,949)
|
|
|
$
|
52,329,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
41,715
|
|
|
|
20,023,221
|
|
|
|
(3,510,563)
|
|
|
|
52,351,612
|
|
– Foreign currency
translation adjustment
|
|
|
|
846,695
|
|
|
|
243,258
|
|
|
|
574,526
|
|
|
|
1,473,992
|
|
Comprehensive income
(loss)
|
|
|
|
888,410
|
|
|
|
20,266,479
|
|
|
|
(2,936,037)
|
|
|
|
53,825,604
|
|
Less: Comprehensive
loss (income)
attributable to non-controlling
interests
|
|
|
|
3,465
|
|
|
|
(3,404)
|
|
|
|
(630)
|
|
|
|
(16,024)
|
|
Comprehensive income
(loss) attributable to
CBAK Energy Technology, Inc.
|
|
|
$
|
891,875
|
|
|
$
|
20,263,075
|
|
|
$
|
(2,936,667)
|
|
|
$
|
53,809,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– Basic
|
|
|
$
|
0.00
|
|
|
$
|
0.23
|
|
|
$
|
(0.06)
|
|
|
$
|
0.60
|
|
– Diluted
|
|
|
$
|
0.00
|
|
|
$
|
0.23
|
|
|
$
|
(0.06)
|
|
|
$
|
0.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares of
common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– Basic
|
|
|
|
64,909,894
|
|
|
|
88,419,998
|
|
|
|
59,569,498
|
|
|
|
87,043,490
|
|
– Diluted
|
|
|
|
65,400,058
|
|
|
|
88,709,210
|
|
|
|
59,569,498
|
|
|
|
87,349,010
|
|
View original
content:https://www.prnewswire.com/news-releases/cbak-energy-reports-third-quarter-2021-unaudited-financial-results-301422856.html
SOURCE CBAK Energy Technology, Inc.