CBAK Energy Posts Q2 Revenues Decline On Lower Battery Sales

CBAK Energy Technology Inc CBAT reported Q2 FY23 revenues of $42.40 million, which declined from $56.35 million a year ago.

Revenues were impacted by lower sales from the battery business and Hitrans, which is an indirect majority-owned subsidiary dealing in the production and sale of battery raw materials. 

Battery business revenues declined 13.5% Y/Y to $22.2 million due to the price volatility of lithium carbonate.

Gross profit fell 29.8% Y/Y to $3.9 million, with margins of 9.2% vs. 9.8% a year ago.

Loss per share stood at $(0.03) in the quarter.

As of June 30, 2023, cash and cash equivalents stood at $3.4 million.

"During the first half of 2023, our battery business had strong revenue growth of 97% in the first quarter; however, during the second quarter, we began to experience a temporary slowdown in sales, as a result of the volatility of lithium carbonate prices, a crucial raw material. Despite this short-term challenge, we remain confident that our revenue growth will bounce back in the upcoming quarters as many of our clients will place new orders in the second half of the year when prices begin to stabilize," said Yunfei Li, Chairman and CEO.

Also Read: CBAK Energy Inks ¥180M Lithium-Ion Battery Order With Echom

Price Action: CBAT shares are trading lower by 3.33% at $1.16 on the last check Wednesday.