CBAK Energy Technology (CBAT) Q2 2025 earnings summary

Executive summary

• Net revenues for Q2 2025 were $40.5M, down 15% year-over-year, mainly due to product transition and customer validation delays at Dalian facilities, with gross profit down 65% and a net loss of $3.1M compared to net income of $6.4M in Q2 2024.

• First half 2025 net revenues were $75.5M, a 29% decrease year-over-year, reflecting ongoing strategic product upgrades and customer transitions.

• Significant decline in residential energy supply battery sales, while light electric vehicle battery revenues grew 33% in Q2 and 58% in the first half year-over-year; raw materials segment (Hitrans) grew 59% in Q2.

• Management anticipates a gradual recovery starting Q4 2025 as new battery models enter mass production and capacity expansions come online, supported by new customer agreements and a global client base.

• Company operates in two segments: high-power lithium/sodium batteries and materials for battery cells, with Hitrans contributing to raw materials growth.

Financial highlights

• Q2 2025 net revenues: $40.5M (down $7.3M YoY); gross profit: $4.5M (down $8.3M YoY); operating loss: $3.5M; net loss: $3.1M (vs. $6.4M income YoY); gross margin: 11% (vs. 26.6% YoY).

• Six months ended June 30, 2025: net revenues $75.5M (down 29% YoY), gross profit $9.3M (down 71% YoY), net loss $5.4M (vs. $15.6M income YoY), gross margin 12.3% (vs. 29.5% YoY).

• Diluted loss per share for Q2 2025 was $0.03; for six months, $0.05 loss.

• Hitrans (materials) Q2 2025 net revenues $19.4M (up 59% YoY), with net losses narrowing by 32% to $1.06M.

• Cash and cash equivalents as of June 30, 2025: $6.72M; total assets: $333.09M; total equity: $115.84M.

Outlook and guidance

• Management expects gross margins to recover as Dalian completes transition to new battery models and Nanjing phase II expansion comes online in Q4.

• Mass production of Model 40135 at Dalian is scheduled for September, with customer validation ongoing and positive feedback received.

• Both new capacity and product launches are expected to drive a strong rebound by year-end, with continued growth in Hitrans through new customer acquisition and recovery in raw materials prices.

• The company is expanding product lines and manufacturing capacity in Dalian, Nanjing, Zhejiang, and Anhui, requiring additional funding.

• Mass production of Series 46 cells targeted for end of next year, contingent on capital and customer orders.