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CBAK Energy Technology Inc. reported a notable third-quarter performance, significantly exceeding earnings expectations. The company posted an EPS of $0.03, far surpassing the forecasted -$0.03, while revenue reached $60.92 million, beating the anticipated $34.66 million by 75.76%. In premarket trading, CBAK Energy's stock rose by 2.39%, reflecting investor confidence in the company's robust results and future growth potential.
Key Takeaways
- CBAK Energy's EPS and revenue significantly exceeded forecasts.
- The company's stock increased by 2.39% in premarket trading.
- Expansion plans include increasing production capacity and exploring overseas manufacturing.
- The HaiCheng segment showed improved performance, narrowing losses.
- Strategic focus on the growing demand in the LED vehicle battery market.
Company Performance
CBAK Energy demonstrated strong performance in Q3 2025, with consolidated revenue increasing by 36.5% year-over-year to $50.9 million. The company's net income attributable to shareholders soared to $2.65 million, marking a 150-fold increase year-over-year. The battery segment contributed significantly, with a net income of $4.53 million, up by 122.7% from the previous year. The HaiCheng segment also showed improvement, narrowing its net loss by 18.8%.
Financial Highlights
- Revenue: $60.92 million, up 75.76% from the forecast.
- Earnings per share: $0.03, a significant improvement over the forecasted -$0.03.
- Battery segment net income: $4.53 million, a 122.7% increase year-over-year.
- HaiCheng segment net loss reduced to $2.1 million, an 18.8% improvement.
Earnings vs. Forecast
CBAK Energy's actual EPS of $0.03 significantly outperformed the forecasted -$0.03, resulting in a surprise of -200%. Revenue also exceeded expectations by 75.76%, reaching $60.92 million against the forecasted $34.66 million. This performance marks a substantial improvement compared to previous quarters, highlighting the company's strong operational execution.
Market Reaction
Following the earnings announcement, CBAK Energy's stock rose by 2.39% in premarket trading, reaching $0.901. This increase contrasts with the prior day's decline of 2.33% and reflects investor optimism. The stock is trading closer to its 52-week low, suggesting potential for future growth amid strong financial results.
Outlook & Guidance
CBAK Energy anticipates reaching a production capacity of 6 gigawatt-hours by 2026. The company expects the HaiCheng segment to return to profitability in the coming quarters. Expansion plans include increasing the Nanjing plant's capacity and exploring overseas manufacturing opportunities, contingent on China's export control policies.
Executive Commentary
Xavier Li, CFO, expressed confidence in the new 4,135 production line, stating, "We are confident that a new 4,135 production line... will further enhance our earnings performance." He also emphasized the importance of establishing a stable overseas production base to enhance supply reliability. Yvan, an interpreter, noted, "In this industry, we are developing pretty good."
Risks and Challenges
- Ongoing losses in the HaiCheng segment, despite improvements.
- Potential impact of China's export control policies on overseas expansion.
- Challenges in scaling production capacity amid market recovery.
- Dependence on raw material market stability for cost management.
- Competitive pressures in the rapidly evolving lithium battery market.
Q&A
During the earnings call, analysts inquired about the LED vehicle market and the HaiCheng segment's market position. The company discussed its production capacity expansion plans and equipment readiness. Management confirmed the start of trial production in Dalian and the upcoming Nanjing expansion.
Full transcript - CBAK Energy Technology Inc (CBAT) Q3 2025:
Conference Call Operator: Good day, ladies and gentlemen. Thank you for standing by, and welcome to Seabac Energy Technologies Third Quarter of twenty twenty five Earnings Conference Call. Currently, all participants are in listen only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. As a reminder, we are recording today's call.
If you have any objections, you may disconnect at this time. Now I will turn the call over to Itian Tian, IR specialist of Seabeck Energy. Ms. Tian, please proceed.
Itian Tian, IR Specialist, Seabeck Energy: Thank you, operator, and hello, everyone. Welcome to Seabeck Energy's earnings conference call for the 2025. Joining us today are Mr. Zhi Guang Hu, our Jason, Chief Executive Officer of Seabeck Energy Mr. Theory Li, Chief Financial Officer and Company Secretary and Yvan, who will help with our interpretation, will join us for the Q and A section.
We released our results earlier today. The press release is available on the company's IR website at ir.cbak.com.cn as well as from the newswire services. A replay of this call will also be available in a few hours on our IR website. Before we continue, please note that today's discussion will contain forward looking statements made under the Safe Harbor provisions of The U. S.
Private Securities Litigation Reform Act of 1995. Forward looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today. Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC. The company does not assume any obligation to update any forward looking statements except as required under the applicable laws.
Also, please note that unless otherwise stated, all figures mentioned during the conference call are in U. S. Dollars. With that, let me now turn the call over to our CEO. Please go ahead, Jason.
Jason Hu, Chief Executive Officer, Seabeck Energy: Hello, everyone. Thank you for joining our earnings conference call for the 2025. Our consolidated revenue rose sharply this quarter increasing 36.5 percentage year over year to $50,900,000 compared with approximately $44,600,000 in the same period last year. The strong growth was primarily driven by the recovery of Haitong's, our better raw material segment. Since acquiring Haitong in 2021, the segment had been weighed down by industry wide overcapacity and prolonged decline in raw material prices resulting in several years of weak performance.
Recently, however, we have been pleased to see clear signs of recovery. Raw material price have rebounded steadily driving a meaningful turnaround at High In the third quarter alone, High Trends generate approximately $27,200,000 in revenue, representing 143.7% increase year over year. With the continued recovery in the raw material market, we are confident that Haitong team will build on this positive moment term to further advance sales and narrow losses in the coming quarters. Our battery business also began to stabilize in the third quarter after a short term volume decline caused by our ongoing product portfolio upgrade. Revenue in this segment grew 0.7 percentage year over year effectively returning to the same level as the prior year quarter.
This improvement was mainly driven by robust demand for our model 32,140 battery produced at Nanjing plant where production capacity remains fully utilized and significant backlog of orders persist. To address this supply shortage, we are actually fighting the launch of Nanjing Phase 2 facility, although slightly delayed. We now expect mass production to begin in mid November twenty twenty five. Compared with the 1.3 gigawatt hour capacity of Phase one, Phase two will add another two gigawatt hour of capacity given the current supply demand imbalance in the market, we anticipate this expansion will make a substantial contribution to next year sales. In October 2025, we officially commissioned a new product line in at our Dahlia facility.
Historically, this plant has focused on producing model twenty six thousand six hundred and twenty six thousand seven hundred battery model, product with nearly two decades of market presence In response to involving customer needs, we invested in a new line dedicated to manufacturing the larger higher performance 4,135 model. Over the past year, many of Dadeon's customer have been conducting testing and certification process for the model 4,135, a necessary step that temporarily impacted shipment volume and contribute to a brief slowdown in the battery segment revenue growth. Early market feedback, however, have been very encouraging. Previously, the Danian plant had one gigawatt hour of capacity for the Model 26 Series. The new line adds an additional 2.3 gigawatt hour capacity for the Model 4,135 similar to the Nanjing expansion.
This upgrade is expected to become a key growth driver for 2026. Now let me turn the call to our CFO, Xavier Li.
Xavier Li, Chief Financial Officer, Seabeck Energy: Thank you, Jason. As Jason mentioned, HaiCheng delivered a very solid performance this quarter with sales increasing significantly and net loss narrowing to $2,100,000 an 18.8 percentage improvement from 2,600,000 in the same period of 2024. If this momentum continues, we believe HaiChan is on track to return to profitability in the coming quarters. Meanwhile, although our battery business reported flat year over year revenue following a weaker performance last quarter, segment net income rebounded strongly, up 122.7% to $4,530,000 compared with $2,040,000 a year ago. This rebound was mainly driven as Jason noted by robust demand for our Model three thousand two and forty batteries, which are currently in short supply.
With both segments showing meaningful improvement in profitability, our consolidated net income attributable to Seaback Energy shareholders reached $2,650,000 representing a 150 fold increase year over year. Looking ahead, we are confident that a new 4,135 production line at our Dalian facility together with the upcoming three thousand two and forty production expansion at our Nanjing plant will further enhance our earnings performance. Combined with the ongoing recovery of our raw materials industry, which continues to strengthen high trends results, We believe that our overall performance in the coming quarters and years will deliver sustainable value for our shareholders and investors. Furthermore, we continue to pursue overseas manufacturing expansion, but progress remains contingent on updates to China's export control policies covering lithium battery materials and equipment. Until the Chinese authorities clarify or adjust these restrictions following the recent meeting between the Chinese and U.
S. Presidents in Busan, we are unable to advance specific overseas projects. On the commercial side, we have signed a term sheet with one of Asia's largest publicly listed companies to jointly develop an overseas lithium battery production base. This reflects a strong strategic alignment and commercial potential. However, we would like to remind investors that policy shifts could affect our overseas plans and timelines.
Should policy conditions permit, management of the company has reached a firm consensus that establishing a stable overseas production base outside China will significantly enhance our supply reliability and strengthen our position as a preferred supplier to major global customers. Thank you. We will now open the floor for the Q and A section. Operator, please go ahead.
Conference Call Operator: Thank you. Our first question comes from the line of Brian Lantier from Sacks Small Cap Research. Please go ahead. Your line is open.
Brian Lantier, Analyst, Sacks Small Cap Research: Good evening, gentlemen. Really impressive results from the LED division. I was wondering if you could talk a little bit about the any particular customer concentration in that market and how sustainable you see the light electric vehicle sales going in the coming quarters? Thank you, Brian.
Yvan, Interpreter, Seabeck Energy: Thank you. Actually for the LEB business especially the two wheelers and three wheelers. So I think now we are developing pretty good especially in the Southeast Asia countries. And for example, in India, for the top ten two wheelers OEMs, and we are we have all in communication with them. And some of them, we have already has mass supply to them.
And also for example in India for the battery swapping business, we are also incorporating with one of the biggest battery swapping company in India as well. So in this industry, I think now we are developing pretty good.
Brian Lantier, Analyst, Sacks Small Cap Research: Okay, great. That's really helpful. Regarding HiTrans, what do you see overall in the market regarding potential oversupply? Has demand come up to meet the supply in the industry? And should we expect more balance in the market going forward?
Xavier Li, Chief Financial Officer, Seabeck Energy: Okay. Brian, let me take this question. For Heidren's product is always very clear. They're making NCM raw materials to a couple of the battery manufacturers. Some of them are not our competitors because we're making LFP sales.
So HaiCheng is exploring the market, but I don't think they're going to find some other new customers beyond the current area. So what Heitrans will do is just to keep improving the quality and the performance of their current raw material products and along with this recovery of the whole industry, I think we can expect or anticipate a much stronger performance of high trends in the coming quarters.
Brian Lantier, Analyst, Sacks Small Cap Research: Okay, great. And I guess just looking forward to 2026, it sounds like you could at some point be have production capacity above six gigawatts. When do you expect that to be the case? It midyear, the 2026? And has it become any easier to secure the necessary production equipment power these expansions?
Yvan, Interpreter, Seabeck Energy: Yes. So currently the status is all of the equipment has already been installed in the warehouse in both Dalian and Nanjing factory. So we have already in Dalian it's already trial production and in Nanjing it will be start trial production in this month. And we hopefully by Q1 next year, then we will achieve mass production for both factories. And also in terms of all of the orders we have got and then the six gigawatts hour will be achieved next year, which is in accordance with the order we have already received from the customers.
Xavier Li, Chief Financial Officer, Seabeck Energy: And I would like to add another point. I think in mid November, we're going to announce that our Nanjing expansion plan is going to complete soon and then we are preparing a video showing the latest equipment we have and the new production line for the purpose that all our investors and shareholders can have a very, very clear picture of how our factory looks like.
Brian Lantier, Analyst, Sacks Small Cap Research: Great. Thank you so much. It sounds really exciting. I'll open the queue up to anyone else.
Conference Call Operator: Thank you. Thank you. Seeing no more questions in the queue, let me turn the call back to Jason for closing remarks.
Jason Hu, Chief Executive Officer, Seabeck Energy: Thank you, operator, and thank you all for participating in today's call and for your support. We appreciate for your interest and look forward to reporting to you again next quarter on our progress.
Conference Call Operator: Thank you all again. This concludes the call. You may now disconnect.
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