CBAK Energy Technology Files Q2 2024 10-Q

TL;DR

CBAK Energy Tech filed its Q2 10-Q. All systems go.

AI Summary

CBAK Energy Technology, Inc. filed its 10-Q for the quarterly period ended June 30, 2024. The company, formerly known as China BAK Battery Inc., is incorporated in Nevada and operates in the miscellaneous electrical machinery sector. Its business address is in Dalian, China.

Why It Matters

This filing provides investors with an update on CBAK Energy Technology's financial performance and operational status for the second quarter of 2024.

Risk Assessment

Risk Level: medium — The company's filing is a standard quarterly report, but its operational details and financial health require further analysis to assess specific risks.

Key Players & Entities

• CBAK Energy Technology, Inc. (company) — Registrant
• June 30, 2024 (date) — Quarterly period end date
• 001-32898 (other) — Commission File Number
• China BAK Battery Inc. (company) — Former company name
• Nevada (other) — State of incorporation

FAQ

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value CBAT Nasdaq Capital Market
• $12,000,000 — ded September 30, 2005 was not at least $12,000,000, and the remaining 50% was to be releas
• $27,000,000 — ded September 30, 2006 was not at least $27,000,000. If the audited net income of the Compa

Filing Documents

• ea0210791-10q_cbak.htm (10-Q) — 1882KB
• ea021079101ex31-1_cbak.htm (EX-31.1) — 11KB
• ea021079101ex31-2_cbak.htm (EX-31.2) — 11KB
• ea021079101ex32-1_cbak.htm (EX-32.1) — 4KB
• ea021079101ex32-2_cbak.htm (EX-32.2) — 4KB
• image_001.jpg (GRAPHIC) — 4KB
• 0001213900-24-067345.txt ( ) — 13374KB
• cbat-20240630.xsd (EX-101.SCH) — 152KB
• cbat-20240630_cal.xml (EX-101.CAL) — 103KB
• cbat-20240630_def.xml (EX-101.DEF) — 601KB
• cbat-20240630_lab.xml (EX-101.LAB) — 1102KB
• cbat-20240630_pre.xml (EX-101.PRE) — 615KB
• ea0210791-10q_cbak_htm.xml (XML) — 1782KB

Financial Statements

Financial Statements. 1 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations. 50 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 64 Item 4.

Controls and Procedures

Controls and Procedures. 64 PART II OTHER INFORMATION Item 1. Legal Proceedings. 65 Item 1A. Risk Factors. 65 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 65 Item 3. Defaults Upon Senior Securities. 65 Item 4. Mine Safety Disclosures. 65 Item 5. Other Information. 65 Item 6. Exhibits. 65 i PART I FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS CBAK ENERGY TECHNOLOGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTNS ENDED JUNE 30, 2023 AND 2024 CBAK ENERGY TECHNOLOGY, INC. AND SUBSIDIARIES INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Contents Page(s) Condensed Consolidated Balance Sheets as of December 31, 2023 and June 30, 2024 (unaudited) 2 Condensed Consolidated Statements of Operations and Comprehensive Income (loss) for the three and six months ended June 30, 2023 and 2024 (unaudited) 3 Condensed Consolidated Statements of Changes in Shareholders' Equity for the three and six months ended June 30, 2023 and 2024 (unaudited) 4 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2024 (unaudited) 6 Notes to the Condensed Consolidated Financial Statements (unaudited) 7 1 CBAK Energy Technology, Inc. and Subsidiaries Condensed consolidated Balance Sheets As of December 31, 2023 and June 30, 2024 (Unaudited) (In US$ except for number of shares) Note December 31, 2023 June 30, 2024 (Unaudited) Assets Current assets Cash and cash equivalents $ 4,643,267 $ 9,709,059 Pledged deposits 2 54,179,549 10,418,508 Short-term deposits 3 - 34,342,812 Trade and bills receivable, net 4 28,653,047 32,710,720 Inventories 5 33,413,422 31,226,831 Prepayments and other receivables 6 7,459,254 5,017,982 Receivables from a former subsidiary, net 18 74,946 12,620 Total current assets 128,423,485 123,438,532 Property, plant and equipment, net 7 91,628,832 86,966,492 Construction in progress 8 37,797,862 36,086,788 Long-term investments, net 9 2,565,005 2,256,386 Prepaid land use rights 10 11,712,704 11,281,490 Intangible assets, net 11 841,360 599,350 Deposit paid for acquisition of long-term investments 14 7,101,492 15,934,172 Operating lease right-of-use assets, net 1,084,520 3,053,819

financial statements

financial statements. 2 CBAK Energy Technology, Inc. and Subsidiaries Condensed consolidated Statements of Operations and Comprehensive Income (Loss) For the three and six months ended June 30, 2023 and 2024 (Unaudited) (In US$ except for number of shares) Three months ended June 30, Six months ended June 30, Note 2023 2024 2023 2024 Net revenues 28 $ 42,420,870 $ 47,793,045 $ 84,817,571 $ 106,615,477 Cost of revenues ( 38,536,228 ) ( 35,065,019 ) ( 78,027,185 ) ( 75,106,404 ) Gross profit 3,884,642 12,728,026 6,790,386 31,509,073 Operating expenses: Research and development expenses ( 2,980,718 ) ( 2,955,509 ) ( 5,436,046 ) ( 5,771,027 ) Sales and marketing expenses ( 963,588 ) ( 1,368,373 ) ( 1,684,592 ) ( 3,092,405 ) General and administrative expenses ( 3,582,893 ) ( 3,129,994 ) ( 6,062,028 ) ( 7,222,521 ) Recovery of (provision for) doubtful accounts ( 130,493 ) 673,330 ( 261,660 ) 787,343 Total operating expenses ( 7,657,692 ) ( 6,780,546 ) ( 13,444,326 ) ( 15,298,610 ) Operating income (loss) ( 3,773,050 ) 5,947,480 ( 6,653,940 ) 16,210,463 Finance income, net 252,472 688,721 257,783 698,384 Other income, net 238,040 141,975 421,253 509,413 Share of loss of equity investee - 18,824 - - Gain on disposal of equity investee - 26,912 - 26,912 Change in fair value of warrants 36,000 - 121,000 - Income before income tax ( 3,246,538 ) 6,823,912 ( 5,853,904 ) 17,445,172 Income tax credit (expenses) 19 307,311 ( 800,727 ) 710,195 ( 1,849,513 ) Net income (loss) ( 2,939,227 ) 6,023,185 ( 5,143,709 ) $ 15,595,659 Less: Net loss attributable to non-controlling interest 304,237 422,277 1,128,364 686,253 Net income (loss) attributable to CBAK Energy Technology, Inc. $ ( 2,634,990 ) $ 6,445,462 $ ( 4,015,345 ) $ 16,281,912 Net income (loss) ( 2,939,227 ) 6,023,185 ( 5,143,709 ) 15,595,659 Other comprehensive loss –

financial statements

financial statements. 3 CBAK Energy Technology, Inc. and Subsidiaries Condensed consolidated statements of changes in shareholders' equity (deficit) For the three months ended June 30, 2023 and 2024 (Unaudited) (In US$ except for number of shares) Common stock issued Additional Accumulated other Non- Treasury shares Total shareholders' Number of Donated paid-in Statutory Accumulated comprehensive Controlling Number of equity shares Amount shares capital reserves deficit income (loss) interest shares Amount (deficit) Balance as of April 1, 2023 89,151,731 $ 89,151 $ 14,101,689 $ 246,245,879 $ 1,230,511 $ ( 133,327,060 ) $ ( 7,498,971 ) $ 6,153,102 ( 144,206 ) $ ( 4,066,610 ) $ 122,927,691 Net loss - - - - - ( 2,634,990 ) - ( 304,237 ) - - ( 2,939,227 ) Share-based compensation for employee and director stock awards - - - 824,466 - - - - - - 824,466 Foreign currency translation adjustment - - - - - - ( 6,299,726 ) ( 339,383 ) - - ( 6,639,109 ) Balance as of June 30, 2023 89,151,731 $ 89,151 $ 14,101,689 $ 247,070,345 $ 1,230,511 $ ( 135,962,050 ) $ ( 13,798,697 ) $ 5,509,482 ( 144,206 ) $ ( 4,066,610 ) $ 114,173,821 Balance as of April 1, 2024 90,063,396 $ 90,063 $ 14,101,689 $ 247,582,399 $ 1,230,511 $ ( 124,559,312 ) $ ( 13,497,204 ) $ 359,813 ( 144,206 ) $ ( 4,066,610 ) $ 121,241,349 Net income (loss) - - - - - 6,445,462 - ( 422,277 ) - - 6,023,185 Share-based compensation for employee and director stock awards - - - 92,184 - - - - - - 92,184 Common stock issued to employees for stock award 20,000 20 - ( 20 ) - - - - - - - Foreign currency translation adjustment - - - - - - ( 828,875 ) ( 894 ) - - ( 829,769 ) Balance as of June 30, 2024 90,083,396 $ 90,083 $ 14,101,689 $ 247,674,563 $ 1,230,511 $ ( 118,113,850 ) $ ( 14,326,079 ) $ ( 63,358 ) ( 144,206 ) $ ( 4,066,610 ) $ 126,526,949

financial statements

financial statements. 4 CBAK Energy Technology, Inc. and Subsidiaries Condensed consolidated statements of changes in shareholders' equity (deficit) For the six months ended June 30, 2023 and 2024 (Unaudited) (In US$ except for number of shares) Common stock issued Additional Accumulated other Non- Treasury shares Total shareholders' Number of Donated paid-in Statutory Accumulated comprehensive Controlling Number of equity shares Amount shares capital reserves deficit Income (loss) interest shares Amount (deficit) Balance as of January 1, 2023 89,135,064 $ 89,135 $ 14,101,689 $ 246,240,998 $ 1,230,511 $ ( 131,946,705 ) $ ( 8,153,644 ) $ 6,883,123 ( 144,206 ) $ ( 4,066,610 ) $ 124,378,497 Net loss - - - - - ( 4,015,345 ) - ( 1,128,364 ) - - ( 5,143,709 ) Share-based compensation for employee and director stock awards - - - 829,363 - - - - - - 829,363 Common stock issued to employees and directors for stock awards 16,667 16 - ( 16 ) - - - - - - - Foreign currency translation adjustment - - - - - - ( 5,645,053 ) ( 245,277 ) - - ( 5,890,330 ) Balance as of June 30, 2023 89,151,731 $ 89,151 $ 14,101,689 $ 247,070,345 $ 1,230,511 $ ( 135,962,050 ) $ ( 13,798,697 ) $ 5,509,482 ( 144,206 ) $ ( 4,066,610 ) $ 114,173,821 Balance as of January 1, 2024 90,063,396 $ 90,063 $ 14,101,689 $ 247,465,817 $ 1,230,511 $ ( 134,395,762 ) $ ( 11,601,403 ) $ 634,036 ( 144,206 ) $ ( 4,066,610 ) $ 113,458,341 Net income (loss) - - - - - 16,281,912 - ( 686,253 ) - - 15,595,659 Share-based compensation for employee and director stock awards - - - 208,766 - - - - - - 208,766 Common stock issued to employees and directors for stock awards 20,000 20 - ( 20 ) - - - - - - - Foreign currency translation adjustment - - - - - - ( 2,724,676 ) ( 11,141 ) - - ( 2,735,817 ) Balance as of June 30, 2024 90,083,396 $ 90,0

financial statements

financial statements. 5 CBAK Energy Technology, Inc. and subsidiaries Condensed consolidated statements of cash flows For the six months ended June 30, 2023 and 2024 (Unaudited) (In US$) Six months ended June 30, 2023 2024 Cash flows from operating activities Net (loss) income $ ( 5,143,709 ) 15,595,659 Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 4,168,974 4,257,197 Allowance for expected credit losses 264,899 ( 880,001 ) Amortization of operating lease 267,069 591,060 Write-down of inventories 1,574,933 1,993,561 Share-based compensation 829,363 208,766 Changes in fair value of warrants liability ( 121,000 ) - Gain on disposal of property, plant and equipment - ( 184,179 ) Gain on disposal on equity investee - ( 26,912 ) Changes in operating assets and liabilities: Trade and bills receivable ( 3,578,079 ) ( 3,891,321 ) Inventories 3,955,577 ( 994,717 ) Prepayments and other receivable 690,511 3,080,423 Trade and bills payable 11,823,466 ( 8,927,650 ) Accrued expenses and other payables and product warranty provisions ( 2,940,282 ) ( 713,437 ) Operating lease liabilities ( 359,762 ) ( 585,850 ) Trade receivable from and payables to former subsidiaries 5,162,971 61,075 Income tax payable - 805,375 Deferred tax assets ( 768,011 ) - Net cash provided by operating activities 15,826,920 10,389,049 Cash flows from investing activities Deposit paid for acquisition of long-term investment - ( 9,074,133 ) Proceeds from disposal of an equity method investees - 277,496 Proceeds from disposal of property, plant and equipment - 184,179 Purchases of property, plant and equipment and construction in progress ( 19,570,271 ) ( 8,339,568 ) Net cash used in investing activities ( 19,570,271 ) ( 16,952,026 ) Cash flows from financing activities Borrowings from banks 26,793,581 34,537,483 Repayment of

financial statements

financial statements. 6 CBAK Energy Technology, Inc. and subsidiaries Notes to the condensed consolidated financial For the three and six months ended June 30, 2023 and 2024 (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 October 4, 1999 as Medina Copy, Inc. The Company changed its name to Medina Coffee, Inc. on October 6, 1999 and subsequently changed its name to China BAK Battery, Inc. on February 14, 2005. CBAK and its subsidiaries (hereinafter, collectively referred to as the "Company") are principally engaged in the manufacture, commercialization and distribution of a wide variety of standard and customized lithium ion (known as "Li-ion" or "Li-ion cell") high power rechargeable batteries. Prior to the disposal of BAK International Limited ("BAK International") and its subsidiaries (see below), the batteries produced by the Company were for use in cellular telephones, as well as various other portable electronic applications, including high-power handset telephones, laptop computers, power tools, digital cameras, video camcorders, MP3 players, electric bicycles, hybrid/electric vehicles, and general industrial applications. After the disposal of BAK International and its subsidiaries on June 30, 2014, the Company will focus on the manufacture, commercialization and distribution of high power lithium ion rechargeable batteries for use in cordless power tools, light electric vehicles, hybrid electric vehicles, electric cars, electric busses, residential energy supply & uninterruptable power supplies and other high power applications. 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

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