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What changed in CBAK Energy Technology, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of CBAK Energy Technology, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+331 added−270 removedSource: 10-K (2026-03-31) vs 10-K (2025-03-17)

Top changes in CBAK Energy Technology, Inc.'s 2025 10-K

331 paragraphs added · 270 removed · 221 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

104 edited+31 added−17 removed82 unchanged
Biggest change(All amounts, other than percentages, in thousands of U.S. dollars) Year Ended December 31, Change 2023 2024 $ % Net revenues $ 204,438 $ 176,615 -27,823 -14 % Cost of revenues (172,714 ) (134,839 ) 37,875 -22 % Gross profit 31,724 41,776 10,052 32 % Operating expenses: Research and development expenses (11,928 ) (13,010 ) -1,082 9 % Sales and marketing expenses (4,904 ) (5,198 ) -294 6 % General and administrative expenses (13,789 ) (13,948 ) -159 1 % Impairment charge on property, plant and equipment (7,070 ) (475 ) 6,595 -93 % Provision of expected credit losses (1,285 ) (356 ) 929 -72 % Total operating expenses (38,976 ) (32,987 ) 5,989 -15 % Operating (loss) income (7,252 ) 8,789 16,041 -221 % Finance income, net 433 1,283 850 196 % Impairment charges on equity investee (2,366 ) - 2,366 -100 % Share of loss of equity investee (27 ) (19 ) 8 -30 % Gain on disposal of equity investee - 45 45 n/a Other income, net 3,023 1,046 -1,977 -65 % Change in fair value of warrants liability 136 - -136 -100 % (Loss) income before income tax (6,053 ) 11,144 17,197 -284 % Income tax expense (2,486 ) (1,559 ) 927 -37 % Net (loss) income (8,539 ) 9,585 18,124 -212 % Less: Net loss attributable to non-controlling interests 6,090 2,205 -3,885 -64 % Net (loss) income attributable to shareholders of CBAK Energy Technology, Inc. $ (2,449 ) 11,790 14,239 -581 % Net revenues .
Biggest change(All amounts, other than percentages, in thousands of U.S. dollars) Year Ended December 31, Change 2024 2025 $ % Net revenues $ 176,615 $ 195,189 18,574 11 % Cost of revenues (134,839 ) (176,767 ) (41,928 ) 31 % Gross profit 41,776 18,422 (23,354 ) -56 % Operating expenses: Research and development expenses (13,010 ) (15,802 ) (2,792 ) 22 % Sales and marketing expenses (5,198 ) (5,077 ) 121 -2 % General and administrative expenses (13,948 ) (16,195 ) (2,247 ) 16 % Impairment charge on property, plant and equipment (475 ) - 475 -100 % Provision of expected credit losses, net (356 ) 210 566 -159 % Total operating expenses (32,987 ) (36,864 ) (3,877 ) 12 % Operating income (loss) 8,789 (18,442 ) (27,231 ) -310 % Finance income (expenses), net 1,283 (673 ) (1,956 ) -152 % Share of (loss) income of equity investee (19 ) 145 164 -863 % Gain on disposal of equity investee 45 - (45 ) -100 % Other income, net 1,046 8,273 7,227 691 % Change in fair value of financial derivatives - (440 ) (440 ) n/a Income (loss) before income tax 11,144 (11,137 ) (22,281 ) -200 % Income tax (expense) credit (1,559 ) 185 1,744 -112 % Net income (loss) 9,585 (10,952 ) (20,537 ) -214 % Less: Net loss attributable to non-controlling interests 2,205 1,574 (631 ) -29 % Net income (loss) attributable to shareholders of CBAK Energy Technology, Inc. $ 11,790 (9,378 ) (21,168 ) -180 % Net revenues .
Revenues from product sales are recognized when the customer obtains control of our product, which occurs at a point in time, typically upon delivery to the customer.
Revenues from product sales are recognized when the customer obtains control of our product, which occurs at a point in time, typically upon delivery to the customer.
On February 17, 2017, we signed a letter of understanding with each of eight individual investors, including our CEO, Mr. Yunfei Li, whereby these shareholders agreed in principle to subscribe for new shares of our common stock totaling $10 million. The issue price was determined with reference to the market price prior to the issuance of new shares.
On February 17, 2017, we signed a letter of understanding with each of eight individual investors, including our former CEO, Mr. Yunfei Li, whereby these shareholders agreed in principle to subscribe for new shares of our common stock totaling $10 million. The issue price was determined with reference to the market price prior to the issuance of new shares.
In general, we present the government subsidies received as part of income unless the subsidies received are earmarked to compensate a specific expense, which have been accounted for by offsetting the specific expense, such as research and development expense, interest expenses and removal costs.
In general, we present the government subsidies received as part of income unless the subsidies received are earmarked to compensate a specific expense, which have been accounted for by offsetting the specific expense, such as research and development expense, interest expenses, depreciation and removal costs.
Such funds will be used to construct new plants with new production lines and battery module packing lines. 55 Critical Accounting Policies and Estimates Our consolidated financial information has been prepared in accordance with U.S.
Such funds will be used to construct new plants with new production lines and battery module packing lines. Critical Accounting Policies and Estimates Our consolidated financial information has been prepared in accordance with U.S.
Dawei Li and Mr.Yunfei Li entered into an agreement with CBAK Power to loan approximately $1.4 million (RMB10,000,000) and $2.5 million (RMB18,000,000), respectively, to CBAK Power for a terms of six months (collectively $3.9 million, the “Third Debt”). The loan was unsecured, non-interest bearing and repayable on demand. On July 16, 2019, each of Asia EVK and Mr.
Dawei Li and Mr.Yunfei Li entered into an agreement with CBAK Power to loan approximately $1.4 million (RMB10,000,000) and $2.5 million (RMB18,000,000), respectively, to CBAK Power for a term of six months (collectively $3.9 million, the “Third Debt”). The loan was unsecured, non-interest bearing and repayable on demand. On July 16, 2019, each of Asia EVK and Mr.
On September 29, 2024, we and Zhejiang Shangyu Rural Commercial Bank entered into a short-term credit-guaranteed loan agreement for RMB15 million (approximately $2.0 million) with the term of one year from September 29, 2024 to September 26, 2025 bearing 4.00% interest rate. We borrowed RMB15 million (approximately $2.1 million) on the same date.
On September 29, 2024, Hitrans and Zhejiang Shangyu Rural Commercial Bank entered into a short-term credit-guaranteed loan agreement for RMB15 million (approximately $2.0 million) with the term of one year from September 29, 2024 to September 26, 2025 bearing 4.00% interest rate. Hitrans borrowed RMB15 million (approximately $2.1 million) on the same date.
The portion of the warranty reserve expected to be incurred within the next 12 months is included within accrued liabilities and other while the remaining balance is included within other long-term liabilities on the consolidated balance sheets. 57 Government Grants Our subsidiaries in China receive government subsidies from local Chinese government agencies in accordance with relevant Chinese government policies.
The portion of the warranty reserve expected to be incurred within the next 12 months is included within accrued liabilities and other while the remaining balance is included within other long-term liabilities on the consolidated balance sheets. 53 Government Grants Our subsidiaries in China receive government subsidies from local Chinese government agencies in accordance with relevant Chinese government policies.
If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. 56 Trade and Bills Receivable and current expected credit losses Trade and bills receivable are recorded at the invoiced amount, net of allowances for doubtful accounts and sales returns.
If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. 52 Trade and Bills Receivable and current expected credit losses Trade and bills receivable are recorded at the invoiced amount, net of allowances for doubtful accounts and sales returns.
Our subsidiaries in PRC are subject to an income tax rate of 25%, except for Hitrans, CBAK Power and Nanjing CBAK have been recognized as a “High and New Technology Enterprise” and enjoyed a preferential tax rate of 15% for three years from the approval date, expiring in 2025.
Our subsidiaries in PRC are subject to an income tax rate of 25%, except for Hitrans, CBAK Power, Nanjing CBAK and Nanjing BFD have been recognized as a “High and New Technology Enterprise” and enjoyed a preferential tax rate of 15% for three years from the approval date, expiring in 2025 to 2026.
On April 19, 2023, we and Bank of Nanjing Gaochun Branch entered into a short-term loan agreement for one year from April 10, 2023 to April 9, 2024 for RMB10 million (approximately $1.4 million) bearing interest rate at 3.7% per annum. We borrowed RMB10 million (approximately $1.4 million) on April 23, 2023.
On April 19, 2023, Nanjing CBAK and Bank of Nanjing Gaochun Branch entered into a short-term loan agreement for one year from April 10, 2023 to April 9, 2024 for RMB10 million (approximately $1.4 million) bearing interest rate at 3.7% per annum. Nanjing CBAK borrowed RMB10 million (approximately $1.4 million) on April 23, 2023.
(the Company’s supplier) whereby Zhengzhou BAK New Energy Vehicle Co., Ltd. assigned its rights to the unpaid inventories cost owed by CBAK Power of approximately $2.1 million (RMB15,000,000), $1.0 million (RMB7,380,000) and $1.0 million (RMB7,380,000) (collectively $4.2 million, the “Fifth Debt”) to Mr. Shibin Mao, Ms. Lijuan Wang and Mr. Ping Shen, respectively.
(the Company’s supplier) whereby Zhengzhou BAK New Energy Vehicle Co., Ltd. assigned its rights to the unpaid inventories cost owed by CBAK Power of approximately $2.1 million (RMB15,000,000), $1.0 million (RMB7,380,000) and $1.0 million (RMB7,380,000) (collectively $4.2 million, the “Fifth Debt”) to Mr. Shibin Mao, Ms. Lijuan Wang and Mr.
On October 14, 2019, we entered into a cancellation agreement with Mr. Shangdong Liu, Mr. Shibin Mao, Ms. Lijuan Wang and Mr. Ping Shen (the creditors). Pursuant to the terms of the cancellation agreement, Mr. Shangdong Liu, Mr. Shibin Mao, Ms. Lijuan Wang and Mr.
Ping Shen, respectively. 47 On October 14, 2019, we entered into a cancellation agreement with Mr. Shangdong Liu, Mr. Shibin Mao, Ms. Lijuan Wang and Mr. Ping Shen (the creditors). Pursuant to the terms of the cancellation agreement, Mr. Shangdong Liu, Mr. Shibin Mao, Ms. Lijuan Wang and Mr.
On June 27, 2023, we entered into another loan agreement for one year from June 27, 2023 to June 26, 2024 under the two-year term facility for a maximum loan amount of RMB10 million (approximately $1.4 million) bearing interest rate at 3.65 % pr annum. We borrowed RMB10 million (approximately $1.4 million) on the same date.
On June 27, 2023, Nanjing CBAK entered into another loan agreement for one year from June 27, 2023 to June 26, 2024 under the two-year term facility for a maximum loan amount of RMB10 million (approximately $1.4 million) bearing interest rate at 3.65 % pr annum. Nanjing CBAK borrowed RMB10 million (approximately $1.4 million) on the same date.
Cost of revenues consists primarily of material costs, employee remuneration for staff engaged in production activity, share-based compensation, depreciation and related expenses that are directly attributable to the production of products. Cost of revenues also includes write-downs of inventory to lower of cost and net realizable value. Research and development expenses.
Cost of revenues consists primarily of material costs, sub-contracting charges, employee remuneration for staff engaged in production activity, share-based compensation, depreciation and related expenses that are directly attributable to the production of products. Cost of revenues also includes write-downs of inventory to lower of cost and net realizable value. Research and development expenses.
We entered into another loan agreement with China CITIC Bank Shaoxing Branch for a short-term loan of RMB4.8 million (approximately $0.7 million) from August 10, 2023 to May 2, 2024, bearing interest rate at 4.3% per annum. We repaid the loan on May 2, 2024.
Hitrans entered into a loan agreement with China CITIC Bank Shaoxing Branch for a short-term loan of RMB4.8 million (approximately $0.7 million) from August 10, 2023 to May 2, 2024, bearing interest rate at 4.3% per annum. Hitrans repaid the loan on May 2, 2024.
The cost of revenues includes written down of obsolete inventories of $4.9 million for the year ended December 31, 2024, as compared to write down of obsolete inventories of $3.6 million for the same period in 2023. We write down the inventory value whenever there is an indication that it is impaired. Gross profit.
The cost of revenues includes written down of obsolete inventories of $6.6 million for the year ended December 31, 2025, as compared to write down of obsolete inventories of $4.9 million for the same period in 2024. We write down the inventory value whenever there is an indication that it is impaired. Gross profit.
On April 20, 2023, we borrowed another one-year loan of RMB10 million (approximately $1.4 million) bearing interest at 102.5% of benchmark rate of PBOC for short-term loans, which is 3.90% per annum for a term until April 19, 2024. We repaid the loan on April 19, 2024.
On April 20, 2023, Nanjing CBAK borrowed another one-year loan of RMB10 million (approximately $1.4 million) bearing interest at 102.5% of benchmark rate of PBOC for short-term loans, which is 3.90% per annum for a term until April 19, 2024. Nanjing CBAK repaid the loan on April 19, 2024.
Dawei Li to issue and sell an aggregate of 2,206,640 shares of common stock of the Company, at $2.5 per share, for an aggregate consideration of approximately $5.52 million. On August 17, 2016, the Company issued the foregoing shares to the two investors.
Jiping Zhou and Mr. Dawei Li to issue and sell an aggregate of 2,206,640 shares of common stock of the Company, at $2.5 per share, for an aggregate consideration of approximately $5.52 million. On August 17, 2016, the Company issued the foregoing shares to the two investors.
On January 7, 2023, we obtained a two-year term facility from Postal Savings Bank of China, Nanjing Gaochun Branch with a maximum amount of RMB10 million (approximately $1.4 million) for a period from January 7, 2023 to January 6, 2025. The facility was guaranteed by our former CEO, Mr. Yunfei Li, Mr. Yunfei Li’s wife Ms.
On January 7, 2023, Nanjing CBAK obtained a two-year term facility from Postal Savings Bank of China, Nanjing Gaochun Branch with a maximum amount of RMB10 million (approximately $1.4 million) for a period from January 7, 2023 to January 6, 2025. The facility was guaranteed by the Company’s former CEO, Mr. Yunfei Li, Mr. Yunfei Li’s wife Ms.
On January 6, 2023, we borrowed a one-year term loan of RMB10 million (approximately $1.4 million) for a period of one year to January 4, 2024, bearing interest at 120% of benchmark rate of the PBOC for short-term loans, which is 3.85% per annum, while other terms and guarantee remain the same. We repaid the loan on January 4, 2024.
On January 6, 2023, Nanjing CBAK borrowed a one-year term loan of RMB10 million (approximately $1.4 million) for a period of one year to January 4, 2024, bearing interest at 120% of benchmark rate of the PBOC for short-term loans, which is 3.85% per annum, while other terms and guarantee remain the same.
The facility was guaranteed by 100% equity in CBAK Nanjing held by BAK Investment and our former CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. We borrowed RMB9 million (approximately $1.3 million ) on September 27, 2023 for a term until August 31, 2024. We repaid the loan on August 31, 2024.
The facility was guaranteed by 100% equity in CBAK Nanjing held by BAK Investment and the Company’s former CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. NJ CBAK borrowed RMB9 million (approximately $1.3 million ) on September 27, 2023 for a term until August 31, 2024. Nanjing CBAK repaid the loan on August 31, 2024.
On March 29, 2023, we and Bank of China Limited entered into a short-term loan agreement for one year from March 29, 2023 to March 28, 2024 for a maximum loan amount to RMB5 million (approximately $0.7 million) bearing interest rate at 3.65% per annum. We borrowed RMB5 million (approximately $0.7 million) on the same date.
On March 28, 2024, CBAK New Energy and Bank of China Limited entered into a short-term loan agreement for one year from March 29, 2023 to March 28, 2024 for a maximum loan amount to RMB5 million (approximately $0.7 million) bearing interest rate at 3.65% per annum. CBAK New Energy borrowed RMB5 million (approximately $0.7 million) on the same date.
Yunfei Li entered into an agreement with CBAK Power and Tianjin New Energy whereby Tianjin New Energy assigned its rights to loans to CBAK Power of approximately $3.4 million (RMB23,980,950) and $1.7 million (RMB11,647,890) (totaled $5.1 million, the “First Debt”) to Mr. Dawei Li and Mr. Yunfei Li, respectively.
On January 7, 2019, each of Mr. Dawei Li and Mr. Yunfei Li entered into an agreement with CBAK Power and Tianjin New Energy whereby Tianjin New Energy assigned its rights to loans to CBAK Power of approximately $3.4 million (RMB23,980,950) and $1.7 million (RMB11,647,890) (totaled $5.1 million, the “First Debt”) to Mr. Dawei Li and Mr. Yunfei Li, respectively.
We early repaid the loan on September 27, 2024. 49 On April 9, 2024, the Company and China Zheshang Bank Co., Ltd Shangyu Branch entered into a short-term loan agreement for one year from April 9, 2024 to April 7, 2025 for a maximum loan amount to RMB5.5 million (approximately $0.8 million) bearing interest rate at 4.05% per annum.
Hitrans early repaid the loan on September 27, 2024. 44 On April 9, 2024, Hitrans and China Zheshang Bank Co., Ltd Shangyu Branch entered into a short-term loan agreement for one year from April 9, 2024 to April 7, 2025 for a maximum loan amount to RMB5.5 million (approximately $0.8 million) bearing interest rate at 4.05% per annum.
On July 6, 2020, we entered into a sixth exchange agreement (the “Sixth Exchange Agreement”) with the Lender, pursuant to which the Company and the Lender agreed to (i) partition a new promissory note in the original principal amount equal to $250,000 from the outstanding balance of certain promissory note that the Company issued to the Lender on July 24, 2019, which has an original principal amount of $1,395,000, and (ii) exchange the partitioned promissory note for the issuance of 461,595 shares of the Company’s common stock, par value $0.001 per share to the Lender.
On July 6, 2020, we entered into a sixth exchange agreement (the “Sixth Exchange Agreement”) with the Lender, pursuant to which the Company and the Lender agreed to (i) partition a new promissory note in the original principal amount equal to $250,000 from the outstanding balance of certain promissory note that the Company issued to the Lender on July 24, 2019, which has an original principal amount of $1,395,000, and (ii) exchange the partitioned promissory note for the issuance of 461,595 shares of the Company’s common stock, par value $0.001 per share to the Lender. 48 On July 8, 2020, we entered into certain exchange agreement with the Lender, pursuant to which the Company and the Lender agreed to (i) partition a new promissory note in the original principal amount equal to $250,000 from the outstanding balance of certain promissory note that the Company issued to the Lender on December 30, 2019, which has an original principal amount of $1,670,000, and (ii) exchange the partitioned promissory note for the issuance of 453,161 shares of the Company’s common stock, par value $0.001 per share to the Lender.
Our capital expenditures in 2024 were primarily allocated to the construction of our Dalian, Nanjing and Zhejiang facilities. The table below sets forth the breakdown of our capital expenditures by use for the periods indicated.
Our capital expenditures in 2025 were primarily allocated to the construction of our Dalian, Nanjing, Zhejiang and Anhui facilities. The table below sets forth the breakdown of our capital expenditures by use for the periods indicated.
On July 8, 2020, we entered into certain exchange agreement with the Lender, pursuant to which the Company and the Lender agreed to (i) partition a new promissory note in the original principal amount equal to $250,000 from the outstanding balance of certain promissory note that the Company issued to the Lender on December 30, 2019, which has an original principal amount of $1,670,000, and (ii) exchange the partitioned promissory note for the issuance of 453,161 shares of the Company’s common stock, par value $0.001 per share to the Lender. 52 On July 29, 2020, we entered into a seventh exchange agreement (the “Seventh Exchange Agreement”) with the Lender, pursuant to which the Company and the Lender agreed to (i) partition a new promissory note in the original principal amount equal to $365,000 from the outstanding balance of certain promissory note that the Company issued to the Lender on July 24, 2019, which has an original principal amount of $1,395,000, and (ii) exchange the partitioned promissory note for the issuance of 576,802 shares of the Company’s common stock, par value $0.001 per share to the Lender.
On July 29, 2020, we entered into a seventh exchange agreement (the “Seventh Exchange Agreement”) with the Lender, pursuant to which the Company and the Lender agreed to (i) partition a new promissory note in the original principal amount equal to $365,000 from the outstanding balance of certain promissory note that the Company issued to the Lender on July 24, 2019, which has an original principal amount of $1,395,000, and (ii) exchange the partitioned promissory note for the issuance of 576,802 shares of the Company’s common stock, par value $0.001 per share to the Lender.
Yunfei Li’s wife Ms. Qinghui Yuan and secured by an unrelated third party, Jiangsu Credits Financing Guarantee Co., Ltd. We borrowed RMB10 million (approximately $1.4 million) on January 20, 2022 for a term until January 16, 2023. We repaid RMB10 million (approximately $1.4 million) early on January 5, 2023.
Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan and secured by an unrelated third party, Jiangsu Credits Financing Guarantee Co., Ltd. Nanjing CBAK borrowed RMB10 million (approximately $1.4 million) on January 20, 2022 for a term until January 16, 2023. Nanjing CBAK repaid RMB10 million (approximately $1.4 million) early on January 5, 2023.
Qinghui Yuan and CBAK New Energy (Nanjing) Co., Ltd. We borrowed RMB5 million (approximately $0.7 million) on January 12, 2023 for a term of one year until January 11, 2024, bearing interest at 3.65% per annum. We repaid the above early on June 15, 2023.
Qinghui Yuan and CBAK Nanjing. Nanjing CBAK borrowed RMB5 million (approximately $0.7 million) on January 12, 2023 for a term of one year until January 11, 2024, bearing interest at 3.65% per annum. Nanjing CBAK repaid the above early on June 15, 2023.
On March 26, 2024, we entered into a short-term credit-guaranteed loan agreement with Zhejiang Shangyu Rural Commercial Bank for one year to March 25, 2025 with an amount of RMB5 million (approximately $0.7 million) bearing interest at 4.1% per annum. We borrowed RMB5 million (approximately $0.7 million) on the same date.
Hitrans borrowed RMB5 million (approximately $0.7 million) on the same date. Hitrans early repaid the loan on September 27, 2024. On March 26, 2024, Hitrans entered into a short-term credit-guaranteed loan agreement with Zhejiang Shangyu Rural Commercial Bank for one year to March 25, 2025 with an amount of RMB5 million (approximately $0.7 million) bearing interest at 4.1% per annum.
(All amounts in thousands of U.S. dollars) Year Ended December 31, December 31, 2023 2024 Purchase of property, plant and equipment and construction in progress $ 31,141 $ 17,187 We estimate that our total capital expenditures in fiscal year 2025 will reach approximately $50 million.
(All amounts in thousands of U.S. dollars) Year Ended December 31, December 31, 2024 2025 Purchase of property, plant and equipment and construction in progress $ 17,187 $ 44,652 We estimate that our total capital expenditures in fiscal year 2026 will reach approximately $50 million.
On January 17, 2023, we borrowed a one-year loan of RMB10 million (approximately $1.4 million) bearing interest at 129% of benchmark rate of PBOC for short-term loans, which is 4.70% per annum for a term until January 13, 2024. We repaid the loan on January 13, 2024.
On January 17, 2023, Nanjing CBAK borrowed a one-year loan of RMB10 million (approximately $1.4 million) bearing interest at 129% of benchmark rate of PBOC for short-term loans, which is 4.70% per annum for a term until January 13, 2024.
Unearned government subsidies received are deferred for recognition until the criteria for such recognition could be met. Grants applicable to land are amortized over the life of the depreciable facilities constructed on it.
Unearned government subsidies received are deferred for recognition until the criteria for such recognition could be met. Grants applicable to long-lived assets are amortized over the life of the depreciable facilities constructed on it.
Liquidity and Capital Resources We have financed our liquidity requirements from a variety of sources, including bank loans, other short-term loans and bills payable under bank credit agreements, advance from our related and unrelated parties, investors and issuance of capital stock. As of December 31, 2024, we had cash and cash equivalents and restricted cash of $60.8 million.
Liquidity and Capital Resources We have financed our liquidity requirements from a variety of sources, including bank loans, other short-term loans and bills payable under bank credit agreements, advance from our related and unrelated parties, investors and issuance of capital stock. As of December 31, 2025, we had cash and cash equivalents and restricted cash of $75.7 million.
As of August 31, 2021, we had not received any notices from investors to exercise the Series B warrants, which, along with the Series A-2 warrants, had expired. As of December 31, 2023, we had not received any notices from investors to exercise the 2020 Warrants, which had also expired.
As of August 31, 2021, we had not received any notices from investors to exercise the Series B warrants, which, along with the Series A-2 warrants, had expired.
On January 17, 2022, we obtained a one-year term facility from Agricultural Bank of China with a maximum amount of RMB10 million (approximately $1.4 million) bearing interest at 105% of benchmark rate of the People’s Bank of China (“PBOC”) for short-term loans, which is 3.85% per annum. The facility was guaranteed by our former CEO, Mr. Yunfei Li and Mr.
On January 17, 2022, Nanjing CBAK obtained a one-year term facility from Agricultural Bank of China with a maximum amount of RMB10 million (approximately $1.4 million) bearing interest at 105% of benchmark rate of the People’s Bank of China (“PBOC”) for short-term loans, which is 3.85% per annum. The facility was guaranteed by the Company’s former CEO, Mr.
Net revenues from sales of batteries for residential energy supply & uninterruptable supplies was $124.6 million for the fiscal year ended December 31, 2024, as compared to $124.5 million for fiscal year ended December 31, 2023.
Net revenues from sales of batteries for residential energy supply & uninterruptable supplies was $68.8 million for the fiscal year ended December 31, 2025, as compared to $124.6 million for fiscal year ended December 31, 2024.
The loan was secured by our buildings in Dalian. We repaid RMB5million (approximately $0.7 million) on March 27, 2024. On March 28, 2024, we borrowed another one-year loan of RMB5 million (approximately $0.7 million) bearing interest rate at 3.45% per annum. We early repaid the loan on August 21, 2024.
The loan was secured by CBAK Power’s buildings in Dalian. CBAK New Energy repaid RMB5 million (approximately $0.7 million) on March 27, 2024. On March 28, 2024, CBAK New Energy borrowed another one-year loan of RMB5 million (approximately $0.7 million) bearing interest rate at 3.45% per annum. CBAK New Energy early repaid the loan on August 21, 2024.
On December 31, 2024, we and China Everbright Bank Co., Ltd Shaoxing Branch entered into a short-term loan agreement for RMB10 million (approximately $1.4 million) with the term of one year from December 31, 2024 to December 30, 2025 bearing 2.9% interest rate. We borrowed RMB10 million (approximately $1.4 million) on the same date.
Hitrans repaid the loan on September 26, 2025. On December 31, 2024, Hitrans and China Everbright Bank Co., Ltd Shaoxing Branch entered into a short-term loan agreement for RMB10 million (approximately $1.4 million) with the term of one year from December 31, 2024 to December 30, 2025 bearing 2.9% interest rate.
Dollar Fiscal Year Ended December 31, December 31, 2023 2024 Balance sheet items, except for equity accounts 7.0971 7.2994 Amounts included in the statement of income and comprehensive loss and statement of cash flows 7.0719 7.1913 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. Not applicable. 58
Dollar Fiscal Year Ended December 31, December 31, 2024 2025 Balance sheet items, except for equity accounts 7.2994 7.0169 Amounts included in the statement of income and comprehensive loss and statement of cash flows 7.1913 7.1883 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. Not applicable. 54
The Company provides an allowance against trade receivable based on the expected credit loss approach and writes off trade receivables when they are deemed uncollectible. The Company considers the historical credit loss experience, customer specific facts and economic conditions in assessing the expected credit losses.
Additionally, external data and macroeconomic factors are also considered. The Company provides an allowance against trade receivable based on the expected credit loss approach and writes off trade receivables when they are deemed uncollectible. The Company considers the historical credit loss experience, customer specific facts and economic conditions in assessing the expected credit losses.
We repaid the loan on September 24, 2023. 48 We entered into another one-year term facility with Jiangsu Gaochun Rural Commercial Bank with a maximum amount of RMB9 million (approximately $1.2 million) bearing interest rate at 4.6% per annum for a period from September 27, 2023 to August 31, 2024.
Nanjing CBAK entered into another one-year term facility with Jiangsu Gaochun Rural Commercial Bank with a maximum amount of RMB9 million (approximately $1.2 million) bearing interest rate at 4.6% per annum for a period from September 27, 2023 to August 31, 2024.
We strive to continue to penetrate the market for batteries used in light electric vehicles, especially the international market such as India and Vietnam. We believe that our sales campaign in the international market will contribute to a rebound in our sales volume in this sector in the near future.
We strive to continue to penetrate the market for batteries used in light electric vehicles, especially the international market such as India, Vietnam and Africa. We believe that our sales campaign in the international market has contributed to a rebound in our sales volume in this sector.
The loan was guaranteed by our former CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. We repaid the loan on April 9, 2024.
The loan was guaranteed by the Company’s former CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. Nanjing CBAK repaid the loan on April 9, 2024.
Provision for expected credit losses was $0.4 million for the year ended December 31, 2024, as compared to $1.3 million for 2023. We determine the allowance based on historical write-off experience, customer specific facts and economic conditions. Operating income (loss).
Reversal of expected credit losses was $0.2 million for the year ended December 31, 2025, as compared to $0.4 million for 2024. We determine the allowance based on historical write-off experience, customer specific facts and economic conditions. 42 Operating income (loss).
The net cash used in investing activities comprised the purchases of property, plant and equipment and construction in progress $17.2 million and $9.1 million on deposit paid for acquisition of long-term investments offset by $2.3 million received from PRC government for funding our capital expenditure.
The net cash used in investing activities comprised the purchases of property, plant and equipment and construction in progress $17.2 million and $9.1 million on deposit paid for acquisition of long-term investments offset by $2.3 million received from PRC government for funding our capital expenditure. 50 Financing Activities Net cash provided by financing activities was $8.0 million for the fiscal year ended December 31, 2025.
The loan was guaranteed by our former CEO, Mr. Yunfei Li, Mr. Yunfei Li’s wife Ms. Qinghui Yuan and CBAK New Energy (Nanjing) Co., Ltd. We repaid the loan on June 26, 2024.
The loan was guaranteed by the Company’s former CEO, Mr. Yunfei Li, Mr. Yunfei Li’s wife Ms. Qinghui Yuan and CBAK Nanjing. Nanjing CBAK repaid the loan on June 26, 2024.
The Company repaid the loan on July 22, 2024 On August 3, 2023, we and Bank of China entered into a short term loan agreement for one year from August 3, 2023 to August 2, 2024 for a maximum amount of RMB10 million (approximately $1.4 million) bearing interest rate at 3.55% per annum.
On August 3, 2023, CBAK Energy and Bank of China entered into a short term loan agreement for one year from August 3, 2023 to August 2, 2024 for a maximum amount of RMB10 million (approximately $1.4 million) bearing interest rate at 3.55% per annum. CBAK Energy borrowed RMB10 million (approximately $1.4 million) on September 27, 2023.
As of December 31, 2024, we had no warrants outstanding. 53 We currently are expanding our product lines and manufacturing capacity in our Dalian, Nanjing and Zhejiang facilities, which require more funding to finance the expansion.
As of December 31, 2025, all of the warrants expired. 49 We currently are expanding our product lines and manufacturing capacity in our Dalian, Nanjing and Zhejiang facilities, which require more funding to finance the expansion.
On February 9, 2022, we obtained a one-year term facility from Jiangsu Gaochun Rural Commercial Bank with a maximum amount of RMB10 million (approximately $1.4 million) bearing interest at 124% of benchmark rate of the People’s Bank of China (“PBOC”) for short-term loans, which is 4.94% per annum. The facility was guaranteed by the Company’s former CEO, Mr.
Nanjing CBAK repaid the loan on January 4, 2024. On February 9, 2022, NJ CBAK obtained a one-year term facility from Jiangsu Gaochun Rural Commercial Bank with a maximum amount of RMB10 million (approximately $1.4 million) bearing interest at 124% of benchmark rate of the People’s Bank of China (“PBOC”) for short-term loans, which is 4.94% per annum.
Gross profit for the year ended December 31, 2024 was $41.8 million, or 24% of net revenues as compared to gross profit of $31.7 million, or 15.5% of net revenues, for the fiscal year ended December 31, 2023.
Gross profit for the year ended December 31, 2025 was $18.4 million, or 9.4% of net revenues as compared to gross profit of $41.8 million, or 24% of net revenues, for the fiscal year ended December 31, 2024.
The exchange rates used to translate amounts in RMB into U.S. dollars in connection with the preparation of our financial statements were as follows: RMB per U.S.
Consequently, the exchange rates at which the amounts in those comparisons were computed varied from year to year. The exchange rates used to translate amounts in RMB into U.S. dollars in connection with the preparation of our financial statements were as follows: RMB per U.S.
Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. We borrowed RMB10 million (approximately $1.4 million) on February 17, 2022 for a term until January 28, 2023. We repaid RMB10 million (approximately $1.4 million) on January 16, 2023.
The facility was guaranteed by the Company’s former CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. Nanjing CBAK borrowed RMB10 million (approximately $1.4 million) on February 17, 2022 for a term until January 28, 2023. Nanjing CBAK repaid RMB10 million (approximately $1.4 million) on January 16, 2023.
Net cash used in investing activities was $42.3 million in the fiscal year ended December 31, 2023.
Investing Activities Net cash used in investing activities was $45.7 million in the fiscal year ended December 31, 2025.
The following table sets forth a summary of our cash flows for the periods indicated: (All amounts in thousands of U.S. dollars) Year Ended December 31, December 31, 2023 2024 Net cash provided by operating activities $ 46,507 $ 39,704 Net cash used in investing activities (42,310 ) (23,432 ) Net cash provided by (used in) financing activities 18,615 (11,686 ) Effect of exchange rate changes on cash and cash equivalents and restricted cash (1,345 ) (2,623 ) Net increase in cash and cash equivalents and restricted cash 21,467 1,963 Cash and cash equivalents and restricted cash at the beginning of the year 37,356 58,823 Cash and cash equivalents and restricted cash at the end of the year $ 58,823 $ 60,786 Operating Activities Net cash provided by operating activities was $39.7 million for the year ended December 31, 2024.
The following table sets forth a summary of our cash flows for the periods indicated: (All amounts in thousands of U.S. dollars) Year Ended December 31, December 31, 2024 2025 Net cash provided by operating activities $ 39,704 $ 48,554 Net cash used in investing activities (23,432 ) (45,715 ) Net cash provided by (used in) financing activities (11,686 ) 8,004 Effect of exchange rate changes on cash and cash equivalents and restricted cash (2,623 ) 4,047 Net increase in cash and cash equivalents and restricted cash 1,963 14,891 Cash and cash equivalents and restricted cash at the beginning of the year 58,823 60,786 Cash and cash equivalents and restricted cash at the end of the year $ 60,786 $ 75,677 Operating Activities Net cash provided by operating activities was $48.6 million for the year ended December 31, 2025.
As a result of the above, our operating income was $8.8 million for the year ended December 31, 2024, as compared to an operating loss of $7.3 million for 2023. Finance income, net. Finance income, net was $1.3 million and $0.4 million for the years ended December 31, 2024 and 2023, respectively.
As a result of the above, our operating loss was $18.4 million for the year ended December 31, 2025, as compared to an operating income of $8.8 million for 2024. Finance income (expenses), net.
On January 24, 2024, we entered into a short-term credit-guaranteed loan agreement with Zhejiang Shangyu Rural Commercial Bank for one year to January 17, 2025 with an amount of RMB5 million (approximately $0.7 million) bearing interest at 4.1% per annum. We borrowed RMB5 million (approximately $0.7 million) on the same date. We early repaid the loan on September 27, 2024.
The loan was secured by CBAK Power’s buildings in Dalian. CBAK Energy repaid the loan on August 2, 2024. On January 24, 2024, Hitrans entered into a short-term credit-guaranteed loan agreement with Zhejiang Shangyu Rural Commercial Bank for one year to January 17, 2025 with an amount of RMB5 million (approximately $0.7 million) bearing interest at 4.1% per annum.
Net revenues were $176.6 million for the fiscal year ended December 31, 2024 as compared to $204.4 million for the fiscal year ended December 31, 2023, a decrease of $27.8 million, or 14%. The following table sets forth the breakdown of our net revenues by end-product applications.
Net revenues were $176.8 million for the fiscal year ended December 31, 2024 as compared to $195.2 million for the fiscal year ended December 31, 2025, an increase of $18.6 million, or 11%. The following table sets forth the breakdown of our net revenues by end-product applications.
During the course of our strategic review of our operations, we assessed the recoverability of the carrying value of our long-lived assets which resulted in impairment losses of $0.5 million and $7.1 million for the years ended December 31, 2024 and 2023, respectively.
We have incurred an extra $0.5 million on business consultancy services in fiscal 2025. Long-lived assets impairment charge. During the course of our strategic review of our operations, we assessed the recoverability of the carrying value of our long-lived assets which resulted in impairment losses of nil and $0.5 million for the years ended December 31, 2025 and 2024, respectively.
However, because we did not have any assessable income derived from or arising in Hong Kong, BAK Asia, BAK Investment and Hong Kong Hitrans had not paid any such tax. 45 Results of Operations Comparison of Years Ended December 31, 2023 and 2024 The following table sets forth key components of our results of operations for the years indicated, both in dollars and as a percentage of our revenue.
We did not have any assessable income derived from or arising in Malaysia for the year ended December 31, 2025. 40 Results of Operations Comparison of Years Ended December 31, 2025 and 2024 The following table sets forth key components of our results of operations for the years indicated, both in dollars and as a percentage of our revenue.
In January 2023, the Company renewed the banking facilities with Shaoxing Branch of Bank of Communications Co., Ltd with a maximum amount of RMB160.0 million (approximately $22.1 million) with the term from January 2023 to December 2027. The facility was secured by the Company’s land use rights and buildings.
Lending from Financial Institutions In January 2023, Hitrans renewed the banking facilities with Shaoxing Branch of Bank of Communications Co., Ltd with a maximum amount of RMB160.0 million (approximately $22.1 million) with the term from January 2023 to December 2027.
According to the amount of loan, 2,062,619, 2,151,017 and 4,714,557 shares were issued to Mr. Yunfei Li, Asia EVK and Mr. Pin Shen, respectively.
According to the amount of loan, 2,062,619, 2,151,017 and 4,714,557 shares were issued to Mr. Yunfei Li, Asia EVK and Mr. Pin Shen, respectively. Upon receipt of the shares, the creditors released the Company from any claims, demands and other obligations relating to the Sixth Debt.
On April 28, 2022, we obtained a three-year term facility from Industrial and Commercial Bank of China Nanjing Gaochun branch, with a maximum amount of RMB12 million (approximately $1.7 million) with the term from April 21, 2022 to April 21, 2025. The facility was guaranteed by our former CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan.
On July 31, 2023, Nanjing CBAK obtained a three-year term facility from Bank of China Gaochun Branch, with a maximum amount of RMB10 million (approximately $1.4 million) with the term from July 31, 2023 to July 30, 2026. The facility was guaranteed by the Company’s former CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan.
Net cash provided by operating activities was $46.5 million in the year ended December 31, 2023.
Net cash provided by operating activities was $39.7 million for the year ended December 31, 2024.
Under the facility, we borrowed RMB10 million (approximately $1.5 million) on April 29, 2022, bearing interest at 3.95% per annum for a term until April 29, 2023. We repaid RMB10 million (approximately $1.4 million) on April 19, 2023.
The facility was guaranteed by the Company’s former CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. Under the facility, Nanjing CBAK borrowed RMB10 million (approximately $1.5 million) on April 29, 2022, bearing interest at 3.95% per annum for a term until April 29, 2023. Nanjing CBAK repaid RMB10 million (approximately $1.4 million) on April 19, 2023.
Sales and marketing expenses increased to $5.2 million for the year ended December 31, 2024, as compared to $4.9 million for 2023, an increase of $0.3 million, or 6%. As a percentage of revenues, sales and marketing expenses were 2.9% and 2.4% of revenues for the years ended December 31, 2024 and 2023, respectively.
Sales and marketing expenses were $5.1 million and $5.2 million for the years ended December 31, 2025, and 2024, respectively. As a percentage of revenues, sales and marketing expenses were 2.6% and 2.9% of revenues for the years ended December 31, 2025 and 2024, respectively. General and administrative expenses.
On June 22, 2017, we issued the shares to the investors. The issuance of the shares to the investors was made in reliance on the exemption provided by Section 4(a)(2) of the Securities Act.
On June 22, 2017, we issued the shares to the investors. The issuance of the shares to the investors was made in reliance on the exemption provided by Section 4(a)(2) of the Securities Act. In 2019, according to the securities purchase agreement and agreed by the investors, we returned partial earnest money of $966,579 (approximately RMB6.7 million) to these investors.
The facility was guaranteed by our former CEO, Mr, Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. Under the facility, we borrowed RMB10 million (approximately $1.4 million) on June 24, 2024, bearing interest rate at 3.0% per annum. We early repaid the loan on August 23, 2024.
Under the facility, CBAK Nanjing borrowed RMB10 million (approximately $1.4 million) on June 24, 2024, bearing interest rate at 3.0% per annum. CBAK Nanjing early repaid the loan on August 23, 2024.
Upon receipt of the shares, the creditors released the Company from any claims, demands and other obligations relating to the Sixth Debt. 51 On July 24, 2019, we entered into a securities purchase agreement with Atlas Sciences, LLC (the “Lender”), pursuant to which we issued a promissory note (the “Note I”) to the Lender.
On July 24, 2019, we entered into a securities purchase agreement with Atlas Sciences, LLC (the “Lender”), pursuant to which we issued a promissory note (the “Note I”) to the Lender.
We borrowed a series of acceptance bills totaling RMB55.6 million (approximately $7.6 million) for various terms expiring through April to June 2025, which was secured by our pledged deposit of RMB55.6 million (approximately $7.6 million.
Hitrans borrowed a series of acceptance bills totaling RMB98.8 million (approximately $14.1 million) for various terms expiring through January to June 2026, which was secured by Hitrans’s pledged deposit of RMB98.9 million (approximately $14.1 million).
The increase primarily resulted from $3.1 million increase in salaries and social insurance expenses due to a growing number of employees at Nanjing CBAK and the new operation in Shangqiu, offset by the $1.4 million decrease in materials and consumables used. Sales and marketing expenses .
The increase primarily resulted from the increase of materials and consumables used for the development of series 40 batteries and the increase in salaries and social insurance expenses due to a growing number of employees at CBAK Power and Nanjing CBAK.
Our total current assets were $141.4 million and our total current liabilities were $171.7 million, resulting in a net working capital deficit of $30.3 million.
Our total current assets were $180.6 million and our total current liabilities were $299.8 million, resulting in a net working capital deficit of $119.2 million.
(All amounts, other than percentage, in thousands of U.S. dollars) Years Ended Change December 31, December 31, 2023 2024 $ % High-power lithium batteries used in: Electric vehicles $ 2,883 $ 1,682 -1,201 -42 % Light electric vehicles 5,607 10,319 4,712 84 % Residential Energy Supply & Uninterruptable supplies 124,503 124,588 85 0 % 132,993 136,589 3,596 3 % Materials used in manufacturing of lithium batteries Cathode 39,846 34,229 -5,617 -14 % Precursor 31,599 5,797 -25,802 -82 % 71,445 40,026 -31,419 -44 % Total $ 204,438 $ 176,615 -27,823 -14 % Net revenues from sales of batteries for electric vehicles were $1.7 million for the fiscal year ended December 31, 2024, as compared to $2.9 million for 2023, a decrease of $1.2 million or 42%. 46 Net revenues from sales of batteries for light electric vehicles was approximately $10.3 million for the fiscal year ended December 31, 2024, as compared $5.6 million for 2023, representing an increase of $4.7 million, or 84%.
(All amounts, other than percentage, in thousands of U.S. dollars) Years Ended December 31, December 31, Change 2024 2025 $ % High-power lithium batteries used in: Electric vehicles $ 1,682 $ 796 (886 ) -53 % Light electric vehicles 10,319 36,363 26,044 252 % Residential Energy Supply & Uninterruptable supplies 124,588 68,823 (55,765 ) -45 % 136,589 105,982 (30,607 ) -22 % Materials used in manufacturing of lithium batteries Cathode 34,229 82,483 48,254 141 % Precursor 5,797 6,724 927 16 % 40,026 89,207 49,181 123 % Total $ 176,615 $ 195,189 18,574 11 % Net revenues from sales of batteries for electric vehicles were $0.8 million for the fiscal year ended December 31, 2025, as compared to $1.7 million for 2024, a decrease of $0.9 million or 53%. 41 Net revenues from sales of batteries for light electric vehicles was approximately $10.3 million for the fiscal year ended December 31, 2024, as compared $36.4 million for 2025, representing an increase of $26.0 million, or 252%.
Equity and Debt Financings from Investors We have also obtained funds through private placements, registered direct offerings and other equity and debt financings in the past: On July 28, 2016, the Company entered into securities purchase agreements with Mr. Jiping Zhou and Mr.
Hitrans borrowed an acceptance bill from Bank of Ningbo of RMB10 million (approximately $1.4 million) expiring in June 2026, which was secured by Hitran’s bills receivables of RMB10 million (approximately $1.4 million). 46 Equity and Debt Financings from Investors We have also obtained funds through private placements, registered direct offerings and other equity and debt financings in the past: On July 28, 2016, the Company entered into securities purchase agreements with Mr.
Cost of revenues . Cost of revenues decreased to $134.8 million for the fiscal year ended December 31, 2024, as compared to $172.7 million for 2023, a decrease of $37.9 million, or 22%.
Cost of revenues . Cost of revenues increased to $176.8 million for the fiscal year ended December 31, 2025, as compared to $134.8 million for 2024, an increase of $41.9 million, or 31.1%.
As a result of the foregoing, we had a net income of $9.6 million for the year ended December 31, 2024 compared to a net loss of $8.5 million for the year ended December 31, 2023.
The income tax credit and expense in 2025 and 2024, respectively, were incurred by our batteries segment. Net income (loss). As a result of the foregoing, we had a net loss of $11.0 million for the year ended December 31, 2025, compared to a net income of $9.6 million for the year ended December 31, 2024.
(“Shenzhen BAK”) of $5.4 million, offset by an increase of trade and bills receivable of $3.0 million. Investing Activities Net cash used in investing activities was $23.4 million in the fiscal year ended December 31, 2024.
Net cash used in investing activities was $23.4 million in the fiscal year ended December 31, 2024.
Our Hong Kong subsidiaries, BAK Asia, BAK Investment and Hong Kong Hitrans, are subject to profits tax at a rate of 16.5%.
Our Hong Kong subsidiaries, BAK Asia, BAK Investment and Hong Kong Hitrans, are subject to profits tax at a rate of 16.5%. However, because we did not have any assessable income derived from or arising in Hong Kong, BAK Asia, BAK Investment and Hong Kong Hitrans had not paid any such tax.
As of December 31, 2024, the principal amounts outstanding under our credit facilities and lines of credit were as follows: (All amounts in thousands of U.S. dollars) Maximum amount Amount available borrowed Long-term credit facilities: Shaoxing Branch of Bank of Communications Co., Ltd $ 21,922 $ 21,909 Short-term credit facilities: Zhejiang Shangyu Rural Commercial Bank 2,055 2,055 China Zheshang Bank Co., Ltd.
As of December 31, 2025, the principal amounts outstanding under our credit facilities and lines of credit were as follows: (All amounts in thousands of U.S. dollars) Maximum amount available Amount borrowed Long-term credit facilities: Zhejiang Shangyu Rural Commercial $ 10,911 $ 5,543 Short-term credit facilities: China Construction Bank Co., Ltd Dalian Zhuanghe Branch 2,561 1,425 Jiangsu Gaochun Rural Commercial Bank 4,275 427 Bank of China Gaochun Branch 1,425 1,425 Bank of Communications Co., Ltd Shaoxing Branch 22,199 19,555 China Construction Bank Co., Ltd Shaoxing Branch 2,850 2,850 Industrial Bank Co., Ltd Shaoxing Shangyu Branch 1,425 1,425 34,735 27,107 Other lines of credit: China Construction Bank Co., Ltd Dalian Zhuanghe Branch 8,551 8,551 Industrial and Commercial Bank of China Co., Ltd.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

95 edited+62 added−21 removed261 unchanged
Biggest changeMoreover, according to the Anti-Monopoly Law of the People’s Republic of China promulgated on August 30, 2007 and the Provisions on Thresholds for Reporting of Concentrations of Undertakings (the “Prior Reporting Rules”) issued by the State Council in August 2008 and amended in September 2018, the concentration of business undertakings by way of mergers, acquisitions or contractual arrangements that allow one market player to take control of or to exert decisive impact on another market player must also be notified in advance to the anti-monopoly enforcement agency of the State Council when the applicable threshold is crossed and such concentration shall not be implemented without the clearance of prior reporting.
Biggest changeThe regulations also established additional procedures and requirements that are expected to make merger and acquisition activities in China by foreign investors more time consuming and complex, including requirements in some instances that the MOFCOM be notified in advance of any change-of-control transaction in which a foreign investor takes control of a PRC domestic enterprise, or that the approval from the MOFCOM be obtained in circumstances where overseas companies established or controlled by PRC enterprises or residents acquire affiliated domestic companies. 19 Moreover, according to the Anti-Monopoly Law of the People’s Republic of China promulgated on August 30, 2007 and the Provisions on Thresholds for Reporting of Concentrations of Undertakings (the “Prior Reporting Rules”) issued by the State Council in August 2008 and amended in September 2018, the concentration of business undertakings by way of mergers, acquisitions or contractual arrangements that allow one market player to take control of or to exert decisive impact on another market player must also be notified in advance to the anti-monopoly enforcement agency of the State Council when the applicable threshold is crossed and such concentration shall not be implemented without the clearance of prior reporting.
The PRC government has recently indicated an intent to take actions to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers. For example, on July 6, 2021, the relevant PRC government authorities made public the Opinions on Strictly Scrutinizing Illegal Securities Activities in Accordance with the Law, or the Opinions.
The PRC government has indicated an intent to take actions to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers. For example, on July 6, 2021, the relevant PRC government authorities made public the Opinions on Strictly Scrutinizing Illegal Securities Activities in Accordance with the Law, or the Opinions.
In anticipation of an expected increase in the demand for high-power electric devices such as electric vehicles, light electric vehicles, and energy storage including residential energy supply and UPS application in the next few years, we are building new manufacturing facilities in Nanjing and have invested in the R&D capability of our newly acquired battery materials business.
In anticipation of an expected increase in the demand for high-power electric devices such as electric vehicles, light electric vehicles, and energy storage including residential energy supply and UPS application in the next few years, we are building new manufacturing facilities in Nanjing and have invested in the R&D capability of our acquired battery materials business.
These risks may have a material adverse effect on our business, financial condition and results of operations. 24 Under the Enterprise Income Tax Law, we may be classified as a “resident enterprise” of China. Such classification will likely result in unfavorable tax consequences to us and our non-PRC shareholders.
These risks may have a material adverse effect on our business, financial condition and results of operations. Under the Enterprise Income Tax Law, we may be classified as a “resident enterprise” of China. Such classification will likely result in unfavorable tax consequences to us and our non-PRC shareholders.
Any accident, whether occurring at the manufacturing facilities or from the use of our products, may result in significant production interruption, delays or claims for substantial damages caused by personal injuries or property damages. 30 We may not be able to substantially increase our manufacturing output in order to maintain our cost competitiveness.
Any accident, whether occurring at the manufacturing facilities or from the use of our products, may result in significant production interruption, delays or claims for substantial damages caused by personal injuries or property damages. We may not be able to substantially increase our manufacturing output in order to maintain our cost competitiveness.
Any additional impairment of goodwill or other intangible assets acquired in connection with Hitrans’s acquisition or in another acquisition or charges to earnings associated with any acquisition or investment activity, may materially reduce our earnings. 26 We may face additional impairment charges if economic environments in which our businesses operate and key economic and business assumptions substantially change.
Any additional impairment of goodwill or other intangible assets acquired in connection with Hitrans’s acquisition or in another acquisition or charges to earnings associated with any acquisition or investment activity, may materially reduce our earnings. We may face additional impairment charges if economic environments in which our businesses operate and key economic and business assumptions substantially change.
In addition, uncertainty exists as to whether the courts of China would recognize or enforce judgments of U.S. courts obtained against us or such officers and/or directors predicated upon the civil liability provisions of the securities laws of the United States or any state thereof, or be competent to hear original actions brought in China against us or such persons predicated upon the securities laws of the United States or any state thereof. 23 PRC regulation of loans to, and direct investment in, PRC entities by offshore holding companies and governmental control of currency conversion may restrict or prevent CBAK Energy Technology, Inc. from making additional capital contributions or loans to its PRC subsidiaries.
In addition, uncertainty exists as to whether the courts of China would recognize or enforce judgments of U.S. courts obtained against us or such officers and/or directors predicated upon the civil liability provisions of the securities laws of the United States or any state thereof, or be competent to hear original actions brought in China against us or such persons predicated upon the securities laws of the United States or any state thereof. 20 PRC regulation of loans to, and direct investment in, PRC entities by offshore holding companies and governmental control of currency conversion may restrict or prevent CBAK Energy Technology, Inc. from making additional capital contributions or loans to its PRC subsidiaries.
As a result, a number of targets of such efforts are now conducting internal and external investigations into the allegations and, in the interim, are subject to shareholder lawsuits and/or SEC enforcement actions. We were the subject of certain unfavorable allegations.
As a result, a number of targets of such efforts are now conducting internal and external investigations into the allegations and, in the interim, are subject to shareholder lawsuits and/or SEC enforcement actions. 34 We were the subject of certain unfavorable allegations.
A significant increase in the cost of insurance coverage could adversely affect our business, financial condition and results of operations. 31 We depend on third parties to supply key raw materials and components to us.
A significant increase in the cost of insurance coverage could adversely affect our business, financial condition and results of operations. We depend on third parties to supply key raw materials and components to us.
Given the general slowdown in economic conditions globally, volatility in the capital markets as well as the general negative impact of the health concerns arising from outbreaks of viruses or other illnesses on the global market, we cannot assure you that we will be able to maintain the growth rate we have experienced or projected. 36 RISKS RELATED TO COMMON STOCK Numerous factors, many of which are beyond our control, may cause the market price of common stock to fluctuate significantly.
Given the general slowdown in economic conditions globally, volatility in the capital markets as well as the general negative impact of the health concerns arising from outbreaks of viruses or other illnesses on the global market, we cannot assure you that we will be able to maintain the growth rate we have experienced or projected. 33 RISKS RELATED TO COMMON STOCK Numerous factors, many of which are beyond our control, may cause the market price of common stock to fluctuate significantly.
On December 24, 2021, the CSRC issued the Provisions of the State Council on the Administration of Overseas Securities Offering and Listing by Domestic Companies (Draft for Comments) and the Administrative Measures for the Filing of Overseas Securities Offering and Listing by Domestic Companies (Draft for Comments), collectively the Draft Overseas Listing Regulations, for public comment until January 23, 2022. 18 Following issuance of the Draft Overseas Listing Regulations, on February 17, 2023, the CSRC issued the Notice on Filing Arrangements for Overseas Securities Offering and Listing by Domestic Companies (the “CSRC Filing Notice”), stating that the CSRC has published the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies (the “Trial Measures”) and five supporting guidelines (the “Listing Guidelines”), collectively the Trial Measures and Listing Guidelines.
On December 24, 2021, the CSRC issued the Provisions of the State Council on the Administration of Overseas Securities Offering and Listing by Domestic Companies (Draft for Comments) and the Administrative Measures for the Filing of Overseas Securities Offering and Listing by Domestic Companies (Draft for Comments), collectively the Draft Overseas Listing Regulations, for public comment until January 23, 2022. 16 Following issuance of the Draft Overseas Listing Regulations, on February 17, 2023, the CSRC issued the Notice on Filing Arrangements for Overseas Securities Offering and Listing by Domestic Companies (the “CSRC Filing Notice”), stating that the CSRC has published the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies (the “Trial Measures”) and five supporting guidelines (the “Listing Guidelines”), collectively the Trial Measures and Listing Guidelines.
However, it continues to provide strategic value, including market presence and potential synergies with our existing operations. We remain focused on leveraging Hitrans’s capabilities and exploring opportunities to enhance its contribution to our overall business. We consummated the acquisition of 81.56% of registered equity interests (representing 75.57% of paid-up capital) in Hitrans in November 2021.
Additionally, it continues to provide strategic value, including market presence and potential synergies with our existing operations. We remain focused on leveraging Hitrans’s capabilities and exploring opportunities to enhance its contribution to our overall business. We consummated the acquisition of 81.56% of registered equity interests (representing 75.57% of paid-up capital) in Hitrans in November 2021.
Also, such a prohibition would significantly affect our ability to raise capital on terms acceptable to us, or at all, which would have a material adverse impact on our business, financial condition, and prospects. 17 The PRC government exerts substantial influence over the manner in which we conduct our business activities.
Also, such a prohibition would significantly affect our ability to raise capital on terms acceptable to us, or at all, which would have a material adverse impact on our business, financial condition, and prospects. 15 The PRC government exerts substantial influence over the manner in which we conduct our business activities.
For this reason, we have not been identified as a Commission-Identified Issuer after we filed on April 14, 2023 the annual report on Form 10-K for the fiscal year ended December 31, 2022 and we do not expect to be identified as a Commission-Identified Issuer under the HFCAA after we file this annual report on Form 10-K for the fiscal year ended December 31, 2024.
For this reason, we have not been identified as a Commission-Identified Issuer after we filed on April 14, 2023 the annual report on Form 10-K for the fiscal year ended December 31, 2022 and we do not expect to be identified as a Commission-Identified Issuer under the HFCAA after we file this annual report on Form 10-K for the fiscal year ended December 31, 2025.
Failure to comply with PRC environmental laws and regulations may materially and adversely affect our business, financial condition and results of operations. 32 We rely significantly on technology and systems to support our production, supply chain, payments, financial reporting and other key aspects of our business.
Failure to comply with PRC environmental laws and regulations may materially and adversely affect our business, financial condition and results of operations. 30 We rely significantly on technology and systems to support our production, supply chain, payments, financial reporting and other key aspects of our business.
We have put into operation two production lines of model 32140 large-sized cylindrical “tabless” batteries with an actual production capacity of 1.3 GWh per year. Model 32140 batteries can be used in light electric vehicles, electric vehicles and energy storage.
We have put into operation two production lines of model 32140 large-sized cylindrical “tabless” batteries with an actual production capacity of 1.5 GWh per year. Model 32140 batteries can be used in light electric vehicles, electric vehicles and energy storage.
We may incur significant costs because of the warranties we supply with our battery cell products.
We may incur significant costs because of the warranties we supply with our battery products.
We are aware of certain companies, including Beijing Easpring Material Technology Co., Ltd. and Ningbo Ronbay Lithium Battery Material Co., Ltd. using cell chemistry technology similar to our technology and these or other companies have introduced or could introduce products that compete directly with our products and could in the future outperform our products in one or more performance attributes, could be offered to our customers as a cheaper alternative to our products or may result in increased pricing pressure on our products. 28 We are dependent on a limited number of customers for a significant portion of our revenues and this dependence is likely to continue.
We are aware of certain companies, including Beijing Easpring Material Technology Co., Ltd. and Ningbo Ronbay Lithium Battery Material Co., Ltd. using cell chemistry technology similar to our technology and these or other companies have introduced or could introduce products that compete directly with our products and could in the future outperform our products in one or more performance attributes, could be offered to our customers as a cheaper alternative to our products or may result in increased pricing pressure on our products. 25 We are dependent on a limited number of customers for a significant portion of our revenues, including international customers across multiple continents, and this dependence is likely to continue.
As discussed in Note 1 to the consolidated financial statements included herein, we had a working capital deficiency, accumulated deficit from recurring net losses incurred for the prior years and significant short-term debt obligations maturing in less than one year as of December 31, 2024. These conditions raise substantial doubt about our ability to continue as a going concern.
As discussed in Note 1 to the consolidated financial statements included herein, we had a working capital deficiency, accumulated deficit from recurring net losses incurred and significant short-term debt obligations maturing in less than one year as of December 31, 2025. These conditions raise substantial doubt about our ability to continue as a going concern.
However, we cannot guarantee that the market demand for the cathode materials and precursors will not decline. Even if a manufacturer decides to use batteries that incorporate our products, the manufacturer may not be able to market and sell its products successfully.
However, we cannot guarantee that the market demand for our products will not decline. Even if a manufacturer decides to use batteries that incorporate our products, the manufacturer may not be able to market and sell its products successfully.
On December 26, 2024, we received notice from the Listing Qualifications Department of Nasdaq indicating that, for the preceding 30 consecutive business days, the bid price for the common stock had closed below the minimum $1.00 per share and as a result, CBAK Energy Technology, Inc. was no longer in compliance with the Nasdaq Listing Rule 5550(a)(2).
On October 1, 2025, we received notice from the Listing Qualifications Department of Nasdaq indicating that, for the preceding 30 consecutive business days, the bid price for the common stock had closed below the minimum $1.00 per share and as a result, CBAK Energy Technology, Inc. was no longer in compliance with the Nasdaq Listing Rule 5550(a)(2).
We currently have insurance coverage for certain machinery and equipment and buildings located at our facilities in Dalian. We are discussing with multiple insurance service providers aiming to secure comprehensive insurance coverage for the remaining properties.
We currently have insurance coverage for certain buildings located at our facilities in Dalian. We are discussing with multiple insurance service providers aiming to secure comprehensive insurance coverage for the remaining properties.
Maintaining our R&D activities and manufacturing operations requires significant capital expenditures, and our inability or failure to maintain our operations could have a material adverse impact on our market share and ability to generate revenue. We incurred capital expenditures of approximately $31.1 million and $17.2 million for the years ended December 31, 2023 and 2024, respectively.
Maintaining our R&D activities and manufacturing operations requires significant capital expenditures, and our inability or failure to maintain our operations could have a material adverse impact on our market share and ability to generate revenue. We incurred capital expenditures of approximately $44.6 million and $17.2 million for the years ended December 31, 2025 and 2024, respectively.
We face intense competition from other battery manufacturers and cathode material and precursor producers, many of which have significantly greater resources. The market for batteries used in electric vehicles and light electric vehicles is intensely competitive and is characterized by frequent technological changes and evolving industry standards. We expect competition to become more intense.
We face intense competition from other battery manufacturers and cathode material and precursor producers, many of which have significantly greater resources. The market for batteries used in residential energy storage & UPS applications, electric vehicles and light electric vehicles is intensely competitive and is characterized by frequent technological changes and evolving industry standards. We expect competition to become more intense.
Other manufacturers of high-power lithium batteries currently include Gotion Hi-tech, EVE Battery, Shandong Goldencell, EVPS and Power Long Battery. Many of these existing competitors have greater financial, personnel, technical, manufacturing, marketing, sales and other resources than we do.
Other manufacturers of high-power lithium batteries currently include Gotion Hi-tech, EVE Battery, Shandong Goldencell, EVPS, Power Long Battery, Great Power, Do-Fluoride, Greenway and Ampace. Many of these existing competitors have greater financial, personnel, technical, manufacturing, marketing, sales and other resources than we do.
We may be required to incur substantial amounts to indemnify our customers in respect of their product quality claims against us, which would materially and adversely affect the results of our operations and severely damage our reputation. We do not have insurance coverage against all the damages or losses of our facilities.
We may be required to incur substantial amounts to indemnify our customers in respect of their product quality claims against us that are not covered by insurance, which would materially and adversely affect the results of our operations and severely damage our reputation. 29 We do not have insurance coverage against all the damages or losses of our facilities.
With respect to the sale of our battery products, we typically offer warranties against any defects due to product malfunction or workmanship for a period of six months-to-five years from the date of purchase, including a period of six to twenty-four months for battery cells, and a period of twelve to twenty-seven months for battery modules for electric bicycles, and a period of three years to five years (or 120,000 or 200,000 km if reached sooner) for battery modules for electric vehicles.
With respect to the sale of our battery products, we typically offer warranties against any defects due to product malfunction or workmanship for a period of six (6) months-to-five (5) years from the date of purchase, including a period of six (6) to twenty-four (24) months for battery cells, and a period of twelve (12) to twenty-seven (27) months for battery modules for electric bicycles, and a period of three (3) years to five (5) years (or 120,000 or 200,000 km if reached sooner) for battery modules for electric vehicles.
Management attention may be diverted from regular business concerns by reorganizations. 35 We and our independent public accounting firm identified material weaknesses in our internal control over financial reporting as of December 31, 2024.
Management attention may be diverted from regular business concerns by reorganizations. 32 We and our independent public accounting firm identified material weaknesses in our internal control over financial reporting as of December 31, 2025.
These factors include: ● our earnings releases, actual or anticipated changes in our earnings, fluctuations in our operating results or our failure to meet the expectations of financial market analysts and investors; ● changes in financial estimates by us or by any securities analysts who might cover the common stock; ● speculation about our business in the press or the investment community; ● significant developments relating to our relationships with our customers or suppliers; ● stock market price and volume fluctuations of other publicly traded companies and, in particular, those that are in our industries; ● customer demand for our products; ● investor perceptions of our industry in general and our company in particular; ● the operating and stock performance of comparable companies; ● general economic conditions and trends; ● major catastrophic events; ● announcements by us or our competitors of new products, significant acquisitions, strategic partnerships or divestitures; ● changes in accounting standards, policies, guidance, interpretation or principles; ● loss of external funding sources; ● sales of our shares, including sales by our directors, officers or significant shareholders; and ● additions or departures of key personnel. 37 In the past, shareholders of a public company often brought securities class action suits against the company following periods of instability in the market price of that company’s securities.
These factors include: ● our earnings releases, actual or anticipated changes in our earnings, fluctuations in our operating results or our failure to meet the expectations of financial market analysts and investors; ● changes in financial estimates by us or by any securities analysts who might cover the common stock; ● speculation about our business in the press or the investment community; ● significant developments relating to our relationships with our customers or suppliers; ● stock market price and volume fluctuations of other publicly traded companies and, in particular, those that are in our industries; ● customer demand for our products; ● investor perceptions of our industry in general and our company in particular; ● the operating and stock performance of comparable companies; ● general economic conditions and trends; ● major catastrophic events; ● announcements by us or our competitors of new products, significant acquisitions, strategic partnerships or divestitures; ● changes in accounting standards, policies, guidance, interpretation or principles; ● loss of external funding sources; ● sales of our shares, including sales by our directors, officers or significant shareholders; and ● additions or departures of key personnel.
Our sales contracts for battery materials typically provide for a non-binding, two-month forecast on the quantity of products that our customers may purchase from us.
Our sales contracts for battery cells typically provide for a non-binding, three (3)-month forecast on the quantity of products that our customers may purchase from us. Our sales contracts for battery materials typically provide for a non-binding, two (2)-month forecast on the quantity of products that our customers may purchase from us.
We have been dependent on a limited number of customers for a significant portion of our revenue. Our top five customers accounted for approximately 66.1% and 65.6% of our revenues for the years ended December 31, 2024 and 2023, respectively.
We have been dependent on a limited number of customers for a significant portion of our revenue. Our top five customers accounted for approximately 66.1% and 37.1% of our revenues for the years ended December 31, 2024 and 2025, respectively.
For the years ended December 31, 2024 and 2023, we derived 44% and 42%, respectively, of our sales from outside the PRC mainland. We deem overseas market as an important revenue source for us, and have been actively pursuing opportunities to expand our customer base overseas.
For the years ended December 31, 2024 and 2025, we derived 44% and 25%, respectively, of our sales from outside the PRC mainland. We deem overseas markets as an important revenue source for us, and have been actively pursuing opportunities to expand our customer base overseas.
Unlike the common law system, prior court decisions may be cited for reference but have limited precedential value. In 1979, the PRC government began to promulgate a comprehensive system of laws, rules and regulations governing economic matters in general.
The PRC legal system is a civil law system based on written statutes. Unlike the common law system, prior court decisions may be cited for reference but have limited precedential value. In 1979, the PRC government began to promulgate a comprehensive system of laws, rules and regulations governing economic matters in general.
Consequently, if our mix of any of these is substantially different from what is anticipated in any particular period, our profitability could be lower than anticipated. Manufacturing or use of our products may cause accidents, which could result in significant production interruption, delay or claims for substantial damages.
Our profit margins vary among products, customers and geographic markets. Consequently, if our mix of any of these is substantially different from what is anticipated in any particular period, our profitability could be lower than anticipated. Manufacturing or use of our products may cause accidents, which could result in significant production interruption, delay or claims for substantial damages.
Investors may experience difficulties in effecting service of legal process, enforcing foreign judgments or bringing original actions in China based upon U.S. laws, including the federal securities laws or other foreign laws against us or our management. All of our current operations are conducted in China. Moreover, most of our current directors and officers are nationals or residents of China.
Investors may experience difficulties in effecting service of legal process, enforcing foreign judgments or bringing original actions in China based upon U.S. laws, including the federal securities laws or other foreign laws against us or our management. Substantially all of our current operations are conducted in China.
All or a substantial portion of the assets of these persons are located outside the United States and in the PRC. As a result, it may not be possible to effect service of process within the United States or elsewhere outside China upon these persons.
Moreover, most of our current directors and officers are nationals or residents of China. All or a substantial portion of the assets of these persons are located outside the United States and in the PRC. As a result, it may not be possible to effect service of process within the United States or elsewhere outside China upon these persons.
However, it is possible that the Company’s filings with the SEC may be subject to enhanced review by the SEC. 20 In response to the SEC’s July 30, 2021 statement, the CSRC announced on August 1, 2021, that “it is our belief that Chinese and U.S. regulators shall continue to enhance communication with the principle of mutual respect and cooperation, and properly address the issues related to the supervision of China-based companies listed in the U.S. so as to form stable policy expectations and create benign rules framework for the market.” The CSRC pledged to continue to collaborate “closely with different stakeholders including investors, companies, and relevant authorities to further promote transparency and certainty of policies and implementing measures,” and emphasized that it “has always been open to companies’ choices to list their securities on international or domestic markets in compliance with relevant laws and regulations.” If any new legislation, executive orders, laws and/or regulations are implemented, if the U.S. or Chinese governments take retaliatory actions due to the recent U.S.-China tension or if the Chinese government exerts more oversight and control over securities offerings that are conducted in the United States, such changes could have an adverse effect on our business, financial condition and results of operations, our ability to raise capital and the value of our securities.
In response to the SEC’s July 30, 2021 statement, the CSRC announced on August 1, 2021, that “it is our belief that Chinese and U.S. regulators shall continue to enhance communication with the principle of mutual respect and cooperation, and properly address the issues related to the supervision of China-based companies listed in the U.S. so as to form stable policy expectations and create benign rules framework for the market.” The CSRC pledged to continue to collaborate “closely with different stakeholders including investors, companies, and relevant authorities to further promote transparency and certainty of policies and implementing measures,” and emphasized that it “has always been open to companies’ choices to list their securities on international or domestic markets in compliance with relevant laws and regulations.” If any new legislation, executive orders, laws and/or regulations are implemented, if the U.S. or Chinese governments take retaliatory actions due to the recent U.S.-China tension or if the Chinese government exerts more oversight and control over securities offerings that are conducted in the United States, such changes could have an adverse effect on our business, financial condition and results of operations, our ability to raise capital and the value of our securities. 18 August 9, 2023, the Biden administration released an executive order and an advanced notice of proposed rule-making (the “ANPRM”) providing a conceptual framework for outbound investment controls focused on China.
To secure acceptance of our products, we must constantly develop and introduce more reliable and cost-effective battery cells and battery materials with enhanced functionality to meet evolving industry standards. We generated approximately $1.7 million revenues from electric vehicle customers in 2024. In 2024, our sales of cathode materials and precursors reached $40.0 million.
To secure acceptance of our products, we must constantly develop and introduce more reliable and cost-effective battery cells and battery materials with enhanced functionality to meet evolving industry standards. We generated approximately $37.2 million revenues from light electric vehicle and electric vehicle customers in 2025. In 2025, our sales of cathode materials and precursors reached $89.2 million.
In addition, changes in political, business, economic and trade relations between the U.S. and China, including the potential for heightened tensions under the current U.S. administration, may trigger negative customer sentiment towards western brands in China, potentially resulting in a negative impact on our business, results of operations and financial condition. 21 There are uncertainties regarding the interpretation and enforcement of PRC laws, rules and regulations.
In addition, changes in political, business, economic and trade relations between the U.S. and China, including the potential for heightened tensions under the current U.S. administration, may trigger negative customer sentiment towards western brands in China, potentially resulting in a negative impact on our business, results of operations and financial condition.
Given that the Trial Measures, Listing Guidelines and Revised Provisions have been introduced recently, and that there remain substantial uncertainties surrounding the enforcement thereof, we cannot assure you that, if required, we would be able to complete the filings and fully comply with the relevant new rules on a timely basis, if at all.
Although the Trial Measures, Listing Guidelines and Revised Provisions have been in effect since March 31, 2023, there remain substantial uncertainties surrounding their enforcement. We cannot assure you that, if required, we would be able to complete the filings and fully comply with the relevant new rules on a timely basis, if at all.
On April 22, 2009, the State Administration of Taxation issued the Notice Concerning Relevant Issues Regarding Cognizance of Chinese Investment Controlled Enterprises Incorporated Offshore as Resident Enterprises pursuant to Criteria of de facto Management Bodies, or the Notice, further interpreting the application of the EIT Law and its implementation non-Chinese enterprise or group controlled offshore entities.
The implementing rules of the EIT Law define de facto management as “substantial and overall management and control over the production and operations, personnel, accounting, and properties” of the enterprise. 21 On April 22, 2009, the State Administration of Taxation issued the Notice Concerning Relevant Issues Regarding Cognizance of Chinese Investment Controlled Enterprises Incorporated Offshore as Resident Enterprises pursuant to Criteria of de facto Management Bodies, or the Notice, further interpreting the application of the EIT Law and its implementation non-Chinese enterprise or group controlled offshore entities.
Moreover, effective internal control over financial reporting is important to prevent fraud. As a result, our business, financial condition, results of operations and prospects, as well as the trading price of our shares, may be adversely affected. Our business has been and may continue to be adversely affected by the outbreaks of viruses or other health epidemics and outbreaks.
Moreover, effective internal control over financial reporting is important to prevent fraud. As a result, our business, financial condition, results of operations and prospects, as well as the trading price of our shares, may be adversely affected.
The statement also addressed risks inherent in companies with VIE structures. We have never adopted a VIE structure and are not in any industry that is subject to foreign ownership limitations by China.
The statement also addressed risks inherent in companies with VIE structures. We have never adopted a VIE structure and are not in any industry that is subject to foreign ownership limitations by China. However, it is possible that the Company’s filings with the SEC may be subject to enhanced review by the SEC.
We face uncertainties as to the reporting and other implications of certain past and future transactions where PRC taxable assets are involved, such as offshore restructuring, sale of the shares in our offshore subsidiaries or investments.
There is uncertainty as to the application of Bulletin 37 or previous rules under Bulletin 7. We face uncertainties as to the reporting and other implications of certain past and future transactions where PRC taxable assets are involved, such as offshore restructuring, sale of the shares in our offshore subsidiaries or investments.
As a result, we may be required to expend valuable resources to comply with Bulletin 37 and Bulletin 7 or to request the relevant transferors from whom we purchase taxable assets to comply with these circulars, or to establish that our company should not be taxed under these circulars, which may have a material adverse effect on our financial condition and results of operations.
As a result, we may be required to expend valuable resources to comply with Bulletin 37 and Bulletin 7 or to request the relevant transferors from whom we purchase taxable assets to comply with these circulars, or to establish that our company should not be taxed under these circulars, which may have a material adverse effect on our financial condition and results of operations. 22 We may be exposed to liabilities under the Foreign Corrupt Practices Act and Chinese anti-corruption laws, and any determination that we violated these laws could have a material adverse effect on our business.
Fluctuations in the exchange rate will also affect the relative value of any dividend we issue that will be exchanged into U.S. dollars, as well as earnings from, and the value of, any U.S. dollar-denominated investments we make in the future. Very limited hedging transactions are available in China to reduce our exposure to exchange rate fluctuations.
Fluctuations in the exchange rate will also affect the relative value of any dividend we issue that will be exchanged into U.S. dollars, as well as earnings from, and the value of, any U.S. dollar-denominated investments we make in the future.
A change in our product mix may cause our results of operations to differ substantially from the anticipated results in any particular period. Our overall profitability may not meet expectations if our products, customers or geographic mix are substantially different than anticipated. Our profit margins vary among products, customers and geographic markets.
In either case, our results of operation would fluctuate from period to period. 28 A change in our product mix may cause our results of operations to differ substantially from the anticipated results in any particular period. Our overall profitability may not meet expectations if our products, customers or geographic mix are substantially different than anticipated.
Any investment in the common stock of CBAK Energy Technology, Inc. could be greatly reduced or even rendered worthless due to such allegations. 38 If we fail to comply with the continued listing requirements of Nasdaq, we would face possible delisting, which would result in a limited public market for shares of CBAK Energy Technology, Inc. and make obtaining future debt or equity financing more difficult for us.
If we fail to comply with the continued listing requirements of Nasdaq, we would face possible delisting, which would result in a limited public market for shares of CBAK Energy Technology, Inc. and make obtaining future debt or equity financing more difficult for us.
Additionally, the Trial Measures stipulate that after an issuer has offered and listed securities in an overseas market, the issuer shall submit a report to the CSRC within three working days after the occurrence and public disclosure of (i) a change of control thereof, (ii) investigations of or sanctions imposed on the issuer by overseas securities regulators or relevant competent authorities, (iii) changes of listing status or transfers of listing segment, and (iv) a voluntary or mandatory delisting. 19 The CSRC Filing Notice states that, beginning from March 31, 2023, PRC domestic enterprises which have already issued and listed securities overseas and fall within the scope of filing under the Trial Measures shall be considered “existing enterprises” (“Existing Listed Enterprises”).
Additionally, the Trial Measures stipulate that after an issuer has offered and listed securities in an overseas market, the issuer shall submit a report to the CSRC within three working days after the occurrence and public disclosure of (i) a change of control thereof, (ii) investigations of or sanctions imposed on the issuer by overseas securities regulators or relevant competent authorities, (iii) changes of listing status or transfers of listing segment, and (iv) a voluntary or mandatory delisting.
Producing additional products to make up for any product shortages within a short time frame may be difficult, making us unable to fill out the purchase orders. In either case, our results of operation would fluctuate from period to period.
Producing additional products to make up for any product shortages within a short time frame may be difficult, making us unable to fill out the purchase orders.
The costs to us to eliminate or alleviate security problems, viruses and bugs, or any problems associated with the outsourced services provided to us, could be significant, and efforts to address these problems could result in interruptions, delays or cessation of service that may impede our production, supply chain, sales, financial reporting or other critical functions and have a material adverse effect on our business, financial condition and results of operations. 33 In addition, the Chinese government and governments in other jurisdictions have enacted laws or regulations that require companies to notify individuals about certain types of security incidents or breaches, and any such disclosures may lead to negative publicity.
The costs to us to eliminate or alleviate security problems, viruses and bugs, or any problems associated with the outsourced services provided to us, could be significant, and efforts to address these problems could result in interruptions, delays or cessation of service that may impede our production, supply chain, sales, financial reporting or other critical functions and have a material adverse effect on our business, financial condition and results of operations.
We currently do not carry insurance to cover any potential claims or expenses related to security breaches that affect us. In addition, we cannot assure investors that the limitations on liability in our contracts would be enforceable or adequate or would otherwise protect us from any such liabilities with respect to any particular claim.
In addition, we cannot assure investors that the limitations on liability in our contracts would be enforceable or adequate or would otherwise protect us from any such liabilities with respect to any particular claim.
Jiangsu Daxin, a subsidiary wholly-owned by Nanjing BFD, incorporated on August 4, 2021 and focused on the development and manufacture of electric bicycle, motorcycle and automotive spare parts, was dissolved on December 22, 2023.
However, the development of this new line of business was not successful due to the competitive landscape and evolving market preferences. Jiangsu Daxin, a subsidiary wholly-owned by Nanjing BFD, incorporated on August 4, 2021 and focused on the development and manufacture of electric bicycle, motorcycle and automotive spare parts, was dissolved on December 22, 2023.
As of December 31, 2024, our ownership had reduced to 67.33% of registered equity interests (representing 72.99% of paid-up capital) as a result of Hitrans’s subsequent equity financings and our sale of certain equity interests in Hitrans. We have fully paid the registered capital of Hitrans that we had subscribed for. Since the acquisition, Hitrans’s revenue has declined.
As of December 31, 2025, our ownership had reduced to 73.46% of registered equity interests (representing 79.64% of paid-up capital) as a result of Hitrans’s subsequent equity financings and our sale of certain equity interests in Hitrans. We have fully paid the registered capital of Hitrans that we had subscribed for.
Any compromise of our security or security breach could result in a violation of applicable privacy and other laws, significant legal and financial exposure or damage to our reputation, which could have a material adverse effect on our business, financial condition, and results of operations.
Any compromise of our security or security breach could result in a violation of applicable privacy and other laws, significant legal and financial exposure or damage to our reputation, which could have a material adverse effect on our business, financial condition, and results of operations. 31 We currently do not carry insurance to cover any potential claims or expenses related to security breaches that affect us.
If we are unable to reverse the declining performance of Hitrans or mitigate associated risks, our operating results could be negatively impacted. Additionally, we have recognized impairment losses for long-lived assets of $0.5 million and $7.1 million for the years ended December 31, 2024 and 2023, respectively.
If we are unable to sustain the recent recovery momentum of Hitrans, our operating results could be negatively impacted. 23 Additionally, we have recognized impairment losses for long-lived assets of $0.5 million and nil for the years ended December 31, 2024 and 2025, respectively.
Consequently, Nanjing BFD has shifted away from the development and manufacture of electric bicycles, motorcycles and automotive spare parts and pivoted towards the manufacture of sodium-ion batteries since 2023.
Nanjing BFD has shifted away from the development and manufacture of electric bicycles, motorcycles and automotive spare parts and pivoted towards the manufacture of sodium-ion batteries since 2023. Beginning in 2025, Nanjing BFD’s primary operational focus shifted to battery pack assembly.
Any of these factors could adversely affect our business, financial condition, and results of operations. We face risks associated with the marketing, distribution and sale of our products internationally, and if we are unable to effectively manage these risks, they could impair our ability to expand our business abroad.
We face risks associated with the marketing, distribution and sale of our products internationally, including in new markets such as Africa, and if we are unable to effectively manage these risks, they could impair our ability to expand our business abroad.
There is a possibility that we may be deemed as an Existing Listed Enterprise as defined under the CSRC Filing Notice, and that future offerings of listed securities or listings outside China by us may be subject to CSRC filing requirements in accordance with the Trial Measures.
Existing Listed Enterprises are not required to complete filings immediately; rather, Existing Listed Enterprises should complete filings if they are subsequently involved in matters require filings, such as follow-on financing activities, in accordance with the Trial Measures. 17 There is a possibility that we may be deemed as an Existing Listed Enterprise as defined under the CSRC Filing Notice, and that future offerings of listed securities or listings outside China by us may be subject to CSRC filing requirements in accordance with the Trial Measures.
In addition, our foreign currency exchange losses may be magnified by PRC exchange control regulations that restrict our ability to convert RMB into foreign currencies. As a result, fluctuations in exchange rates may have a material adverse effect on your investment.
If these hedging strategies are ineffective, or if our foreign currency exchange losses are magnified by PRC exchange control regulations that restrict our ability to convert RMB into foreign currencies, fluctuations in exchange rates may have a material adverse effect on our financial condition, results of operations, and your investment.
Substantially all of our operations are conducted in the PRC, and are governed by PRC laws, rules and regulations. Our PRC subsidiaries are subject to laws, rules and regulations applicable to foreign investment in China. The PRC legal system is a civil law system based on written statutes.
There are uncertainties regarding the interpretation and enforcement of PRC laws, rules and regulations. Substantially all of our operations are conducted in the PRC, and are governed by PRC laws, rules and regulations. Our PRC subsidiaries are subject to laws, rules and regulations applicable to foreign investment in China.
As the Company continues to focus on innovation and renovation of its products, the Company’s business, financial condition or results of operations could be adversely affected in the event that the Company is not able to effectively develop and introduce new or renovated products and line or brand extensions. 27 Our failure, if any, to keep up with rapid technological changes and evolving industry standards may cause our products to become obsolete and less marketable, resulting in loss of market share to our competitors.
As the Company continues to focus on innovation and renovation of its products, the Company’s business, financial condition or results of operations could be adversely affected in the event that the Company is not able to effectively develop and introduce new or renovated products and line or brand extensions.
In the event that our acquisition of other companies in China falls within the scope of these regulations, compliance with these regulations to complete such transactions could be time-consuming, and any required approval processes, including approval from the MOFCOM, may delay or inhibit our ability to complete such transactions, which could affect our ability to expand our business or maintain our market share. 22 CBAK Energy Technology, Inc., as a holding company incorporated in Nevada, the United States, without material operations of its own, relies on dividends and other distributions on equity paid by its PRC operating subsidiaries for its cash needs.
In the event that our acquisition of other companies in China falls within the scope of these regulations, compliance with these regulations to complete such transactions could be time-consuming, and any required approval processes, including approval from the MOFCOM, may delay or inhibit our ability to complete such transactions, which could affect our ability to expand our business or maintain our market share.
Accordingly, our financial condition and results of operations are affected to a significant extent by the economic, political and legal developments in the PRC. The PRC economy differs from the economies of most developed countries in many respects, including the extent of government involvement, level of development, growth rate, and control of foreign exchange and allocation of resources.
The PRC economy differs from the economies of most developed countries in many respects, including the extent of government involvement, level of development, growth rate, and control of foreign exchange and allocation of resources. The PRC government has implemented various measures to encourage economic growth and to guide the allocation of resources.
Both Bulletin 37 and Bulletin 7 do not apply to transactions of sale of shares by investors through a public stock exchange where such shares were acquired from a transaction through a public stock exchange. 25 There is uncertainty as to the application of Bulletin 37 or previous rules under Bulletin 7.
Late payment of applicable tax will subject the transferor to default interest. Both Bulletin 37 and Bulletin 7 do not apply to transactions of sale of shares by investors through a public stock exchange where such shares were acquired from a transaction through a public stock exchange.
As a result, defects in our products could result in a loss of customers and decrease in revenue, unexpected expenses and a loss of market share, and any of our products are found to have reliability, quality or compatibility problems, we will be required to accept returns, provide replacements, provide refunds, or pay damages.
Furthermore, if any of our products are found to have reliability, quality or compatibility problems, we will be required to accept returns, provide replacements, provide refunds, or pay damages.
A weak or declining economy could also impact third parties upon whom we depend to run our business. Increasing concerns over bank failures and bailouts and their potential broader effects and potential systemic risk on the global banking sector generally and its participants may adversely affect our access to capital and our business and operations more generally.
Increasing concerns over bank failures and bailouts and their potential broader effects and potential systemic risk on the global banking sector generally and its participants may adversely affect our access to capital and our business and operations more generally. ITEM 1B. UNRESOLVED STAFF COMMENTS. Not applicable.
The marketing, international distribution and sale of our products expose us to a number of risks, including: ● fluctuations in currency exchange rates; ● difficulty in engaging and retaining distributors that are knowledgeable about, and can function effectively in, overseas markets; ● increased costs associated with maintaining marketing efforts in various countries; ● difficulty and cost relating to compliance with the different commercial and legal requirements of the overseas markets in which we offer our products; ● inability to obtain, maintain or enforce intellectual property rights; and ● trade barriers such as export requirements, tariffs, taxes and other restrictions and expenses, which could increase the prices of our products and make us less competitive in some countries. 34 Our business depends substantially on the continuing efforts of our senior executives and other key personnel, and our business may be severely disrupted if we lose their services.
The marketing, international distribution and sale of our products expose us to a number of risks, including: ● fluctuations in currency exchange rates; ● difficulty in engaging and retaining distributors that are knowledgeable about, and can function effectively in, overseas markets; ● increased costs associated with maintaining marketing efforts in various countries; ● difficulty and cost relating to compliance with the different commercial and legal requirements of the overseas markets in which we offer our products; 26 ● inability to obtain, maintain or enforce intellectual property rights; ● trade barriers such as export requirements, tariffs, taxes and other restrictions and expenses, which could increase the prices of our products and make us less competitive in some countries; ● geopolitical instability, armed conflict, terrorism, sanctions, and trade restrictions affecting markets in which we or our customers operate, including, but not limited to, the ongoing conflict in the Middle East and related disruptions to global trade and logistics; and ● operational and logistical challenges particular to emerging markets, including infrastructure limitations, political instability, less predictable legal and regulatory environments, and challenges in establishing effective distribution, servicing, and warranty support networks.
This could have a material adverse effect on our business, financial condition and results of operations. We do not have product liability insurance for claims against our product quality. Defects in our products could result in a loss of customers and decrease in revenue, unexpected expenses and a loss of market share.
While certain of our subsidiaries maintain product liability insurance, we do not maintain comprehensive product liability insurance across all our operations to cover all claims against our product quality. Defects in our products could result in a loss of customers and decrease in revenue, unexpected expenses and a loss of market share.
The audited consolidated financial statements included in this report do not include any adjustments that might result from the outcome of this uncertainty. The acquisition of a controlling Interest in Hitrans has not fully delivered the anticipated benefits, as its financial performance has fallen short of initial expectations.
The audited consolidated financial statements included in this report do not include any adjustments that might result from the outcome of this uncertainty.
We provide a reserve for these potential warranty expenses, which is based on an analysis of historical warranty issues. There is no assurance that future warranty claims will be consistent with past history, and in the event that we experience a significant increase in warranty claims, there is no assurance that our reserves will be sufficient.
There is no assurance that future warranty claims will be consistent with past history, and in the event that we experience a significant increase in warranty claims, there is no assurance that our reserves will be sufficient. This could have a material adverse effect on our business, financial condition and results of operations.
Our financial condition and results of operations could be materially and adversely affected by government control over capital investments or changes in tax regulations that are applicable to us. However, the PRC government has actively encouraged foreign capital to invest in China and has an open mindset welcoming a free-market economy in areas unrelated to military and national security.
However, the PRC government has actively encouraged foreign capital to invest in China and has an open mindset welcoming a free-market economy in areas unrelated to military and national security.
To date, we have not entered into any hedging transactions. While we may enter into hedging transactions in the future, the availability and effectiveness of these transactions may be limited, and we may not be able to successfully hedge our exposure at all.
Additionally, Hitrans entered into commodity contracts to mitigate raw materials price fluctuations. However, the availability and effectiveness of these hedging transactions may still be limited, and we may not be able to successfully hedge all of our exposure.
GENERAL RISK FACTORS We may be exposed to infringement or misappropriation claims by third parties, which, if determined adversely to us, could cause our loss of significant rights and inability to continue providing our existing product offerings.
Accordingly, you should review our SEC reports, filings and our other public pronouncements with the understanding that no local regulator has done any due diligence on our company and with the understanding that none of our SEC reports, other filings or any of our other public pronouncements has been reviewed or otherwise been scrutinized by any local regulator. 35 GENERAL RISK FACTORS We may be exposed to infringement or misappropriation claims by third parties, which, if determined adversely to us, could cause our loss of significant rights and inability to continue providing our existing product offerings.
Our ability to effectively run our business could be adversely affected by general conditions in the global economy and in the financial services industry. Although the U.S.
Our ability to effectively run our business could be adversely affected by general conditions in the global economy and in the financial services industry. Various macroeconomic factors could adversely affect our business, including fears concerning the banking sector, changes in inflation, interest rates and overall economic conditions and uncertainties.
We have not purchased product liability insurance to provide against any claims against us based on our product quality.
Certain of our subsidiaries maintain product liability insurance, but we do not maintain comprehensive product liability insurance across all our operations to provide against all claims against us based on our product quality.
If one or more of our other senior executives are unable or unwilling to continue to work for us in their present positions, we may encounter similar problems, but on a compounded basis. Moreover, if any of our current or former senior executives joins a competitor or forms a competing company, we may lose customers, suppliers, know-how and key personnel.
In particular, we rely on the expertise and experience of our Chief Executive Officer, Mr. Zhiguang Hu and our Chief Financial Officer, Mr. Jiewei Li. If one or more of our other senior executives are unable or unwilling to continue to work for us in their present positions, we may encounter similar problems, but on a compounded basis.
If this market fails to achieve our expected level of growth, we may have excess production capacity and may not be able to generate enough revenue to maintain our profitability. 29 Our success, in part, depends on the success of manufacturers of the end applications that use our products, and our failure to gain acceptance of our products from such manufacturers could materially and adversely affect our results of operations and profitability.
However, the markets we have targeted, primarily those in the PRC, may not achieve the level of growth we expect. If this market fails to achieve our expected level of growth, we may have excess production capacity and may not be able to generate enough revenue to maintain our profitability.
Therefore, there are substantial uncertainties on whether the outbound foreign direct investment review program will have a material impact on our business, results of operations, financial condition, and prospects. On the other hand, the United States and China have imposed new or higher tariffs on goods imported from each other, including tariff increases announced by both countries in early 2025.
Since early 2025, the United States and China have imposed new or higher tariffs on goods imported from each other, including tariff increases announced by both countries.
On the other hand, our competitors may improve their technologies or even achieve technological breakthroughs that would render our products obsolete or less marketable.
R&D activities, however, are inherently uncertain, and we might encounter practical difficulties in commercializing our research results. Accordingly, our significant investment in our R&D infrastructure may not bear fruit. On the other hand, our competitors may improve their technologies or even achieve technological breakthroughs that would render our products obsolete or less marketable.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeIn the fiscal year ended December 31, 2024, we did not identify any cybersecurity threats that have materially affected or are reasonably likely to materially affect our business strategy, results of operations or financial condition. However, despite our efforts, we cannot eliminate all risks from cybersecurity threats, or provide assurances that we have not experienced undetected cybersecurity incidents.
Biggest changeIn the fiscal year ended December 31, 2025, we did not identify any cybersecurity threats that have materially affected or are reasonably likely to materially affect our business strategy, results of operations or financial condition. However, despite our efforts, we cannot eliminate all risks from cybersecurity threats, or provide assurances that we have not experienced undetected cybersecurity incidents.
Any failure, inadequacy, interruption or security failure of those systems could have a material adverse effect on our business, reputation and brand, financial condition, and results of operations ” and “ Risks Related to Our Business—System security risk issues, and disruption of our internal operations or information technology systems, could have a material adverse effect on our business, financial condition, and results of operations ” in Item 1A-Risk Factors. 41
Any failure, inadequacy, interruption or security failure of those systems could have a material adverse effect on our business, reputation and brand, financial condition, and results of operations ” and “ Risks Related to Our Business—System security risk issues, and disruption of our internal operations or information technology systems, could have a material adverse effect on our business, financial condition, and results of operations ” in Item 1A-Risk Factors. 36

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThis space includes 12,000 square meters allocated for production purposes, specifically aimed at expanding our capacity to manufacture model 26700 cells. This strategic move is in response to the escalating demand for our battery products. Additionally, Nanjing BFD has leased a property covering 548 square meters.
Biggest changeThe construction was in progress with a total area of 34,522 square meters. In July 2023, we secured a rental agreement for a facility in Shangqiu, Henan, PRC, spanning an area of 22,000 square meters. This space includes 12,000 square meters allocated for production purposes, specifically aimed at expanding our capacity to manufacture model 26700 cells.
Business—Overview of Our Business—Expansion of Manufacturing Capabilities ” for more information related to the construction of our Nanjing facilities. We currently have insurance coverage for certain machinery, equipment and buildings located at our owned facilities. We are discussing with multiple insurance service providers aiming to secure comprehensive insurance coverage for the remaining properties.
Business—Overview of Our Business—Expansion of Manufacturing Capabilities ” for more information related to the construction of our Nanjing facilities. We currently have insurance coverage for certain buildings located at our facilities in Dalian. We are discussing with multiple insurance service providers aiming to secure comprehensive insurance coverage for the remaining properties.
ITEM 2. PROPERTIES. We have completed the construction of the facilities in our Dalian site with a total area of 72,809 square meters comprising manufacturing facilities, warehousing and packaging facilities and administrative offices at the BAK Industrial Park in Dalian. Of that space, approximately 35,355 square meters are manufacturing facilities.
ITEM 2. PROPERTIES. We have completed the construction of the facilities in our Dalian site with a total area of 83,584 square meters comprising manufacturing facilities, warehousing and packaging facilities and administrative offices at the BAK Industrial Park in Dalian. Of that space, approximately 55,463 square meters are manufacturing facilities.
Our power battery manufacturing plant and packing plant in Dalian started commercial production in July 2015. We have completed the construction facilities for the Phase One of our Nanjing site, which occupies an area of 27,141 square meters. In November 2021, the Company completed the acquisition of Hitrans.
We have completed the construction facilities for the Phase One of our Nanjing site, which occupies an area of 27,141 square meters. The Phase Two of our Nanjing site occupies an area of 61,434 square meter, includes 53,854 square meters of manufacturing facilities. In November 2021, the Company completed the acquisition of Hitrans.
Facility Usage Area (m 2 ) Constructions completed – facilities owned Manufacturing 43,875 R&D and administrative 10,659 Warehousing 16,879 Other facilities 15,169 Total 86,582 Constructions–completed - facilities rented Manufacturing 36,743 Warehousing 13,263 Administrative 6,414 Other facilities 5,000 Total 61,420 The following table presents the total acreage of facilities controlled by each of our major operating subsidiaries as of December 31, 2024: Area (m 2 ) Dalian CBAK Power facilities site area Total 72,810 Nanjing CBAK facility site area Total 27,135 Nanjing BFD facilities site area Total 4,285 Hitrans facilities site area Total 13,772 Shangqiu facilities site area Total 30,000 See also “ Item 1.
Facility Usage Area (m 2 ) Constructions completed – facilities owned Manufacturing 65,667 R&D and administrative 98,815 Warehousing 20,443 Other facilities 5,186 Total 190,111 Constructions–completed - facilities rented Manufacturing 98,080 Warehousing 12,798 Administrative 6,414 Other facilities 6,307 Total 117,185 The following table presents the total acreage of facilities controlled by each of our major operating subsidiaries as of December 31, 2025: Area (m 2 ) Dalian CBAK Power facilities site area Total 83,584 Nanjing CBAK facility site area Total 88,575 Nanjing BFD facilities site area Total 6,610 Hitrans facilities site area Total 106,527 Shangqiu facilities site area Total 22,000 See also “ Item 1.
Hitrans owns a manufacturing facility, warehousing, R&D and administrative offices in Zhejiang with a total area of 13,772 square meters. Of that space, approximately 10,660 square meters are manufacturing facilities. In July 2023, we secured a rental agreement for a facility in Shangqiu, Henan, PRC, spanning an area of 22,000 square meters.
Hitrans owns a manufacturing facility, warehousing, R&D and administrative offices in Zhejiang with a total area of 72,005 square meters. Of that space, approximately 10,204 square meters are manufacturing facilities. Yuanchuang acquired a land use right on May 13, 2025 to build a factory in Anhui, PRC for cathode materials manufacturing.
We believe that our facilities, including those under construction, meet our current business needs and will meet the needs of our expanded operations in the future. The following tables sets forth the breakdown of our facilities as of December 31, 2024 based on use.
The following tables sets forth the breakdown of our facilities as of December 31, 2025 based on use.
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In addition, our subsidiary, Hitrans, maintains property insurance coverage against certain property and inventory damages and losses. If we were to suffer any losses or damages to any of the facilities before purchasing insurance policies that provide adequate coverage, our business, financial condition and results of operations may be materially and adversely affected.
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Our power battery manufacturing plant and packing plant in Dalian started commercial production in July 2015. In 2025, we further expanded our Dalian operations by constructing two additional buildings. Construction for these two new facilities commenced on March 23, 2025, and was completed on November 10, 2025.
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This strategic move is in response to the escalating demand for our battery products. Additionally, Nanjing BFD has leased a property covering 6,610 square meters. We believe that our facilities, including those under construction, meet our current business needs and will meet the needs of our expanded operations in the future.
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In addition, our subsidiary, Hitrans, maintains property insurance coverage against certain property and inventory damages and losses. See also “ Risk Factors—Risks Related to Our Business—While certain of our subsidiaries maintain product liability insurance, we do not maintain comprehensive product liability insurance across all our operations to cover all claims against our product quality.
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Defects in our products could result in a loss of customers and decrease in revenue, unexpected expenses and a loss of market share .”

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeMarket Information Effective June 21, 2019, the Company’s Common Stock started trading on the Nasdaq under the symbol “CBAT.” Approximate Number of Holders of Our Common Stock As of March 14, 2025, there were approximately 50 holders of record of our common stock, which do not include the number of stockholders holding shares of our common stock in “street name.” Dividend Policy We have never declared or paid any dividends, nor do we have any present plan to pay any cash dividends on our common stock in the foreseeable future.
Biggest changeMarket Information Effective June 21, 2019, the Company’s Common Stock started trading on the Nasdaq under the symbol “CBAT.” Approximate Number of Holders of Our Common Stock As of March 25, 2026, there were approximately 48 holders of record of our common stock, which do not include the number of stockholders holding shares of our common stock in “street name.” Dividend Policy We have never declared or paid any dividends, nor do we have any present plan to pay any cash dividends on our common stock in the foreseeable future.
Recent Sales of Unregistered Securities There were no unregistered sales of equity securities during the 2024 fiscal year that were not previously disclosed in a quarterly report on Form 10-Q or a current report on Form 8-K that was filed during the 2024 fiscal year.
Recent Sales of Unregistered Securities There were no unregistered sales of equity securities during the 2025 fiscal year that were not previously disclosed in a quarterly report on Form 10-Q or a current report on Form 8-K that was filed during the 2025 fiscal year.
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Purchases of Equity Securities No repurchases of our common stock were made during the fiscal year of 2024. ITEM 6. [RESERVED] 43
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Issuer Purchases of Equity Securities Our common stock repurchase activity for the three months ended December 31, 2025 was as follows: Period Total Number of Shares Purchased Average Price Paid Per Share(1) Total Number of Shares Purchased as Part of Publicly Announced Plan Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan(2) October 1, 2025 to October 31, 2025 - $ - - $ 18,499,765 November 1, 2025 to November 30, 2025 - - - $ 18,499,765 December 1, 2025 to December 31, 2025 - - - $ 18,499,765 Total - $ - - $ 18,499,765 (1) Average price paid per share excludes broker commissions and fees.
Added
(2) On May 20, 2025, our board of directors authorized the repurchase of up to $20 million in shares of our outstanding common stock. The stock repurchase program will end on May 20, 2026 and may be suspended, modified, or discontinued by the board of directors at any time. ITEM 6. [RESERVED] 38

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeOverview We are engaged in the development, manufacture and sale of new energy high power lithium and sodium batteries, as well as cathode materials and precursors for lithium batteries, which are mainly used in the following applications: ● Electric vehicles (“EV”), such as electric cars, electric buses, hybrid electric cars and buses; ● Light electric vehicles (“LEV”), such as electric bicycles, electric motors, electric tricycles and smaller-sized electric cars; and ● Energy storage including but not limited to residential energy supply & uninterruptible power supply application, and other high-power applications.
Biggest changeThese highly engineered products are strategically targeted for deployment across the following primary sectors: ● Electric vehicles (“EV”), such as electric cars, electric buses, hybrid electric cars and buses; ● Light electric vehicles (“LEV”), such as electric bicycles, electric motors, electric tricycles and smaller-sized electric cars; and ● Energy storage including but not limited to residential energy supply & uninterruptible power supply application, and other high-power applications.
In addition, our latest development of Model 32140 and 40135 battery and our planned investment in the R&D of Series 46 batteries will help us regain competitiveness in the energy storage, LEV and EV markets with the appropriate products. With the demand for new energy growing, we are confident in our ability to secure additional orders from the expanding market.
In addition, our latest development of Model 32140 and 40135 battery and our planned investment in the R&D of Series 60 batteries will help us regain competitiveness in the energy storage, LEV and EV markets with the appropriate products. With the demand for new energy growing, we are confident in our ability to secure additional orders from the expanding market.
Business—Overview of Our Business .” Specifically, total net revenue from sales of batteries for residential energy supply and uninterruptable supplies was $124.6 million for the fiscal year ended December 31, 2024, as compared to $124.5 million for fiscal year ended December 31, 2023.
Business—Overview of Our Business .” Specifically, total net revenue from sales of batteries for residential energy supply and uninterruptable supplies was $68.8 million for the fiscal year ended December 31, 2025, as compared to $124.6 million for fiscal year ended December 31, 2024.
We generated revenues from the manufacture and sale of high-power lithium and sodium batteries as well as raw materials for lithium batteries in the aggregate amounts of $176.6 million and $204.4 million for the fiscal years ended December 31, 2024 and 2023, respectively.
We generated revenues from the manufacture and sale of high-power lithium and sodium batteries as well as raw materials for lithium batteries in the aggregate amounts of $176.6 million and $195.2 million for the fiscal years ended December 31, 2024 and 2025, respectively.
Net revenue from sales of cathode materials and precursors was $40.0 million for the fiscal year ended December 31, 2024, as compared to $71.4 million for fiscal year ended December 31, 2023.
Net revenue from sales of cathode materials and precursors was $89.2 million for the fiscal year ended December 31, 2025, as compared to $40.0 million for fiscal year ended December 31, 2024.
In addition, net revenues from sales of batteries for light electric vehicles was $10.3 million for the fiscal year ended December 31, 2024, as compared to $5.6 million for fiscal year ended December 31, 2023, an increase of $4.7 million, or 84%.
In addition, net revenues from sales of batteries for light electric vehicles was $36.4 million for the fiscal year ended December 31, 2025, as compared to $10.3 million for fiscal year ended December 31, 2024, an increase of $26.0 million, or 252%.
As of December 31, 2024, our equity interests in Hitrans had reduced to 67.33% (representing 72.99% of paid-up capital) after Hitrans accepted investments from several investors. See “
As of December 31, 2025, our equity interests in Hitrans had reduced to 73.46% (representing 79.64% of paid-up capital) after Hitrans accepted investments from several investors. See “
We incurred a net income of $9.6 million and a net loss $8.5 million during the fiscal years ended December 31, 2024 and 2023, respectively.
We recorded a net income of $9.6 million and a net loss $11.0 million during the fiscal years ended December 31, 2024 and 2025, respectively.
See “Special Note Regarding Forward Looking Statements” above for certain information concerning those forward-looking statements. Our financial statements are prepared in U.S. dollars and in accordance with U.S. GAAP.
See “Special Note Regarding Forward Looking Statements” above for certain information concerning those forward-looking statements. Our financial statements are prepared in U.S. dollars and in accordance with U.S. GAAP. Overview Our core operations encompass the comprehensive research, development, manufacturing, and commercialization of advanced energy solutions.
We are confident that our battery segment will continue to improve its profitability as we move forward. 44 We acquired 81.56% of registered equity interests (representing 75.57% of paid-up capital) in Hitrans, a leading developer and manufacturer of NCM precursor and cathode materials in China, in November 2021.
Moving forward, we anticipate this highly optimized capacity expansion will drive sustained margin expansion and profitability across our battery segment. 39 We acquired 81.56% of registered equity interests (representing 75.57% of paid-up capital) in Hitrans, a leading developer and manufacturer of NCM precursor and cathode materials in China, in November 2021.
In 2024, demand for our model 26650 lithium-ion batteries, manufactured at our Dalian facilities, has gradually declined, as the model has been on the market since 2006 and is relatively outdated. In contrast, demand for our model 31240, produced at our Nanjing facilities, has exceeded supply.
During 2025, market demand for our Dalian-manufactured model 26650 lithium-ion batteries gradually contracted, reflecting the natural lifecycle of a product introduced in 2006. In contrast, demand for our model 32140 cells, produced in Nanjing, heavily exceeded available supply.
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To address these shifting demands, we are enhancing our product portfolio at the Dalian manufacturing center by introducing the model 40135. Additionally, we are expanding the capacity of our Nanjing facilities by adding two new production lines as part of Phase II construction.
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Operating as a vertically integrated manufacturer, our portfolio spans upstream active materials—specifically lithium-ion precursors and cathode materials—through the production of high-power lithium-ion and sodium-ion cells, and the final assembly of turnkey battery systems.
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Currently, we have three production lines in our Dalian manufacturing center, with a total capacity of 1 GWh per year. In Nanjing, our Phase I project has two production lines, capable of producing 1.3 GWh per year.
Added
To capitalize on these market shifts, we are updating the Dalian facility's portfolio with the introduction of the model 40135, while expanding the Nanjing facility's output through our Phase II line additions.
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Additionally, we have two production lines in our Shangqiu manufacturing center, which we have rented to meet the high client demand, with a total capacity of 0.5 GWh per year.
Added
Currently, the Dalian center houses three model 26650 production lines (1.0 GWh annual capacity) and one new model 40135 line (2.3 GWh annual capacity) that is actively ramping up. In Nanjing, our Phase I lines deliver 1.5 GWh of model 32140 cells annually, while the two higher-speed Phase II lines provide an additional 3.0 GWh.
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We completed the construction of a cylindrical power battery manufacturing plant in Dalian, which began commercial production in July 2015. In addition to the Model 26650 batteries manufactured in Dalian, we are procuring equipment for a new production line for a larger-sized cylindrical battery, Model 40135.
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Furthermore, we currently lease a manufacturing center in Shangqiu, operating two production lines that yield 0.5 GWh of model 26700 cells annually. Model 26700 is a variant to model 26650, and is suitable to backup battery units (“BBU”) at data centers.
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We believe that the trial production will commence by May 2025, and the mass production will commence in the second half of 2025. In 2020, we initiated the construction of our Nanjing facilities, planned in two phases. The Phase I commenced operations in the second half of 2021, covering an area of approximately 27,173 square meters.
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The Dalian manufacturing center, which originally commenced commercial operations in July 2015, currently maintains two legacy production lines yielding an annual capacity of 1.0 GWh for our model 26650 cells. To execute our next-generation expansion strategy, we have successfully completed the construction of a new, large-format cylindrical cell production line dedicated to the model 40135.
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Since then, we have been steadily increasing its production capacity to 1.3 GWh. Construction of the Phase II began in 2022 and includes three major manufacturing plants. The construction of the ceiling stage for the first of the three plants in Phase II was successfully completed in 2023.
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This advanced line adds 2.3 GWh of design capacity and is currently undergoing its production ramp-up phase, with the facility projected to achieve its maximum aggregate capacity of 3.3 GWh by early 2027. In 2020, we initiated a two-phase construction strategy for our Nanjing manufacturing campus.
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We are now preparing for equipment installation to stay on track for trial production by May 2025, followed by mass production in the second half of 2025. Once fully operational with these three new plants, the Nanjing facilities are expected to provide a total capacity of approximately 20 GWh, supporting the growing demand from our customers.
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Phase I commenced operations in the second half of 2021, encompassing approximately 27,173 square meters, and has since steadily scaled to an annualized production capacity of 1.5 GWh. Construction of Phase II, which comprises three primary manufacturing plants, began in 2022. We are currently deploying production infrastructure within the first of these three Phase II plants.
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In 2023, our client demand for batteries soared, prompting us to rent additional manufacturing space in Shangqiu, Henan, PRC. Our Shangqiu facility has a capacity of 0.5 GWh per year. We have two production lines at this leased facility, and the renovation costs were covered by the owner.
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Following rigorous equipment installation and commissioning protocols in 2025, we officially commenced operations for two new production lines yielding a combined annual capacity of 3.0 GWh. We project these lines will complete their operational ramp-up and achieve maximum capacity utilization by early 2027.
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Additionally, subject to meeting certain criteria, the rental expenses can be offset by the taxes incurred. In addition to our construction efforts, we have also invested in machinery and equipment to expand our production capacity. Thanks to the booming demand from our clients, our battery segment has successfully returned to profitability since 2023.
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Upon the full operational integration of all three Phase II plants, the aggregate capacity of the Nanjing campus is projected to reach approximately 20 GWh, systematically addressing escalating client demand. Furthermore, driven by surging order volumes in 2023, we executed a strategic lease for supplemental manufacturing space in Shangqiu, Henan Province, PRC.
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This facility operates two production lines dedicated to our model 26700 cells—an advanced variant of the 26650 with an architecture suitable for data center uninterruptible power supply (UPS) applications—providing 0.5 GWh of annual capacity.
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Notably, capital improvement costs for this facility were fully absorbed by the lessor, and subject to specific regulatory criteria, applicable lease expenditures are eligible for local tax offsets.

Other CBAT 10-K year-over-year comparisons