CBAT Swings to Loss Amid Revenue Dip, Soaring Liabilities

TL;DR

**CBAT's Q3 results are a red flag, showing a clear shift from profit to loss and ballooning liabilities, making it a risky bet.**

AI Summary

CBAK Energy Technology, Inc. (CBAT) reported a net loss attributable to the company of $2,001,695 for the nine months ended September 30, 2025, a significant decline from the net income of $16,299,559 for the same period in 2024. This shift occurred despite a substantial increase in net revenues for the three months ended September 30, 2025, reaching $60,923,560, up from $44,628,241 in the prior year's comparable quarter. However, for the nine-month period, net revenues decreased to $136,386,794 in 2025 from $151,243,718 in 2024. Gross profit also saw a sharp decline, falling to $4,875,723 for the three months ended September 30, 2025, from $6,954,557 in 2024, and to $14,139,866 for the nine-month period in 2025 from $38,463,630 in 2024. Operating expenses increased to $8,909,396 for the three months ended September 30, 2025, from $7,782,430 in 2024, contributing to an operating loss of $10,426,268 for the nine months ended September 30, 2025, compared to an operating income of $15,382,590 in the prior year. The company's cash and cash equivalents increased to $10,476,254 as of September 30, 2025, from $6,724,360 as of December 31, 2024, while total liabilities rose to $245,406,770 from $182,150,979 over the same period.

Why It Matters

This filing reveals a concerning financial downturn for CBAK Energy Technology, Inc., with a significant swing from net income to a substantial net loss and declining gross profit over the nine-month period. For investors, this indicates potential operational inefficiencies and increased financial risk, especially with total liabilities climbing to $245,406,770. Employees might face uncertainty if the company's financial health continues to deteriorate, impacting job security or future growth opportunities. Customers could see impacts on product development or supply chain stability if the company struggles. In the competitive lithium-ion battery market, CBAT's weakening financial position could make it harder to compete with larger, more stable players, potentially leading to market share erosion.

Risk Assessment

Risk Level: high — The company reported a net loss of $2,001,695 for the nine months ended September 30, 2025, a stark reversal from a $16,299,559 net income in the prior year. This, coupled with a significant increase in total liabilities to $245,406,770 as of September 30, 2025, from $182,150,979 as of December 31, 2024, indicates substantial financial deterioration and increased leverage.

Analyst Insight

Investors should exercise extreme caution and consider reducing exposure to CBAT given the significant net loss, declining gross profit, and rising liabilities. A thorough due diligence on the company's ability to reverse these trends and manage its debt is critical before any investment decisions.

Financial Highlights

revenue

$136,386,794

total Assets

$363,863,064

net Income

($2,001,695)

eps

($0.02)

gross Margin

10.4%

cash Position

$10,476,254

revenue Growth

-9.8%

Revenue Breakdown

Key Numbers

• $2,001,695 — Net loss attributable to CBAK Energy Technology, Inc. (For the nine months ended September 30, 2025, compared to a net income of $16,299,559 in 2024.)
• $16,299,559 — Net income attributable to CBAK Energy Technology, Inc. (For the nine months ended September 30, 2024, showing a significant swing to loss in 2025.)
• $136,386,794 — Net revenues (For the nine months ended September 30, 2025, a decrease from $151,243,718 in 2024.)
• $151,243,718 — Net revenues (For the nine months ended September 30, 2024, indicating a decline in top-line performance.)
• $14,139,866 — Gross profit (For the nine months ended September 30, 2025, a substantial drop from $38,463,630 in 2024.)
• $38,463,630 — Gross profit (For the nine months ended September 30, 2024, highlighting reduced profitability.)
• $10,426,268 — Operating loss (For the nine months ended September 30, 2025, compared to an operating income of $15,382,590 in 2024.)
• $245,406,770 — Total liabilities (As of September 30, 2025, an increase from $182,150,979 as of December 31, 2024.)
• $182,150,979 — Total liabilities (As of December 31, 2024, showing a significant increase in debt.)
• $10,476,254 — Cash and cash equivalents (As of September 30, 2025, an increase from $6,724,360 as of December 31, 2024.)

Key Players & Entities

• CBAK Energy Technology, Inc. (company) — Registrant and primary focus of the 10-Q filing
• CBAT (company) — Trading symbol for CBAK Energy Technology, Inc.
• NASDAQ Global Market (regulator) — Stock exchange where CBAK's common stock was listed
• NASDAQ Capital Market (regulator) — Current stock exchange where CBAK's common stock trades
• Xiangqian Li (person) — Former Chairman and Chief Executive Officer of CBAK Energy Technology, Inc.
• BAK International Limited (company) — Former subsidiary of CBAK Energy Technology, Inc.
• Shenzhen BAK Battery Co., Ltd (company) — Entity involved in reverse acquisition with BAK International
• Securities and Exchange Commission (regulator) — Governing body for the 10-Q filing
• Nevada (regulator) — State of incorporation for CBAK Energy Technology, Inc.
• Bloomberg (company) — Publisher of the analysis

FAQ

Risk Factors

• Deteriorating Profitability [high — financial]: Gross profit for the nine months ended September 30, 2025, fell to $14,139,866 from $38,463,630 in the prior year. This, combined with increased operating expenses, led to an operating loss of $10,426,268 for the nine-month period, a stark contrast to the $15,382,590 operating income in 2024.
• Increased Liabilities [medium — financial]: Total liabilities surged to $245,406,770 as of September 30, 2025, from $182,150,979 as of December 31, 2024. This increase in leverage could strain financial flexibility.
• Rising Operating Expenses [medium — operational]: Operating expenses increased to $8,909,396 for the three months ended September 30, 2025, from $7,782,430 in the prior year's quarter. For the nine-month period, operating expenses rose to $24,566,134 from $23,081,040.
• Shift to Net Loss [high — financial]: The company reported a net loss attributable to CBAK Energy Technology, Inc. of $2,001,695 for the nine months ended September 30, 2025, a significant reversal from a net income of $16,299,559 in the same period of 2024.
• Inventory Management [medium — financial]: Inventories increased significantly to $34,487,742 as of September 30, 2025, from $22,851,027 as of December 31, 2024. The cash flow statement also shows a substantial increase in inventory purchases of $15,581,379 for the nine months ended September 30, 2025.

Industry Context

CBAK Energy Technology operates in the energy storage sector, specifically focusing on battery technology. This industry is highly competitive and capital-intensive, driven by increasing demand for electric vehicles, renewable energy storage, and consumer electronics. Key trends include advancements in battery chemistry for higher energy density and faster charging, as well as efforts to reduce production costs and improve sustainability.

Regulatory Implications

Companies in the energy storage sector are subject to various regulations concerning product safety, environmental impact, and manufacturing standards. Compliance with these evolving regulations is crucial for market access and operational continuity. Changes in trade policies or tariffs could also impact the cost of raw materials and finished goods.

What Investors Should Do

1. Monitor cost of revenues and operating expenses closely.
2. Analyze the increase in trade and bills payable and accrued expenses.
3. Evaluate the strategy behind the inventory build-up.
4. Assess the company's debt management strategy.

Key Dates

• 2025-09-30: End of Nine Months Reporting Period — Company reported a net loss of $2,001,695 and a significant increase in total liabilities to $245,406,770.
• 2024-09-30: End of Nine Months Reporting Period (Prior Year) — Company reported a net income of $16,299,559 and total liabilities of $182,150,979.
• 2025-09-30: Balance Sheet Date — Cash and cash equivalents increased to $10,476,254, but total liabilities grew substantially.
• 2024-12-31: Balance Sheet Date (Prior Year End) — Cash and cash equivalents were $6,724,360, and total liabilities were $182,150,979.

Glossary

Net revenues

The total amount of income generated from the sale of goods or services, net of returns, allowances, and discounts. (Indicates the company's top-line performance and sales volume.)

Gross profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. (Measures the profitability of core business operations before considering operating expenses.)

Operating expenses

Costs incurred by a business in its normal course of operations, excluding cost of goods sold. Includes R&D, sales & marketing, and general & administrative expenses. (Key indicator of the company's efficiency and cost management in its day-to-day activities.)

Operating (loss) income

The profit or loss a company generates from its core business operations, before accounting for interest and taxes. (Shows the profitability of the company's primary business activities.)

Net income (loss) attributable to CBAK Energy Technology, Inc.

The portion of the company's net income or loss that belongs to the company's shareholders after accounting for non-controlling interests. (Represents the bottom-line profitability for the company's owners.)

Cash and cash equivalents

Includes cash on hand, bank deposits, and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. (Indicates the company's immediate liquidity and ability to meet short-term obligations.)

Total liabilities

The sum of all of a company's debts and other obligations, both short-term and long-term. (Measures the total amount of money the company owes to external parties.)

Year-Over-Year Comparison

Compared to the nine months ended September 30, 2024, CBAK Energy Technology, Inc. has experienced a significant downturn. Net revenues decreased by 9.8% to $136,386,794, and gross profit plummeted by 63.2% to $14,139,866. This led to a substantial operating loss of $10,426,268, a reversal from the prior year's operating income of $15,382,590. Consequently, the company swung from a net income of $16,299,559 to a net loss of $2,001,695 attributable to shareholders. While cash and cash equivalents increased, total liabilities also saw a considerable rise, indicating increased financial risk.

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value CBAT Nasdaq Stock Market LLC

Filing Documents

• ea0263854-10q_cbakenergy.htm (10-Q) — 1799KB
• ea026385401ex31-1_cbakenergy.htm (EX-31.1) — 11KB
• ea026385401ex31-2_cbakenergy.htm (EX-31.2) — 11KB
• ea026385401ex32-1_cbakenergy.htm (EX-32.1) — 4KB
• ea026385401ex32-2_cbakenergy.htm (EX-32.2) — 4KB
• image_001.jpg (GRAPHIC) — 4KB
• 0001213900-25-107850.txt ( ) — 13223KB
• cbat-20250930.xsd (EX-101.SCH) — 142KB
• cbat-20250930_cal.xml (EX-101.CAL) — 103KB
• cbat-20250930_def.xml (EX-101.DEF) — 559KB
• cbat-20250930_lab.xml (EX-101.LAB) — 1026KB
• cbat-20250930_pre.xml (EX-101.PRE) — 585KB
• ea0263854-10q_cbakenergy_htm.xml (XML) — 1657KB

Financial Statements

Financial Statements. 1 Item 2.

Management's Discussion and Analysis of Financial

Management's Discussion and Analysis of Financial Condition and Results of Operations. 47 Item 3.

Quantitative and Qualitative Disclosures About Market

Quantitative and Qualitative Disclosures About Market Risk. 63 Item 4.

Controls and Procedures

Controls and Procedures. 63 PART II OTHER INFORMATION Item 1. Legal Proceedings. 64 Item 1A. Risk Factors. 64 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 64 Item 3. Defaults Upon Senior Securities. 64 Item 4. Mine Safety Disclosures. 64 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 NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2025 CBAK ENERGY TECHNOLOGY, INC. AND SUBSIDIARIES TABLE OF CONTENTS Contents Page(s) Condensed Consolidated Balance Sheets as of December 31, 2024 and September 30, 2025 (unaudited) 2 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, 2024 and 2025 (unaudited) 3 Condensed Consolidated Statements of Changes in Shareholders' Equity for the three and nine months ended September 30, 2024 and 2025 (unaudited) 4-5 Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2025 (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, 2024 and September 30, 2025 (Unaudited) (In US$ except for number of shares) Note December 31, 2024 September 30, 2025 Assets Current assets Cash and cash equivalents $ 6,724,360 $ 10,476,254 Pledged deposits 2 54,061,642 52,872,417 Term deposits 3 4,237,090 - Trade and bills receivable, net 4 32,938,918 47,798,445 Inventories 5 22,851,027 34,487,742 Prepayments and other receivables 6 20,004,966 11,289,446 Receivables from former subsidiary 17 12,399 1,994 Income tax recoverable 566,458 767,112 Total current assets 141,396,860 157,693,410 Property, plant and equipment, net 7 85,486,829 82,838,830 Construction in progress 8 42,526,859 89,458,297 Long-term investments, net 9 2,246,494 2,337,150 Prepaid land use rights 10 11,075,973 12,214,974 Intangible assets, net 11 382,962 74,902 Deposit paid for acquisition of long-term investments 13 15,864,318 16,262,446 Operating lease right-of-use assets, net

financial statements

financial statements. 2 CBAK Energy Technology, Inc. and Subsidiaries Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) For the three and nine months ended September 30, 2024 and 2025 (Unaudited) (In US$ except for number of shares) Three months ended September 30, Nine months ended September 30, Note 2024 2025 2024 2025 Net revenues 28 $ 44,628,241 $ 60,923,560 $ 151,243,718 $ 136,386,794 Cost of revenues ( 37,673,684 ) ( 56,047,837 ) ( 112,780,088 ) ( 122,246,928 ) Gross profit 6,954,557 4,875,723 38,463,630 14,139,866 Operating expenses: Research and development expenses ( 3,434,351 ) ( 3,861,633 ) ( 9,205,378 ) ( 10,499,072 ) Sales and marketing expenses ( 1,022,549 ) ( 1,332,724 ) ( 4,114,954 ) ( 3,179,551 ) General and administrative expenses ( 2,779,519 ) ( 3,872,549 ) ( 10,002,040 ) ( 11,027,545 ) Allowance for expected credit losses, net ( 546,011 ) 157,510 241,332 140,034 Total operating expenses ( 7,782,430 ) ( 8,909,396 ) ( 23,081,040 ) ( 24,566,134 ) Operating (loss) income ( 827,873 ) ( 4,033,673 ) 15,382,590 ( 10,426,268 ) Finance (loss) income, net ( 40,350 ) ( 219,768 ) 658,034 ( 337,951 ) Other income, net 521,916 6,151,989 1,031,329 7,217,732 Share of (loss) income of equity investee ( 38 ) 147 ( 18,774 ) 33,802 Gain on disposal of equity investee 93 - 45,741 - (Loss) income before income tax ( 346,252 ) 1,898,695 17,098,920 ( 3,512,685 ) Income tax (expenses) credit 20 ( 339,287 ) 183,853 ( 2,188,800 ) 183,853 Net (loss) income ( 685,539 ) 2,082,548 14,910,120 ( 3,328,832 ) Less: Net loss attributable to non-controlling interest 703,186 567,955 1,389,439 1,327,137 Net income (loss) attributable to CBAK Energy Technology, Inc. $ 17,647 $ 2,650,503 $ 16,299,559 $ ( 2,001,695 ) Net (loss) income ( 685,539 ) 2,082,548 14,910,120 ( 3,328,832 ) 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 September 30, 2024 and 2025 (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 July 1, 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 Net income (loss) - - - - - 17,647 - ( 703,186 ) - - ( 685,539 ) Share-based compensation for employee and director stock awards - - - 58,049 - - - - - - 58,049 Foreign currency translation adjustment - - - - - - 4,500,056 ( 16,401 ) - - 4,483,655 Balance as of September 30, 2024 90,083,396 $ 90,083 $ 14,101,689 $ 247,732,612 $ 1,230,511 $ ( 118,096,203 ) $ ( 9,826,023 ) $ ( 782,945 ) ( 144,206 ) $ ( 4,066,610 ) $ 130,383,114 Balance as of July 1, 2025 90,099,500 $ 90,099 $ 14,101,689 $ 247,892,318 $ 3,042,602 $ ( 129,070,019 ) $ ( 12,542,048 ) $ ( 2,366,772 ) ( 1,232,187 ) $ ( 5,303,730 ) $ 115,844,139 Net income (loss) - - - - - 2,650,503 - ( 567,955 ) - - 2,082,548 Exercise of stock option 3,792 4 - ( 4 ) - - - - - - - Share-based compensation for employee and director stock award - - - 13,923 - - - - - - 13,923 Repurchase of common stock ( 1,457,456 ) ( 1,457 ) ( 6,146,331 ) 580,947 - - - - 1,232,187 5,303,730 ( 263,111 ) For

financial statements

financial statements. 4 CBAK Energy Technology, Inc. and Subsidiaries Condensed consolidated statements of changes in shareholders' equity (deficit) For the nine months ended September 30, 2024 and 2025 (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, 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) - - - - - 16,299,559 - ( 1,389,439 ) - - 14,910,120 Share-based compensation for employee and director stock awards - - - 266,815 - - - - - - 266,815 Common stock issued to employees and directors for stock awards 20,000 20 - ( 20 ) - - - - - - - Foreign currency translation adjustment - - - - - - 1,775,380 ( 27,542 ) - - 1,747,838 Balance as of September 30, 2024 90,083,396 $ 90,083 $ 14,101,689 $ 247,732,612 $ 1,230,511 $ ( 118,096,203 ) $ ( 9,826,023 ) $ ( 782,945 ) ( 144,206 ) $ ( 4,066,610 ) $ 130,383,114 Balance as of January 1, 2025 90,083,396 $ 90,083 $ 14,101,689 $ 247,842,445 $ 1,230,511 $ ( 122,605,730 ) $ ( 14,919,345 ) $ ( 1,605,878 ) ( 144,206 ) $ ( 4,066,610 ) $ 120,067,165 Net loss - - - - - ( 2,001,695 ) - ( 1,327,137 ) - - ( 3,328,832 ) Exercise of stock option 19,896 20 - ( 20 ) - - - - - - - Share-based compensation for employee and director stock awards - - - 63,812 - - - - - - 63,812 Repurchase of common stock ( 1,457,456 ) ( 1,457 ) ( 6,146,331 ) 580,947 - - - - 144,206 4,066,610 ( 1,500,231 ) Appropriation to statutory reserves - - - - 1,812,091

financial statements

financial statements. 5 CBAK Energy Technology, Inc. and subsidiaries Condensed consolidated statements of cash flows For the nine months ended September 30, 2024 and 2025 (Unaudited) (In US$) Nine months ended September 30, 2024 2025 Cash flows from operating activities Net income (loss) $ 14,910,120 ( 3,328,832 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 6,147,032 5,470,487 Allowance for expected credit losses ( 334,164 ) ( 140,034 ) Amortization of operating lease 913,789 772,936 Write-down of inventories 3,364,889 3,747,287 Share-based compensation 266,815 63,812 Share of loss (profit) on equity investee 18,774 ( 33,802 ) (Gain) loss on disposal of property, plant and equipment ( 184,555 ) 73,136 Gain on disposal on equity investee ( 45,741 ) - Changes in operating assets and liabilities: Trade and bills receivable ( 5,486,254 ) ( 13,769,110 ) Inventories 5,871,262 ( 15,581,379 ) Prepayments and other receivable ( 1,861,326 ) 8,916,710 Trade and bills payable 6,260,817 31,147,343 Accrued expenses and other payables and product warranty provisions 1,091,820 2,498,651 Operating lease liabilities ( 1,387,042 ) ( 917,073 ) Trade receivable from and payables to former subsidiaries 66,554 10,567 Income tax payable (recoverable) 465,430 ( 183,851 ) Net cash provided by operating activities 30,078,220 18,746,848 Cash flows from investing activities Deposit paid for acquisition of long-term investment ( 9,092,679 ) - Proceeds from disposal of an equity method investees 278,064 - Proceeds from disposal of property, plant and equipment 184,555 148,527 Purchases of property, plant and equipment and construction in progress ( 11,481,670 ) ( 30,915,389 ) Government subsidy - 2,806,991 Acquisition of land use right - ( 1,094,571 ) Net cash used in investing activities ( 20,111,730 ) ( 29,054,4

financial statements

financial statements. 6 CBAK Energy Technology, Inc. and subsidiaries Notes to the condensed consolidated financial For the three and nine months ended September 30, 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 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, 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 list its common stoc

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