ITEM 8.01. OTHER EVENTS.
Inability to file Annual Report on Form
10-K for the year ended December 31, 2019 by the original deadline of March 30, 2020 due to circumstances related to COVID-19.
CBAK Energy Technology, Inc. (the “Company”)
will be unable to file its 2019 Annual Report on Form 10-K (the “10-K”) by March 30, 2020 due to circumstances related
to COVID-19. All of the Company’s operating subsidiaries, employees and production facilities are located in China which
has been affected by the outbreak of COVID-19 since December 2019. From January to February 2020, the Chinese government imposed
nationwide travel restrictions and quarantine control, and we largely suspended our operations during this period. As a result,
the Company’s finance department will be unable to complete the preparation of the Company’s consolidated financial
statements and the 10-K without undue hardship and expense to the Company until after March 30, 2020.
The Company is relying on the SEC order under
Section 36 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), dated March 25, 2020 (Release No.
34-88465) to extend the due date for the filing of the 10-K until May 14, 2020 (45 days after the original due date). The Company
will work diligently to comply with such requirement and, at this time, management believes that it will need the entire available
extension period.
The Company
is supplementing the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December
31, 2018 and its subsequent Quarterly Reports on Form 10-Q with the following risk factor:
Our business operations have been and may continue to be materially
and adversely affected by the outbreak of the coronavirus (COVID-19).
An outbreak of respiratory illness caused by
COVID-19 emerged in late 2019 and has spread within the PRC and globally. The coronavirus is considered to be highly contagious
and poses a serious public health threat. The World Health Organization labeled the coronavirus a pandemic on March 11, 2020, given
its threat beyond a public health emergency of international concern the organization had declared on January 30, 2020.
Any outbreak of health epidemics or other outbreaks
of diseases in the PRC or elsewhere in the world may materially and adversely affect the global economy, our markets and our business.
In the first quarter of 2020, the COVID-19 outbreak has caused disruptions in our manufacturing operations and temporary closure
of our offices. A prolonged disruption or any further unforeseen delay in the procurement, manufacturing and assembly process within
our production facilities could continue to result in delays in the shipment of our products to customers, increased costs and
reduced revenue.
As the coronavirus epidemic expands globally,
the world economy is suffering a noticeable slowdown. If this outbreak persists, commercial activities throughout the world could
be curtailed with decreased consumer spending, business operation disruptions, interrupted supply chain, difficulties in travel,
and reduced workforces. The duration and intensity of disruptions resulting from the coronavirus outbreak is uncertain. It is unclear
as to when the outbreak will be contained, and we also cannot predict if the impact will be short-lived or long-lasting. The extent
to which the coronavirus impacts our financial results will depend on its future developments. If the outbreak of the
coronavirus is not effectively controlled in a short period of time, our business operation and financial condition may be materially
and adversely affected as a result of any slowdown in economic growth, operation disruptions or other factors that we cannot predict.
***
Forward-Looking Statements
Statements
in this Current Report on Form 8-K are “forward-looking statements” as the term is defined under applicable
securities laws. These statements include the anticipated timing of the filing of Company’s 10-Kunder the Exchange Act, the
expected impact of the COVID-19 outbreak on the Company’s financial reporting capabilities and its operations generally,
and the potential adverse effects of such pandemic on the overall business environment. These and other forward-looking statements
are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those statements.
Such risks and uncertainties are, in many instances, beyond the Company’s control. Forward-looking statements, which are
presented as of the date of this filing, will not be updated to reflect events or circumstances after the date of this report except
as required by law.
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