CBAK Energy Technology Reports $176.6M Revenue and $9.6M Net Income for Fiscal Year 2024

CBAK Energy Technology, Inc. reported revenues of $176.6 million for the fiscal year ended December 31, 2024, a 14% decrease compared to the $204.4 million in revenue generated during the 2023 fiscal year. The company achieved a net income of $9.6 million in 2024, a significant turnaround from the $8.5 million net loss reported in 2023. This improvement was attributed to increased sales of batteries for residential energy supply and UPS applications, and sales of light electric vehicle batteries, partially offset by a decline in sales of electric vehicle batteries and cathode materials and precursors. The company's accumulated deficit as of December 31, 2024, stood at $122.6 million, while net assets totaled $120.1 million.

Significant changes in the company's operational landscape included the expansion of manufacturing capabilities. The company's Nanjing Project, aiming for a total annual production capacity of 20 GWh, saw the completion of Phase I, with two production lines operational, yielding an annual capacity of 1.3 GWh. Phase II, slated for completion by the end of 2027, is expected to add another 18 GWh of capacity. Additionally, the Dalian manufacturing center is adding a new production line for Model 40135 batteries, with an anticipated capacity of 2.3 GWh, and is developing Model 46950 batteries. Hitrans, acquired in 2021, currently has a manufacturing capacity of 13,000 tons for NCM precursors and 3,000 tons for NCM cathode materials, with planned expansion to increase NCM precursor production capacity by an additional 37,000 tons.

The company's strategic developments included the acquisition of a controlling interest (initially 81.56%, later reduced to 67.33%) in Zhejiang Hitrans Lithium Battery Technology Co., Ltd. in November 2021. This acquisition broadened CBAK's business into the development and manufacturing of NCM precursor and cathode materials. However, Hitrans's financial performance has underperformed expectations, with net revenue from sales of cathode materials and precursors decreasing from $71.4 million in 2023 to $40.0 million in 2024. The company also experienced management changes, including multiple changes in its Chief Financial Officer.

Key operational developments included a shift in the end applications of the company's products. While the majority of revenue in recent years has been driven by residential energy supply and UPS applications, the company is also expanding its presence in the light electric vehicle market. The company's customer base includes Viessmann Faulquemont S.A.S, Anker Innovations, Livguard Energy Technologies Private Limited, Hello Tech (Jackery), Shenzhen ACE Battery Co., Ltd., and PowerOAK. The company employed approximately 1,463 full-time employees as of December 31, 2024. The company's independent auditors expressed substantial doubt about its ability to continue as a going concern due to a working capital deficiency, accumulated deficit, and significant short-term debt obligations.

The company's outlook, as stated in the filing, includes plans to improve profitability, renew bank borrowings upon maturity, and raise additional funds through bank borrowings and equity financing to meet cash demands. The company also plans to continue expanding its product lines and manufacturing capacity, focusing on larger cylindrical batteries and sodium-ion batteries. However, the filing also highlights numerous risks, including those related to doing business in China, competition, reliance on a limited number of customers, and the potential for delisting from Nasdaq.