CBAK Energy announces Hitrans’s revenues reach almost $100M in first nine months of 2021 before acquisition closes, four times their own revenues in same period.
CBAK Energy Technology, Inc. (NASDAQ: CBAT) (“CBAK Energy,” or the “Company”), a leading lithium-ion battery manufacturer and electric energy solution provider in China, announced financial highlights of Zhejiang Hitrans Lithium Battery Technology Co. (“Hitrans”), a leading lithium-ion battery material supplier in China that CBAK Energy has completed an acquisition of 81.56% of its equity stake, for the first nine months of 2021.
Hitrans’s revenues were $97.9 million in the first three quarters of 2021, roughly four times CBAK Energy’s revenues in the same period.
Hitrans generated a gross profit of $11.0 million, about 2.7 times the gross profit of CBAK Energy in the same period. Its operating profit was $4.2 million. More detailed financial data of Hitrans can be accessed on the 8K filing filed by the Company to the Securities and Exchange Commission on March 17, 2022.
| First Nine Months of 2021 ($) | |
| Hitrans | |
| Revenues | 97,875,308 |
| Gross Profit | 10,963,386 |
| Operating Profit (Loss） | 4,229,511 |
Considering the transaction was closed on November 29, 2021, Hitrans’s financial performance before the closing date will not be incorporated into CBAK Energy’s financial results for the 2021 fiscal year.
Hitrans’s results for the first nine months of 2021 are provided for a better understanding of its financial performance, and its excellent results are expected to significantly increase CBAK Energy’s financial results in 2022 and beyond.
After the acquisition, CBAK Energy just replaced some financial and administration personnel of Hitrans while other team members, including technical and sales personnel, remained the same to continue their support for the business growth of the unit.
Hitrans mainly focuses on the production and sales of NCM precursors and cathode materials for lithium batteries.
Building upon its superior performance and cutting-edge technologies, Hitrans has become one of small and medium-sized enterprises that dominate major markets in niche sectors with increased financial and tax support and enhanced credit policies from the government, which allows such companies to further innovate and grow into “little giants.”
Such a small and medium-sized enterprise with a considerable amount of government support is therefore a factor that numerous Chinese investors will evaluate when selecting investment targets of great potential growth. At present, Hitrans’s main customers include:
– A subsidiary of the world’s largest producer of batteries for electric vehicles;
– China’s largest cylindrical lithium-ion battery manufacturer;
– The world’s leading manufacturer of soft-pack power and energy storage batteries;
– China’s leading supplier of cathode materials for lithium-ion batteries;
Mr. Yunfei Li, Chief Executive Officer of CBAK Energy commented:
Apart from bringing a new main business line to the Company, the Hitrans acquisition was a result of our strategies for long-term growth in the battery industry.
“As the demand for electrification continues to rise, the adoption of electric vehicles will also expedite, which will then promote the market for batteries and their raw materials. The acquisition of Hitrans will enable us to build a powerful battery ecosystem where a stable supply of raw materials is secured for ongoing battery innovations and development.”
“Moreover, its stellar financial performance demonstrates that we made the right decision. Going forward, we are more confident in our capabilities for capturing opportunities in an ever-growing market while delivering lasting value to all our shareholders.”
About CBAK Energy
CBAK Energy Technology, Inc. is a leading high-tech enterprise in China engaged in the development, manufacturing, and sales of new energy high power lithium batteries.
The applications of the Company’s products and solutions include electric vehicles, light electric vehicles, electric tools, energy storage, uninterruptible power supply (UPS), and other high-power applications.
In January 2006, CBAK Energy became the first lithium battery manufacturer in China listed on the Nasdaq Stock Market. CBAK Energy has multiple operating subsidiaries in Dalian and Nanjing, as well as a large-scale R&D and production base in Dalian.
For more information, please visit www.cbak.com.cn.
About Hitrans
Zhejiang Hitrans Lithium Battery Technology Co. is a leading developer and manufacturer of ternary precursor and cathode materials in China, with a mission to become the world’s first-class producer of cathode materials for new energy lithium batteries.
The Company’s products have a wide range of applications, including electric vehicles, electric tools, high-end digital products, storage, etc. Hitrans has more than 50 authorized patents or accepted patent applications, and is dedicated to the advancement of cutting-edge technologies for sustainable development and growth.
For more information, please visit http://www.chinahitrans.com/en.
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CBAK Energy Announces Hitrans’s Revenues Reach Almost $100 Million in First Nine Months of 2021 Before Acquisition Closes, Four Times Their Own Revenues in Same Period, DALIAN, China, March 17, 2022
