8-K
CBAK Energy Technology, Inc. (CBAT)
UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, 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):
November 14, 2022
| ****<br><br> <br>CBAK ENERGY TECHNOLOGY, INC. | ||
|---|---|---|
| (Exact name of registrant as specified in its charter) | ||
| Nevada | 001-32898 | 86-0442833 |
| --- | --- | --- |
| (State or other jurisdictionof incorporation) | (Commission File No.) | (IRS EmployerIdentification 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 November 14, 2022, CBAK Energy Technology, Inc. (the “Company”) released its unaudited results of operations for the fiscal quarter ended September 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 November 14, 2022 |
| 104 | Cover Page Interactive Data File (embedded with the Inline XBRL document) |
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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: November 14, 2022 | By: | /s/<br> Xiangyu Pei |
| Xiangyu Pei | ||
| Interim Chief Financial Officer |
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Exhibit 99.1
CBAK Energy Reports Third Quarter 2022 UnauditedFinancial Results
--Net Revenues up 504% year over year in thethird quarter –
DALIAN, China, November 14, 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 third quarter of 2022 ended September 30, 2022.
Third Quarter of 2022 Financial Highlights
| ● | Net revenues were $57.7 million, an increase of 504%<br>from $9.6 million for the same period of 2021. |
|---|---|
| ● | Gross profit was $3.5 million, representing an increase<br>of 206%, for the three months ended September 30, 2022, from gross profit of $1.1 million for the same period of 2021. |
| --- | --- |
| ● | Net loss attributable to shareholders of CBAK Energy (afterdeducting change in fair value of warrants) was narrowed to $0.9 million from $3.0 million for the same period of 2021, reduced by<br>68.6%. |
| --- | --- |
Yunfei Li, Chairman and Chief Executive Officer of the Company, commented: “Our company managed to maintain a strong momentum in the growth of revenues in the third quarter of 2022. Our efforts to develop the electric vehicle (“EV”) & light electric vehicle(“LEV”) market have achieved noticeable progress. Our revenues contributed from the EV & LEV market in the third quarter grew by 413% compared to the same period in 2021. Our strategic partnership with JinPeng Group, one of China’s biggest LEV manufacturers, and its EV manufacturing unit, Jemmell, brings our battery products to an increasing number of electric vehicles. With our cooperation with more EV/LEV manufacturers, we anticipate to see our products be applied to more electric vehicles and revenues from this market segment grow at a faster pace.”
Mr. Li continued: “We are also glad to see that there is an increasing global demand for green energy, which substantially boost our energy storage business. We believe that our clients with businesses all over the world will keep a strong demand for our battery products in the near future.”
Xiangyu Pei, Interim Chief Financial Officer of the Company, noted: “In the first nine months of 2022, we managed to achieve a year-over-year increase of 681% in revenues to $194 million. During this period, revenues from our battery business grew by 168% to $66.6 million as compared to the same period of 2021, of which revenues from the LEV/EV sector have posted a strong increase of 341%. Given the strong demand for our battery products, we are very positive about our growth and development in the near term.”
Third Quarter of 2022 Business Highlights & RecentDevelopments
| ● | In August 2022, CBAK Energy announced a strategic partnership<br>agreement with Welson Power, a China-based new energy company that has a broad sales network in India, to sell CBAK Energy’s model<br>32140 batteries in the Indian market. |
|---|---|
| ● | In September 2022, CBAK Energy announced that it obtained<br>a battery order worth of approximately EUR 28.4 million ($27.8 million) from a leading European provider of heating, cooling and renewable<br>energy systems. This new order will bring the total order value that CBAK Energy has received from the Customer in 2022 to approximately<br>EUR 59.6 million. |
| --- | --- |
Third Quarter of 2022 Financial Results
Net revenues were $57.7 million, an increase of 504% from $9.6 million for the same period of 2021. This was driven mostly by strong sales of high-power lithium batteries as well as from sales of materials for use in manufacturing lithium battery, a new operating segment as a result of the acquisition of Zhejiang Hitrans Lithium Battery Technology Co., Ltd (“Hitrans”) in November 2021. The table below breaks down our net revenues by segment, and further breaks down the battery segment by end application and the materials segment by product type.
| Net Revenues by End-product Applications ($ thousands) | 2021 <br> Third <br> Quarter | 2022<br> Third<br> Quarter | % Change YoY | ||||
|---|---|---|---|---|---|---|---|
| Segment 1 | |||||||
| High power lithium batteries used in: | |||||||
| Uninterruptible supplies | $ | 9,335 | $ | 24,680 | 164 | % | |
| Light electric vehicles | 227 | 1,146 | 404 | % | |||
| Electric vehicles | - | 20 | - | ||||
| Trading of raw materials used in lithium batteries | - | - | - | ||||
| 9,562 | 25,846 | 170 | % | ||||
| Segment 2 | |||||||
| Materials for use in manufacturing of lithium battery cell | |||||||
| Precursor | - | 20,681 | - | ||||
| Cathode | - | 11,195 | - | ||||
| - | 31,876 | - | |||||
| Total | $ | 9,562 | $ | 57,722 | 504 | % |
Cost of revenues was $54.3 million, an increase of 544% from $8.4 million for the same period of 2021. This was in line with the increased net revenues.
Gross profit was $3.5 million, representing an increase of 206% from $1.1 million in the same period of 2021. Gross Margin was 6%, a decrease of 6% from 12% in the same period of 2021. The decrease in gross profits was primarily due to the increase in raw material prices and the fact that our materials segment has a lower profit margin.
Total operating expenses were $4.9 million, an increase of 14.8% from $4.3 million in the same period of 2021. Most of the increase in all expense categories was the revenue growth and was largely attributable to an increase in headcount as result of the acquisition of Hitrans and additional hires in our new facility in Nanjing.
| ● | Research and development expenses were $2.4 million,<br>an increase of 31% from $1.8 million for the same period of 2021. |
|---|---|
| ● | Sales and marketing expenses were $0.8 million, an<br>increase of 64% from $0.5 million for the same period of 2021. |
| --- | --- |
| ● | General and administrative expenses were $1.9 million,<br>a decrease of 14% from $2.2 million for the same period of 2021. |
| --- | --- |
| ● | Recovery of doubtful accounts was $0.2 million, compared<br>to $0.2 million for the same period of 2021. |
| --- | --- |
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Operating loss was $1.5 million, compared to $3.2 million for the same period of 2021, representing a decrease of 53.3%.
Finance income, net was $0.7 million, compared to $0.1 million for the same period of 2021, representing an increase of 433%.
Change in fair value of warrants was $0.9 million, compared to $23.0 million for the same period of 2021. The change in the fair value of the warrants liability is mainly due to share price movement.
Net loss attributable to shareholders of CBAKEnergy was $290, compared to net income attributable to shareholders of CBAK Energy of $20.0 million for the same period of 2021.
Basic and diluted loss per share were both nil. In comparison, basic and diluted income per share for the same period of 2021 were both $0.23.
Conference Call
CBAK’s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Monday, November 14, 2022 (9:00 PM Beijing/Hong Kong Time on November 14, 2022).
For participants who wish to join our call online, please visit:
https://edge.media-server.com/mmc/p/jtk2vobi
Participants who plan to ask questions at the call will need to register at least 15 minutes prior to the scheduled call start time using the link provided below. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal pin and an email with detailed instructions.
Participant Online Registration:
https://register.vevent.com/register/BI1d48d566e44b4cc3b22602d7960df36c
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/jtk2vobi
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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-lookingstatements” that involve substantial risks and uncertainties. All statements other than statements of historical facts containedin this press release, including statements regarding our future results of operations and financial position, strategy and plans, andour 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 statementsby 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. Ouractual results may differ materially or perhaps significantly from those discussed herein, or implied by, these forward-looking statements.
Any forward-looking statements contained in thispress release are only estimates or predictions of future events based on information currently available to our management and management’scurrent beliefs about the potential outcome of future events. Whether these future events will occur as management anticipates, whetherwe will achieve our business objectives, and whether our revenues, operating results, or financial condition will improve in future periodsare subject to numerous risks. There are a significant number of factors that could cause actual results to differ materially from statementsmade in this press release, including: significant legal and operational risks associated with having substantially all of our businessoperations in China, the Chinese government may exercise significant oversight and discretion over the conduct of our business and mayintervene in or influence our operations at any time, which could result in a material change in our operations and/or the value of oursecurities or could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and couldcause the value of such securities to significantly decline or be worthless, trading in our securities may be prohibited under the HoldingForeign Companies Accountable Act if the PCAOB subsequently determines our audit work is performed by auditors that the PCAOB is unableto inspect or investigate completely for three consecutive years, the effects of the global Covid-19 pandemic, changes in domestic andforeign laws, regulations and taxes, uncertainties related to China’s legal system and economic, political and social events inChina, the volatility of the securities markets; and other risks including, but not limited to, the ability of the Company to meet itscontractual 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 disclosuredocuments 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 timewith the SEC. You should read these factors and the other cautionary statements made in this press release. If one or more of these factorsmaterialize, or if any underlying assumptions prove incorrect, our actual results, performance or achievements may vary materially fromany future results, performance or achievements expressed or implied by these forward-looking statements. The forward-looking statementsincluded in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly updateor 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: ir@cbak.com.cn
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CBAK Energy Technology, Inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
(In $ except for number of shares)
| September 30, | |||||
|---|---|---|---|---|---|
| 2022 | |||||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | 7,357,875 | 4,045,329 | |||
| Pledged deposits | 18,996,749 | 37,591,281 | |||
| Trade and bills receivable, net | 49,907,129 | 21,902,180 | |||
| Inventories | 30,133,340 | 52,709,868 | |||
| Prepayments and other receivables | 12,746,990 | 5,457,532 | |||
| Receivables from former subsidiary | 2,263,955 | 6,341,988 | |||
| Amount due from non-controlling interest, current | 125,883 | 112,424 | |||
| Amount due from related party | 472,061 | 210,796 | |||
| Income tax recoverable | 47,189 | 56,251 | |||
| Investment in sales-type lease, net | 790,516 | 815,013 | |||
| Total current assets | 122,841,687 | 129,242,662 | |||
| Property, plant and equipment, net | 90,042,773 | 88,154,577 | |||
| Construction in progress | 27,343,092 | 15,839,191 | |||
| Long-term investments, net | 712,930 | 917,768 | |||
| Prepaid land use right- non current | 13,797,230 | 12,081,968 | |||
| Intangible assets, net | 1,961,739 | 1,383,789 | |||
| Operating lease right-of-use assets, net | 1,968,032 | 571,851 | |||
| Investment in sales-type lease, net | 838,528 | 317,279 | |||
| Amount due from non-controlling interest, non-current | 62,941 | 56,212 | |||
| Deferred tax assets, net | 1,403,813 | 1,175,624 | |||
| Goodwill | 1,645,232 | 1,470,904 | |||
| Total assets | 262,617,997 | $ | 251,211,825 | ||
| Liabilities | |||||
| Current liabilities | |||||
| Trade and bills payable | 65,376,212 | $ | 70,532,360 | ||
| Short-term bank loans | 8,811,820 | 17,573,866 | |||
| Other short-term loans | 4,679,122 | 3,482,583 | |||
| Accrued expenses and other payables | 22,963,700 | 19,602,212 | |||
| Payables to former subsidiaries, net | 326,507 | 368,772 | |||
| Deferred government grants, current | 3,834,481 | 1,613,838 | |||
| Product warranty provisions | 127,837 | 104,053 | |||
| Operating lease liability, current | 801,797 | 304,574 | |||
| Finance lease liability, current | - | 1,173,589 | |||
| Warrants liability | 5,846,000 | 1,147,000 | |||
| Total current liabilities | 112,767,476 | 115,902,847 | |||
| Deferred government grants, non-current | 6,189,196 | 5,809,485 | |||
| Operating lease liability | 876,323 | 120,101 | |||
| Product warranty provision | 1,900,429 | 1,776,912 | |||
| Total liabilities | 121,733,424 | 123,609,345 | |||
| 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, 89,135,064 issued and 88,990,858 outstanding as of September 30, 2022 | 88,849 | 89,135 | |||
| Donated shares | 14,101,689 | 14,101,689 | |||
| Additional paid-in capital | 241,946,362 | 243,053,288 | |||
| Statutory reserves | 1,230,511 | 1,230,511 | |||
| Accumulated deficit | (122,498,259 | ) | (121,248,906 | ) | |
| Accumulated other comprehensive income (loss) | 2,489,017 | (12,382,483 | ) | ||
| 137,358,169 | 124,843,234 | ||||
| Less: Treasury shares | (4,066,610 | ) | (4,066,610 | ) | |
| Total shareholders’ equities | 133,291,559 | 120,776,624 | |||
| Non-controlling interests | 7,593,014 | 6,825,856 | |||
| Total of equities | 140,884,573 | 127,602,480 | |||
| Total liabilities and shareholders’ equity | 262,617,997 | 251,211,825 |
All values are in US Dollars.
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CBAK Energy Technology, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statementsof Operations and Comprehensive Income (Loss)
(In $ except for number of shares)
| Threemonths ended | Ninemonths ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September30, | September30, | |||||||||||
| 2021 | 2022 | 2021 | 2022 | |||||||||
| Net revenues | $ | 9,562,190 | 57,721,692 | $ | 24,867,393 | $ | 194,267,650 | |||||
| Cost of revenues | (8,430,808 | ) | (54,261,244 | ) | (20,798,931 | ) | (179,955,540 | ) | ||||
| Gross profit | 1,131,382 | 3,460,448 | 4,068,462 | 14,312,110 | ||||||||
| Operating expenses: | ||||||||||||
| Research and development expenses | (1,815,756 | ) | (2,385,591 | ) | (3,344,817 | ) | (7,998,181 | ) | ||||
| Sales and marketing expenses | (510,386 | ) | (834,501 | ) | (1,262,999 | ) | (2,361,839 | ) | ||||
| General and administrative expenses | (2,158,183 | ) | (1,866,055 | ) | (5,823,560 | ) | (6,556,944 | ) | ||||
| Recovery of (provision for) doubtful accounts | 178,897 | 142,966 | 437,475 | (68,651 | ) | |||||||
| Total operating expenses | (4,305,428 | ) | (4,943,181 | ) | (9,993,901 | ) | (16,985,615 | ) | ||||
| Operating loss | (3,174,046 | ) | (1,482,733 | ) | (5,925,439 | ) | (2,673,505 | ) | ||||
| Finance income, net | 129,340 | 687,345 | 174,442 | 71,869 | ||||||||
| Other income (expenses), net | 69,970 | (991,352 | ) | 1,619,194 | (1,165,094 | ) | ||||||
| Impairment of non-marketable equity securities | (43 | ) | - | (690,585 | ) | - | ||||||
| Change in fair value of warrants | 22,998,000 | 936,000 | 57,174,000 | 4,699,000 | ||||||||
| Income (loss) before income tax | 20,023,221 | (850,740 | ) | 52,351,612 | 932,270 | |||||||
| Income tax credit (expenses) | - | 2,012 | - | (84,230 | ) | |||||||
| Net income (loss) | 20,023,221 | (848,728 | ) | 52,351,612 | 848,040 | |||||||
| Less: Net (income) loss attributable to non-controlling interests | (3,487 | ) | 848,438 | (21,995 | ) | 401,313 | ||||||
| Net income (loss) attributable to shareholders of CBAK Energy Technology, Inc. | $ | 20,019,734 | (290 | ) | $ | 52,329,617 | $ | 1,249,353 | ||||
| Other comprehensive income (loss) | ||||||||||||
| Net income (loss) | 20,023,221 | (848,728 | ) | 52,351,612 | 848,040 | |||||||
| – Foreign currency translation adjustment | 243,258 | (8,925,745 | ) | 1,473,992 | (15,620,472 | ) | ||||||
| Comprehensive income (loss) | 20,266,479 | (9,774,473 | ) | 53,825,604 | (14,772,432 | ) | ||||||
| Less: Comprehensive loss (income) attributable to non-controlling interests | (3,404 | ) | 1,632,419 | (16,024 | ) | 1,150,285 | ||||||
| Comprehensive income (loss) attributable to CBAK Energy Technology, Inc. | $ | 20,263,075 | (8,142,054 | ) | $ | 53,809,580 | $ | (13,622,147 | ) | |||
| Income (Loss) per share | ||||||||||||
| – Basic | $ | 0.23 | $ | 0.00 | * | $ | 0.60 | $ | 0.01 | |||
| – Diluted | $ | 0.23 | $ | 0.00 | * | $ | 0.60 | $ | 0.01 | |||
| Weighted average number of shares of common stock: | ||||||||||||
| – Basic | 88,419,998 | 88,996,692 | 87,043,490 | 88,900,977 | ||||||||
| – Diluted | 88,709,210 | 89,996,692 | 87,349,010 | 88,923,265 | ||||||||
| * | Less than $0.01 per share | |||||||||||
| --- | --- |
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