CBAK Energy Reports Fourth Quarter and Full Year 2023 Unaudited Financial Results

DALIAN, China, March 15, 2024

Fourth Quarter of 2023 Financial Highlights

• Net revenues from sales of batteries were $36.8 million, an increase of 30.9% from $28.1 million in the same period of 2022.

-    Net revenues from batteries used in light electric vehicles were $1.4 million, a decrease of 69.5% from $4.5 million in the same period of 2022.

-    Net revenues from batteries used in electric vehicles were $0.5 million, a decrease of 88.8% from $4.7 million in the same period of 2022. 

-    Net revenues from residential energy supply & uninterruptible supplies were $35.0 million, an increase of 84.3% from $19.0 million in the same period of 2022.

• Gross margin for the battery business was 36.0%, an increase of 27.7 percentage points from 8.3% in the same period of 2022.
  
  
• Net income from the battery business was $6.6 million, compared to a net loss of $6.4 million in the same period of 2022.

Full Year of 2023 Financial Highlights

• Net revenues from sales of batteries were $133.0 million, an increase of 40.4% from $94.7 million in 2022.       

-    Net revenues from batteries used in light electric vehicles were $5.6 million, a decrease of 12.6% from $6.4 million in 2022.

-    Net revenues from batteries used in electric vehicles were $2.9 million, a decrease of 38.6% from $4.7 million in 2022. 

-    Net revenues from residential energy supply & uninterruptible supplies were $124.5 million, an increase of 48.9% from $83.6 million in 2022.       

• Gross margin for the battery business was 23.8%, an increase of 14.9 percentage points from 8.9% in 2022.   
    
• Net income for the battery business was $13.4 million, compared to a net loss of $7.8 million in 2022.

Yunfei Li, Chairman and Chief Executive Officer of the Company, commented, "We are delighted to announce a strong performance in the fourth quarter of 2023, concluding the year on a positive note. Our primary battery business sustained its growth trajectory from the previous quarter, supported by ongoing orders from key clients, including the Viessmann Group, one of Europe's largest battery manufacturers, Anker Innovations, NSURE Energy, PowerOAK (the parent company of BlueTTI), and Hello Tech (the parent company of Jackery). This steady influx of orders propelled a consistent increase in both sales and profits for our battery business. While economic challenges resulted in reduced orders and lower gross margins for our competitors, we experienced high product demand at our Dalian facilities, outpacing supply. In response, we secured a new facility in Shangqiu city, Henan province, China to address our clients' urgent needs. Notably, our battery business achieved a record-high gross margin last quarter. With our solid foundation across products and orders, enhanced visibility, and growing recognition in global markets, we are poised to expand our core businesses and attract more esteemed clients in the coming years to fuel our continued growth."

Jiewei Li, Chief Financial Officer and Secretary of the Board of the Company, added, "We closed the year with robust fourth quarter financial results from our battery business, achieving a 30.9% increase in net revenues and positive net income for the second consecutive quarter. As of December 31, 2023, our Dalian and Nanjing lithium production facilities had no outstanding secured bank loans. We believe that our solid fundamentals will continue to serve as a strong foundation for our business. Looking ahead to 2024, we are confident in our growth trajectory and project another year of net income for our battery business. We will share detailed net income guidance at an appropriate time."