Business
CBAK Energy Announces Hitrans's Revenues Reach Almost $100 Million in First Nine Months of 2021 Before Acquisition Closes, Four Times Their Own Revenues in Same Period
DALIAN, China, March 17, 2022 /PRNewswire/ -- CBAK Energy Technology, Inc. (NASDAQ: CBAT) ("CBAK Energy," or the "Company"), a leading lithium-ion battery
About this update from Cbak Energy Technology, Inc.
[{"type":"text","content":"DALIAN, China, March 17, 2022 /PRNewswire/ -- CBAK Energy Technology, Inc. (NASDAQ: CBAT) (\"CBAK Energy,\" or the \"Company\"), a leading lithium-ion battery manufacturer and electric energy solution provider in China, today announced financial highlights of Zhejiang Hitrans Lithium Battery Technology Co. (\"Hitrans\"), a leading lithium-ion battery material supplier in China that CBAK Energy has completed an acquisition of 81.56% of its equity stake, for the first nine months of 2021.\nHitrans's revenues were $97.9 million in the first three quarters of 2021, roughly four times CBAK Energy's revenues in the same period. Hitrans generated a gross profit of $11.0 million, about 2.7 times the gross profit of CBAK Energy in the same period. Its operating profit was $4.2 million. More detailed financial data of Hitrans can be accessed on the 8K filing filed by the Company to the Securities and Exchange Commission on March 17, 2022.\nFirst Nine Months of 2021 ($)\nHitrans\nRevenues\n97,875,308\nGross Profit\n10,963,386\nOperating Profit (Loss）\n4,229,511\nConsidering the transaction was closed on November 29, 2021, Hitrans's financial performance before the closing date will not be incorporated into CBAK Energy's financial results for the 2021 fiscal year. Hitrans's results for the first nine months of 2021 are provided for a better understanding of its financial performance, and its excellent results are expected to significantly increase CBAK Energy's financial results in 2022 and beyond.\nAfter the acquisition, CBAK Energy just replaced some financial and administration personnel of Hitrans while other team members, including technical and sales personnel, remained the same to continue their support for the business growth of the unit. Hitrans mainly focuses on the production and sales of NCM precursors and cathode materials for lithium batteries. Building upon its superior performance and cutting-edge technologies, Hitrans has become one of small and medium-sized enterprises that dominate major markets in niche sectors with increased financial and tax support and enhanced credit policies from the government, which allows such companies to further innovate and grow into \"little giants.\" Such a small and medium-sized enterprise with a considerable amount of government support is therefore a factor that numerous Chinese investors...