CBAK Energy Technology Reports 15% Revenue Decline and Increased Losses in Q2 2025

CBAK Energy Technology, Inc. reported a significant decline in financial performance for the second quarter of 2025, with net revenues falling to $40.5 million, a decrease of 15% from $47.8 million in the same period of 2024. The company's gross profit also dropped sharply to $4.5 million, down from $12.7 million, reflecting a gross margin contraction from 26.6% to 11.0%. This downturn was primarily attributed to a substantial decline in sales of batteries for residential energy supply and uninterruptible power supplies, which fell by 45% due to production changes at the Dalian facilities, where a transition to a new battery model is underway.

In terms of operational metrics, CBAK's total operating expenses increased to $8.0 million for the quarter, up from $6.8 million a year earlier. The company reported an operating loss of $3.5 million, a stark contrast to the operating income of $5.9 million recorded in the previous year. The net loss attributable to shareholders was $3.1 million, compared to a net income of $6.4 million in the same quarter of 2024. The decline in profitability was compounded by increased research and development expenses, which rose to $3.6 million, reflecting ongoing investments in product development.

CBAK's strategic developments included the continued expansion of its product lines and manufacturing capacity across its facilities in Dalian, Nanjing, Zhejiang, and Anhui. The company is focusing on enhancing its market presence, particularly in the light electric vehicle sector, where sales increased by 33% year-over-year. However, the overall market conditions have posed challenges, leading to a decrease in customer demand for certain battery models.

As of June 30, 2025, CBAK reported total current assets of $143.4 million against current liabilities of $199.4 million, resulting in a working capital deficit of $56 million. The company has accumulated a deficit of $129.1 million, raising concerns about its ability to continue as a going concern. CBAK plans to address its liquidity needs through additional bank borrowings and equity financing, although there is no assurance that such financing will be available on favorable terms.

Looking ahead, CBAK aims to recover its profitability by completing the transition to the new battery model and expanding its customer base in international markets. The company is also focused on improving its operational efficiency and managing its costs effectively to navigate the current challenging market environment.