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CBAK Energy: Predictable Profitability Warranted By Expanding Capacity, Product Innovation and Strategic Vertical Integration
2Q-2022 and 1H-2022 Earnings Overview NEW YORK, Aug. 30, 2022 /PRNewswire/ -- On August 15, 2022, CBAK Energy Technology, Inc. (Nasdaq: CBAT), a leading
About this update from Cbak Energy Technology, Inc.
[{"type":"text","content":"2Q-2022 and 1H-2022 Earnings Overview\nNEW YORK, Aug. 30, 2022 /PRNewswire/ -- On August 15, 2022, CBAK Energy Technology, Inc. (Nasdaq: CBAT), a leading China-based lithium-ion battery manufacturer and electric energy solution provider released its second quarter and the first-half of 2022 earnings ended June 30.\nAnother remarkable quarter with continued sales momentum Following the momentous first quarter of 2022, CBAT had once again achieved another significant milestone with sustained sales momentum in both battery products and battery materials in the second quarter of 2022. \nSpecifically, net revenues from the battery business alone grew by approximately 337% year-over-year in Q2, while the overall revenues grew by 857% and 792% year-over-year, reaching $56.4 million and $136.5 million in the second quarter and the first half of 2022, respectively.\nIndustry demand significantly outweighs CBAT production capacity providing strong tailwind for the second-half of 2022With great resources pouring into the new energy industry by the government on the back of robust market demand, CBAT management has been proactively expanding the Company's new energy batteries production capacity and R&D investment, which had transpired to remarkable sales performance so far this year.\nSpecifically on production capacity expansion, in addition to the Dalian production center currently with an annual capacity of 1GWh, there are also two planned phases for the Company's new Nanjing manufacturing center. Phase I was only put in production at an initial capacity of 0.7GWh in late 2021, grown to 1GWh currently, and is expected to double that to 2GWh around the end of 2022 or early 2023.\nHowever, such level of capacity remains far below the industry's elevating demand. The initial Phase II operation is expected to start in late 2023, with a target to deliver 6GWh per year until an annual capacity of 18GWh is reached. \nIn terms of end-product applications, the Nanjing plant will mainly focus on producing large cylindrical batteries catered for the EV/LEV customers, while Dalian facilities will continue to focus on the Company's matured models (e.g. 26650/26700 batteries), which are catered to the energy storage industry.\nSustained Strong Order Backlog As expected, CBAT received additional orders in the second quarter, and more orders of larger ...