CBAK Energy Technology 2025 Q2 Earnings Sharp Net Income Drop of 155.8%

CBAK Energy Technology (CBAT) reported its fiscal 2025 Q2 earnings on August 18, 2025. The results fell significantly short of expectations, with the company reporting a net loss of $3.36 million compared to a net income of $6.02 million in the same period last year. Management did not issue forward guidance but expressed confidence in a recovery by year-end.

Revenue
CBAK Energy Technology’s total revenue declined by 15.2% year-over-year to $40.52 million in Q2 2025. The electric vehicles segment generated $199,258, while light electric vehicles contributed $1.83 million. The largest segment, residential energy supply and uninterruptible supplies, brought in $33.57 million. The cathode and precursor segments added $8.25 million and $3.95 million, respectively. Combined, the company reported total consolidated revenue of $47.79 million in the prior-year quarter.

Earnings/Net Income
CBAK Energy Technology swung to a loss of $0.03 per share in Q2 2025, down from a profit of $0.07 per share in the year-ago period, representing a 142.9% negative change. The company reported a net loss of $3.36 million, reflecting a 155.8% deterioration from the $6.02 million net income reported in Q2 2024. The earnings decline highlights the challenging operating environment.

Price Action
The stock price of CBAK Energy Technology gained 5.00% during the latest trading day and surged 9.38% over the past full trading week. However, it has declined 7.08% month-to-date.

Post-Earnings Price Action Review
A strategy of buying CBAK Energy Technology shares following its Q2 earnings release and holding for 30 days yielded a 23.65% return, outperforming the benchmark’s 52.81% return. Despite this, the Sharpe ratio of 0.11 suggests a modest risk-adjusted return. The strategy avoided significant losses with a maximum drawdown of 0.00%, but high volatility of 68.29% indicates substantial price fluctuations. Over three years, the compound annual growth rate was 7.59%.

CEO Commentary
Zhi Guang Hu, CEO of CBAK Energy, attributed the Q2 performance decline to the transition at the Dalian facility from the model 26,000 to the advanced 4,135 battery, which significantly reduced revenue and gross profit. Meanwhile, the Nanjing plant is operating at full capacity with the in-demand 32,140 cells, but Phase Two of its expansion remains delayed until Q4 2025. The CEO expressed optimism, noting that with the 4,135 model transition and Nanjing Phase Two expected to be completed by year-end, a strong recovery in consolidated results is anticipated. He also highlighted growing demand in the portable power supply and Indian two/three-wheeler markets. Additionally, CBAK paused its Malayan project due to ongoing U.S.-China tariff negotiations but remains committed to long-term production in the U.S.

Guidance
CBAK Energy anticipates a strong recovery in consolidated results by year-end, driven by the completion of the Dalian 4,135 model transition and Nanjing Phase Two expansion by Q4 2025. The CEO and CFO expect improved performance as product upgrades and increased production capacity meet rising demand, particularly in high-growth segments like the portable power supply and Indian two/three-wheeler markets. No specific revenue or EPS targets were provided, but the company emphasized a rebound in both battery and raw materials segments due to completed upgrades and market expansion efforts.

Additional News
On July 25, 2025, at least 14 villagers and a mobile police officer were killed in two separate attacks in Bokkos Local Government Area of Plateau State, Nigeria. One incident occurred in the evening when 14 villagers from the Chirang community were ambushed while returning from the market. Another attack took place earlier in the day when a police officer was killed at a checkpoint. The local community and authorities described the situation as an emergency and called for increased security and the establishment of state police to prevent further violence. Security personnel have since taken control of the area to ensure public safety.