• Battery Segment Revenue: Increased by 2.7% to $136.59 million for the year.
• Battery Segment Gross Profit: Rose by 37.58% from $31.58 million to $43.05 million.
• Battery Segment Gross Profit Margin: Expanded to 31.5% from 23.75% in 2023, an increase of 7.7 percentage points.
• Battery Segment Net Income: Increased by 39.08% to $19.43 million from $13.97 million in 2023.
• Consolidated Net Revenues: Declined by 13.61% to $176.61 million from $204.44 million in 2023.
• Consolidated Gross Profit: Increased by 31.68% to $41.75 million from $31.72 million in 2023.
• Consolidated Gross Profit Margin: Improved to 23.7%, up 8.18 percentage points from 15.52% in 2023.
• Net Income Attributable to Shareholders: Achieved $11.79 million, a turnaround from a net loss of $2.45 million in 2023.
• Order Backlog: Total value of orders not yet delivered is approximately $17.54 million.
• Production Capacity Expansion: Expected to reach 7.6 gigawatt hours by the end of 2025.

• Warning! GuruFocus has detected 5 Warning Signs with CBAT.

Release Date: March 17, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• CBAK Energy Technology Inc (NASDAQ:CBAT) reported a 37.58% increase in gross profit for the battery segment, rising from $31.58 million to $43.05 million.
• The gross profit margin for the battery segment expanded significantly to 31.5%, up from 23.75% in 2023.
• Net income for the battery segment increased by 39.08%, reaching $19.43 million in 2024 compared to $13.97 million in 2023.
• The company is expanding its production capacity with two new production lines for the model 32140 in Nanjing, expected to add 3 gigawatt-hours of capacity by the end of 2025.
• CBAK Energy Technology Inc (NASDAQ:CBAT) is actively upgrading its product portfolio and expanding production capacity to meet surging demand, with expectations of significant growth in 2026.

Negative Points

• Consolidated net revenues declined by 13.61%, falling to $176.61 million from $204.44 million in 2023.
• The raw materials production unit, Hitrans, faced challenges due to declining prices and oversupply in the lithium-ion battery industry, impacting consolidated results.
• The company is experiencing operational challenges in the raw materials sector due to industry-wide capacity expansion and intensified competition.
• CBAK Energy Technology Inc (NASDAQ:CBAT) is facing geopolitical risks and potential tariffs, prompting the exploration of overseas production capacity.
• The company has not yet determined whether to relocate existing equipment or invest in new equipment for its overseas expansion, which could delay implementation.

Q & A Highlights

Q: As you're getting ready to expand the product lines, what are you seeing as you're speaking to equipment suppliers in the market? Are you getting any better pricing on some of the equipment that could be coming in, and do you think that could ultimately lead to faster implementation of some of these production lines given some of the challenges that exist in the battery market today? A: Thierry Jiewei Li, CFO: For our expansion plan in Nanjing, the terms and pricing from suppliers are similar to those for our competitors. However, we receive more favorable terms regarding payment schedules, allowing us to delay a significant portion of payments. We have completed the first pre-payments, and some equipment has already been sent to Nanjing. We are still assessing whether to relocate part of this equipment to our overseas factory or invest in new equipment.

Q: You have customers around the globe. Are you hearing anything from them regarding concerns about the global economy? A: Thierry Jiewei Li, CFO: We do not hear specific concerns about the global economy from our customers, but there are concerns about potential and existing geopolitical risks. Our major customers are pushing us to set up an overseas factory to avoid tariffs. There are also concerns about declining sales in their applications due to economic conditions. However, we remain positive about the future of the new energy industry, especially in Europe and the United States.

Q: On Hitrans, given the difficult market right now, are you still exploring any possible divestiture of that business? A: Thierry Jiewei Li, CFO: The industry Hitrans is in is experiencing a downturn, so we would not extend any new investments in Hitrans.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.