On August 9, 2024, CBAK Energy Technology Inc (CBAT, Financial) released its 8-K filing detailing the company's financial results for the second quarter and first half of 2024. CBAK Energy Technology Inc is a leading manufacturer and distributor of lithium-ion high-power rechargeable batteries, with operations spanning Mainland China, Europe, the United States, Korea, and other countries.
Second Quarter 2024 Financial Highlights
For the second quarter of 2024, CBAK Energy Technology Inc reported net revenues of $47.8 million, a 13% increase from $42.4 million in the same period of 2023. This growth was primarily driven by the company's battery business, which saw a significant rise in revenue.
| Metric | Q2 2023 | Q2 2024 | % Change YoY |
|---|---|---|---|
| Net Revenues ($) | 22,232,003 | 35,598,124 | 60% |
| Gross Profits ($) | 3,425,147 | 12,912,293 | 276% |
| Gross Margin | 15.4% | 36.3% | - |
| Net Income ($) | (1,126,224) | 7,892,641 | - |
Cost of revenues decreased by 9% to $35.1 million from $38.5 million in Q2 2023, contributing to a gross profit of $12.7 million, up 227% from $3.9 million in the same period last year. The gross margin improved significantly to 26.6% from 9.2% in Q2 2023.
First Half of 2024 Financial Highlights
For the first half of 2024, CBAK Energy Technology Inc reported net revenues of $106.6 million, a 26% increase from $84.8 million in the same period of 2023. The battery business was the primary driver of this growth, with net revenues rising by 55% to $80.4 million.
| Metric | H1 2023 | H1 2024 | % Change YoY |
|---|---|---|---|
| Net Revenues ($) | 51,835,386 | 80,435,993 | 55% |
| Gross Profits ($) | 6,638,505 | 31,375,815 | 372% |
| Gross Margin | 12.8% | 39.0% | - |
| Net Income ($) | (1,017,300) | 19,575,070 | - |
Cost of revenues for the first half of 2024 was $75.0 million, a 4% decrease from $78.0 million in the same period of 2023. Gross profit surged to $31.5 million, representing a 372% increase from $6.6 million in the first half of 2023. The gross margin improved to 29.5% from 12.8% in the same period last year.
Operational and Financial Achievements
Operating income for Q2 2024 was $5.9 million, compared to an operating loss of $3.8 million in Q2 2023. Net income attributable to shareholders was $6.45 million, a significant turnaround from a net loss of $2.6 million in the same period last year. Basic and diluted income per share were both $0.07, compared to a loss per share of $0.03 in Q2 2023.
For the first half of 2024, operating income amounted to $16.2 million, compared to an operating loss of $6.7 million in the same period of 2023. Net income attributable to shareholders was $16.3 million, a substantial improvement from a net loss of $4.0 million in the first half of 2023. Basic and diluted income per share were both $0.18, compared to a loss per share of $0.05 in the same period last year.
Commentary and Strategic Insights
Yunfei Li, Chairman and Chief Executive Officer of the Company, commented, “We are thrilled to share with our shareholders and investors that we have achieved a remarkable 55% increase in net revenues from our battery business, reaching $80.4 million for the first half of the year. This significant growth is particularly notable given the broader industry challenges and declining sales volumes faced by our competitors. Our strategic pivot towards residential energy solutions and diverse energy storage applications has been a key driver of this success, with the bulk of our revenue increase coming from these sectors. Our major clients remain highly satisfied with the performance of our products and continue to show strong loyalty. We are confident that this exceptional sales momentum will continue to drive our success in the future.”
Jiewei Li, Chief Financial Officer and Secretary of the Board of the Company, added, “In addition to the remarkable surge in net revenues from our battery business, we are thrilled to report an impressive gross margin of 39% for the first half
Explore the complete 8-K earnings release (here) from CBAK Energy Technology Inc for further details.
