DALIAN, China, April 12, 2021 /PRNewswire/ -- CBAK Energy
Technology, Inc. (NASDAQ: CBAT) ("CBAK Energy," or the "Company") a
leading lithium-ion battery manufacturer and electric energy
solution provider, today announced its financial results for the
year ended December 31,
2020. The Company intends to file its annual report containing
its audited consolidated financial statements for the fiscal year
ended December 31, 2020, on Form 10-K
with the Securities and Exchange Commission (the "SEC") on or about
April 12, 2021. When available, the
annual report can be accessed on the Company's investor relations
website at https://ir.cbak.com.cn and on the SEC's website at
http://www.sec.gov.
Fiscal Year 2020 Financial Highlights
- Total net revenues increased by 69.3% to US$37.6 million from US$22.2 million in fiscal year 2019.
- Gross profit increased to US$2.7
million from US$0.6 million in
fiscal year 2019. Gross margin improved to 7.2% from 2.8% in fiscal
year 2019.
- Net loss decreased to US$7.8
million from US$10.9 million
in fiscal year 2019.
Mr. Yunfei Li, Chief Executive
Officer of CBAK Energy, commented, "Despite macro challenges in
2020, we grew our top-line by 69.3% year over year. Such robust
growth was mainly due to the increased market recognition of our
R&D capabilities as well as our higher brand awareness in the
energy storage market. With our competitive advantages in R&D
and expanded global presence, we remain confident in our future
growth prospects. Moreover, our 46800 battery model, 32140 battery
model, and special 26650 battery model designed for application in
ultra-low temperature environments should enable us to augment our
development in the markets for light electric vehicles, electric
vehicles, and energy storage to ensure the long-term and
sustainable growth of our enterprise value going forward."
Ms. Xiangyu Pei, Interim Chief Financial Officer, further
commented, "In the full year of 2020, we grew our total net
revenues while also significantly reducing our net loss. This
healthy performance was mainly due to our effective corporate
strategy, resilient business model, and operating leverage
improvements. As a result of our increased financial capacity from
our recent equity offering, we are confident in our ability to
continue capitalizing on those opportunities which will emerge
going forward to accelerate our development in the post-pandemic
world."
Fiscal Year 2020 Financial Results
Total net revenues increased by 69.3% to
US$37.6 million in fiscal year 2020
from US$22.2 million in fiscal year
2019.
- Net revenues from sales of batteries for electric
vehicles decreased to US$259,955 in fiscal year 2020 from US$4.5 million in fiscal year 2019. The decrease
was mainly attributable to changes of the Chinese government's new
energy vehicle subsidy policies.
- Net revenues from sales of batteries for light electric
vehicles increased by 144.2% to US$39,428 in fiscal year 2020 from US$16,147 in fiscal year 2019. The increase was
mainly attributable to the increased market recognition of the
Company's brand and products.
- Net revenues from sales of batteries for uninterruptable
supplies increased by 28.7% to US$22.7 million in fiscal year 2020 from
US$17.7 million in fiscal year 2019.
The increase was mainly attributable to the Company's strategic
decision to shift its focus to its development within the market
for uninterruptable supplies in 2020.
- Net revenues from sales of raw materials used in lithium
batteries were US$14.5 million in
fiscal year 2020, as compared with nil in fiscal year 2019. The
increase was mainly attributable to the Company's improved
bargaining power with certain suppliers.
Cost of revenues increased by 61.6% to US$34.9 million in fiscal year 2020 from
US$21.6 million in fiscal year 2019.
The increase was in line with the increase in total net revenues,
which was partially offset by the cost control improvements and
enhancements made by the Company to its production lines in
Dalian.
Gross profit increased to US$2.7 million in fiscal year 2020 from
US$0.6 million in fiscal year 2019.
Gross margin improved to 7.2% in fiscal year 2020 from 2.8% in
fiscal year 2019.
Total operating expenses increased to US$11.2 million in fiscal year 2020 from
US$10.7 million in the fiscal year
2019.
- Research and development expenses decreased by 11.9% to
US$1.7 million in fiscal year 2020
from US$1.9 million in fiscal year
2019. The decrease was primarily a result of the decrease in
employees' salaries and social insurance expenses, as the Company
suspended its operations in the first quarter of 2020 in response
to the outbreak of COVID-19 and the Chinese government announced a
policy to relieve corporations' social security burdens.
- Sales and marketing expenses decreased by 31.3% to
US$0.7 million in fiscal year 2020
from US$1.0 million in fiscal year
2019. The decrease was primarily a result of a decrease in
provision for warranty expenses as well as decrease in provisions
for employees' salaries and social insurance expenses, as the
Company suspended its operations in the first quarter of 2020 in
response to the outbreak of COVID-19 and the Chinese government
announced a policy to relieve corporations' social security
burdens.
- General and administrative expenses decreased by 15.1%
to US$3.7 million in fiscal year 2020
from US$4.4 million in fiscal year
2019. The decrease was primarily a result of the same reasons which
led to a decrease in R&D expenses, partially offset by the
Company's continuous efforts to improve its cost management.
- Property, plant and equipment impairment charge was
US$4.3 million in fiscal year 2020,
as compared to US$2.3 million in
fiscal year 2019.
- Provision for doubtful accounts decreased to
US$0.7 million in the fiscal year
2020 from US$1.0 million in the
fiscal year 2019.
Operating loss declined to US$8.5
million in the fiscal year 2020 from US$10.1 million in the fiscal year 2019.
Finance expense, net remained stable at US$1.4 million in the fiscal year 2020, as
compared to US$1.4 million in the
fiscal year 2019.
Other expenses were US$0.04
million in the fiscal year 2020, as compared to other income
of approximately US$0.6 million in
the fiscal year 2019.
Net loss declined to US$7.8
million in the fiscal year 2020 from US$10.9 million in the fiscal year 2019.
Basic and diluted net loss per share in fiscal year
2020 were both US$0.10. In
comparison, basic and diluted net loss per share in fiscal year
2019 were both US$0.28.
Cash and cash equivalents were US$11.7 million as of December 31, 2020, as compared to US$1.6 million in the fiscal year 2019.
Recent Developments
On February 19, 2021, the Company
announced that it has started the trial production of its special
26650 lithium battery (the "Special 26650 Battery"). Different from
the Company's regular 26650 batteries that it is currently
manufacturing and selling, the Special 26650 Battery is a
self-developed battery model specifically designed for application
in ultra-low temperature environments. The Special 26650 Battery
has delivered satisfactory test performance results to date, while
the trial's production yield rate has also been very close to the
Company's required level for mass production. The Company believes
that it will be capable of achieving mass delivery for its Special
26650 Battery by the second half of 2021.
On February 10, 2021, the Company
announced that it closed a registered direct placement of
approximately $70 million of its
common stock, priced at the market under applicable Nasdaq rules
with a price of US$7.83 per share,
and the concurrent private placement.
On February 3, 2021, the Company
provided additional details for its plans to expand its production
capacity in Nanjing and
Dalian in anticipation of
increasing client orders. For its Nanjing manufacturing plants, the Company
plans to attain a total capacity of 8 GWh per year to produce
lithium batteries for the light electric vehicle, electric vehicle,
and energy storage industries. The Company is currently developing
a production line with an annual capacity of 0.7 GWh for its new
model 32140 batteries. This production line is expected to be
operational by the second half of 2021 and capable of producing
50,000 model 32140 batteries per day.
About CBAK Energy
CBAK Energy Technology, Inc. is a leading high-tech enterprise
engaged in the development, manufacturing, and sales of new energy
high power lithium batteries. The applications of the Company's
products and solutions include electric vehicles, light electric
vehicles, electric tools, energy storage, uninterruptible power
supply (UPS), and other high-power applications. In January 2006, CBAK Energy became the first
lithium battery manufacturer in China listed on the Nasdaq Stock Market. CBAK
Energy has multiple operating subsidiaries in Dalian and Nanjing, as well as a large-scale R&D and
production base in Dalian.
For more information, please visit https://ir.cbak.com.cn.
Safe Harbor Statement
This press release contains forward-looking statements, which
are subject to change. The forward-looking statements are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All "forward-looking statements"
relating to the business of CBAK Energy Technology, Inc. and its
subsidiary companies, which can be identified by the use of
forward-looking terminology such as "believes", "expects" or
similar expressions, involve known and unknown risks and
uncertainties which could cause actual results to differ
materially. These factors include but are not limited to: the
ability of the Company to meet its contract or agreement
obligations; the uncertain market for the Company's lithium battery
cells; business, macroeconomic, technological, regulatory, or other
factors affecting the profitability of battery cells designed for
energy storage; and risks related to CBAK Energy's business and
risks related to operating in China. Please refer to CBAK Energy's Annual
Report on Form 10-K for the fiscal year ended December 31, 2019, as well as other SEC reports
that have been filed since the date of such annual report, for
specific details on risk factors. Given these risks and
uncertainties, you are cautioned not to place undue reliance on
forward-looking statements. CBAK Energy's actual results could
differ materially from those contained in the forward-looking
statements. CBAK Energy undertakes no obligation to revise or
update its forward-looking statements in order to reflect events or
circumstances that may arise after the date of this release unless
expressly requested by applicable law.
Contacts
CBAK Energy Technology, Inc.
Investor Relations Department
Tel: 86-411-39185985
Email: ir@cbak.com.cn
CBAK Energy
Technology, Inc. and Subsidiaries
Unaudited Condensed
Consolidated Balance Sheets
(In US$ except for
number of shares)
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2019
|
|
2020
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,612,957
|
|
$
|
11,681,750
|
|
Pledged
deposits
|
|
|
5,520,991
|
|
|
8,989,748
|
|
Trade accounts and
bills receivable, net
|
|
|
7,952,420
|
|
|
29,571,274
|
|
Inventories
|
|
|
8,666,714
|
|
|
5,252,845
|
|
Prepayments and other
receivables
|
|
|
4,735,913
|
|
|
7,439,544
|
|
Investment in
sales-type lease, net
|
|
|
-
|
|
|
235,245
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
28,488,995
|
|
|
63,170,406
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
38,177,565
|
|
|
41,040,370
|
|
Construction in
progress
|
|
|
21,707,624
|
|
|
30,193,309
|
|
Right-of-use
assets
|
|
|
7,194,195
|
|
|
7,500,780
|
|
Intangible assets,
net
|
|
|
15,178
|
|
|
11,807
|
|
Investment in
sales-type lease, net
|
|
|
-
|
|
|
850,407
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
95,583,557
|
|
$
|
142,767,079
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Trade accounts and
bills payable
|
|
$
|
15,072,108
|
|
$
|
28,352,292
|
|
Current maturities of
long-term bank loans
|
|
|
16,574,752
|
|
|
13,739,546
|
|
Other short-term
loans
|
|
|
7,351,587
|
|
|
1,253,869
|
|
Notes
payables
|
|
|
2,846,736
|
|
|
-
|
|
Accrued expenses and
other payables
|
|
|
15,527,589
|
|
|
11,645,459
|
|
Payables to former
subsidiaries, net
|
|
|
1,483,352
|
|
|
626,990
|
|
Deferred government
grants, current
|
|
|
142,026
|
|
|
151,476
|
|
Product warranty
provisions
|
|
|
-
|
|
|
155,888
|
|
Warrants
liability
|
|
|
-
|
|
|
17,783,000
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
58,998,150
|
|
|
73,708,520
|
|
|
|
|
|
|
|
|
|
Long-term bank
loans
|
|
|
9,519,029
|
|
|
-
|
|
Deferred government
grants, non-current
|
|
|
4,118,807
|
|
|
7,304,832
|
|
Product warranty
provisions
|
|
|
2,246,933
|
|
|
1,835,717
|
|
Long term tax
payable
|
|
|
7,042,582
|
|
|
7,511,182
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
81,925,501
|
|
|
90,360,251
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
Common stock $0.001
par value; 500,000,000 authorized; 53,220,902 issued and
53,076,696 outstanding as of December 31, 2019; and
79,310,249 issued and
79,166,043 outstanding as of December 31,
2020
|
|
|
53,222
|
|
|
79,310
|
|
Donated
shares
|
|
|
14,101,689
|
|
|
14,101,689
|
|
Additional paid-in
capital
|
|
|
180,208,610
|
|
|
225,278,113
|
|
Statutory
reserves
|
|
|
1,230,511
|
|
|
1,230,511
|
|
Accumulated
deficit
|
|
|
(176,177,413)
|
|
|
(183,984,311)
|
|
Accumulated other
comprehensive loss
|
|
|
(1,744,730)
|
|
|
(239,609)
|
|
|
|
|
17,671,889
|
|
|
56,465,703
|
|
Less: Treasury
shares
|
|
|
(4,066,610)
|
|
|
(4,066,610)
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
13,605,279
|
|
|
52,399,093
|
|
Non-controlling
interests
|
|
|
52,777
|
|
|
7,735
|
|
Total
equity
|
|
|
13,658,056
|
|
|
52,406,828
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholder's equity
|
|
$
|
95,583,557
|
|
$
|
142,767,079
|
|
CBAK Energy
Technology, Inc. and Subsidiaries
Unaudited Condensed
Consolidated Statements of Operations and Comprehensive Income
(Loss)
(In US$ except for
number of shares)
|
|
|
|
|
|
|
|
|
Year
ended
|
|
Year
ended
|
|
|
|
December 31,
2019
|
|
December 31,
2020
|
|
Net
revenues
|
|
$
|
22,194,348
|
|
$
|
37,566,152
|
|
Cost of
revenues
|
|
|
(21,571,822)
|
|
|
(34,852,132)
|
|
Gross
profit
|
|
|
622,526
|
|
|
2,714,020
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development expenses
|
|
|
(1,905,504)
|
|
|
(1,678,895)
|
|
Sales and marketing
expenses
|
|
|
(1,020,929)
|
|
|
(701,404)
|
|
General and
administrative expenses
|
|
|
(4,411,878)
|
|
|
(3,745,676)
|
|
Impairment charge on
property, plant and equipment
|
|
|
(2,326,552)
|
|
|
(4,345,811)
|
|
Provision for
doubtful accounts
|
|
|
(1,046,360)
|
|
|
(721,737)
|
|
Total operating
expenses
|
|
|
(10,711,223)
|
|
|
(11,193,523)
|
|
Operating
loss
|
|
|
(10,088,697)
|
|
|
(8,479,503)
|
|
Finance expenses,
net
|
|
|
(1,384,904)
|
|
|
(1,399,095)
|
|
Other income
(expenses), net
|
|
|
620,166
|
|
|
(40,170)
|
|
Changes in fair value
of warrants liability
|
|
|
-
|
|
|
2,072,000
|
|
Loss before income
tax
|
|
|
(10,853,435)
|
|
|
(7,846,768)
|
|
Income tax
expense
|
|
|
-
|
|
|
-
|
|
Net loss
|
|
|
(10,853,435)
|
|
|
(7,846,768)
|
|
Less: Net loss
attributable to non-controlling interests
|
|
|
85,912
|
|
|
39,870
|
|
Net loss attributable
to shareholders of CBAK Energy Technology, Inc.
|
|
$
|
(10,767,523)
|
|
$
|
(7,806,898)
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
(10,853,435)
|
|
|
(7,846,768)
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
– Foreign currency
translation adjustment
|
|
|
(246,416)
|
|
|
1,499,949
|
|
Comprehensive
loss
|
|
|
(11,099,851)
|
|
|
(6,346,819)
|
|
Less: Comprehensive
loss attributable to non-controlling interests
|
|
|
86,538
|
|
|
45,042
|
|
Comprehensive loss
attributable to CBAK Energy Technology, Inc.
|
|
$
|
(11,013,313)
|
|
$
|
(6,301,777)
|
|
|
|
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
|
|
|
– Basic and
diluted
|
|
$
|
(0.28)
|
|
$
|
(0.10)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares of common stock:
|
|
|
|
|
|
|
|
– Basic and
diluted
|
|
|
38,965,564
|
|
|
61,992,386
|
|
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content:http://www.prnewswire.com/news-releases/cbak-energy-reports-fiscal-year-2020-financial-results-301266698.html
SOURCE CBAK Energy Technology, Inc.