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CBAK Energy Technology Reports Financial Performance for 2024

CBAK Energy Technology, Inc. (NASDAQ: CBAT) is proud to announce its financial results for the full year of 2024, revealing a promising growth trajectory in its core battery segment despite broader economic challenges.

Overview of Financial Highlights

The unaudited financial statements for the year ending December 31, 2024, indicate that CBAK Energy achieved net revenues from battery sales amounting to $136.59 million, marking a growth of 2.7% compared to $132.99 million from the prior year.
In particular, sales revenue from batteries utilized in light electric vehicles surged to $10.32 million, representing a remarkable increase of 84% from $5.61 million in 2023. Conversely, revenues from electric vehicle batteries saw a decline to $1.68 million, down 41.67% from $2.88 million year-on-year. Notably, residential energy supply segments showed stability with revenues of $124.59 million, exhibiting a slight increase of 0.1% from $124.5 million in 2023.

Gross Profit and Margins

CBAK Energy's battery business also recorded an impressive gross margin of 31.5%, which showcases a significant improvement of 7.7 percentage points compared to 23.8% in the same period last year. This improvement in profitability is essential, with net income from the battery segment escalating to $19.43 million, up 39.08% from $13.97 million in 2023. The CEO, Zhiguang Hu, expressed satisfaction with these results, emphasizing the company's strong position against competitors within the industry.

Production Capacity Expansion

The company is also addressing the rising demand for its Model 32140 batteries, which has outstripped supply. To meet this challenge, CBAK plans to expand its production capabilities actively. This effort underscores the management’s commitment to sustaining profitability and capturing market share in an increasingly competitive arena of electric energy solutions.

Consolidated Financial Results

Though battery sales demonstrated resilience, the consolidated financial highlights show a transition from a net loss in 2023 to a net income of $11.79 million in 2024. This positive shift came despite a decline in overall net revenues to $176.61 million, attributed primarily to challenges faced by the raw materials division, Hitrans. The CFO, Jiewei Li, highlighted the strong profitability in its battery segment, asserting it remains robustly positioned to enhance the consolidated financial performance moving forward, reinforcing confidence even amidst potential external market pressures.

Cost and Revenue Analysis

The total cost of revenues decreased 21.9% following a strategic push towards higher gross profit margins in the battery business, which contributed to an increase in gross profit to $41.75 million, a 31.68% uptick from the prior year. While operating expenses decreased overall, the continued focus on research and development remains imperative to ensure that CBAK maintains its technological edge in battery manufacturing.

Upcoming Earnings Call

CBAK Energy’s management will discuss the results during a conference call set for 800 AM U.S. Eastern Time on March 17, 2025. Investors and analysts are encouraged to join the call online for an in-depth discussion regarding the annual performance and future direction of the company.

Outlook and Future Developments

Although CBAK Energy's net revenues showed a decline, the strides taken in growth areas such as light electric vehicles position the company favorably within the green technology sector and reflect a company paving the way for sustainable energy solutions.
The proactive approach to increasing production capacities and maintaining profitability within the battery landscape is not only promising for CBAK Energy but also indicative of the market's broader movement towards renewable energy solutions. Looking ahead, investors and stakeholders are optimistic about the potential for continued growth and innovation at CBAK Energy as it strengthens its market presence.

Conclusion

CBAK Energy Technology, Inc. remains a key player in the lithium-ion battery manufacturing landscape, with a robust financial performance reflecting both growth and adaptability in the face of market challenges. The firm’s strategic planning—including production expansion and profit maximization—indicates that it is well-equipped for the future in the evolving energy landscape.