8-K - CBAT - Equibles

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

Dateof Report (Date of Earliest Event Reported): May 19, 2022

CBAKENERGY 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.)

BAKIndustrial Park, Meigui Street

HuayuankouEconomic Zone

Dalian,China, 116450

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

(86)(411)-3918-5985

(Registrant’stelephone number, including area code)

(Formername or former address, if changed since last report)

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

Title<br> of each class	Trading<br> Symbol(s)	Name<br> of each exchange on which registered
Common Stock, $0.001 par<br> 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<br> to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the<br> Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b)<br> under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c)<br> 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. ☐

ITEM2.02. Results of Operations and Financial Condition.

On May 19, 2022, CBAK Energy Technology, Inc. (the “Company”) released its unaudited results of operations for its fiscal first quarter ended March 31, 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.

ITEM9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	Press Release dated May 19, 2022
104	Cover<br>Page Interactive Data File (embedded with the Inline XBRL document)

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: May 19, 2022	By:	/s/Xiangyu<br> Pei
		Xiangyu Pei
		Interim Chief Financial Officer

Exhibit99.1

CBAK Energy Reports First Quarter 2022 Unaudited Financial Results

–Net revenues up 752% year over year in the first quarter –

DALIAN, China, May 19, 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 first quarter ended March 31, 2022.

FirstQuarter 2022 Financial Highlights

●	Netrevenues were $80.2 million, an increase of 752% from $9.4 million in the same period of 2021.
●	Gross profit was $5.3 million, an increase of 189% from $1.8 million in the same period of<br> 2021.
---	---
●	Net income attributable to shareholders of CBAK Energy was $0.4 million, compared to a net<br> income attributable to CBAK Energy shareholders of $29.6 million in the same period of 2021.
---	---

Yunfei Li, Chairman and Chief Executive Officer of the Company, commented: “We are very excited to kick off 2022 with our net revenues surging more than eight-fold year over year to reach $80.2 million in the first quarter, primarily driven by the material business brought by the Hitrans merger and robust demand for our high power lithium batteries.”

Mr. Li continued: “We will continue attentive operations in the material business with additional strategies to enhance its core competitiveness while actively combining them with other alternatives to counter the impact of increased raw material costs on the battery production. Additionally, we remain focused on product innovations to meet various demands and drive higher lithium battery sales. With our expansion into producing key materials for battery products and our relentless efforts into addressing the dynamic market, we are very confident in our capabilities to grow and thrive in the battery industry.”

Xiangyu Pei, Interim Chief Financial Officer of the Company, noted: “Our significant revenue expansion exemplified the efficacies of our growth strategies. Despite short-term challenges from raw material price hikes, we furthered our investments for our infrastructure to propel higher revenue levels. Looking ahead, we will remain committed to driving our next phase of growth by leveraging and building upon our solid financial position and competitive advantages.”

FirstQuarter 2022 Business Highlights & Recent Developments

●	In<br> May, CBAK Energy received an order from a leading European provider of heating, cooling and<br> renewable energy systems (the “Customer”), for a supply of lithium-ion batteries<br> worth EUR 28.2 million ($29.3 million). The Customer has a global presence with annual sales<br> of billions of Euros. CBAK Energy has been collaborating with the Customer since 2020.

FirstQuarter 2022 Financial Results

Netrevenues were $80.2 million, an increase of 752% from $9.4 million in the same period of 2021. The increase was driven by additional revenues from lithium battery materials brought by the acquisition of Hitrans, and strong sales of high power lithium batteries.

Net Revenues by End-product Applications ($ thousands)	2022<br><br> First<br><br> Quarter		2021<br><br> First<br><br> Quarter
Segment 1
High power lithium batteries used in:
Uninterruptable supplies	$	14,875	$	8,764	70
Light electric vehicles		146		34	329
Electric vehicles		-		101	-100
Segment 2 (Hitrans)
Materials for use in manufacturing of lithium battery cell
Precursor		36,813		-	-
Cathode		28,363		-	-
Trading of raw materials used in lithium batteries		-		517	-100
Total	$	80,196	$	9,416	752

Costof revenues was $74.9 million, an increase of 888% from $7.6 million in the same period of 2021. This was primarily due to increased net revenues.

Grossprofit was $5.3 million, an increase of 189% from $1.8 million in the same period of 2021. Gross margin was 6.6%, compared to 19.5% for the same period of 2021. The decrease in gross margin was primarily due to the increase in raw material costs.

Totaloperating expenses were $6.7 million, an increase of 256% from $1.9 million in the same period of 2021, primarily due to growing headcount and the consolidation of Hitrans.

●	Research and development expenses were $3.3 million, an increase of 585% from $0.5 million in<br> the same period of 2021.
●	Sales and marketing expenses were $0.8 million, an increase of 290% from $0.2 million in the<br> same period of 2021.
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●	General and administrative expenses were $2.2 million, an increase of 69% from $1.3 million in<br> the same period of 2021.
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●	Provision for doubtful accounts was $0.3 million, compared to recovery of doubtful accounts of<br> $0.2 million in the same period of 2021.
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Operatingloss was $1.3 million, compared to $27,882 in the same period of 2021.

Finance income, net was $5,014, compared to finance expenses of $7,598 in the same period of 2021.

Change in fair value of warrants was $1.6 million, compared to $28.4 million in the same period of 2021. The change in fair value of the warrants liability is mainly due to share price decline.

Net income attributable to shareholders of CBAK Energywas $0.4 million, compared to a net income attributable to CBAK Energy shareholders of $29.6 million in the same period of 2021.

Basic and diluted income per share were both $0.01, compared to both $0.35 in the same period of 2021.

Cashand cash equivalents were $5.6 million as of March 31, 2022, compared to $7.4 million as of December 31, 2021.

ConferenceCall

CBAK Energy’s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Thursday, May 19, 2022 (8:00 PM Beijing/Hong Kong Time on May 19, 2022).

Detailsof the conference call are as follows:

International：+61-2-9253-5921

United States：+1-855-824-5644 / +1 646-722-4977

Hong Kong, China：+852-3027-6500

Mainland, China：+86-800-988-0563 / +86-400-821-0637

Event ID：EV00135062

Participants Pin：36584787#

Additionally,a live and archived webcast of the conference call will be available at:

https://edge.media-server.com/mmc/p/bgp5bgms

A replay of the conference call may be accessed by phone within seven days after the conclusion of the live call at the following numbers. To access the replay, please reference the Access code: 520002274#

International：+61-2-8325-2405

United States：+1-646-982-0473

Hong Kong, China：+852-3027-6520

Mainland, China：+86-400-821-0623

AboutCBAK Energy

CBAK Energy Technology, Inc. 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 used for manufacturing high power lithium batteries. The applications of the Company’s battery products and solutions include light electric vehicles, 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.

SafeHarbor Statement

Thispress release contains “forward-looking statements” that involve substantial risks and uncertainties. All statements otherthan statements of historical facts contained in this press release, including statements regarding our future results of operationsand financial position, strategy and plans, and our expectations for future operations, are forward-looking statements within the meaningof Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. We haveattempted 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 comparableterminology. Our actual results may differ materially or perhaps significantly from those discussed herein, or implied by, these forward-lookingstatements. Any forward-looking statements contained in this press release are only estimates or predictions of future events based oninformation currently available to our management and management’s current beliefs about the potential outcome of future events. Whetherthese 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 numberof factors that could cause actual results to differ materially from statements made in this press release, including: significant legaland operational risks associated with having substantially all of our business operations in China, the Chinese government may exercisesignificant oversight and discretion over the conduct of our business and may intervene in or influence our operations at any time, whichcould result in a material change in our operations and/or the value of our securities or could significantly limit or completely hinderour ability to offer or continue to offer securities to investors and could cause the value of such securities to significantly declineor be worthless, trading in our securities may be prohibited under the Holding Foreign Companies Accountable Act if the PCAOB determinesour audit work is performed by auditors that the PCAOB is unable to inspect or investigate completely for three consecutive years, theeffects of the global Covid-19 pandemic, changes in domestic and foreign laws, regulations and taxes, uncertainties related to China’slegal 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 batterycells and business, macroeconomic, technological, regulatory, or other factors affecting the profitability of our products and solutionsthat 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 otherreports filed or furnished from time to time with the SEC. You should read these factors and the other cautionary statements made inthis 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-lookingstatements. The forward-looking statements included in this press release are made as of the date of this press release and the Companyundertakes no obligation to publicly update or revise any forward-looking statements, other than as required by applicable law.

Forinvestor and media inquiries, please contact:

InChina:

CBAK Energy Technology, Inc.

Investor Relations Department

Mr. Thierry Jiewei Li

Phone: 86-18675423231

Email: ir@cbak.com.cn

The Blueshirt Group

Ms. Feifei Shen

Phone: +86 13466566136

Email: feifei@blueshirtgroup.com

The Blueshirt Group

Ms. Suwen Feng

Phone: +86 13917110134

Email: suwen@blueshirtgroup.com

In the United States:

The Blueshirt Group

Ms. Julia Qian

Phone: +1 973-619-3227

Email: Julia@blueshirtgroup.com

Related Links

https://ir.cbak.com.cn/

CBAKEnergy Technology, Inc. and Subsidiaries

UnauditedCondensed Consolidated Balance Sheets

(In $ except for number of shares)

			March 31,<br><br> 2022
			(Unaudited)
Assets
Current assets
Cash and cash equivalents	7,357,875		$	5,608,465
Pledged deposits	18,996,749			25,142,097
Trade accounts and bills receivable, net	49,907,129			50,265,784
Inventories	30,133,340			41,871,149
Prepayments and other receivables	12,746,990			14,516,068
Receivables from former subsidiary	2,263,955			1,134,585
Amount due from non-controlling interest, current	125,883			126,161
Amount due from related party, current	472,061			473,104
Income tax recoverable	47,189			47,295
Investment in sales-type lease, net	790,516			792,262
Total current assets	122,841,687			139,976,970
Property, plant and equipment, net	90,042,773			88,532,811
Construction in progress	27,343,092			28,410,293
Non-marketable equity securities	712,930			714,504
Prepaid land use rights	13,797,230			13,737,871
Intangible assets, net	1,961,739			1,834,351
Operating lease right-of-use assets, net	1,968,032			1,659,214
Investment in sales-type lease, net	838,528			714,933
Amount due from related party, non-current	62,941			63,081
Deferred tax assets, net	1,403,813			1,500,564
Goodwill	1,645,232			1,650,629
Total assets	262,617,997		$	278,795,221
Liabilities
Current liabilities
Trade accounts and bills payable	65,376,212		$	79,270,001
Short-term bank borrowings	8,811,820			14,674,721
Other short-term loans	4,679,122			746,699
Accrued expenses and other payables	22,963,700			24,477,309
Payables to former subsidiaries, net	326,507			325,624
Deferred government grants, current	3,834,481			2,270,463
Product warranty provisions	127,837			104,122
Warrants liability	5,846,000			4,214,000
Operating lease liability, current	801,797			711,034
Total current liabilities	112,767,476			126,793,973
Deferred government grants, non-current	6,189,196			7,207,728
Product warranty provisions	1,900,429			1,923,542
Operating lease liability, non-current	876,323			837,930
Total liabilities	121,733,424			136,763,173
Commitments and contingencies
Shareholders’ equity
Common stock 0.001 par value; 500,000,000 authorized; 88,849,222 issued and 88,705,016 outstanding as of December 31, 2021 and March 31, 2022	88,849			88,849
Donated shares	14,101,689			14,101,689
Additional paid-in capital	241,946,362			241,981,141
Statutory reserves	1,230,511			1,230,511
Accumulated deficit	(122,498,259	)		(122,053,806	)
Accumulated other comprehensive loss	2,489,017			2,880,201
	137,358,169			138,228,585
Less: Treasury shares	(4,066,610	)		(4,066,610	)
Total shareholders’ equity	133,291,559			134,161,975
Non-controlling interests	7,593,014			7,870,073
Total equity	140,884,573			142,032,048
Total liabilities and shareholder’s equity	262,617,997		$	278,795,221

All values are in US Dollars.

CBAK Energy Technology,Inc. and SubsidiariesUnaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(In $ except for number of shares)

			Three months ended March 31,
	Note		2021			2022
Net revenues		25	$	9,416,049		$	80,196,298
Cost of revenues				(7,576,620	)		(74,879,944	)
Gross profit				1,839,429			5,316,354
Operating expenses:
Research and development expenses				(483,749	)		(3,313,124	)
Sales and marketing expenses				(213,142	)		(829,674	)
General and administrative expenses				(1,324,481	)		(2,237,374	)
Recovery of<br> (provision for) doubtful accounts		4		154,061			(271,443	)
Total operating expenses				(1,867,311	)		(6,651,615	)
Operating loss				(27,882	)		(1,335,261	)
Finance (expenses) income, net				(7,598	)		5,014
Other income, net				1,217,648			285,204
Changes in fair value of warrants liability				28,426,000			1,632,000
Income before income tax				29,608,168			586,957
Income tax credit		18		-			93,546
Net income				29,608,168			680,503
Less: Net loss (income) attributable to non-controlling interests				1,114			(236,050	)
Net income attributable to shareholders of CBAK Energy Technology, Inc.			$	29,609,282		$	444,453
Net income				29,608,168			680,503
Other comprehensive income
– Foreign currency translation adjustment				89,138			432,193
Comprehensive income				29,697,306			1,112,696
Less: Comprehensive loss (income) attributable to non-controlling interests				6,017			(277,059	)
Comprehensive income attributable to CBAK Energy Technology, Inc.			$	29,703,323		$	835,637
Income per share		26
– Basic			$	0.35		$	0.01
- Diluted			$	0.35		$	0.01
Weighted average number of shares of common stock:		20
– Basic				84,283,605			88,713,841
– Diluted				84,933,913			88,734,957