CBAK Energy Reports 40.6% Revenue Decline in Q1 2025

CBAK Energy Technology, Inc. reported a significant decline in financial performance for the first quarter of 2025, with net revenues falling to $34.9 million, a decrease of 40.6% from $58.8 million in the same period of 2024. The company's gross profit also dropped sharply to $4.8 million, down 74.4% from $18.8 million year-over-year. This downturn resulted in an operating loss of $2.9 million, contrasting with an operating income of $10.3 million in the prior year. The net loss attributable to shareholders was $1.6 million, compared to a net income of $9.8 million in the first quarter of 2024.

The decline in revenue was attributed primarily to a substantial decrease in sales of batteries for residential energy supply and uninterruptible power supplies, which fell from $42.8 million to $17.0 million. This was compounded by ongoing upgrades at the Dalian facilities, which are transitioning to new battery models. Conversely, sales of batteries for light electric vehicles increased by 88%, indicating a potential area for future growth. The company also reported a slight increase in revenues from materials used in manufacturing lithium batteries, which rose to $14.6 million.

Operationally, CBAK Energy has been expanding its product lines and manufacturing capacity, particularly in its Dalian, Nanjing, and Zhejiang facilities. As of March 31, 2025, the company had total current assets of $143.2 million against current liabilities of $175.5 million, resulting in a working capital deficit of $32.3 million. The company’s accumulated deficit reached $126.1 million, raising concerns about its ability to continue as a going concern. The report from the independent registered public accounting firm highlighted substantial doubt regarding the company's ability to sustain operations.

In terms of strategic developments, CBAK Energy has been actively pursuing funding through various channels, including bank loans and equity financing, to support its expansion plans. The company has secured significant bank facilities, including a new five-year agreement with the Bank of Communications for approximately $21.5 million. However, the company faces challenges in maintaining liquidity, as evidenced by a net cash outflow from operating activities of $9.6 million in the first quarter of 2025.

Looking ahead, CBAK Energy aims to improve its profitability and operational efficiency while navigating the challenges posed by market conditions and ongoing product transitions. The company is focused on enhancing its market presence, particularly in the light electric vehicle sector, and is optimistic about future growth opportunities despite the current financial setbacks.