UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
For the quarterly period ended:
For the transition period from _____________ to _____________
Commission File Number:
(Exact Name of Registrant as Specified in Its Charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
People’s Republic of
(Address of principal executive offices, Zip Code)
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate
by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant
to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer ☐ | ||
| Non-accelerated filer ☐ | Smaller reporting company | |
| 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. ☐
Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
The number of shares outstanding of each of the issuer’s classes of common stock, as of May 19, 2025 is as follows:
| Class of Securities | Shares Outstanding | |
| Common Stock, $0.001 par value | |
CBAK ENERGY TECHNOLOGY, INC.
TABLE OF CONTENTS
| PART I | ||
| FINANCIAL INFORMATION | ||
| Item 1. | Financial Statements. | 1 |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. | 43 |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk. | 52 |
| Item 4. | Controls and Procedures. | 52 |
| PART II | ||
| OTHER INFORMATION | ||
| Item 1. | Legal Proceedings. | 53 |
| Item 1A. | Risk Factors. | 53 |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. | 53 |
| Item 3. | Defaults Upon Senior Securities. | 53 |
| Item 4. | Mine Safety Disclosures. | 53 |
| Item 5. | Other Information. | 53 |
| Item 6. | Exhibits. | 53 |
i
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
CBAK ENERGY TECHNOLOGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED
MARCH 31, 2024 AND 2025
CBAK ENERGY TECHNOLOGY, INC.
AND SUBSIDIARIES
TABLE OF CONTENTS
1
CBAK Energy Technology, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of December 31, 2024 and March 31, 2025
(Unaudited)
(In US$ except for number of shares)
| Note | December 31, 2024 | March
31, 2025 | ||||||||
| Assets | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | $ | ||||||||
| Pledged deposits | 2 | |||||||||
| Term deposits | 3 | |||||||||
| Trade and bills receivable, net | 4 | |||||||||
| Inventories | 5 | |||||||||
| Prepayments and other receivables | 6 | |||||||||
| Receivables from former subsidiary | 17 | |||||||||
| Income tax recoverable | ||||||||||
| Total current assets | ||||||||||
| Property, plant and equipment, net | 7 | |||||||||
| Construction in progress | 8 | |||||||||
| Long-term investments, net | 9 | |||||||||
| Prepaid land use rights | 10 | |||||||||
| Intangible assets, net | 11 | |||||||||
| Deposit paid for acquisition of long-term investments | 13 | |||||||||
| Operating lease right-of-use assets, net | 10 | |||||||||
| Total assets | $ | $ | ||||||||
| Liabilities | ||||||||||
| Current liabilities | ||||||||||
| Trade and bills payable | 14 | |||||||||
| Short-term bank borrowings | 15 | |||||||||
| Other short-term loans | 15 | |||||||||
| Accrued expenses and other payables | 16 | |||||||||
| Payable to a former subsidiary, net | 17 | |||||||||
| Deferred government grants, current | 18 | |||||||||
| Product warranty provisions | 19 | |||||||||
| Operating lease liability, current | 10 | |||||||||
| Total current liabilities | ||||||||||
| Long-term bank borrowings | 15 | |||||||||
| Deferred government grants, non-current | 18 | |||||||||
| Product warranty provisions | 19 | |||||||||
| Operating lease liability, non-current | 10 | |||||||||
| Total liabilities | ||||||||||
| Commitments and contingencies | 26 | |||||||||
| Shareholders’ equity | ||||||||||
| Common stock $ | ||||||||||
| Donated shares | ||||||||||
| Additional paid-in capital | ||||||||||
| Statutory reserves | 21 | |||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||||
| Accumulated other comprehensive loss | ( | ) | ( | ) | ||||||
| Less: Treasury shares | ( | ) | ( | ) | ||||||
| Total shareholders’ equity | ||||||||||
| Non-controlling interests | ( | ) | ( | ) | ||||||
| Total equity | ||||||||||
| Total liabilities and shareholder’s equity | $ | $ | ||||||||
See accompanying notes to the condensed consolidated financial statements.
2
CBAK Energy Technology, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
For the three months ended March 31, 2024 and 2025
(Unaudited)
(In US$ except for number of shares)
| Three months ended March 31, | ||||||||||
| Note | 2024 | 2025 | ||||||||
| Net revenues | 28 | $ | $ | |||||||
| Cost of revenues | ( | ) | ( | ) | ||||||
| Gross profit | ||||||||||
| Operating expenses: | ||||||||||
| Research and development expenses | ( | ) | ( | ) | ||||||
| Sales and marketing expenses | ( | ) | ( | ) | ||||||
| General and administrative expenses | ( | ) | ( | ) | ||||||
| Allowance of credit losses and bad debts written off | ||||||||||
| Total operating expenses | ( | ) | ( | ) | ||||||
| Operating income (loss) | ( | ) | ||||||||
| Finance income, net | ||||||||||
| Other income, net | ||||||||||
| Share of (loss) income of equity investee | ( | ) | ||||||||
| Income (loss) before income tax | ( | ) | ||||||||
| Income tax expenses | 20 | ( | ) | |||||||
| Net income (loss) | ( | ) | ||||||||
| Less: Net loss attributable to non-controlling interests | ||||||||||
| Net income attributable to shareholders of CBAK Energy Technology, Inc. | $ | $ | ( | ) | ||||||
| Net income (loss) | ( | ) | ||||||||
| Other comprehensive income (loss) | ||||||||||
| – Foreign currency translation adjustment | ( | ) | ||||||||
| Comprehensive income (loss) | ( | ) | ||||||||
| Less: Comprehensive loss attributable to non-controlling interests | ||||||||||
| Comprehensive income (loss) attributable to CBAK Energy Technology, Inc. | $ | $ | ( | ) | ||||||
| Income (loss) per share | 25 | |||||||||
| – Basic | $ | $ | ( | ) | ||||||
| – Diluted | $ | $ | ( | ) | ||||||
| Weighted average number of shares of common stock: | 25 | |||||||||
| – Basic | ||||||||||
| – Diluted | ||||||||||
See accompanying notes to the condensed consolidated financial statements.
3
CBAK Energy Technology, Inc. and Subsidiaries,
Condensed Consolidated Statements of Changes in Shareholders’ Equity
For the three months ended March 31, 2024 and 2025
(Unaudited)
(In US$ except for number of shares)
| Common stock issued | Additional | Statutory | Accumulated
other | Non- | Treasury shares | Total | ||||||||||||||||||||||||||||||||||||||
| Number of | Donated | paid-in | reserves | Accumulated | comprehensive | controlling | Number of | shareholders’ | ||||||||||||||||||||||||||||||||||||
| shares | Amount | shares | capital | (Note 21) | deficit | Income (loss) | interests | shares | Amount | equity | ||||||||||||||||||||||||||||||||||
| Balance as of January 1, 2024 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||||||||||||
| Net income (loss) | - | - | ( | ) | - | |||||||||||||||||||||||||||||||||||||||
| Share-based compensation for employee and director stock awards | - | - | - | |||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | - | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||
| Balance as of March 31, 2024 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||||||||||||
| Balance as of January 1, 2025 | ( | ) | ( | ) | ( | ) | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||||||||||||||
| Net loss | - | - | ( | ) | ( | ) | - | - | ( | ) | ||||||||||||||||||||||||||||||||||
| Exercise of stock options | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
| Share-based compensation for employee and director stock awards | - | - | - | |||||||||||||||||||||||||||||||||||||||||
| Appropriation to statutory reserves | - | - | ( | ) | - | |||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | - | ||||||||||||||||||||||||||||||||||||||||||
| Balance as of March 31, 2025 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ( | ) | $ | ( | ) | $ | |||||||||||||||||||||||||
See accompanying notes to the condensed consolidated financial statements.
4
CBAK Energy Technology, Inc. and subsidiaries
Condensed consolidated statements of cash flows
For the three months ended March 31, 2024 and 2025
(Unaudited)
(In US$)
| Three months ended March 31, | ||||||||
| 2024 | 2025 | |||||||
| Cash flows from operating activities | ||||||||
| Net income (loss) | $ | $ | ( | ) | ||||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | ||||||||
| Allowance for credit losses | ( | ) | ( | ) | ||||
| Write-down of inventories | ||||||||
| Share-based compensation | ||||||||
| Share of loss (income) of an equity investee | ( | ) | ||||||
| Amortization of operating lease right-of-use assets | ||||||||
| Changes in operating assets and liabilities: | ||||||||
| Trade and bills receivable | ( | ) | ( | ) | ||||
| Inventories | ( | ) | ||||||
| Prepayments and other receivables | ( | ) | ||||||
| Trade and bills payable | ( | ) | ||||||
| Accrued expenses and other payables and product warranty provisions | ( | ) | ( | ) | ||||
| Lease liabilities | ( | ) | ||||||
| Trade receivable from and payables to a former subsidiary | ||||||||
| Income tax recoverable | ||||||||
| Net cash provided by (used in) operating activities | ( | ) | ||||||
| Cash flows from investing activities | ||||||||
| Deposit paid for acquisition of long-term investment | ( | ) | ||||||
| Purchases of property, plant and equipment and construction in progress | ( | ) | ( | ) | ||||
| Government subsidy | ||||||||
| Net cash used in investing activities | ( | ) | ( | ) | ||||
| Cash flows from financing activities | ||||||||
| Proceeds from bank borrowings | ||||||||
| Repayment of bank borrowings | ( | ) | ( | ) | ||||
| Proceeds from finance leases | ||||||||
| Principal payments on finance leases | ( | ) | ||||||
| Placement of term deposits | ( | ) | ( | ) | ||||
| Net cash (used in) provided by financing activities | ( | ) | ||||||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | ( | ) | ||||||
| Net decrease in cash and cash equivalents and restricted cash | ( | ) | ( | ) | ||||
| Cash and cash equivalents and restricted cash at the beginning of period | ||||||||
| Cash and cash equivalents and restricted cash at the end of period | $ | $ | ||||||
| Supplemental non-cash investing and financing activities: | ||||||||
| Transfer of construction in progress to property, plant and equipment | $ | $ | ||||||
| Lease liabilities arising from obtaining right-of-use assets | $ | $ | ||||||
| Cash paid during the period for: | ||||||||
| Income taxes | $ | $ | ||||||
| Interest, net of amounts capitalized | $ | $ | ||||||
See accompanying notes to the condensed consolidated financial statements.
5
CBAK Energy Technology, Inc. and subsidiaries
Notes to the condensed consolidated financial statements
For the three months ended March 31, 2024 and 2025
(Unaudited)
(In US$ except for number of shares)
| 1. | Principal Activities, Basis of Presentation and Organization |
Principal Activities
CBAK Energy Technology, Inc. (formerly known as
China BAK Battery, Inc.) (“CBAK” or the “Company”) is a corporation formed in the State of Nevada on
The shares of the Company traded in the over-the-counter market through the Over-the-Counter Bulletin Board from 2005 until May 31, 2006, when the Company obtained approval to list its common stock on The NASDAQ Global Market, and trading commenced that same date under the symbol “CBAK”.
On January 10, 2017, the Company filed Articles of Merger with the Secretary of State of Nevada to effectuate a merger between the Company and the Company’s newly formed, wholly owned subsidiary, CBAK Merger Sub, Inc. (the “Merger Sub”). According to the Articles of Merger, effective January 16, 2017, the Merger Sub merged with and into the Company with the Company being the surviving entity (the “Merger”). As permitted by Chapter 92A.180 of Nevada Revised Statutes, the sole purpose of the Merger was to effect a change of the Company’s name.
Effective November 30, 2018, the trading symbol for common stock of the Company was changed from CBAK to CBAT. Effective at the opening of business on June 21, 2019, the Company’s common stock started trading on the Nasdaq Capital Market.
Basis of Presentation and Organization
On November 6, 2004, BAK International, a non-operating holding company that had substantially the same shareholders as Shenzhen BAK Battery Co., Ltd (“Shenzhen BAK”), entered into a share swap transaction with the shareholders of Shenzhen BAK for the purpose of the subsequent reverse acquisition of the Company. The share swap transaction between BAK International and the shareholders of Shenzhen BAK was accounted for as a reverse acquisition of Shenzhen BAK with no adjustment to the historical basis of the assets and liabilities of Shenzhen BAK.
On January 20, 2005, the Company completed a share swap transaction with the shareholders of BAK International. The share swap transaction, also referred to as the “reverse acquisition” of the Company, was consummated under Nevada law pursuant to the terms of a Securities Exchange Agreement entered by and among CBAK, BAK International and the shareholders of BAK International on January 20, 2005. The share swap transaction has been accounted for as a capital-raising transaction of the Company whereby the historical financial statements and operations of Shenzhen BAK are consolidated using historical carrying amounts.
6
Also on January 20, 2005, immediately prior to
consummating the share swap transaction, BAK International executed a private placement of its common stock with unrelated investors whereby
it issued an aggregate of
Under accounting principles generally accepted in the United States of America (“US GAAP”), escrow agreements such as the one established by Mr. Li generally constitute compensation if, following attainment of a performance threshold, shares are returned to a company officer. The Company determined that without consideration of the compensation charge, the performance thresholds for the year ended September 30, 2005 would be achieved. However, after consideration of a related compensation charge, the Company determined that such thresholds would not have been achieved. The Company also determined that, even without consideration of a compensation charge, the performance thresholds for the year ended September 30, 2006 would not be achieved.
While the
At the time the escrow shares relating to the
2006 performance threshold were transferred to the investors in fiscal year 2007, the Company should have recognized a credit to donated
shares and a debit to additional paid-in capital, both of which are elements of shareholders’ equity. This entry is not material
because total ordinary shares issued and outstanding, total shareholders’ equity and total assets do not change; nor is there any
impact on income or earnings per share. Therefore, previously filed consolidated financial statements for the fiscal year ended September
30, 2007 will not be restated. This share transfer has been reflected in these financial statements by reclassifying the balances of certain
items as of October 1, 2007. The balances of donated shares and additional paid-in capital as of October 1, 2007 were credited and debited
by $
In November 2007, Mr. Li delivered the
Beginning on March 13, 2008, the Company entered into settlement agreements (the “2008 Settlement Agreements”) with certain investors in the January 2005 private placement. Since the other investors have never submitted any claims regarding this matter, the Company did not reach any settlement with them.
7
Pursuant to the 2008 Settlement Agreements, the
Company and the settling investors have agreed, without any admission of liability, to a settlement and mutual release from all claims
relating to the January 2005 private placement, including all claims relating to the escrow shares related to the 2005 performance threshold
that had been placed into escrow by Mr. Li, as well as all claims, including claims for liquidated damages relating to registration rights
granted in connection with the January 2005 private placement. Under the 2008 Settlement Agreement, the Company has made settlement payments
to each of the settling investors of the number of shares of the Company’s common stock equivalent to
Pursuant to the Li Settlement Agreement, the 2008
Settlement Agreements and upon the release of the
As of March 31, 2025, the Company had not received any claim from the other investors who have not been covered by the “2008 Settlement Agreements” in the January 2005 private placement.
As the Company has transferred the
On August 14, 2013, Dalian BAK Trading Co., Ltd
was established as a wholly owned subsidiary of China BAK Asia Holding Limited (“BAK Asia”) with a registered capital of $
On December 27, 2013, Dalian BAK Power Battery
Co., Ltd was established as a wholly owned subsidiary of BAK Asia with a registered capital of $
On May 4, 2018, CBAK New Energy (Suzhou) Co.,
Ltd (“CBAK Suzhou”) was established as a
8
On November 21, 2019, Dalian CBAK Energy Technology
Co., Ltd (“CBAK Energy”) was established as a wholly owned subsidiary of BAK Asia with a registered capital of $
On July 14, 2020, the Company acquired BAK Asia
Investments Limited (“BAK Investments”), a company incorporated under Hong Kong laws, from Mr. Xiangqian Li, the Company’s
former CEO, for a cash consideration of HK$
On July 31, 2020, BAK Investments formed a wholly
owned subsidiary CBAK New Energy (Nanjing) Co., Ltd. (“CBAK Nanjing”) in China with a registered capital of $
On August 6, 2020, Nanjing CBAK New Energy Technology
Co., Ltd. (“Nanjing CBAK”) was established as a wholly owned subsidiary of CBAK Nanjing with a registered capital of RMB
On November 9, 2020, Nanjing Daxin New Energy
Automobile Industry Co., Ltd (“Nanjing Daxin”) was established as a wholly owned subsidiary of CBAK Nanjing with a register
capital of RMB
On April 21, 2021, CBAK Power, along with Shenzhen
BAK Power Battery Co., Ltd (“BAK SZ”), Shenzhen Asian Plastics Technology Co., Ltd (“SZ Asian Plastics”) and Xiaoxia
Liu, entered into an investment agreement with Junxiu Li, Hunan Xintao New Energy Technology Partnership, Xingyu Zhu, and Jiangsu Saideli
Pharmaceutical Machinery Manufacturing Co., Ltd for an investment in Hunan DJY Technology Co., Ltd (“DJY”). CBAK Power has
paid approximately $
On August 4, 2021, Daxin New Energy Automobile
Technology (Jiangsu) Co., Ltd (“Jiangsu Daxin”) was established as a wholly owned subsidiary of Nanjing CBAK with a register
capital of RMB
On July 20, 2021, CBAK Power entered into a framework
agreement relating to CBAK Power’s investment in Zhejiang Hitrans Lithium Battery Technology Co., Ltd (“Hitrans”, formerly
known as Zhejinag Meidu Hitrans Lithium Battery Technology Co., Ltd), pursuant to which CBAK Power agreed to acquire
9
On July 8, 2022, Hitrans held its second shareholder
meeting (“the shareholder meeting”) in 2022 to pass a resolution to increase the registered capital of Hitrans from RMB
On December 8, 2022, CBAK Power entered into equity
interest transfer agreements with five individuals to disposal in aggregate
On March 26, 2024, CBAK New Energy entered into
an agreement with CBAK Power to acquire the same
On July 6, 2018, Guangdong Meidu Hitrans Resources
Recycling Technology Co., Ltd. (“Guangdong Hitrans”) was established as a
On July 28, 2021, Hitrans Holdings, was established as a wholly owned subsidiary of CBAK, under the laws of the Cayman Islands, formerly named as “CBAK Energy Technology, Inc.,” was renamed as “Hitrans Holdings Co., Ltd.” (“Hitrans Holdings”) on February 29, 2024. Hitrans Holdings does not have any significant operations as of the date of this report.
On October 9, 2021, Shaoxing Haisheng International
Trading Co., Ltd. (“Haisheng”) was established as a wholly owned subsidiary of Hitrans with a registered capital of RMB
On July 7, 2023, Hong Kong Nacell Holdings Company Limited was established as a wholly owned subsidiary of Hitrans Holdings, incorporated under the laws of Hong Kong, was renamed as “Hong Kong Hitrans Holdings Company Limited” (“Hong Kong Hitrans”) on March 22, 2024. Hong Kong Hitrans does not have any significant operations as of the date of this report.
10
On July 12, 2023, CBAK Energy Lithium Holdings was established as a wholly owned subsidiary of CBAK, incorporated under the laws of the Cayman Islands was renamed as “CBAK Energy Lithium Holdings Co. Ltd” on February 29, 2024. CBAK Energy Lithium Holdings does not have any significant operations as of the date of this report.
On July 25, 2023, CBAK New Energy (Shangqiu) Co.,
Ltd (“CBAK Shangqiu”) was established as a wholly owned subsidiary of CBAK Power with a registered capital of RMB
On February 26, 2024, CBAK Energy Investments Holdings (“CBAK Energy Investments”) was established as a wholly owned subsidiary of CBAK, under the laws of the Cayman Islands. CBAK Energy Investments does not have any significant operations as of the date of this report.
On October 29, 2024, Shenzhen CBAK Sodium Battery
New Energy Co., Ltd (“CBAK Shenzhen”) was established as a wholly owned subsidiary of BAK Investments with a registered capital
of $
On January 9, 2025, Anhui Yuanchuang New Energy
Materials Co., Ltd. (“Yuanchuang”) was established as a wholly owned subsidiary of Hitrans with a registered capital of RMB
The Company’s condensed consolidated financial statements have been prepared under US GAAP.
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. This basis of accounting differs in certain material respects from that used for the preparation of the books of account of the Company and its subsidiaries, which are prepared in accordance with the accounting principles and the relevant financial regulations applicable to enterprises with limited liability established in the PRC or Hong Kong. The accompanying condensed consolidated financial statements reflect necessary adjustments not recorded in the books of account of the Company’s subsidiaries to present them in conformity with US GAAP.
On December 8, 2020, the Company entered into
a securities purchase agreement with certain institutional investors, pursuant to which the Company issued in a registered direct offering,
an aggregate of
On February 8, 2021, the Company entered into
another securities purchase agreement with the same investors, pursuant to which the Company issued in a registered direct offering, an
aggregate of
11
On May 10, 2021, the Company entered into that Amendment No. 1 to the Series B Warrant (the “Series B Warrant Amendment”) with each of the holders of the Company’s outstanding Series B warrants. Pursuant to the Series B Warrant Amendment, the term of the Series B warrants was extended from May 11, 2021 to August 31, 2021.
As of August 31, 2021, the Company had not received any notices from the investors to exercise Series B warrants. As of March 31, 2025, all of the warrants were expired.
As of March 31, 2025, the Company had $
The Company is currently expanding its product lines and manufacturing capacity in its Dalian, Nanjing and Zhejiang plant which requires more funding to finance the expansion. The Company plans to raise additional funds through banks borrowings and equity financing in the future to meet its daily cash demands, if required.
Outbreaks of viruses or other health epidemics and outbreaks
The Company business has been and may continue to be adversely affected by the outbreak of a widespread health epidemic, such as COVID-19 avian flu or African swine flu. The Company’s manufacturing facilities in Dalian, Nanjing and Shaoxing did not produce at full capacity when restrictive measures were in force during 2022, which negatively affected our operational and financial results. China began to modify its zero-COVID policy at the end of 2022, and most of the travel restrictions and quarantine requirements were lifted in December 2022.
The extent of the impact of the outbreaks of viruses or other health epidemics that will continue to have on the Company’s business is highly uncertain and difficult to predict and quantify, as the actions that the Company, other businesses and governments may take to contain the spread of possible health epidemics and outbreak continue to evolve. Because of the significant uncertainties surrounding, the extent of the future business interruption and the related financial impact cannot be reasonably estimated at this time.
As of the date of issuance of the Company’s condensed financial statements, the extent to which the possible health epidemics and outbreaks may in the future materially impact the Company’s financial condition, liquidity or results of operations is uncertain. The Company is monitoring and assessing the evolving situation closely and evaluating its potential exposure.
Going Concern
The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has accumulated deficit from recurring net losses and significant short-term debt obligations maturing in less than one year as of March 31, 2025. These conditions raise substantial doubt about the Company ability to continue as a going concern. The Company’s plan for continuing as a going concern included improving its profitability, and obtaining additional debt financing, loans from existing directors and shareholders for additional funding to meet its operating needs. There can be no assurance that the Company will be successful in the plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. These condensed consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
12
Revenue Recognition
The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation.
Revenues from product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time, typically upon delivery to the customer. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that it would have recognized is one year or less or the amount is immaterial.
Revenues from product sales are recorded net of reserves established for applicable discounts and allowances that are offered within contracts with the Company’s customers.
Product revenue reserves, which are classified as a reduction in product revenues, are generally characterized in the categories: discounts and returns. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable as the amount is payable to the Company’s customer.
Contract liabilities
The Company’s contract liabilities consist
of deferred revenue associated with batteries development, services contracts and deposits received from customers allocated to the performance
obligations that are unsatisfied. Changes in contract liability balances were not materially impacted by business acquisition, change
in estimate of transaction price or any other factors during any of the years presented.
| March 31, | ||||||||
| 2024 | 2025 | |||||||
| Balance at beginning of year | $ | $ | ||||||
| Development fees collected/ deposits received | ||||||||
| Development and sales of batteries revenue recognized | ( | ) | ||||||
| Exchange realignment | ||||||||
| Balance at end of period | $ | $ | ||||||
Recently Adopted Accounting Standards
In November 2023, the FASB issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures (Topic 280). This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment’s profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is also permitted. This ASU will likely result in us including the additional required disclosures when adopted. The Company adopted ASU 2023-07 beginning January 1, 2024 for annual disclosure and adopted beginning January 1, 2025 for interim periods. The adoption did not have material impact on the Company’s condensed consolidated financial statement.
13
Recently Issued But Not Yet Adopted Accounting Pronouncements
In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is also permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is currently evaluating the provisions of the amendments and the impact on the Company’s condensed consolidated financial statement presentations and disclosures.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (DISE), which requires additional disclosure of the nature of expenses included in the income statement in response to longstanding requests from investors for more information about an entity’s expenses. The new standard requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The guidance will be effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The requirements will be applied prospectively with the option for retrospective application. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on the Company’s condensed consolidated financial statement presentation and disclosures.
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s condensed consolidated financial statements upon adoption.
| 2. | Pledged deposits |
Pledged deposits as of December 31, 2024 and March 31, 2025 consisted of pledged deposits with banks for bills payable (note 14).
| 3. | Short-term deposits |
Short-term deposits represent time deposits placed
with banks with maturities longer than three months but less than one year. Interest earned is recorded as finance income in the consolidated
financial statement. As of December 31, 2024 and March 31, 2025, substantially all of the Company’s short-term deposits amounting
to $
| 4. | Trade and Bills Receivable, net |
Trade and bills receivable as of December 31, 2024 and March 31, 2025:
| December 31, | March 31, | |||||||
| 2024 | 2025 | |||||||
| Trade receivable | $ | $ | ||||||
| Less: Allowance for credit losses | ( | ) | ( | ) | ||||
| Bills receivable | ||||||||
| $ | $ | |||||||
Included in trade and bills receivables are retention
receivables of $
An analysis of the allowance for the credit losses are as follows:
| Balance as at January 1, 2025 | $ | |||
| Current period provision, net | ||||
| Written-off | ( | ) | ||
| Foreign exchange adjustment | ||||
| Balance as at March 31, 2025 | $ |
14
| 5. | Inventories |
Inventories as of December 31, 2024 and March 31, 2025 consisted of the following:
| December 31, | March 31, | |||||||
| 2024 | 2025 | |||||||
| Raw materials | $ | $ | ||||||
| Work in progress | ||||||||
| Finished goods | ||||||||
| $ | $ | |||||||
During the three months ended March 31, 2024 and
2025 write-downs of obsolete inventories to lower of cost or net realizable value of $
| 6. | Prepayments and Other Receivables |
Prepayments and other receivables as of December 31, 2024 and March 31, 2025 consisted of the following:
| December 31, | March 31, | |||||||
| 2024 | 2025 | |||||||
| VAT recoverable | $ | $ | ||||||
| Prepayments to suppliers | ||||||||
| Deposits | ||||||||
| Staff advances | ||||||||
| Prepaid operating expenses | ||||||||
| Interest receivable | ||||||||
| Receivables from customers for non-operating agency-based service | ||||||||
| Other receivables | ||||||||
| Less: Allowance for credit losses | ( | ) | ( | ) | ||||
| $ | $ | |||||||
An analysis of the allowance for credit losses are as follows:
| Balance as at January 1, 2025 | $ | |||
| Current period provision, net | ( | ) | ||
| Foreign exchange adjustment | ||||
| Balance as of March 31, 2025 | $ |
| 7. | Property, Plant and Equipment, net |
Property, plant and equipment as of December 31, 2024 and March 31, 2025 consisted of the following:
| December 31, 2024 | March 31, 2025 | |||||||
| Buildings | $ | $ | ||||||
| Leasehold improvements | ||||||||
| Machinery and equipment | ||||||||
| Office equipment | ||||||||
| Motor vehicles | ||||||||
| Impairment | ( | ) | ( | ) | ||||
| Accumulated depreciation | ( | ) | ( | ) | ||||
| Carrying amount | $ | $ | ||||||
15
During the three months ended March 31, 2024 and
2025, the Company incurred depreciation expense of $
During the course of the Company’s strategic review of its operations, the Company assessed the recoverability of the carrying value of the Company’s property, plant and equipment. The impairment charge, if any, represented the excess of carrying amounts of the Company’s property, plant and equipment over the estimated discounted cash flows expected to be generated by the Company’s production facilities. The Company believes that there was no impairment during the three months ended March 31, 2024 and 2025.
| 8. | Construction in Progress |
Construction in progress as of December 31, 2024 and March 31, 2025 consisted of the following:
| December 31, | March 31, | |||||||
| 2024 | 2025 | |||||||
| Construction in progress | $ | $ | ||||||
| Prepayment for acquisition of property, plant and equipment | ||||||||
| Carrying amount | $ | $ | ||||||
Construction in progress as of December 31, 2024 and March 31, 2025 mainly comprised capital expenditures for the construction of the facilities and production lines of CBAK Power, Nanjing CBAK and Hitrans.
For the three months ended March 31, 2024 and
2025, the Company capitalized interest of $
| 9. | Long-term investments, net |
Long-term investments as of December 31, 2024 and March 31, 2025, consisted of the following:
| December 31, 2024 | March 31, 2025 | |||||||
| Investments in equity method investees | $ | $ | ||||||
| Investments in non-marketable equity | ||||||||
| $ | $ | |||||||
The following is the carrying value of the long-term investments:
| December 31, 2024 | March 31, 2025 | |||||||||||||||
| Carrying Amount | Economic Interest | Carrying Amount | Economic Interest | |||||||||||||
| Investments in equity method investees | ||||||||||||||||
| Zhejiang Shengyang Renewable Resources Technology Co., Ltd. (b) | $ | % | $ | % | ||||||||||||
| Investments in non-marketable equity | ||||||||||||||||
| Hunan DJY Technology Co., Ltd | $ | $ | ||||||||||||||
16
| (a) |
| Balance as of January 1, 2024 | ||||
| Proceeds from disposal of investment | ( | ) | ||
| Loss from investment | ( | ) | ||
| Profit from disposal | ||||
| Foreign exchange adjustment | ( | ) | ||
| Balance as of December 31, 2024 | $ |
In August 2022, Nanjing CBAK, along with two unrelated
third parties of the Company, Guangxi Guiwu Recycle Resources Company Limited (“Guangxi Guiwu”) and Mr. Weidong Xu, an unrelated
third party entered into an investment agreement to jointly set up a new company - Guangxi Guiwu CBAK New Energy Technology Co., Ltd (“Guangxi
Guiwu CBAK”) in which each party holding
On April 19, 2024, NJ CABK entered into an equity
transfer agreement with Chilwee Group Co., Ltd, an unrelated third party to the Company to disposal its equity interest in Guangxi Guiwu
at consideration of RMB
For the three months ended March 31, 2024, share of loss from the above
equity investment was $
| (b) |
| Balance as at January 1, 2024 | $ | |||
| Profit (loss) from investment | ||||
| Foreign exchange adjustment | ( | ) | ||
| Balance as of December 31, 2024 | $ | |||
| Profit from investment | ||||
| Foreign exchange adjustment | ||||
| Balance as of March 31, 2025 | $ |
In September 27, 2023, Hitrans, entered into an
Equity Transfer Contract (the “Equity Transfer Contract”) with Mr. Shengyang Xu, pursuant to which Hitrans will initially
acquire a
And within three months following the Initial
Acquisition, Mr. Xu, an related third party shall transfer an additional
17
Investments in non-marketable equity
| December 31, 2024 | March 31, 2025 | |||||||
| Cost | $ | $ | ||||||
| Impairment | ( | ) | ( | ) | ||||
| Carrying amount | $ | $ | ||||||
On April 21, 2021, CBAK Power, along with Shenzhen
BAK Power Battery Co., Ltd (BAK Shenzhen), Shenzhen Asian Plastics Technology Co., Ltd (SZ Asian Plastics) and Xiaoxia Liu (collectively
the “Investors”), entered into an investment agreement with Junxiu Li, Hunan Xintao New Energy Technology Partnership, Xingyu
Zhu, and Jiangsu Saideli Pharmaceutical Machinery Manufacturing Co., Ltd for an investment in Hunan DJY Technology Co., Ltd (“DJY”),
a privately held company. CBAK Power has paid $
On November 28, 2022, Nanjing CBAK along with
Shenzhen Education for Industry Investment Co., Ltd. and Wenyuan Liu, an individual investor, set up Nanjing CBAK Education For Industry
Technology Co., Ltd (“CBAK Education”) with a registered capital of RMB
Non-marketable equity securities are investments in privately held companies without readily determinable market value. The Company measures investments in non-marketable equity securities without a readily determinable fair value using a measurement alternative that measures these securities at the cost method minus impairment, if any, plus or minus changes resulting from observable price changes on a non-recurring basis. The fair value of non-marketable equity securities that have been remeasured due to impairment are classified within Level 3. The Company adjusts the carrying value of non-marketable equity securities which have been remeasured during the period and recognize resulting gains or losses as a component of other operating income (expense), net. No impairment was recorded on the non-marketable equity securities for the three months ended March 31, 2024 and 2025.
| 10. | Lease |
| (a) |
| Prepaid land | ||||
| lease payments | ||||
| Balance as of January 1, 2024 | $ | |||
| Amortization charge for the year | ( | ) | ||
| Foreign exchange adjustment | ( | ) | ||
| Balance as of December 31, 2024 | ||||
| Amortization charge for the period | ( | ) | ||
| Foreign exchange adjustment | ||||
| Balance as of March 31, 2025 | $ | |||
In August 2014 and November 2021, the Company acquired land use rights to build a factory of the Company in Dalian and Zhejiang, PRC.
18
Lump sum payments were made upfront to acquire
the leased land from the owners with lease periods of
Amortization expenses of the prepaid land use
rights were $
No impairment loss was made to the carrying amounts of the prepaid land use right for the three months ended March 31, 2024 and 2025.
| (b) | Operating lease |
In April 2018, Hitrans entered into a lease agreement
for staff quarters spaces in Zhejiang with a
On April 6, 2021, Nanjing CBAK entered into
a lease agreement for warehouse space in Nanjing with a
On June 1, 2021, Hitrans entered into a lease
agreement with liquid gas supplier for a
On December 9, 2021, Hitrans entered into a lease
agreement for extra staff quarters spaces in Zhejiang with a
On March 1, 2022, Hitrans entered into a lease
agreement for extra staff quarters spaces in Zhejiang with a
On August 1, 2022, Hitrans entered into a lease
agreement for warehouse spaces in Zhejiang with a
On October 20, 2022, CBAK Power entered into a
lease agreement for staff quarters spaces in Dalian with a
On December 20, 2022, Hitrans entered into a lease
agreement for extra staff quarters spaces in Zhejiang with a
On December 30, 2022, Hitrans entered into a lease
agreement with liquid gas supplier for a
On April 20, 2023, Hitrans entered into another
lease agreement for extra staff quarters spaces in Zhejiang with a
19
Nanjing CBAK entered into a lease agreement for
office and factory spaces in Nanjing for a period of one year, commencing on August 1, 2023 and expiring on July 31, 2024. The monthly
rental payment is approximately RMB
Shangqiu entered into a lease agreement for staff
quarters spaces in Shangqiu with a six-year term commencing on October 1, 2023 and expiring on September 30, 2029. The monthly rental
payment is approximately RMB
The Company entered into a lease agreement for
manufacturing and factory spaces in Shangqiu with a terms of
On March 1, 2024, Hitrans entered into a lease
agreement with liquid gas supplier for forty-five months for supplying liquid nitrogen until December 11, 2027. The monthly rental payment
is approximately RMB
On April 26, 2024, Hitrans entered into a lease
agreement with liquid gas supplier for a five-year term for supplying liquid argon to April 25, 2029. The monthly rental payment is approximately
RMB
The Company entered into a lease agreement for
staff quarters spaces in Nanjing from March 1, 2024 to February 28, 2026. The monthly rental is RMB
The Company has entered into a lease agreement
for staff quarters spaces in Shangqiu from May 16, 2024 to December 31, 2029 for a monthly rental of RMB
The Company entered into another lease for staff
quarters spaces in Nanjing from June 1, 2024 to May 31, 2025. The monthly rental payment is RMB
Operating lease expenses for the three months ended March 31, 2024 and 2025 for the capitation agreement was as follows:
| March 31, 2024 | March 31, 2025 | |||||||
| Operating lease cost – straight line | $ | $ | ||||||
The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2025:
| Operating leases |
||||
| Remainder of 2025 | $ | |||
| 2026 | ||||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| Thereafter | ||||
| Total undiscounted cash flows | ||||
| Less: imputed interest | ( |
) | ||
| Present value of lease liabilities | $ | |||
20
Lease term and discount rate:
| December 31, 2024 | March 31, 2025 | |||||||
| Weighted-average remaining lease term (years) | ||||||||
| Land use rights | ||||||||
| Operating leases | ||||||||
| Weighted-average discount rate | ||||||||
| Land use rights | ||||||||
| Operating lease | % | % | ||||||
| Finance lease | % | |||||||
Supplemental cash flow information related to leases where the Company was the lessee for the three months ended March 31, 2024 wand 2025 was as follows:
| March 31, 2024 | March 31, 2025 | |||||||
| Operating cash outflows from operating assets | $ | $ | ||||||
| 11. | Intangible Assets, net |
Intangible assets as of December 31, 2024 and March 31, 2025 consisted of the followings:
| December 31, 2024 | March 31, 2025 | |||||||
| Computer software at cost | $ | $ | ||||||
| Sewage discharge permit | ||||||||
| Accumulated amortization | ( | ) | ( | ) | ||||
| $ | $ | |||||||
Amortization expenses were $
Total future amortization expenses for finite-lived intangible assets were estimated as follows:
| Remainder of 2025 | $ | |||
| 2026 | ||||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| Thereafter | ||||
| Total | $ |
impairment loss was made to the carrying amounts of the intangible assets for the three months ended March 31, 2024 and 2025.
| 12. | Acquisition of subsidiaries |
On July 20, 2021, CBAK Power entered into a framework
agreement relating to CBAK Power’s investment in Hitrans, pursuant to which CBAK Power acquires
Upon the closing of the Acquisition, CBAK Power
became the largest shareholder of Hitrans holding
21
The Company completed the valuations necessary
to assess the fair values of the tangible and intangible assets acquired and liabilities assumed, resulting from which the amount of goodwill
was determined and recognized as of the respective acquisition date.
| Cash and bank | $ | |||
| Debts product | ||||
| Trade and bills receivable, net | ||||
| Inventories | ||||
| Prepayments and other receivables | ||||
| Income tax recoverable | ||||
| Amount due from trustee | ||||
| Property, plant and equipment, net | ||||
| Construction in progress | ||||
| Intangible assets, net | ||||
| Prepaid land use rights, noncurrent | ||||
| Leased assets, net | ||||
| Deferred tax assets | ||||
| Short term bank loan | ( | ) | ||
| Other short term loans – CBAK Power | ( | ) | ||
| Trade accounts and bills payable | ( | ) | ||
| Accrued expenses and other payables | ( | ) | ||
| Deferred government grants | ( | ) | ||
| Land appreciation tax | ( | ) | ||
| Deferred tax liabilities | ( | ) | ||
| Net assets | ||||
| Less: Waiver of dividend payable | ||||
| Total net assets acquired | ||||
| Non-controlling interest ( | ( | ) | ||
| Goodwill | ||||
| Total identifiable net assets |
The components of the consideration transferred to effect the Acquisition are as follows:
| RMB | USD | |||||||
| Cash consideration for | ||||||||
| Cash consideration for | ||||||||
| Total Purchase Consideration | ||||||||
The transaction resulted in a purchase price allocation
of $
| 13. | Deposit paid for acquisition of long-term investments |
Deposit paid for acquisition of long-term investments as of December 31, 2024 and March 31, 2025 consisted of the following:
| December 31, | March 31, | |||||||
| 2024 | 2025 | |||||||
| Investments in non-marketable equity | $ | $ | ||||||
22
On September 27, 2023, Nanjing CBAK New Energy
Technology Co., Ltd. (“Nanjing CBAK”) entered into an Equity Transfer Agreement (the “Equity Transfer Agreement”)
with Shenzhen BAK Battery Co., Ltd. (“SZ BAK”), under which SZ BAK shall sell a five percent (
SZ BAK and BAK SZ were the Company’s former subsidiary up to June 30, 2014. Mr, Xiangqian Li, the Company’s former CEO, is the director of SZ BAK and BAK SZ.
The Company will measure the investments in BAK SZ as non-marketable equity securities without a readily determinable fair value using a measurement alternative that measures these securities at the cost method minus impairment, if any, plus or minus changes resulting from observable price changes on a non-recurring basis upon the completion. The fair value of non-marketable equity securities that have been remeasured due to impairment are classified within Level 3.
| 14. | Trade and Bills Payable |
Trade and bills payable as of December 31, 2024 and March 31, 2025 consisted of the followings:
| December 31, | March 31, | |||||||
| 2024 | 2025 | |||||||
| Trade payable | $ | $ | ||||||
| Bills payable | ||||||||
| – Bank acceptance bills | ||||||||
| – Letter of credit | ||||||||
| $ | $ | |||||||
All the bills payable are of trading nature and will mature within one year from the issue date.
The bank acceptance bills were pledged by:
| (i) | the Company’s pledged deposits (Note 2) and term deposits (Note 3) ; |
| (ii) | $ |
| 15. | Loans |
Bank loans:
Bank borrowings as of December 31, 2024 and March 31, 2025 consisted of the followings:
| December 31, | March 31, | |||||||
| 2024 | 2025 | |||||||
| Short-term bank borrowings | $ | $ | ||||||
| Long-term bank borrowings | ||||||||
| $ | $ | |||||||
23
In January 2023, the Company renewed the banking
facilities with Shaoxing Branch of Bank of Communications Co., Ltd with a maximum amount of RMB
On January 17, 2022, the Company obtained a one-year
term facility from Agricultural Bank of China with a maximum amount of RMB
On February 9, 2022, the Company obtained a one-year
term facility from Jiangsu Gaochun Rural Commercial Bank with a maximum amount of RMB
On April 28, 2022, the Company obtained a three-year
term facility from Industrial and Commercial Bank of China Nanjing Gaochun branch, with a maximum amount of RMB
The Company entered into another one-year term
facility with Jiangsu Gaochun Rural Commercial Bank with a maximum amount of RMB
On November 8, 2022, the Company entered into
a short-term loan agreement with China CITIC Bank Shaoxing Branch to August 9, 2023 with a maximum amount of RMB
24
On January 7, 2023, the Company obtained a two-year
term facility from Postal Savings Bank of China, Nanjing Gaochun Branch with a maximum amount of RMB
On March 29, 2023, the Company and Bank of China
Limited entered into a short-term loan agreement for one year from March 29, 2023 to March 28, 2024 for a maximum loan amount to RMB
On April 19, 2023, the Company and Bank of Nanjing
Gaochun Branch entered into a short-term loan agreement for one year from April 10, 2023 to April 9, 2024 for RMB
On July 31, 2023, the Company obtained a three-year
term facility from Bank of China Gaochun Branch, with a maximum amount of RMB
On August 3, 2023, the Company and Bank of China
entered into a short term loan agreement for one year from August 3, 2023 to August 2, 2024 for a maximum amount of RMB
On January 24, 2024, the Company entered into
a short-term credit-guaranteed loan agreement with Zhejiang Shangyu Rural Commercial Bank for one year to January 17, 2025 with an amount
of RMB
On March 26, 2024, the Company entered into a
short-term credit-guaranteed loan agreement with Zhejiang Shangyu Rural Commercial Bank for one year to March 25, 2025 with an amount
of RMB
25
On April 9, 2024, the Company and China Zheshang
Bank Co., Ltd Shangyu Branch entered into a short-term loan agreement for one year from April 9, 2024 to April 7, 2025 for a maximum loan
amount to RMB
On June 24, 2024, the Company and Bank of China
entered into a short-term loan agreement, with a maximum amount of RMB
On September 29, 2024, the Company and Zhejiang
Shangyu Rural Commercial Bank entered into a short-term credit-guaranteed loan agreement for RMB
On December 31, 2024, the Company and China Everbright
Bank Co., Ltd Shaoxing Branch entered into a short-term loan agreement for RMB
On January 17, 2025, the Company entered into
a long-term Maximum Pledge Agreement with Zhejiang Shangyu Rural Commercial Bank, for the period from January 17, 2025 to September 25,
2027, with a maximum facility amount of RMB
On January 20, 2025, the Company entered into
an unsecured revolving loan agreement with Bank of Ningbo Co., Ltd. Gaochun Branch with a maximum amount of RMB
On February 19, 2025, the Company obtained a RMB
On February 25, 2025, the Company entered into
a short-term factoring loan agreement with China Construction Bank Co., Ltd for a maximum amount of RMB
The Company obtained banking facilities from
China Zheshang Bank Co., Ltd. Shenyang Branch with a maximum amount of RMB
The Company obtained another banking facilities
from China Zheshang Bank Co., Ltd. Shenyang Branch with a maximum amount of RMB
26
The Company borrowed a series of acceptance bills
from Bank of Nanjing totaling RMB
The Company borrowed a series of acceptance bills
from China Zheshang Bank Co. Ltd Shangyu Branch totaling RMB
The Company borrowed a series of acceptance bills
from Bank of Communications Co., Ltd. Shangyu Branch totaling RMB
The facilities were also secured by the Company’s assets with the following carrying amounts:
| December 31, | March 31, | |||||||
| 2024 | 2025 | |||||||
| Pledged deposits (note 2) | $ | $ | ||||||
| Short-term deposits (note 3) | ||||||||
| Bills receivables (note 4) | ||||||||
| Right-of-use assets (note 10) | ||||||||
| Buildings | ||||||||
| Construction-in-progress | ||||||||
| $ | $ | |||||||
As of March 31, 2025, the Company had no unutilized committed banking facilities.
During the three months ended March 31, 2024 and
2025, interest of $
Other short-term loans:
Other short-term loans as of December 31, 2024 and March 31, 2025 consisted of the following:
| December 31, | March 31, | |||||||||
| Note | 2024 | 2025 | ||||||||
| Advance from related parties | ||||||||||
| – Mr. Xiangqian Li, the Company’s Former CEO | (a) | $ | $ | |||||||
| – Mr. Yunfei Li, the Company’s Former CEO | (b) | |||||||||
| Advances from unrelated third party | ||||||||||
| – Mr. Wenwu Yu | (c) | |||||||||
| – Ms. Longqian Peng | (c) | |||||||||
| – Suzhou Zhengyuanwei Needle Ce Co., Ltd | (d) | |||||||||
| $ | $ | |||||||||
| (a) |
| (b) |
| (c) |
| (d) |
During the three months ended March 31, 2024 and
2025, interest of $
27
| 16. | Accrued Expenses and Other Payables |
Accrued expenses and other payables as of December 31, 2024 and March 31, 2025 consisted of the following:
| December 31, | March 31, | |||||||
| 2024 | 2025 | |||||||
| Construction costs payable | $ | $ | ||||||
| Equipment purchase payable | ||||||||
| Liquidated damages* | ||||||||
| Accrued staff costs | ||||||||
| Customer deposits | ||||||||
| Deferred revenue | ||||||||
| Accrued expenses | ||||||||
| Interest payables | ||||||||
| Other tax payables | ||||||||
| Dividend payable to non-controlling interest to Hitrans | ||||||||
| Payables to suppliers for non-operating agency-based service | ||||||||
| Other payable | ||||||||
| $ | $ | |||||||
| * |
On November 9, 2007, the Company completed a private
placement for the gross proceeds to the Company of $
28
On December 21, 2007, pursuant to the registration
rights agreement, the Company filed a registration statement on Form S-3, which was declared effective by the SEC on May 7, 2008. As a
result, the Company estimated liquidated damages amounting to $
| 17. | Balances and Transactions with Related Parties |
The principal related parties with which the Company had transactions during the years presented are as follows:
| Name of Entity or Individual | Relationship with the Company | |
| New Era Group Zhejiang New Energy Materials Co., Ltd. | ||
| Zhengzhou BAK Battery Co., Ltd | ||
| Shenzhen BAK Battery Co., Ltd (“SZ BAK”) | ||
| Shenzhen BAK Power Battery Co., Ltd (“BAK SZ”) | ||
| Zhejiang Shengyang Renewable Resources Technology Co., Ltd. | ||
| Fuzhou BAK Battery Co., Ltd | ||
| Zhengzhou BAK Electronics Co., Ltd | ||
| Zhengzhou BAK New Energy Vehicle Co., Ltd |
| (a) |
| (b) |
| (c) |
| (d) |
| (e) |
| (f) |
29
Related party transactions
The Company entered into the following significant related party transactions:
| For the three months ended March 31, 2024 | For the three months ended March 31, 2025 | |||||||
| Purchase of batteries from Zhengzhou BAK Battery Co., Ltd | $ | $ | ||||||
| Purchase of batteries from Fuzhou BAK Battery Co., Ltd | ||||||||
| Purchase of materials from Zhejiang Shengyang | ||||||||
| Sales of cathode raw materials to Zhengzhou BAK Battery Co., Ltd | ||||||||
| Sales of cathode raw materials to BAK SZ | ||||||||
| Sales of cathode raw materials to Zhengzhou BAK Electronics Co., Ltd | ||||||||
| Sales of cathode raw materials to Zhengzhou BAK Battery Co., Ltd in relation to non-operating agency-based service | ||||||||
| Sales of cathode raw materials to Zhengzhou BAK Electronics Co., Ltd in relation to non-operating agency-based service | ||||||||
| Sales of cathode raw materials to BAK SZ in relation to non-operating agency-based service | ||||||||
| Sales of batteries to Fuzhou BAK Battery Co., Ltd | ||||||||
Related party balances
Apart from the above, the Company recorded the following significant related party balances as of December 31, 2024 and March 31, 2025:
Receivables from former subsidiary
| December 31, 2024 | March 31, 2025 | |||||||
| Receivables from BAK SZ | $ | $ | ||||||
Balance as of December 31, 2024 and March 31, 2025 represented trade receivable for sales of cathode raw materials to BAK SZ.
Other balances due from/ (to) related parties
| December 31, 2024 | March 31, 2025 | |||||||
| Trade receivable, net – Zhengzhou BAK Battery Co., Ltd (i) | $ | $ | ||||||
| Trade receivable, net – Zhengzhou BAK Electronics Co., Ltd. (ii) | $ | $ | ||||||
| Trade receivable, net – Zhengzhou BAK New Energy Vehicle Co. Ltd | $ | - | ||||||
| Bills receivable – Issued by Zhengzhou BAK Battery Co., Ltd (iii) | $ | $ | ||||||
| Prepayment to supplier – Zhengzhou BAK Battery Co., Ltd (iv) | $ | $ | ||||||
| Prepayment to supplier – Zhengzhou BAK New Energy Vehicle Co., Ltd (v) | $ | $ | ||||||
| Receivable from non-operating agency-based service – Zhengzhou BAK Battery Co., Ltd (vi) | $ | $ | ||||||
| Receivable from non-operating agency-based service – Zhengzhou BAK Electronics Co., Ltd (vi) | $ | $ | ||||||
| Trade payable, net – Zhengzhou BAK Battery Co., Ltd (vii) | $ | $ | ||||||
| Trade payable, net – Zhejiang Shengyang (viii) | $ | $ | ||||||
| Payable for non-operating agency-based service – Zhejiang Shengyang (ix) | $ | $ | ||||||
| Deposit paid for acquisition of long-term investments – BAK SZ (note 13) | $ | $ | ||||||
| Dividend payable to non-controlling interest of Hitrans (note 16) | $ | $ | ||||||
| (i) |
30
| (ii) |
| (iii) |
| (iv) |
| (v) |
| (vi) |
| (vii) |
| (viii) |
| (ix) |
Payables to a former subsidiary
Payables to a former subsidiary as of December 31, 2024 and March 31, 2025 consisted of the following:
| December 31, | March 31, | |||||||
| 2024 | 2025 | |||||||
| Payables to Shenzhen BAK Power Battery Co., Ltd | $ | ( | ) | $ | ( | ) | ||
Balance as of December 31, 2024 and March 31, 2025 consisted of payables for purchase of inventories from Shenzhen BAK Power Battery Co., Ltd.
| 18. | Deferred Government Grants |
Deferred government grants as of December 31, 2024 and March 31, 2025 consist of the following:
| December 31, | March 31, | |||||||
| 2024 | 2025 | |||||||
| Total government grants | $ | $ | ||||||
| Less: Current portion | ( | ) | ( | ) | ||||
| Non-current portion | $ | $ | ||||||
31
Government grants that are received in advance are deferred and recognized in the consolidated statements of operations over the period necessary to match them with the costs that they are intended to compensate. Government grants in relation to the achievement of stages of research and development projects are recognized in the consolidated statements of operations when amounts have been received and all attached conditions have been met. Non-refundable grants received without any further obligations or conditions attached are recognized immediately in the consolidated statements of operations.
On October 17, 2014, the Company received a subsidy
of RMB
On June 23, 2020, BAK Asia, the Company wholly-owned
Hong Kong subsidiary, entered into a framework investment agreement with Jiangsu Gaochun Economic Development Zone Development Group Company
(“Gaochun EDZ”), pursuant to which the Company intended to develop certain lithium battery projects that aim to have a production
capacity of 8Gwh. Gaochun EDZ agreed to provide various support to facilitate the development and operation of the projects. As of the
date of this report, the Company received RMB
For the year ended December 31, 2021, the Company
recognized RMB
On November 2, 2023, the Company received a subsidiary
of RMB
On December 12, 2024, Hitrans received RMB
Government grants were recognized in the consolidated statements of operations as follows:
| Three months ended March 31, | ||||||||
| 2024 | 2025 | |||||||
| Cost of revenues | $ | $ | ||||||
| Research and development expenses | ||||||||
| General and administrative expenses | ||||||||
| Other income (expenses), net | ||||||||
| $ | $ | |||||||
32
| 19. | Product Warranty Provisions |
The Company maintains a policy of providing after sales support for certain of its new EV and LEV battery products introduced since October 1, 2015 by way of a warranty program. The limited cover covers a period of six to twenty four months for battery cells, a period of twelve to twenty seven months for battery modules for light electric vehicles (LEV) such as electric bicycles, and a period of three years to eight years (or 120,000 or 200,000 km if reached sooner) for battery modules for electric vehicles (EV). The Company accrues an estimate of its exposure to warranty claims based on both current and historical product sales data and warranty costs incurred. The Company assesses the adequacy of its recorded warranty liability at least annually and adjusts the amounts as necessary.
Warranty expense is recorded as a component of sales and marketing expenses. Accrued warranty activity consisted of the following:
| December 31, 2024 | March 31, 2025 | |||||||
| Balance at beginning of year/ period | $ | $ | ||||||
| Warranty costs incurred | ( | ) | ( | ) | ||||
| Provision for the year/ period | ||||||||
| Foreign exchange adjustment | ( | ) | ||||||
| Balance at end of year/ period | ||||||||
| Less: Current portion | ( | ) | ( | ) | ||||
| Non-current portion | $ | $ | ||||||
| 20. | Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities |
| (a) | Income taxes in the consolidated statements of comprehensive loss(income) |
The Company’s provision for income taxes expenses consisted of:
| Three months ended March 31, | ||||||||
| 2024 | 2025 | |||||||
| PRC income tax | $ | $ | ||||||
| Current income tax expenses, net | ||||||||
| Deferred income tax expenses | ||||||||
| $ | $ | |||||||
United States Tax
CBAK is a Nevada corporation that is subject to
U.S. federal tax and state tax. On December 31, 2017 the U.S. government enacted comprehensive tax legislation commonly referred to as
the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including, but
not limited to, (1) reducing the U.S. federal corporate income tax rate from
33
The Global Intangible Low-taxed Income (GILTI)
is a new provision introduced by the Tax Cuts and Jobs Act. U.S. shareholders, who are domestic corporations, of controlled foreign corporations
(CFCs) are eligible for up to an
Hong Kong Tax
The Company’s subsidiaries in Hong Kong
are subject to Hong Kong profits tax rate of
PRC Tax
The CIT Law in China applies an income tax rate
of
A reconciliation of the provision for income taxes determined at the statutory income tax rate to the Company’s income taxes is as follows:
| For the three months ended March 31, | ||||||||
| 2024 | 2025 | |||||||
| Income (loss) before income taxes | $ | $ | ( | ) | ||||
| United States federal corporate income tax rate | % | % | ||||||
| Income tax expenses (credit) computed at United States statutory corporate income tax rate | ( | ) | ||||||
| Reconciling items: | ||||||||
| Rate differential for PRC earnings | ( | ) | ||||||
| Tax effect of entity at preferential tax rate | ( | ) | ||||||
| Non-deductible expenses | ||||||||
| Share based payments | ||||||||
| Utilization of tax loss | ( | ) | ||||||
| Valuation allowance on deferred tax assets | ( | ) | ||||||
| Income tax expenses | $ | $ | ||||||
34
| (b) | Deferred tax assets and deferred tax liabilities |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2024 and March 31, 2025 are presented below:
| December 31, 2024 | March 31, 2025 | |||||||
| Deferred tax assets | ||||||||
| Trade receivable | $ | |||||||
| Inventories | ||||||||
| Property, plant and equipment | ||||||||
| Non-marketable equity securities | ||||||||
| Equity method investment | ||||||||
| Intangible assets | ||||||||
| Accrued expenses, payroll and others | ||||||||
| Provision for product warranty | ||||||||
| Net operating loss carried forward | ||||||||
| Valuation allowance | ( | ) | ( | ) | ||||
| Deferred tax assets, non-current | $ | |||||||
| Deferred tax liabilities, non-current | ||||||||
| Long-lived assets arising from acquisitions | $ | $ | ||||||
As of December 31, 2024, the Company’s U.S.
entity had net operating loss carry forwards of $
According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or its withholding agent. The statute of limitations extends to five years under special circumstances, which are not clearly defined. In the case of a related party transaction, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion.
The impact of an uncertain income tax positions
on the income tax return must be recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant
tax authority. An uncertain income tax position will not be recognized if it has less than a
| 21. | Statutory reserves |
As stipulated by the relevant laws and regulations
in the PRC, company established in the PRC (the “PRC subsidiary”) is required to maintain a statutory reserve made out of
profit for the year based on the PRC subsidiary’ statutory financial statements which are prepared in accordance with the accounting
principles generally accepted in the PRC. The amount and allocation basis are decided by the director of the PRC subsidiary annually and
is not to be less than
In addition, as a result of the relevant PRC laws
and regulations which impose restriction on distribution or transfer of assets out of the PRC statutory reserve, $
35
| 22. | Fair Value of Financial Instruments |
ASC Topic 820, Fair Value Measurement and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy, which requires classification based on observable and unobservable inputs when measuring fair value. Certain current assets and current liabilities are financial instruments. Management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and, if applicable, their current interest rates are equivalent to interest rates currently available. The three levels of valuation hierarchy are defined as follows:
| ● | Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. |
| ● | Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. |
| ● | Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
The fair value of share options was determined using the Binomial Model, with level 3 inputs (Note 24).
The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, pledged deposits, trade accounts and bills receivable, other receivables, balances with former subsidiaries, notes payable, other short-term loans, short-term and long-term bank loans and other payables approximate their fair values because of the short maturity of these instruments or the rate of interest of these instruments approximate the market rate of interest.
| 23. | Employee Benefit Plan |
Full time employees of the Company in the PRC
participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing
fund and other welfare benefits are provided to the employees. The Company accrues for these benefits based on certain percentages of
the employees’ salaries, up to a maximum amount specified by the local government. The total employee benefits expensed as incurred
were $
| 24. | Share-based Compensation |
Restricted Shares and Restricted Share Units
Restricted shares granted on June 30, 2015
On June 12, 2015, the Board of Director approved
the CBAK Energy Technology, Inc. 2015 Equity Incentive Plan (the “2015 Plan”) for Employees, Directors and Consultants of
the Company and its Affiliates. The maximum aggregate number of Shares that may be issued under the Plan is ten million (
On June 30, 2015, pursuant to the 2015 Plan, the
Compensation Committee of the Company’s Board of Directors granted an aggregate of
All the restricted shares granted in respect of the restricted shares granted on June 30, 2015 have been vested on March 31, 2018.
As of March 31, 2025, there was unrecognized
stock-based compensation associated with the above restricted shares. As of March 31, 2025,
36
Restricted shares granted on April 19, 2016
On April 19, 2016, pursuant to the Company’s
2015 Plan, the Compensation Committee of the Board of Directors of the Company granted an aggregate of
All the restricted shares granted in respect of the restricted shares granted on April 16, 2016 had been vested on June 30, 2019.
As of March 31, 2025, there was no unrecognized
stock-based compensation associated with the above restricted shares and
Employees Stock Ownership Program on November 29, 2021
On November 29, 2021, pursuant to the Company’s
2015 Plan, the Compensation Committee granted options to obtain an aggregate of
The fair value of the stock options granted to
directors of the Company is estimated on the date of the grant using the Binomial Model. The fair value of the options was calculated
using the following assumptions: estimated life of six months to five years, volatility of
The fair value of the stock options granted to
certain employees and officers of the Company is estimated on the date of the grant using the Binomial Model. The fair value of the options
was calculated using the following assumptions: estimated life of six months to five years, volatility of
As of March 31, 2025, there was unrecognized stock-based
compensation $
Restricted share units granted and stock ownership program on April 11, 2023
On April 11, 2023, pursuant to the Company’s
2015 Plan, the Compensation Committee granted an aggregate of
37
The fair value of the stock options granted to
directors and certain employees and officers of the Company is estimated on the date of the grant using the Binomial Model. The fair value
of the options was calculated using the following assumptions: estimate life of
All the restricted share units granted on April
11, 2023 had been vested on December 31, 2023. As of March 31, 2025, there was unrecognized stock-based compensation of $
Restricted share units granted and stock ownership program on August 22, 2023
On August 22, 2023, pursuant to the Company’s
2015 Plan, the Compensation Committee granted an aggregate of
The Company recorded non-cash share-based compensation
expense of $
The fair value of the stock options granted to
directors and certain employees and officers of the Company is estimated on the date of the grant using the Binomial Model. The fair value
of the options was calculated using the following assumptions: estimate life of
As of March 31, 2025, there was unrecognized stock-based compensation
of $
Stock option activity under the Company’s stock-based compensation plans is shown below:
| Number of Shares | Average Exercise Price per Share | Aggregate Intrinsic Value* | Weighted Average Remaining Contractual Term in Years | |||||||||||||
| Outstanding at January 1, 2025 | $ | $ | ||||||||||||||
| Exercisable at January 1, 2025 | $ | $ | ||||||||||||||
| Granted | ||||||||||||||||
| Exercised | ||||||||||||||||
| Forfeited | ( | ) | ||||||||||||||
| Outstanding at March 31, 2025 | $ | $ | ||||||||||||||
| Exercisable at March 31, 2025 | $ | $ | ||||||||||||||
| * |
As the Company itself is an investment holding company which is not expected to generate operating profits to realize the tax benefits arising from its net operating loss carried forward, no income tax benefits were recognized for such stock-based compensation cost under the stock option plan for the three months ended March 31, 2024 and 2025.
38
| 25. | Income (Loss) Per Share |
Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similar to basic net income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if all the potential common shares pertaining to warrants, stock options, and similar instruments had been issued and if the additional common shares were dilutive. Diluted earnings per share are based on the assumption that all dilutive convertible shares and stock options and warrants were converted or exercised. Dilution is computed by applying the treasury stock method for the outstanding unvested restricted stock, options and warrants, and the if-converted method for the outstanding convertible instruments. Under the treasury stock method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later) and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Under the if-converted method, outstanding convertible instruments are assumed to be converted into common stock at the beginning of the period (or at the time of issuance, if later).
The following is the calculation of income (loss) per share:
| For the three months ended March 31, | ||||||||
| 2024 | 2025 | |||||||
| Net income (loss) | $ | $ | ( | ) | ||||
| Less: Net loss attributable to non-controlling interests | ||||||||
| Net income (loss) attributable to shareholders of CBAK Energy Technology, Inc. | ( | ) | ||||||
| Weighted average shares outstanding -basic (note) | ||||||||
| Dilutive unvested shares unit | ||||||||
| Weighted average shares outstanding–- diluted | ||||||||
| Income (loss) per share | ||||||||
| - Basic | $ | $ | ( | ) | ||||
| - Diluted | $ | $ | ( | ) | ||||
| Note: | Including |
For the three months ended March 31, 2024, all the outstanding warrants were anti-dilutive and excluded from shares used in the diluted computation.
For the three months ended March 31, 2025, all the unvested options were anti-dilutive and excluded from shares used in the diluted computation.
| 26. | Commitments and Contingencies |
| (i) | Capital Commitments |
As of December 31, 2024 and March 31, 2025, the Company had the following contracted capital commitments:
| December 31, 2024 | March 31, 2025 | |||||||
| For construction of buildings | $ | $ | ||||||
| For purchases of equipment | ||||||||
| Capital injection | ||||||||
| $ | $ | |||||||
39
| (ii) | Litigation |
During its normal course of business, the Company may become involved in various lawsuits and legal proceedings. However, litigation is subject to inherent uncertainties, and an adverse result may arise from time to time will affect its operation. Other than the legal proceedings set forth below, the Company is currently not aware of any such legal proceedings or claims that the Company believe will have an adverse effect on the Company’s operation, financial condition or operating results.
In December 2020, CBAK Power received notice from
Court of Dalian Economic and Technology Development Zone that Haoneng filed another lawsuit against CBAK Power for failure to pay pursuant
to the terms of the purchase contract. Haoneng sought a total amount of $
| 27. | Concentrations and Credit Risk |
| (a) | Concentrations |
The Company had the following customers that individually comprised 10% or more of net revenue for the three months ended March 31, 2024 and 2025 as follows:
| Three months ended March 31, | ||||||||||||||||
| Sales of finished goods and raw materials | 2024 | 2025 | ||||||||||||||
| Customer A | $ | % | $ | |||||||||||||
| Customer B | % | |||||||||||||||
| * |
The Company had the following customers that individually comprised 10% or more of net trade receivable (included VAT) as of December 31, 2024 and March 31, 2025 as follows:
| December 31, 2024 | March 31, 2025 | |||||||||||||||
| Customer B | $ | % | $ | % | ||||||||||||
| Customer C | % | |||||||||||||||
| Zhengzhou BAK Battery Co., Ltd (note 17) | % | |||||||||||||||
| * |
The Company had the following suppliers that individually comprised 10% or more of net purchase for the three months ended March 31, 2024 and 2025 as follows:
| Three months ended March 31, | ||||||||||||||||
| 2024 | 2025 | |||||||||||||||
| Supplier A | $ | % | $ | |||||||||||||
| Supplier B | % | |||||||||||||||
| * |
The Company had the following suppliers that individually comprised 10% or more of trade payable as of December 31, 2024 and March 31, 2025 as follows:
| December 31, 2024 | March 31, 2025 | |||||||||||||||
| Supplier B | $ | % | $ | |||||||||||||
40
| (b) | Credit Risk |
Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents and pledged deposits. As of December 31, 2024 and March 31, 2025 substantially all of the Company’s cash and cash equivalents were held by major financial institutions and online payment platforms located in the PRC, which management believes are of high credit quality. The Company has not experienced any losses on cash and cash equivalents to date. The Company does not require collateral or other securities to support financial instruments that are subject to credit risk.
For the credit risk related to trade accounts receivable, the Company performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses.
| 28. | Segment Information |
The Company’s chief operating decision maker has been identified as the Chief Executive Officer (“CEO”) who reviews financial information of operating segments based on US GAAP amounts when making decisions about allocating resources and assessing performance of the Company.
The Company determined
that for the three months ended March 31, 2024 and 2025, it operated in
The Company primarily operates in the PRC and substantially all of the Company’s long-lived assets are located in the PRC.
The Company’s chief operating decision maker evaluates performance based on each reporting segment’s net revenue, cost of revenues, operating expenses, operating income (loss), finance income (expense), other income and net income. Net revenue, cost of revenues, operating expenses, operating income, finance income (expense), other income (expenses) and net income (loss) by segment for the three months ended March 31, 2024 and 2025 were as follows:
| For the three months ended March 31, 2024 | CBAT | Hitrans | Corporate unallocated (note) | Consolidated | ||||||||||||
| Net revenues | $ | $ | $ | $ | ||||||||||||
| Cost of revenues | ( | ) | ( | ) | ( | ) | ||||||||||
| Gross profit | ||||||||||||||||
| Total operating expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Operating income (loss) | ( | ) | ( | ) | ||||||||||||
| Finance income (expenses), net | ( | ) | ( | ) | ||||||||||||
| Other income, net | ||||||||||||||||
| Income tax expenses | ( | ) | ( | ) | ||||||||||||
| Net income (loss) | ( | ) | ( | ) | ||||||||||||
| For the three months ended March 31, 2025 | CBAT | Hitrans | Corporate unallocated (note) | Consolidated | ||||||||||||
| Net revenues | $ | $ | $ | $ | ||||||||||||
| Cost of revenues | ( | ) | ( | ) | ( | ) | ||||||||||
| Gross profit | ||||||||||||||||
| Total operating expenses | ( | ) | ( | ) | ( | ) | ) | |||||||||
| Operating loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Finance income (expenses), net | ( | ) | ||||||||||||||
| Other income, net | ||||||||||||||||
| Income tax expenses | ||||||||||||||||
| Net income (loss) | ( | ) | ( | ) | ( | ) | ||||||||||
| As of March 31, 2025 | ||||||||||||||||
| Identifiable long-lived assets | ||||||||||||||||
| Total assets | ||||||||||||||||
Note: The Company does not allocate its assets located and expenses incurred outside China to its reportable segments because these assets and activities are managed at a corporate level.
41
Net revenues by product:
The Company’s products can be categorized
into high power lithium batteries and materials used in manufacturing of lithium batteries. For the product sales of high power lithium
batteries, the Company manufactured high-power cylindrical lithium battery cell and battery packs. The Company’s battery products
are sold to end users in electric vehicles, light electric vehicles and energy storage sectors. For the product sales of materials used
in manufacturing of lithium batteries, the Company, via its subsidiary, Hitrans, manufactured cathode materials and Precursor for use
in manufacturing of cathode.
| For the three months ended March 31, | ||||||||
| 2024 | 2025 | |||||||
| High power lithium batteries used in: | ||||||||
| Electric vehicles | $ | $ | ||||||
| Light electric vehicles | ||||||||
| Residential energy supply & uninterruptable supplies | ||||||||
| Materials used in manufacturing of lithium batteries | ||||||||
| Cathode | ||||||||
| Precursor | ||||||||
| Total revenue | $ | $ | ||||||
Net revenues by geographic area:
The Company’s operations are located in the PRC. The following table provides an analysis of the Company’s sales by geographical markets based on locations of customers:
| For the three months ended March 31, | ||||||||
| 2024 | 2025 | |||||||
| Mainland China | $ | $ | ||||||
| Europe | ||||||||
| Others | ||||||||
| Total | $ | $ | ||||||
Substantially all of the Company’s long-lived assets are located in the PRC.
| 29. | Subsequent events |
The Company has evaluated subsequent events from March 31, 2025 to the date the financial statements were issued and has determined that there are no items to disclose.
42
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
The following management’s discussion and analysis should be read in conjunction with our financial statements and the notes thereto and the other financial information appearing elsewhere in this report. Our financial statements are prepared in U.S. dollars and in accordance with U.S. GAAP.
Special Note Regarding Forward Looking Statements
Statements contained in this report include “forward-looking statements” within the meaning of such term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We use words such as “believe,” “expect,” “anticipate,” “project,” “target,” “plan,” “optimistic,” “intend,” “aim,” “will” or similar expressions which are intended to identify forward-looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those identified in Item 1A, “Risk Factors” described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 as well as assumptions, which, if they were to ever materialize or prove incorrect, could cause the results of the Company to differ materially from those expressed or implied by such forward-looking statements.
Readers are urged to carefully review and consider the various disclosures made by us in this report and our other filings with the SEC. These reports attempt to advise interested parties of the risks and factors that may affect our business, financial condition and results of operations and prospects. The forward-looking statements made in this report speak only as of the date hereof and we disclaim any obligation, except as required by law, to provide updates, revisions or amendments to any forward-looking statements to reflect changes in our expectations or future events.
Use of Terms
Except as otherwise indicated by the context and for the purposes of this report only, references in this report to:
| ● | “BAK Asia” are to our Hong Kong subsidiary, China BAK Asia Holdings Limited; |
| ● | “CBAK Power” are to our PRC subsidiary, Dalian CBAK Power Battery Co., Ltd.; |
| ● | “CBAK Shangqiu” are to our PRC subsidiary, CBAK New Energy (Shangqiu) Co., Ltd.; |
| ● | “Company”, “we”, “us” and “our” are to the combined business of CBAK Energy Technology, Inc., a Nevada corporation, and its consolidated subsidiaries; |
| ● | “Exchange Act” are to the Securities Exchange Act of 1934, as amended. |
| ● | “Hitrans” are to our 67.33% owned PRC subsidiary, Zhejiang Hitrans Lithium Battery Technology (we hold 67.33% of registered equity interests of Hitrans, representing 72.99% of paid-up capital). |
| ● | “Nanjing BFD” are to our PRC subsidiary, Nanjing BFD New Energy Technology Co., Ltd., a company that was previously named Nanjing Daxin New Energy Automobile Industry Co., Ltd. until February 24, 2023; |
| ● | “Nanjing CBAK” are to our PRC subsidiary, Nanjing CBAK New Energy Technology Co., Ltd.; |
| ● | “RMB” are to Renminbi, the legal currency of China; |
| ● | “SEC” are to the United States Securities and Exchange Commission; and |
| ● | “U.S. dollar”, “$” and “US$” are to the legal currency of the United States; |
Overview
We are a manufacturer of new energy high power lithium and sodium batteries that are mainly used in light electric vehicles, electric vehicles, energy storage such as residential energy supply & uninterruptible power supply (UPS) application, and other high-power applications. Our primary product offerings consist of new energy high power lithium and sodium batteries. In addition, after completing the acquisition of 81.56% of registered equity interests (such ownership percentage reduced to 67.33% of registered equity interests (representing 72.99% of paid-up capital as of March 31, 2025)) of Hitrans in November 2021, we entered the business of developing and manufacturing NCM precursor and cathode materials. Hitrans is a leading developer and manufacturer of ternary precursor and cathode materials in China, whose products have a wide range of applications on batteries that would be applied to electric vehicles, electric tools, high-end digital products and storage, among others.
As of March 31, 2025, we report financial and operational information in two segments: (i) production of high-power lithium and sodium battery cells, and (ii) manufacture and sale of materials used in high-power lithium battery cells.
We currently conduct our business primarily through (i) CBAK Power; (ii) Nanjing CBAK; (iii) CBAK Shangqiu; (iv) Nanjing BFD; and (v) Hitrans.
43
Financial Performance Highlights for the Quarter Ended March 31, 2025
The following are some financial highlights for the quarter ended March 31, 2025:
| ● | Net revenues: Net revenues decreased by $23.8 million, or 40.6%, to $34.9 million for the three months ended March 31, 2025, from $58.8 million for the same period in 2024. | |
| ● | Gross profit: Gross profit was $4.8 million, representing a decrease of $14.0 million, or 74.4% for the three months ended March 31, 2025, from gross profit of $18.8 million for the same period in 2024. | |
| ● | Operating income (loss): Operating loss was $2.9 million for the three months ended March 31, 2025, reflecting an increase of $13.1 million from an operating income of $10.3 million for the same period in 2024. | |
| ● | Net income (loss): Net loss was $2.1 million for the three months ended March 31, 2025, compared to a net income of $9.6 million for the same period in 2024. | |
| ● | Fully diluted income (loss) per share: Fully diluted loss per share was $0.02 for the three months ended March 31, 2025, as compared to fully diluted income per share of $0.11 for the same period in 2024. |
Financial Statement Presentation
Net revenues. The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five-step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation.
Revenues from product sales are recognized when the customer obtains control of our product, which occurs at a point in time, typically upon delivery to the customer. We expense incremental costs of obtaining a contract as and when incurred it the expected amortization period of the asset that it would have recognized is on year or less or the amount is immaterial.
Revenue from product sales is recorded net of reserves established for applicable discounts and allowances that are offered within contracts with our customers.
Product revenue reserves, which are classified as a reduction in product revenues, are generally characterized in the categories: discounts and returns. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable as the amount is payable to the Company’s customer.
Cost of revenues. Cost of revenues consists primarily of material costs, employee remuneration for staff engaged in production activity, share-based compensation, depreciation and related expenses that are directly attributable to the production of products. Cost of revenues also includes write-downs of inventory to lower of cost and net realizable value.
Research and development expenses. Research and development expenses primarily consist of remuneration for R&D staff, share-based compensation, depreciation and maintenance expenses relating to R&D equipment, and R&D material costs.
Sales and marketing expenses. Sales and marketing expenses consist primarily of remuneration for staff involved in selling and marketing efforts, including staff engaged in the packaging of goods for shipment, warranty expenses, advertising cost, depreciation, share-based compensation and travel and entertainment expenses. We do not pay slotting fees to retail companies for displaying our products, engage in cooperative advertising programs, participate in buy-down programs or similar arrangements.
General and administrative expenses. General and administrative expenses consist primarily of employee remuneration, share-based compensation, professional fees, insurance, benefits, general office expenses, depreciation, liquidated damage charges and bad debt expenses.
Finance costs, net. Finance costs consist primarily of interest income and interest on bank loans, net of capitalized interest.
Income tax expenses. Our subsidiaries in PRC are subject to an income tax rate of 25%, except that Hitrans and CBAK Power were each recognized as a “High and New Technology Enterprise” and enjoyed a preferential tax rate of 15% from 2024 to 2026. CBAK Nanjing obtained “High and New Technology Enterprise” certificate in late 2023 and has enjoyed a preferential tax rate of 15% for three years starting from 2023. Our Hong Kong subsidiaries are subject to profits tax at a rate of 16.5%. However, because we did not have any assessable income derived from or arising in Hong Kong, the entities had not paid any such tax.
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Results of Operations
Comparison of Three Months Ended March 31, 2024 and 2025
The following tables set forth key components of our results of operations for the periods indicated.
(All amounts, other than percentages, in thousands of U.S. dollars)
| Three Months Ended March 31, | Change | |||||||||||||||
| 2024 | 2025 | $ | % | |||||||||||||
| Net revenues | $ | 58,822 | $ | 34,939 | -23,883 | -41 | % | |||||||||
| Cost of revenues | (40,041 | ) | (30,137 | ) | 9,904 | -24 | % | |||||||||
| Gross profit | 18,781 | 4,802 | -13,979 | -74 | % | |||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development expenses | (2,816 | ) | (3,024 | ) | -208 | 7 | % | |||||||||
| Sales and marketing expenses | (1,724 | ) | (896 | ) | 828 | -48 | % | |||||||||
| General and administrative expenses | (4,092 | ) | (3,804 | ) | 289 | -7 | % | |||||||||
| Allowance of credit losses, net | 114 | 58 | -56 | -49 | % | |||||||||||
| Total operating expenses | (8,518 | ) | (7,666 | ) | 853 | -10 | % | |||||||||
| Operating income (loss) | 10,263 | (2,864 | ) | -13,126 | -128 | % | ||||||||||
| Finance income, net | 10 | 45 | 35 | 350 | % | |||||||||||
| Other income, net | 367 | 713 | 346 | 94 | % | |||||||||||
| Share of (loss) income of equity investee | (19 | ) | 55 | 74 | -389 | |||||||||||
| Income (loss) before income tax | 10,621 | (2,051 | ) | -12,671 | -119 | % | ||||||||||
| Income tax expenses | (1,049 | ) | - | 1,049 | -100 | % | ||||||||||
| Net income (loss) | 9,572 | (2,051 | ) | -11,622 | -121 | % | ||||||||||
| Less: Net loss attributable to non-controlling interests | 264 | 472 | 208 | 79 | % | |||||||||||
| Net income (loss) attributable to shareholders of CBAK Energy Technology, Inc. | $ | 9,836 | $ | (1,579 | ) | -11,414 | -116 | % | ||||||||
Net revenues. Net revenues decreased by $23.9 million, or 41%, to $34.9 million for the three months ended March 31, 2025, from $58.8 million for the same period in 2024.
The following table sets forth the breakdown of our net revenues by end-product applications.
(All amounts in thousands of U.S. dollars other than percentages)
| Three months ended March 31, | Change | |||||||||||||||
| 2024 | 2025 | $ | % | |||||||||||||
| High power lithium batteries used in: | ||||||||||||||||
| Electric vehicles | $ | 480 | 538 | 58 | 12 | % | ||||||||||
| Light electric vehicles | 1,510 | 2,845 | 1,335 | 88 | % | |||||||||||
| Residential energy supply & uninterruptable supplies | 42,848 | 16,981 | -25,867 | -60 | % | |||||||||||
| 44,838 | 20,364 | -24,474 | -55 | % | ||||||||||||
| Materials used in manufacturing of lithium batteries | ||||||||||||||||
| Cathode | 9,186 | 11,261 | 2,075 | 23 | % | |||||||||||
| Precursor | 4,798 | 3,314 | -1,484 | -31 | % | |||||||||||
| 13,984 | 14,575 | 591 | 4 | % | ||||||||||||
| Total | $ | 58,822 | $ | 34,939 | -23,883 | -41 | % | |||||||||
Net revenues from sales of batteries for electric vehicles were approximately $0.5 million for each of the three months ended March 31, 2025 and 2024.
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Net revenues from sales of batteries for light electric vehicles were $2.8 million for the three months ended March 31, 2025, as compared to $1.5 million in the same period of 2024, an increase of $1.3 million, or 88%. We strive to continue to penetrate the market for batteries used in light electric vehicles, especially the international market such as India and Vietnam. We believe that our sales campaign in the international market will contribute to a rebound in our sales volume in this sector.
Net revenues from sales of batteries for residential energy supply & uninterruptable power supplies were $17.0 million in the three months ended March 31, 2025, as compared with $42.8 million in the same period in 2024, representing a decrease of $25.8 million, or 60%. The substantial decline primarily stems from our Dalian facilities, where a major portion of customers are in the residential energy supply sector. These facilities are currently undergoing a product portfolio upgrade, transitioning from Model 26650 to Model 40135 for our customers.
Net revenues from sales of materials used in manufacturing of lithium batteries were $14.6 million for the three months ended March 31, 2025, as compared to $14.0 million for the same period of 2024, representing a small increase of $0.5 million, or 4%.
Cost of revenues. Cost of revenues decreased to $30.1 million for the three months ended March 31, 2025, as compared to $40.0 million for the same period in 2024, a decrease of $9.9 million, or 25%. The cost of revenues decreased in line with revenues. We write down the inventory value whenever there is an indication that it is impaired.
Gross profit. Gross profit for the three months ended March 31, 2025 was $4.8 million, or 13.7% of net revenues as compared to gross profit of $18.8 million, or 31.9% of net revenues, for the same period in 2024. The significant decline in gross profits aligns with the substantial drop in sales of batteries for residential energy supply and uninterruptible power supplies, which have been our primary sources of net revenue. We expect gross profit margins to gradually recover upon the upgrade from Model 26650 to Model 40135.
Research and development expenses. Research and development expenses increased to approximately $3.0 million for the three months ended March 31, 2025, as compared to approximately $2.8 million for the same period in 2024, an increase of $0.3 million, or 9%. The increase was driven by higher salaries and social insurance expenses due to a growing number of employees at Nanjing CBAK and CBAK Power’s development of series 46 batteries. This was partially offset by a decrease of approximately $0.1 million in outsourced consultancy services, which were replaced by our in-house research and development team. We incurred $2.2 million in salaries and social insurance cost (including share-based compensation) for the three months ended March 31, 2025 compared to $1.8 million for the three months ended March 31, 2024.
Sales and marketing expenses. Sales and marketing expenses decreased to approximately $0.9 million for the three months ended March 31, 2025, as compared to approximately $1.7 million for the same period in 2024, a decrease of approximately $0.8 million, or 48%. The marketing expenses decreased corresponding to the decrease of revenue and remains at 3% for each of the three months ended March 31, 2024 and 2024, as a percentage of revenues.
General and administrative expenses. General and administrative expenses decreased to $3.8 million, or 11% of revenues, for the three months ended March 31, 2025, as compared to $4.1 million, or 7% of revenues, for the same period in 2024, representing a decrease of $0.3 million, or 7%. The decrease resulted from a $0.2 million reduction in consultant service expenses.
Allowance on expected credit losses, net. The expected credit losses expenses reversed by $58,395 for the three months ended March 31, 2025, as compared to a reversal of $114,013 for the same period in 20243. We determine the allowance based on the current expected credit loss model. The allowance for credit losses is adjusted each period for changes in expected lifetime credit losses.
Operating (loss) income. As a result of the above, our operating loss totaled $2.9 million for the three months ended March 31, 2025, as compared to an operating income of $10.3 million for the same period in 2024, representing a decrease in income of $13.1 million, or 128%.
Finance income (expenses), net. Finance expenses, net was $39,093 for the three months ended March 31, 2025, as compared to finance income of $9,663 for the same period in 2024.
Other income, net. Other income was $0.7 million for the three months ended March 31, 2025, as compared to $0.4 million for the same period in 2024. For the three months ended March 31, 2025, we generated $0.5 million from agency-based services provided and received $0.1 million government assistance. For the three months ended March 31, 2024, we received government assistance of $0.2 million and generated $0.1 million from trading of materials.
Income tax. Income tax expenses were nil and $1.1 million for the three months ended March 31, 2025 and 2024, respectively. The income tax expenses for the three months ended March 31, 2024 were incurred by our batteries segment.
Net income (loss). As a result of the foregoing, we had a net loss of $2.1 million for the three months ended March 31, 2025, compared to net income of $9.6 million for the same period in 2024.
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Liquidity and Capital Resources
We had financed our liquidity requirements from a variety of sources, including short-term bank loans, other short-term loans and bills payable under bank credit agreements, advance from our related and unrelated parties, investors and issuance of capital stock and other equity-linked securities.
We incurred a net loss of $2.1 million for the three months ended March 31, 2025. As of March 31, 2025, we had cash and cash equivalents of $47.5 million. Our total current assets were $143.2 million and our total current liabilities were $175.5 million as of March 31, 2025, resulting in a net working capital deficit of $32.3 million.
As of March 31, 2025, we had an accumulated deficit of $126.1 million. We had an accumulated deficit from recurring net losses and significant short-term debt obligations maturing in less than one year as of March 31, 2025. These factors raise substantial doubts about our ability to continue as a going concern. The report from our independent registered public accounting firm for the year ended December 31, 2024 included an explanatory paragraph in respect of the substantial doubt of our ability to continue as a going concern.
The accompanying condensed consolidated financial statements have been prepared assuming we will continue to operate as a going concern, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty related to our ability to continue as a going concern.
Lending from Financial Institutions
In January 2023, we renewed the banking facilities with Shaoxing Branch of Bank of Communications Co., Ltd with a maximum amount of RMB160.0 million (approximately $22.1 million) with the term from January 2023 to December 2027. On January 22, 2025, we and Bank of Communications entered into a new banking facilities for another five years from January 22, 2025 to January 22, 2030 for a maximum guarantee of loan amount to RMB155.8 million (approximately $21.5 million). The facility was secured by our land use rights and buildings. Under the facility, we has borrowed RMB159.9 million (approximately $21.9 million) and RMB153.7 million (approximately $21.2 million) as of December 31, 2024 and March 31, 2025, respectively, bearing interest at 3.45% per annum expiring through April 2025 to March 2026.
On January 17, 2022, we obtained a one-year term facility from Agricultural Bank of China with a maximum amount of RMB10 million (approximately $1.4 million) bearing interest at 105% of benchmark rate of the People’s Bank of China (“PBOC”) for short-term loans, which is 3.85% per annum. The facility was guaranteed by our former CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan and secured by an unrelated third party, Jiangsu Credits Financing Guarantee Co., Ltd. We borrowed RMB10 million (approximately $1.4 million) on January 20, 2022 for a term until January 16, 2023. We repaid RMB10 million (approximately $1.4 million) early on January 5, 2023. On January 6, 2023, we borrowed a one-year term loan of RMB10 million (approximately $1.4 million) for a period of one year to January 4, 2024, bearing interest at 120% of benchmark rate of the PBOC for short-term loans, which is 3.85% per annum, while other terms and guarantee remain the same. We repaid the loan on January 4, 2024.
On February 9, 2022, we obtained a one-year term facility from Jiangsu Gaochun Rural Commercial Bank with a maximum amount of RMB10 million (approximately $1.4 million) bearing interest at 124% of benchmark rate of the People’s Bank of China (“PBOC”) for short-term loans, which is 4.94% per annum. The facility was guaranteed by our former CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. We borrowed RMB10 million (approximately $1.4 million) on February 17, 2022 for a term until January 28, 2023. We repaid RMB10 million (approximately $1.4 million) on January 16, 2023. On January 17, 2023, we borrowed a one-year loan of RMB10 million (approximately $1.4 million) bearing interest at 129% of benchmark rate of PBOC for short-term loans, which is 4.70% per annum for a term until January 13, 2024. We repaid the loan on January 13, 2024.
On April 28, 2022, we obtained a three-year term facility from Industrial and Commercial Bank of China Nanjing Gaochun branch, with a maximum amount of RMB12 million (approximately $1.7 million) with the term from April 21, 2022 to April 21, 2025. The facility was guaranteed by our former CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. Under the facility, We borrowed RMB10 million (approximately $1.5 million) on April 29, 2022, bearing interest at 3.95% per annum for a term until April 29, 2023. We repaid RMB10 million (approximately $1.4 million) on April 19, 2023. On April 20, 2023, We borrowed another one-year loan of RMB10 million (approximately $1.4 million) bearing interest at 102.5% of benchmark rate of PBOC for short-term loans, which is 3.90% per annum for a term until April 19, 2024. We repaid the loan on April 19, 2024.
We entered into another one-year term facility with Jiangsu Gaochun Rural Commercial Bank with a maximum amount of RMB9 million (approximately $1.2 million) bearing interest rate at 4.6% per annum for a period from September 27, 2023 to August 31, 2024. The facility was guaranteed by 100% equity in CBAK Nanjing held by BAK Investment and our former CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. We borrowed RMB9 million (approximately $1.3 million ) on September 27, 2023 for a term until August 31, 2024. We repaid the loan on August 31, 2024.
47
On November 8, 2022, We entered into a short-term loan agreement with China CITIC Bank Shaoxing Branch to August 9, 2023 with a maximum amount of RMB10 million (approximately $1.4 million) bearing interest rate at 4.35% per annum. We borrowed RMB10 million (approximately $1.4 million) on the same date. We has repaid RMB5 million (approximately $0.7 million), RMB0.2 million (approximately $0.1 million) and RMB4.8, million (approximately $0.7 million) on November 16, 2022, December 27, 2022 and August 9, 2023, respectively. We entered into another short-term loan agreement with China CITIC Bank Shaoxing Branch for a one-year short-term loan agreement with a maximum amount of RMB0.2 million (approximately $0.1 million) for December 27, 2022 to December 27, 2023, bearing interest rate at 4.20% per annum. We entered into another loan agreement with China CITIC Bank Shaoxing Branch for a short-term loan of RMB4.8 million (approximately $0.7 million) from August 10, 2023 to May 2, 2024, bearing interest rate at 4.3% per annum. We repaid the loan on May 2, 2024.
On January 7, 2023, we obtained a two-year term facility from Postal Savings Bank of China, Nanjing Gaochun Branch with a maximum amount of RMB10 million (approximately $1.4 million) for a period from January 7, 2023 to January 6, 2025. The facility was guaranteed by our former CEO, Mr. Yunfei Li, Mr. Yunfei Li’s wife Ms. Qinghui Yuan and CBAK New Energy (Nanjing) Co., Ltd. We borrowed RMB5 million (approximately $0.7 million) on January 12, 2023 for a term of one year until January 11, 2024, bearing interest at 3.65% per annum. We repaid the above early on June 15, 2023. On June 27, 2023, we entered into another loan agreement for one year from June 27, 2023 to June 26, 2024 under the two-year term facility for a maximum loan amount of RMB10 million (approximately $1.4 million) bearing interest rate at 3.65 % pr annum. We borrowed RMB10 million (approximately $1.4 million) on the same date. The loan was guaranteed by our former CEO, Mr. Yunfei Li, Mr. Yunfei Li’s wife Ms. Qinghui Yuan and CBAK New Energy (Nanjing) Co., Ltd. We repaid the loan on June 26, 2024.
On March 29, 2023, we and Bank of China Limited entered into a short-term loan agreement for one year from March 29, 2023 to March 28, 2024 for a maximum loan amount to RMB5 million (approximately $0.7 million) bearing interest rate at 3.65% per annum. We borrowed RMB5 million (approximately $0.7 million) on the same date. The loan was secured by our buildings in Dalian. We repaid RMB 5 million (approximately $0.7 million) on March 27, 2024. On March 28, 2024, we borrowed another one-year loan of RMB5 million (approximately $0.7 million) bearing interest rate at 3.45% per annum. We early repaid the loan on August 21, 2024.
On April 19, 2023, we and Bank of Nanjing Gaochun Branch entered into a short-term loan agreement for one year from April 10, 2023 to April 9, 2024 for RMB10 million (approximately $1.4 million) bearing interest rate at 3.7% per annum. We borrowed RMB10 million (approximately $1.4 million) on April 23, 2023. The loan was guaranteed by our former CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. We repaid the loan on April 9, 2024.
On July 31, 2023, we obtained a three-year term facility from Bank of China Gaochun Branch, with a maximum amount of RMB10 million (approximately $1.4 million) with the term from July 31, 2023 to July 30, 2026. The facility was guaranteed by our former CEO, Mr, Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. Under the facility, we borrowed RMB10 million (approximately $1.4 million) on July 31, 2023, bearing interest rate at 3.15% per annum. We repaid the loan on July 22, 2024
On August 3, 2023, we and Bank of China entered into a short term loan agreement for one year from August 3, 2023 to August 2, 2024 for a maximum amount of RMB10 million (approximately $1.4 million) bearing interest rate at 3.55% per annum. We borrowed RMB10 million (approximately $1.4 million) on September 27, 2023. The loan was secured by our buildings in Dalian. We repaid the loan on August 2, 2024.
On January 24, 2024, we entered into a short-term credit-guaranteed loan agreement with Zhejiang Shangyu Rural Commercial Bank for one year to January 17, 2025 with an amount of RMB5 million (approximately $0.7 million) bearing interest at 4.1% per annum. We borrowed RMB5 million (approximately $0.7 million) on the same date. We early repaid the loan on September 27, 2024.
On March 26, 2024, we entered into a short-term credit-guaranteed loan agreement with Zhejiang Shangyu Rural Commercial Bank for one year to March 25, 2025 with an amount of RMB5 million (approximately $0.7 million) bearing interest at 4.1% per annum. We borrowed RMB5 million (approximately $0.7 million) on the same date. We early repaid the loan on September 27, 2024.
On April 9, 2024, we and China Zheshang Bank Co., Ltd Shangyu Branch entered into a short-term loan agreement for one year from April 9, 2024 to April 7, 2025 for a maximum loan amount to RMB5.5 million (approximately $0.8 million) bearing interest rate at 4.05% per annum. We borrowed RMB5.5 million (approximately $0.8 million) on the same date. We early repaid the loan on January 24, 2025.
On June 24, 2024, we and Bank of China entered into a short-term loan agreement, with a maximum amount of RMB10 million (approximately $1.4 million) with the term from June 24, 2024 to June 20, 2025. The facility was guaranteed by our former CEO, Mr, Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. Under the facility, we borrowed RMB10 million (approximately $1.4 million) on June 24, 2024, bearing interest rate at 3.0% per annum. We early repaid the loan on August 23, 2024.
On September 29, 2024, we and Zhejiang Shangyu Rural Commercial Bank entered into a short-term credit-guaranteed loan agreement for RMB15 million (approximately $2.0 million) with the term of one year from September 29, 2024 to September 26, 2025 bearing 4.00% interest rate. We borrowed RMB15 million (approximately $2.1 million) on the same date.
48
On December 31, 2024, we and China Everbright Bank Co., Ltd Shaoxing Branch entered into a short-term loan agreement for RMB10 million (approximately $1.4 million) with the term of one year from December 31, 2024 to December 30, 2025 bearing 2.9% interest rate. We borrowed RMB10 million (approximately $1.4 million) on the same date.
On January 17, 2025, we entered into a long-term Maximum Pledge Agreement with Zhejiang Shangyu Rural Commercial Bank, for the period from January 17, 2025 to September 25, 2027, with a maximum facility amount of RMB76.56 million (approximately $10.54 million). The facility was secured by our land use right and buildings. We have borrowed RMB40 million (approximately $5.5 million) as of March 31, 2025, bearing interest rate at 2.85%-3.6% per annum, of which RMB10 million (approximately $1.4 million) repayable on January 16, 2026 and the remaining RMB30 million (approximately $4.1 million) repayable on September 25, 2027.
On January 20, 2025, we entered into an unsecured revolving loan agreement with Bank of Ningbo Co., Ltd. Gaochun Branch with a maximum amount of RMB10 million (approximately $1.4 million) bearing interest at 2.8% per annum (LPR interest rate -30 bp), with a one-year loan period ending on January 20, 2026. As of March 31, 2025, we have borrowed RMB10 million (approximately $1.4 million) under this loan agreement.
On February 19, 2025, we obtained a RMB30 million facility (approximately $4.1 million) from Jiangsu Gaochun Rural Commercial Bank, with the term from February 19, 2025 to September 23, 2027. The facility was guaranteed by 100% equity in CBAK Nanjing held by BAK Investment. NJ CBAK borrowed RMB4 million (approximately $0.6 million) on February 20, 2025 for a term until February 19, 2026, bearing interest rate at 2.98% per annum.
On February 25, 2025, we entered into a short-term factoring loan agreement with China Construction Bank Co., Ltd for a maximum amount of RMB10 million (approximately $1.4 million) for a period of one year from February 28, 2025 to February 27, 2026, bearing interest of 3.7% per annum. We borrowed RMB10 million (approximately $1.4 million) on the same date.
We obtained banking facilities from China Zheshang Bank Co., Ltd. Shenyang Branch with a maximum amount of RMB390 million (approximately $53.7 million) with the term from June 28, 2023 to April 29, 2025. We borrowed a series of acceptance bills totaling RMB112.8 million (approximately $15.5 million) for various terms expiring through April to September 2025, which was secured by our pledged deposit of RMB74.8 million (approximately $10.3 million, term deposit of RMB24.7 million (approximately $3.3 million) and our bills receivables of RMB14.0 million (approximately $1.9 million).
We obtained another banking facilities from China Zheshang Bank Co., Ltd. Shenyang Branch with a maximum amount of RMB300 million (approximately $41.3 million) with the term from December 14, 2023 to April 29, 2025. We borrowed a series of acceptance bills totaling RMB100.0 million (approximately $13.8 million) for various terms expiring through April to September 2025, which was secured by our pledged deposit of RMB63.2 million (approximately $8.7 million), term deposit of RMB2.2 million (approximately $0.3 million) and our bills receivables of RMB34.9 million (approximately $4.8 million).
We borrowed a series of acceptance bills from Bank of Nanjing totaling RMB57.6 million (approximately $7.9 million) for various terms expiring through May to September 2025, which was secured by our pledged deposit of RMB45.0 million (approximately $6.1 million) and term deposit of RMB13.3 million (approximately $1. million).
We borrowed a series of acceptance bills from China Zheshang Bank Co. Ltd Shangyu Branch totaling RMB70.2 million (approximately $9.7 million) for various terms expiring through April to September 2025, which was secured by our pledged deposit of RMB59.3 million (approximately $8.2 million) and our bills receivables of RMB11.8 million (approximately $1.5 million).
We borrowed a series of acceptance bills from Bank of Communications Co., Ltd. Shangyu Branch totaling RMB73.0 million (approximately $10.1 million) expiring through April to September 2025, which was secured by our pledged deposit of RMB73.0 million (approximately $10.1 million).
Equity and Debt Financings from Investors
We have also obtained funds through private placements, registered direct offerings and other equity and note financings.
On December 8, 2020, we entered into a securities purchase agreement with certain institutional investors, pursuant to which we issued in a registered direct offering, an aggregate of 9,489,800 shares of common stock of the Company at a per share purchase price of $5.18, and warrants to purchase an aggregate of 3,795,920 shares of common stock of the Company at an exercise price of $6.46 per share, for gross proceeds of approximately $49.16 million, before deducting fees to the placement agent and other offering expenses payable by the Company.
On February 8, 2021, we entered into another securities purchase agreement with the same investors, pursuant to which we issued in a registered direct offering, an aggregate of 8,939,976 shares of common stock of the Company at a per share purchase price of $7.83. In addition, we issued to the investors (i) in a concurrent private placement, the Series A-1 warrants to purchase a total of 4,469,988 shares of common stock, at a per share exercise price of $7.67; (ii) in the registered direct offering, the Series B warrants to purchase a total of 4,469,988 shares of common stock, at a per share exercise price of $7.83; and (iii) in the registered direct offering, the Series A-2 warrants to purchase up to 2,234,992 shares of common stock, at a per share exercise price of $7.67. We received gross proceeds of approximately $70 million from the registered direct offering and the concurrent private placement, before deducting fees to the placement agent and other offering expenses payable by the Company.
As of December 31, 2024, all the warrants described above had expired without being exercised.
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Summary of Cash Flows
We currently are expanding our product lines and manufacturing capacity in our Dalian, Nanjing and Zhejiang facilities, which requires additional funding to finance the expansion. We may also require additional cash due to changing business conditions or other future developments, including any investments or acquisitions we may decide to pursue. We plan to renew our bank loans upon maturity, if required, and plan to raise additional funds through bank borrowings and equity financing in the future to meet our daily cash demands, if required. However, there can be no assurance that we will be successful in obtaining such financing. If our existing cash and bank borrowing are insufficient to meet our requirements, we may seek to sell equity securities, debt securities or borrow from lending institutions. We can make no assurance that financing will be available in the amounts we need or on terms acceptable to us, if at all. The sale of equity securities, including convertible debt securities, would dilute the interests of our current shareholders. The incurrence of debt would divert cash for working capital and capital expenditures to service debt obligations and could result in operating and financial covenants that restrict our operations and our ability to pay dividends to our shareholders. If we are unable to obtain additional equity or debt financing as required, our business operations and prospects may suffer.
The following table sets forth a summary of our cash flows for the periods indicated:
(All amounts in thousands of U.S. dollars)
| Three Months Ended March 31, | ||||||||
| 2024 | 2025 | |||||||
| Net cash provided by (used in) operating activities | $ | 7,447 | $ | (9,621 | ) | |||
| Net cash used in investing activities | (12,836 | ) | (9,903 | ) | ||||
| Net cash (used in) provided by financing activities | (16,392 | ) | 5,926 | |||||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | (785 | ) | 347 | |||||
| Net decrease in cash and cash equivalents and restricted cash | (22,566 | ) | (13,251 | ) | ||||
| Cash and cash equivalents and restricted cash at the beginning of period | 58,823 | 60,786 | ||||||
| Cash and cash equivalents and restricted cash at the end of period | $ | 36,257 | $ | 47,535 | ||||
Operating Activities
Net cash used in operating activities was $9.7 million in the three months ended March 31, 2025. The net cash used in operating activities for the three months ended March 31, 2025 was mainly attributable to our increase of inventories of $8.7 million, an increase of trade and bills receivable of $7.4 million offset by a decrease of prepayments and other receivables and an increase in trade and bills payable of $8.2 million.
Net cash provided by operating activities was $7.4 million in the three months ended March 31, 2024 was mainly attributable to our net income of $12.4 million (excluding non-cash depreciation and amortization, write-down of inventories, share-based compensation and impairment loss of equity investee), increase of inventories of $4.1 million offset by an increase of trade and bills receivable of $8.2 million, an increase in trade and bills payable of $2.0 million.
Investing Activities
Net cash used in investing activities was $9.9 million for the three months ended March 31, 2025. The net cash used in investing activities comprised the purchases of property, plant and equipment and construction in progress $12.7 million offset by $2.8 million government subsidy received.
Net cash used in investing activities was $12.8 million for the three months ended March 31, 2024. The net cash used in investing activities comprised the purchases of property, plant and equipment and construction in progress $7.9 million and $4.9 million on deposit paid for acquisition of long-term investments.
Financing Activities
Net cash provided by financing activities was $5.9 million in the three months ended March 31, 2025. The net cash used in financing activities for the three months ended March 31, 2025 was mainly attributable to $24.3 million proceeds from bank borrowings offset by repayment of bank borrowings of $17.1 million and $1.3 million net movement of short-term time deposits.
Net cash used in financing activities was $16.4 million in the three months ended March 31, 2024. This was mainly attributable to $20.8 million advances from bank borrowings, $1.1 million from finance lease, offset by repayment of bank borrowings of $16.7 million, repayment of $0.7 million of principal payments on finance leases and $20.9 million placement of short-term time deposits.
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As of March 31, 2025, the principal amounts outstanding under our credit facilities and lines of credit were as follows:
(All amounts in thousands of U.S. dollars)
| Maximum amount available | Amount borrowed | |||||||
| Long-term credit facilities: | ||||||||
| Shaoxing Branch of Bank of Communications Co., Ltd | $ | 21,454 | $ | 21,176 | ||||
| Jiangsu Gaochun Rural Commercial Bank | 4,132 | 551 | ||||||
| Zhejiang Shangyu Rural Commercial Bank | 10,545 | 5,509 | ||||||
| 36,131 | 27,236 | |||||||
| Short-term credit facilities: | ||||||||
| Zhejiang Shangyu Rural Commercial Bank | 2,066 | 2,066 | ||||||
| China Everbright Bank Co., Ltd. Shaoxing Branch | 1,377 | 1,377 | ||||||
| China Construction Bank Co., LTD. Shaoxing Branch | 1,377 | 1,377 | ||||||
| Ningbo Bank Co., Ltd Nanjing Gaochun Branch | 1,377 | 1,377 | ||||||
| 6,197 | 6,197 | |||||||
| Other lines of credit: | ||||||||
| Bank of Ningbo Co., Ltd | 1,116 | 1,116 | ||||||
| China Zheshang Bank Co., Ltd. Shenyang Branch | 15,542 | 15,542 | ||||||
| Bank of Nanjing Gaochun Branch | 8,239 | 8,239 | ||||||
| China Zheshang Bank Co., Ltd. Shenyang Branch | 13,475 | 13,475 | ||||||
| China Zheshang Bank Co., Ltd Shangyu Branch | 9,670 | 9,670 | ||||||
| Bank of Communications Co., Ltd Shaoxing Branch | 10,059 | 10,059 | ||||||
| 58,101 | 58,101 | |||||||
| Total | $ | 100,429 | $ | 91,534 | ||||
Capital Expenditures
We incurred capital expenditures of $12.6 million and $7.9 million in the three months ended March 31, 2025 and 2024, respectively. Our capital expenditures were used primarily to construct or upgrade our Dalian, Nanjing and Zhejiang facilities.
We estimate that our total capital expenditures in fiscal year 2025 will reach approximately $50 million. Such funds will be mainly used to construct new plants with new product lines and battery module packing lines.
Critical Accounting Policies and Estimates
Our condensed consolidated financial information has been prepared in accordance with U.S. GAAP, which requires us to make judgments, estimates and assumptions that affect (1) the reported amounts of our assets and liabilities, (2) the disclosure of our contingent assets and liabilities at the end of each fiscal period and (3) the reported amounts of revenues and expenses during each fiscal period. We continually evaluate these estimates based on our own historical experience, knowledge and assessment of current business and other conditions, our expectations regarding the future based on available information and reasonable assumptions, which together form our basis for making judgments about matters that are not readily apparent from other sources. Since the use of estimates is an integral component of the financial reporting process, our actual results could differ from those estimates. Some of our accounting policies require a higher degree of judgment than others in their application.
There were no material changes to the critical accounting policies previously disclosed in our audited consolidated financial statements for the year ended December 31, 2024 included in the Annual Report on Form 10-K filed on March 17, 2025.
Changes in Accounting Standards
Please refer to Note 1 to our condensed consolidated financial statements, “Principal Activities, Basis of Presentation and Organization—Recently Adopted Accounting Standards” and “—Recently Issued But Not Yet Adopted Accounting Pronouncements” for a discussion of relevant pronouncements.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Not applicable.
ITEM 4. CONTROLS AND PROCEDURES.
Evaluation of Disclosure Controls and Procedures
As required by Rule 13a-15 under the Exchange Act, our management has carried out an evaluation, with the participation and under the supervision of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2025. Disclosure controls and procedures refer to controls and other procedures designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating and implementing possible controls and procedures.
Management conducted its evaluation of disclosure controls and procedures under the supervision of our Chief Executive Officer and our Chief Financial Officer. Based upon, and as of the date of this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were ineffective as of March 31, 2025.
As we disclosed in our Annual Report on Form 10-K filed with the SEC on March 17, 2025, during our assessment of the effectiveness of internal control over financial reporting as of December 31, 2024, management identified the following material weaknesses in our internal control over financial reporting:
| ● | We did not have appropriate policies and procedures in place to evaluate the proper accounting and disclosures of key documents and agreements. |
| ● | We do not have sufficient and skilled accounting personnel with an appropriate level of technical accounting knowledge and experience in the application of accounting principles generally accepted in the United States commensurate with our financial reporting requirements. |
In order to cure the foregoing material weaknesses, we have taken or are taking the following remediation measures:
| ● | We are in the process of hiring a permanent chief financial officer with significant U.S. GAAP and SEC reporting experience. Ms. Xiangyu Pei was appointed by the Board of Directors of the Company as the Interim Chief Financial Officer on August 23, 2019. Ms. Xiangyu Pei resigned as our Interim Chief Financial Officer on August 22, 2023 but has continued to serve in the Company’s finance department and on the board of director. Mr. Jiewei Li was appointed as the Company’s Chief Financial Officer on August 22, 2023. |
| ● | We have regularly offered our financial personnel trainings on internal control and risk management. We have regularly provided trainings to our financial personnel on U.S. GAAP accounting guidelines. We plan to continue to provide trainings to our financial team and our other relevant personnel on the U.S. GAAP accounting guidelines applicable to our financial reporting requirements. |
We intend to complete the remediation of the material weaknesses discussed above as soon as practicable but we can give no assurance that we will be able to do so. Designing and implementing an effective disclosure controls and procedures is a continuous effort that requires us to anticipate and react to changes in our business and the economic and regulatory environments and to devote significant resources to maintain a financial reporting system that adequately satisfies our reporting obligations. The remedial measures that we have taken and intend to take may not fully address the material weaknesses that we have identified.
Changes in Internal Control over Financial Reporting
Except for the matters described above, there were no changes in our internal controls over financial reporting during the quarter ended March 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
The information set forth in Note 26 “Commitments and Contingencies—(ii) Litigation” to our condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q is incorporated by reference herein.
ITEM 1A. RISK FACTORS.
There are no material changes from the risk factors previously disclosed in Item 1A “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
Other than as previously disclosed in current reports on Form 8-K, there were no unregistered sales of equity securities or repurchase of common stock during the period covered by this report.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. MINE SAFETY DISCLOSURES.
Not applicable.
ITEM 5. OTHER INFORMATION.
Securities Trading Plans of Directors and Executive Officers
During the fiscal quarter ended March 31, 2025,
ITEM 6. EXHIBITS.
The following exhibits are filed as part of this report or incorporated by reference:
| Exhibit No. | Description | |
| 31.1 | Certifications of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| 31.2 | Certifications of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| 32.1 | Certifications of Principal Executive Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| 32.2 | Certifications of Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the iXBRL document). |
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SIGNATURES
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 thereunto duly authorized.
Date: May 19, 2025
| CBAK ENERGY TECHNOLOGY, INC. | ||
| By: | /s/ Zhiguang Hu | |
| Zhiguang Hu | ||
| Chief Executive Officer | ||
| By: | /s/ Jiewei Li | |
| Jiewei Li | ||
| Chief Financial Officer | ||
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