CBAK Vitality Reviews Second Quarter and First Half 2022 Unaudited Monetary Outcomes

–Web Revenues up 857% yr over yr within the second quarter–

–Web Revenues up 792% yr over yr within the first half–

DALIAN, China, Aug. 15, 2022 /PRNewswire/ — CBAK Vitality Know-how, Inc. (NASDAQ: CBAT) (“CBAK Vitality,” or the “Firm”) a number one lithium-ion battery producer and electrical power resolution supplier in China, as we speak reported its unaudited monetary outcomes for the second quarter and first half of 2022 ended June 30, 2022.

Second Quarter of 2022 Monetary Highlights

• Web revenues had been $56.4 million, a rise of 857% from $5.9 million in the identical interval of 2021.
• Gross revenue was $5.5 million, representing a rise of $4.4 million, or 404%, for the three months ended June 30, 2022, from gross revenue of $1.1 million for a similar interval in 2021.
• Web earnings attributable to shareholders of CBAK Vitality was $0.8 million, in comparison with internet earnings attributable to shareholders of CBAK Vitality of $2.7 million in the identical interval of 2021.

First Half of 2022 Monetary Highlights

• Web revenues had been $136.5 million, a rise of 792% from $15.3 million in 2021.
• Gross revenue was $10.9 million, a rise of 270% from $2.9 million in 2021.
• Web earnings attributable to shareholders of CBAK Vitality was $1.3 million, in comparison with internet earnings attributable to shareholders of CBAK Vitality of $32.3 million in 2021.

Yunfei Li, Chairman and Chief Government Officer of the Firm, commented: “Within the second quarter and first half of 2022, our firm continued its robust development in revenues. With the brand new power trade getting hotter with super coverage helps, we made clever determination to enter the upstream of the trade by buying a lithium-ion battery materials enterprise and to additional increase our battery manufacturing capability.” 

Mr. Li continued: “Regardless of that the inflation of supplies worth resulted from capability scarcity has elevated our prices, we nonetheless managed to maintain a extremely fast development in revenues, of which revenues from our battery enterprise grew by over 3 instances. Our administration group is extremely assured concerning the firm’s future and its potential for faster development.” 

Xiangyu Pei, Interim Chief Monetary Officer of the Firm, famous: “With the numerous development within the gross sales of our batteries and battery supplies, we continued to increase income and gross income. Notably, our revenues grew as a lot as 792% year-over-year to $136.5 million within the first half of 2022 whereas gross income elevated by over two instances to $10.9 million. We consider that with the fabric worth begins de-inflation and that our Nanjing plant is totally operated with its full capability, we may have a lot increased income. As at all times, we continued to spend money on new headcounts, new enterprise in addition to analysis and improvement to drive additional development. We consider these investments, mixed with our sound monetary place and highly effective battery product ecosystem, will allow us to maintain long-term, worthwhile development.”

Second Quarter of 2022 Enterprise Highlights & Current Developments

• In July 2022, the Firm introduced a joint-development settlement with one of many main gamers within the R&D of sodium-ion batteries to co-develop Na-ion batteries. Each firms anticipated to begin producing samples within the second half of 2022.
• In June 2022, CBAK Vitality introduced a framework settlement with Jiangsu JPK New Vitality Co., Ltd., a subsidiary of Jiangsu Jemmell New Vitality Vehicle Co., Ltd. (“Jemmell”) to develop and provide giant cylindrical batteries used on Jemmell’s A00-grade mini passenger automobiles. Jemmell is named a light-weight electrical automobile manufacturing unit of Jinpeng Group (“JP Group”), which is one among China’s greatest LEV producers.

Second Quarter of 2022 Monetary Outcomes

Web revenues had been $56.4 million, a rise of 857% from $5.9 million in the identical interval of 2021. This was pushed largely by robust gross sales of high-power lithium batteries and supplies to be used in manufacturing lithium battery.

Price of revenues was $50.8 million, a rise of 961% from $4.8 million in the identical interval of 2021. This was primarily resulting from elevated internet revenues.

Gross revenue was $5.5 million, representing a rise of 404% from $1.1 million in the identical interval of 2021. Gross Margin was 9.5%, a lower of 9.1% from 18.6% in the identical interval of 2021. The change in gross income was primarily as a result of improve in uncooked materials prices. 

Complete working bills had been $5.4 million, a rise of 48% from $3.8 million in the identical interval of 2021. A lot of the improve in all expense classes was resulting from rising headcount and the acquisition of our battery materials enterprise and a rising variety of workers for the brand new facility in Nanjing.

• Analysis and improvement bills had been $2.3 million, a rise of 120% from $1.0 million in the identical interval of 2021.
• Gross sales and advertising bills had been $0.7 million, a rise of 29% from $0.5 million in the identical interval of 2021.
• Normal and administrative bills had been $2.5 million, a rise of 5% from $2.3 million in the identical interval of 2021. 
• Restoration of uncertain accounts was $59,826, in comparison with $0.1 million in the identical interval of 2021.

Working earnings was $0.1 million, in comparison with an working lack of $2.7 million in the identical interval of 2021, representing a change of 105% from working loss to working earnings.

Finance expense, internet was $0.6 million, in comparison with finance earnings of $52,700 in the identical interval of 2021.

Change in truthful worth of warrants was $2.1 million, in comparison with $5.8 million in the identical interval of 2021. The change in truthful worth of the warrants legal responsibility is principally resulting from share worth motion.

Web earnings attributable to shareholders of CBAK Vitality was $0.8 million, in comparison with internet earnings attributable to shareholders of CBAK Vitality of $2.7 million in the identical interval of 2021.

Primary and diluted earnings per share had been each nil. As compared, fundamental and diluted earnings per share in the identical interval of 2021 had been each $0.02.

First Half of 2022 Monetary Outcomes

Web revenues had been $136.5 million, a rise of 792% from $15.3 million in 2021. This was primarily resulting from stronger gross sales of batteries for uninterruptable provides and LEVs in addition to supplies to be used in manufacturing lithium battery.

Price of revenues was $125.7 million, a rise of 916% from $12.4 million in 2021. This was primarily attributed to elevated internet revenues.

Gross revenue was $10.9 million, a rise of 270% from $2.9 million in 2021. Gross margin was 8.0%, a lower of 11 proportion factors from 2021. The change in gross margin was primarily as a result of improve in uncooked materials costs. 

Complete working bills had been $12.0 million, a rise of 112% from $5.7 million in 2021. A lot of the improve in all expense classes was resulting from rising headcount and the acquisition of our battery materials enterprise and a rising variety of workers for the brand new facility in Nanjing.

• Analysis and improvement bills had been $5.6 million, a rise of 267% from $1.5 million in 2021. The rise was primarily as a result of improve in salaries, and the acquisition of our battery materials enterprise, and a rising variety of workers wanted for our new Nanjing plant.
• Gross sales and advertising bills had been $1.5 million, a rise of 103% from $0.8 million in 2021. The rise was primarily as a result of improve in salaries, the acquisition of our battery materials enterprise, a rising variety of workers wanted for our new Nanjing plant and expanded gross sales and advertising efforts.
• Normal and administrative bills had been $4.7 million, a rise of 28% from $3.7 million in 2021. The rise was primarily as a result of improve in salaries ensuing from the acquisition of our battery materials enterprise, a rising variety of workers want for the brand new facility in Nanjing.
• Provision for uncertain accounts was $0.2 million, in comparison with a restoration of uncertain accounts of $0.3 million in 2021.

Working loss was $1.2 million, in comparison with $2.8 million in 2021, representing a lower of 57%.

Finance expense, internet was $0.6 million, in comparison with finance earnings of $45,102 in 2021.

Change in truthful worth of warrants was $3.8 million, in comparison with $34.2 million in 2021. The change in truthful worth of the warrants legal responsibility is principally resulting from share worth motion.

Web earnings attributable to shareholders of CBAK Vitality was $1.3 million, in comparison with internet earnings attributable to shareholders of CBAK Vitality of $32.3 million in 2021.

Primary and diluted earnings per share had been each $0.01. As compared, fundamental and diluted loss per share in 2021 had been each $0.37.

Convention Name
CBAK’s administration will host an earnings convention name at 8:00 AM U.S. Japanese Time on Monday, August 15, 2022 (8:00 PM Beijing/Hong Kong Time on August 15, 2022).

For individuals who want to be a part of the decision, please register upfront for the convention utilizing the hyperlink supplied beneath at the very least quarter-hour previous to the scheduled name begin time. Upon registration, individuals will obtain the convention name entry data, together with dial-in numbers, a private pin and an e-mail with detailed directions to affix the convention name.

Participant On-line Registration: 
https://register.vevent.com/register/BId7dd8f617e1e4d01a3e700460f168ddd

As soon as finishing the registration, please dial-in at the very least 10 minutes earlier than the scheduled begin time of the convention name and enter the non-public pin as instructed to connect with the decision.

A replay of the convention name could also be accessed inside seven days after the conclusion of the dwell name on the following web site:
https://edge.media-server.com/mmc/p/x2rvxnig

About CBAK Vitality

CBAK Vitality Know-how, Inc. (NASDAQ: CBAT) is a number one high-tech enterprise in China engaged within the improvement, manufacturing, and gross sales of latest power excessive energy lithium batteries and uncooked supplies to be used in manufacturing excessive energy lithium batteries. The purposes of the Firm’s merchandise and options embody electrical automobiles, gentle electrical automobiles, electrical instruments, power storage, uninterruptible energy provide (UPS), and different high-power purposes. In January 2006, CBAK Vitality turned the primary lithium battery producer in China listed on the Nasdaq Inventory Market. CBAK Vitality has a number of working subsidiaries in Dalian, Nanjing and Shaoxing, in addition to a large-scale R&D and manufacturing base in Dalian.

For extra data, please go to www.cbak.com.cn.

Secure Harbor Assertion
This press launch comprises “forward-looking statements” that contain substantial dangers and uncertainties. All statements apart from statements of historic details contained on this press launch, together with statements concerning our future outcomes of operations and monetary place, technique and plans, and our expectations for future operations, are forward-looking statements inside the which means of Part 27A of the Securities Act of 1933, as amended and Part 21E of the Securities Trade Act of 1934, as amended. We’ve tried to establish forward-looking statements by terminology together with “anticipates,” “believes,” “can,” “proceed,” “might,” “estimates,” “expects,” “intends,” “could,” “plans,” “potential,” “predicts,” “ought to,” or “will” or the damaging of those phrases or different comparable terminology. Our precise outcomes could differ materially or maybe considerably from these mentioned herein, or implied by, these forward-looking statements.

Any forward-looking statements contained on this press launch are solely estimates or predictions of future occasions based mostly on data presently obtainable to our administration and administration’s present beliefs concerning the potential end result of future occasions. Whether or not these future occasions will happen as administration anticipates, whether or not we’ll obtain our enterprise goals, and whether or not our revenues, working outcomes, or monetary situation will enhance in future intervals are topic to quite a few dangers.  There are a big variety of elements that would trigger precise outcomes to vary materially from statements made on this press launch, together with: vital authorized and operational dangers related to having considerably all of our enterprise operations in China, the Chinese language authorities could train vital oversight and discretion over the conduct of our enterprise and should intervene in or affect our operations at any time, which might end in a cloth change in our operations and/or the worth of our securities or might considerably restrict or fully hinder our skill to supply or proceed to supply securities to traders and will trigger the worth of such securities to considerably decline or be nugatory, buying and selling in our securities could also be prohibited underneath the Holding Overseas Firms Accountable Act if the PCAOB subsequently determines our audit work is carried out by auditors that the PCAOB is unable to examine or examine fully for 3 consecutive years, the results of the worldwide Covid-19 pandemic, modifications in home and overseas legal guidelines, laws and taxes, uncertainties associated to China’s authorized system and financial, political and social occasions in China, the volatility of the securities markets; and different dangers together with, however not restricted to, the power of the Firm to fulfill its contractual obligations, the unsure marketplace for the Firm’s lithium battery cells and enterprise, macroeconomic, technological, regulatory, or different elements affecting the profitability of our merchandise and options that we mentioned or referred to within the Firm’s disclosure paperwork filed with the U.S. Securities and Trade Fee (the “SEC”) obtainable on the SEC’s web site at www.sec.gov, together with the Firm’s most up-to-date Annual Report on Type 10-Okay in addition to in our different stories filed or furnished occasionally with the SEC. It is best to learn these elements and the opposite cautionary statements made on this press launch. If a number of of those elements materialize, or if any underlying assumptions show incorrect, our precise outcomes, efficiency or achievements could range materially from any future outcomes, efficiency or achievements expressed or implied by these forward-looking statements. The forward-looking statements included on this press launch are made as of the date of this press launch and the Firm undertakes no obligation to publicly replace or revise any forward-looking statements, apart from as required by relevant regulation.

For investor and media inquiries, please contact:
CBAK Vitality Know-how, Inc.
Investor Relations Division
Mr. Thierry Jiewei Li
Telephone: 86-18675423231,
Electronic mail: [email protected]  

SOURCE CBAK Vitality Know-how, Inc.