Close

Form 8-K CBAK Energy Technology, For: Aug 15

August 15, 2022 6:41 AM EDT

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
0001117171 false 0001117171 2022-08-15 2022-08-15 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of Earliest Event Reported): August 15, 2022

 

CBAK ENERGY TECHNOLOGY, INC.

(Exact name of registrant as specified in its charter)

 

Nevada   001-32898   86-0442833
(State or other jurisdiction
of incorporation)
  (Commission File No.)   (IRS Employer
Identification No.)

 

BAK Industrial Park, Meigui Street

Huayuankou Economic Zone

Dalian, China, 116450

(Address, including zip code, of principal executive offices)

 

(86)(411)-3918-5985

(Registrant’s telephone number, including area code)

 

 

(Former name or former address, if changed since last report)

 

Securities registered or to be registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock, $0.001 par value   CBAT   Nasdaq Capital Market

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

ITEM 2.02. Results of Operations and Financial Condition.

 

On August 15, 2022, CBAK Energy Technology, Inc. (the “Company”) released its unaudited results of operations for the fiscal quarter ended June 30, 2022. A copy of the press release issued by the Company concerning the foregoing results is furnished hereto as Exhibit 99.1.

 

The information in Item 2.02 of this Current Report on Form 8-K and the exhibit attached hereto are intended to be “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. Except as shall be expressly set forth by specific reference in such filing, the information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing with the Securities and Exchange Commission made by the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

 

ITEM 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit No.   Description
99.1   Press Release dated August 15, 2022
     
104   Cover Page Interactive Data File (embedded with the Inline XBRL document)

 

1

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  CBAK ENERGY TECHNOLOGY, INC.
     
Date: August 15, 2022 By: /s/ Xiangyu Pei
    Xiangyu Pei
    Interim Chief Financial Officer

 

 

2

 

Exhibit 99.1

 

CBAK Energy Reports Second Quarter and First Half 2022 Unaudited Financial Results

 

–Net Revenues up 857% year over year in the second quarter–

 

–Net Revenues up 792% year over year in the first half–

 

DALIAN, China, August 15, 2022 /PRNewswire/ — CBAK Energy Technology, Inc. (NASDAQ: CBAT) (“CBAK Energy,” or the “Company”) a leading lithium-ion battery manufacturer and electric energy solution provider in China, today reported its unaudited financial results for the second quarter and first half of 2022 ended June 30, 2022.

 

Second Quarter of 2022 Financial Highlights

 

Net revenues were $56.4 million, an increase of 857% from $5.9 million in the same period of 2021.

 

Gross profit was $5.5 million, representing an increase of $4.4 million, or 404%, for the three months ended June 30, 2022, from gross profit of $1.1 million for the same period in 2021.

 

Net income attributable to shareholders of CBAK Energy was $0.8 million, compared to net income attributable to shareholders of CBAK Energy of $2.7 million in the same period of 2021.

 

First Half of 2022 Financial Highlights

 

Net revenues were $136.5 million, an increase of 792% from $15.3 million in 2021.

 

Gross profit was $10.9 million, an increase of 270% from $2.9 million in 2021.

 

Net income attributable to shareholders of CBAK Energy was $1.3 million, compared to net income attributable to shareholders of CBAK Energy of $32.3 million in 2021.

 

Yunfei Li, Chairman and Chief Executive Officer of the Company, commented: “In the second quarter and first half of 2022, our company continued its strong growth in revenues. With the new energy industry getting hotter with tremendous policy supports, we made wise decision to enter the upstream of the industry by acquiring a lithium-ion battery material business and to further expand our battery production capacity.”

 

Mr. Li continued: “Despite that the inflation of materials price resulted from capacity shortage has increased our costs, we still managed to sustain a highly rapid growth in revenues, of which revenues from our battery business grew by over 3 times. Our management team is highly confident about the company’s future and its potential for quicker growth.”

 

Xiangyu Pei, Interim Chief Financial Officer of the Company, noted: “With the significant growth in the sales of our batteries and battery materials, we continued to expand revenue and gross profits. Notably, our revenues grew as much as 792% year-over-year to $136.5 million in the first half of 2022 while gross profits increased by over two times to $10.9 million. We believe that with the material price starts de-inflation and that our Nanjing plant is fully operated with its full capacity, we will have much higher profits. As always, we continued to invest in new headcounts, new business as well as research and development to drive further growth. We believe these investments, combined with our sound financial position and powerful battery product ecosystem, will enable us to sustain long-term, profitable growth.”

 

 

 

 

Second Quarter of 2022 Business Highlights & Recent Developments

 

In July 2022, the Company announced a joint-development agreement with one of the leading players in the R&D of sodium-ion batteries to co-develop Na-ion batteries. Both companies anticipated to start producing samples in the second half of 2022.

 

In June 2022, CBAK Energy announced a framework agreement with Jiangsu JPK New Energy Co., Ltd., a subsidiary of Jiangsu Jemmell New Energy Automobile Co., Ltd. (“Jemmell”) to develop and supply large cylindrical batteries used on Jemmell’s A00-grade mini passenger vehicles. Jemmell is known as a light electric vehicle manufacturing unit of Jinpeng Group (“JP Group”), which is one of China’s biggest LEV manufacturers.

 

Second Quarter of 2022 Financial Results

 

Net revenues were $56.4 million, an increase of 857% from $5.9 million in the same period of 2021. This was driven mostly by strong sales of high-power lithium batteries and materials for use in manufacturing lithium battery.

 

Net Revenues by End-product Applications
($ thousands)
 

2021

Second

Quarter

  

2022
Second

Quarter

   %
Change
YoY
 

Segment 1

High power lithium batteries used in:

            
Uninterruptable supplies  $5,812   $25,045    331 
Light electric vehicles   75    671    795 
Electric vehicles   -    -    - 
Segment 2               

Materials for use in manufacturing of lithium battery cell

               
Precursor   -    4,110    - 
Cathode   -    26,524    - 
Trading of raw materials used in lithium batteries   2    -    -100 
Total  $5,889   $56,350    857 

 

Cost of revenues was $50.8 million, an increase of 961% from $4.8 million in the same period of 2021. This was primarily due to increased net revenues.

 

Gross profit was $5.5 million, representing an increase of 404% from $1.1 million in the same period of 2021. Gross Margin was 9.5%, a decrease of 9.1% from 18.6% in the same period of 2021. The change in gross profits was primarily due to the increase in raw material costs.

 

2

 

 

Total operating expenses were $5.4 million, an increase of 48% from $3.8 million in the same period of 2021. Most of the increase in all expense categories was due to growing headcount and the acquisition of our battery material business and a growing number of employees for the new facility in Nanjing.

 

Research and development expenses were $2.3 million, an increase of 120% from $1.0 million in the same period of 2021.

 

Sales and marketing expenses were $0.7 million, an increase of 29% from $0.5 million in the same period of 2021.

 

General and administrative expenses were $2.5 million, an increase of 5% from $2.3 million in the same period of 2021.
   
Recovery of doubtful accounts was $59,826, compared to $0.1 million in the same period of 2021.

 

Operating income was $0.1 million, compared to an operating loss of $2.7 million in the same period of 2021, representing a change of 105% from operating loss to operating income.

 

Finance expense, net was $0.6 million, compared to finance income of $52,700 in the same period of 2021.

 

Change in fair value of warrants was $2.1 million, compared to $5.8 million in the same period of 2021. The change in fair value of the warrants liability is mainly due to share price movement.

 

Net income attributable to shareholders of CBAK Energy was $0.8 million, compared to net income attributable to shareholders of CBAK Energy of $2.7 million in the same period of 2021.

 

Basic and diluted income per share were both nil. In comparison, basic and diluted income per share in the same period of 2021 were both $0.02.

 

First Half of 2022 Financial Results

 

Net revenues were $136.5 million, an increase of 792% from $15.3 million in 2021. This was primarily due to stronger sales of batteries for uninterruptable supplies and LEVs as well as materials for use in manufacturing lithium battery.

 

Net Revenues by End-product Applications
($ thousands)
 

2021

First
Half

   2022
First
Half
   %
Change
YoY
 

Segment 1

High power lithium batteries used in:

            
Uninterruptable supplies  $14,576   $39,976    174 
Light electric vehicles   109    760    597 
Electric vehicles   101    -    -100 
Segment 2               

Materials for use in manufacturing of lithium battery cell 

               
Precursor   -    40,923    - 
Cathode   -    54,887    - 
Trading of raw materials used in lithium batteries   519    -    -100 
Total  $15,305   $136,546    792 

 

3

 

 

Cost of revenues was $125.7 million, an increase of 916% from $12.4 million in 2021. This was primarily attributed to increased net revenues.

 

Gross profit was $10.9 million, an increase of 270% from $2.9 million in 2021. Gross margin was 8.0%, a decrease of 11 percentage points from 2021. The change in gross margin was primarily due to the increase in raw material prices.

 

Total operating expenses were $12.0 million, an increase of 112% from $5.7 million in 2021. Most of the increase in all expense categories was due to growing headcount and the acquisition of our battery material business and a growing number of employees for the new facility in Nanjing.

 

Research and development expenses were $5.6 million, an increase of 267% from $1.5 million in 2020. The increase was mainly due to the increase in salaries, and the acquisition of our battery material business, and a growing number of employees needed for our new Nanjing plant.

 

Sales and marketing expenses were $1.5 million, an increase of 103% from $0.8 million in 2021. The increase was mainly due to the increase in salaries, the acquisition of our battery material business, a growing number of employees needed for our new Nanjing plant and expanded sales and marketing efforts.

 

General and administrative expenses were $4.7 million, an increase of 28% from $3.7 million in 2021. The increase was mainly due to the increase in salaries resulting from the acquisition of our battery material business, a growing number of employees need for the new facility in Nanjing.

 

Provision for doubtful accounts was $0.2 million, compared to a recovery of doubtful accounts of $0.3 million in 2021.

 

Operating loss was $1.2 million, compared to $2.8 million in 2021, representing a decrease of 57%.

 

Finance expense, net was $0.6 million, compared to finance income of $45,102 in 2021.

 

Change in fair value of warrants was $3.8 million, compared to $34.2 million in 2021. The change in fair value of the warrants liability is mainly due to share price movement.

 

Net income attributable to shareholders of CBAK Energy was $1.3 million, compared to net income attributable to shareholders of CBAK Energy of $32.3 million in 2021.

 

Basic and diluted income per share were both $0.01. In comparison, basic and diluted loss per share in 2021 were both $0.37.

 

4

 

 

Conference Call

 

CBAK’s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Monday, August 15, 2022 (8:00 PM Beijing/Hong Kong Time on August 15, 2022).

 

For participants who wish to join the call, please register in advance for the conference using the link provided below at least 15 minutes prior to the scheduled call start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal pin and an email with detailed instructions to join the conference call.

 

Participant Online Registration: https://register.vevent.com/register/BId7dd8f617e1e4d01a3e700460f168ddd

 

Once completing the registration, please dial-in at least 10 minutes before the scheduled start time of the conference call and enter the personal pin as instructed to connect to the call.

 

A replay of the conference call may be accessed within seven days after the conclusion of the live call at the following website:

 

https://edge.media-server.com/mmc/p/x2rvxnig

 

About CBAK Energy

 

CBAK Energy Technology, Inc. (NASDAQ: CBAT) is a leading high-tech enterprise in China engaged in the development, manufacturing, and sales of new energy high power lithium batteries and raw materials for use in manufacturing 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, Nanjing and Shaoxing, as well as a large-scale R&D and production base in Dalian.

 

For more information, please visit www.cbak.com.cn.

 

Safe Harbor Statement

 

This press release contains “forward-looking statements” that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. We have attempted to identify forward-looking statements by terminology including “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “should,” or “will” or the negative of these terms or other comparable terminology. Our actual results may differ materially or perhaps significantly from those discussed herein, or implied by, these forward-looking statements.

 

5

 

 

Any forward-looking statements contained in this press release are only estimates or predictions of future events based on information currently available to our management and management’s current beliefs about the potential outcome of future events. Whether these future events will occur as management anticipates, whether we will achieve our business objectives, and whether our revenues, operating results, or financial condition will improve in future periods are subject to numerous risks. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: significant legal and operational risks associated with having substantially all of our business operations in China, the Chinese government may exercise significant oversight and discretion over the conduct of our business and may intervene in or influence our operations at any time, which could result in a material change in our operations and/or the value of our securities or could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and could cause the value of such securities to significantly decline or be worthless, trading in our securities may be prohibited under the Holding Foreign Companies Accountable Act if the PCAOB subsequently determines our audit work is performed by auditors that the PCAOB is unable to inspect or investigate completely for three consecutive years, the effects of the global Covid-19 pandemic, changes in domestic and foreign laws, regulations and taxes, uncertainties related to China’s legal system and economic, political and social events in China, the volatility of the securities markets; and other risks including, but not limited to, the ability of the Company to meet its contractual obligations, the uncertain market for the Company’s lithium battery cells and business, macroeconomic, technological, regulatory, or other factors affecting the profitability of our products and solutions that we discussed or referred to in the Company’s disclosure documents filed with the U.S. Securities and Exchange Commission (the “SEC”) available on the SEC’s website at www.sec.gov, including the Company’s most recent Annual Report on Form 10-K as well as in our other reports filed or furnished from time to time with the SEC. You should read these factors and the other cautionary statements made in this press release. If one or more of these factors materialize, or if any underlying assumptions prove incorrect, our actual results, performance or achievements may vary materially from any future results, performance or achievements expressed or implied by these forward-looking statements. The forward-looking statements included in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statements, other than as required by applicable law.

 

For investor and media inquiries, please contact:

 

CBAK Energy Technology, Inc.

Investor Relations Department

Mr. Thierry Jiewei Li

Phone: 86-18675423231

Email: [email protected]

 

6

 

 

CBAK Energy Technology, Inc. and Subsidiaries

Unaudited Condensed Consolidated Balance Sheets

(In $ except for number of shares)

 

   December 31,
2021
   June 30,
2022
 
       (Unaudited) 
Assets        
Current assets        
Cash and cash equivalents  $7,357,875   $4,380,742 
Pledged deposits   18,996,749    37,117,785 
Trade accounts and bills receivable, net   49,907,129    26,056,836 
Inventories   30,133,340    55,305,909 
Prepayments and other receivable   12,746,990    7,543,259 
Receivables from former subsidiary   2,263,955    5,670,336 
Amount due from non-controlling interest, current   125,883    119,414 
Amount due from related party, current   472,061    223,901 
Income tax recoverable   47,189    - 
Investment in sales-type lease, net   790,516    859,348 
Total current assets   122,841,687    137,277,530 
           
Property, plant and equipment, net   90,042,773    84,705,053 
Construction in progress   27,343,092    28,860,353 
Non-marketable equity securities   712,930    676,292 
Prepaid land use rights   13,797,230    12,918,119 
Intangible assets, net   1,961,739    1,594,057 
Operating lease right-of-use assets, net   1,968,032    527,622 
Investment in sales-type lease, net   838,528    492,605 
Amount due from related party, non-current   62,941    59,707 
Deferred tax assets, net   1,403,813    1,308,051 
Goodwill   1,645,232    1,562,349 
Total assets  $262,617,997   $269,981,738 
           
Liabilities          
Current liabilities          
Trade accounts and bills payable  $65,376,212   $80,511,194 
Short-term bank borrowings   8,811,820    16,875,223 
Other short-term loans   4,679,122    707,602 
Accrued expenses and other payables   22,963,700    22,697,848 
Income tax payable   -    31,093 
Payables to former subsidiaries, net   326,507    346,539 
Deferred government grants, current   3,834,481    2,149,033 
Product warranty provisions   127,837    106,053 
Warrants liability   5,846,000    2,083,000 
Operating lease liability, current   801,797    215,439 
Total current liabilities   112,767,476    125,723,024 
           
Deferred government grants, non-current   6,189,196    6,284,983 
Product warranty provisions   1,900,429    1,913,083 
Operating lease liability, non-current   876,323    128,129 
           
Total liabilities   121,733,424    134,049,219 
           
Commitments and contingencies          
           
Shareholders’ equity          
Common stock $0.001 par value; 500,000,000 authorized; 89,135,064 issued and 88,990,858 outstanding as of December 31, 2021 and June 30, 2022   88,849    89,135 
Donated shares   14,101,689    14,101,689 
Additional paid-in capital   241,946,362    241,991,981 
Statutory reserves   1,230,511    1,230,511 
Accumulated deficit   (122,498,259)   (121,248,616)
Accumulated other comprehensive loss (income)   2,489,017    (4,240,719)
    137,358,169    131,923,981 
Less: Treasury shares   (4,066,610)   (4,066,610)
Total shareholders’ equity   133,291,559    127,857,371 
Non-controlling interests   7,593,014    8,075,148 
Total equity   140,884,573    135,932,519 
           
Total liabilities and shareholder’s equity  $262,617,997   $269,981,738 

 

7

 

  

CBAK Energy Technology, Inc. and Subsidiaries

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(In $ except for number of shares)

 

   Three months ended
June 30,
   Six months ended
June 30,
 
   2021   2022   2021   2022 
Net revenues  $5,889,154   $56,349,660   $15,305,203   $136,545,958 
Cost of revenues   (4,791,503)   (50,814,352)   (12,368,123)   (125,694,296)
Gross profit   1,097,651    5,535,308    2,937,080    10,851,662 
Operating expenses:                    
Research and development expenses   (1,045,312)   (2,299,466)   (1,529,061)   (5,612,590)
Sales and marketing expenses   (539,471)   (697,664)   (752,613)   (1,527,338)
General and administrative expenses   (2,340,896)   (2,453,515)   (3,665,377)   (4,690,889)
Recovery (provision for) of doubtful accounts   104,517    59,826    258,578    (211,617)
Total operating expenses   (3,821,162)   (5,390,819)   (5,688,473)   (12,042,434)
Operating (loss) income   (2,723,511)   144,489    (2,751,393)   (1,190,772)
Finance income (expenses), net   52,700    (620,490)   45,102    (615,476)
Other income, net   331,576    (458,946)   1,549,224    (173,742)
Impairment of non-marketable equity securities   (690,542)   -    (690,542)   - 
Change in fair value of warrants   5,750,000    2,131,000    34,176,000    3,763,000 
Income before income tax   2,720,223    1,196,053    32,328,391    1,783,010 
Income tax expenses   -    (179,788)   -    (86,242)
Net income   2,720,223    1,016,265    32,328,391   $1,696,768 
Less: Net income attributable to non-controlling interest   (19,622)   (211,075)   (18,508)   (447,125)
Net income attributable to CBAK Energy Technology, Inc.  $2,700,601   $805,190   $32,309,883   $1,249,643 
                     
Net income   2,720,223    1,016,265    32,328,391    1,696,768 
Other comprehensive income (loss)                    
– Foreign currency translation adjustment   1,141,596    (7,126,920)   1,230,734    (6,694,727)
Comprehensive income (loss)   3,861,819    (6,110,655)   33,559,125    (4,997,959)
Less: Comprehensive income attributable to non-controlling interest   (18,637)   (205,075)   (12,620)   (482,134)
Comprehensive income (loss) attributable to CBAK Energy Technology, Inc.  $3,843,182   $(6,315,730)  $33,546,505   $(5,480,093)
                     
Income per share                    
– Basic  $0.02   $0.00*  $0.37   $0.01 
– Diluted  $0.02   $0.00*  $0.37   $0.01 
                     
Weighted average number of shares of common stock:                    
– Basic   88,411,583    89,007,924    86,347,656    88,852,594 
– Diluted   88,993,839    89,007,924    86,938,886    88,852,594 

 

*Less than $0.01 per share

 

 

8

 

 



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings