CBAK Energy Technology, Inc. (CBAT) has seen a push of 1.68% in premarket after the company released third-quarter results in 2021. However, the last trading session concluded at $2.38 with an incline of 1.71%.
Third Quarter Results in 2021
CBAT reported third-quarter 2021 results on 12th November 2021. Net profit was $9.6 million. Moreover, the Company did not have any new raw material transactions in this quarter, and revenues from prior raw material trades were adjusted somewhat, and the new Dalian plant production line installation had a temporary negative impact on current output. The cost of revenues was $8.4 million, down 9% from $9.2 million at the same time in 2020. The gross profit was $1.1 million, 18% less than $1.4 million in the same quarter of 2020.
The rise in manufacturing costs was caused by an increase in raw material prices. Total operational costs were $4.3 million, up 339 percent from $1.0 million in the same period the previous year. Furthermore, the majority of the increase in all expense categories was due to the Nanjing production facility’s growing headcount and research and development expenses, as well as the expiration of the Chinese government’s COVID-19 relief policy, which had reduced social insurance contributions during the pandemic.
What’s going to happen next?
Despite global energy shortages and commodity price increases, we are increasing our manufacturing capacity. This is an important step since the extra capacity will benefit the business and increase the ability to provide. In addition, the company achieved significant progress in research and development while expanding the product line to meet the rising and diverse demands for batteries. The operations and development plans are on track, which the company thinks to strengthen its market-leading position and ability to drive long-term success in this burgeoning industry.
On 23rd August 2021, CBAT reported that its wholly-owned subsidiary Dalian CBAK Power Battery Co. has received quality certification from SGS for its special 26650 lithium-ion battery. CBAK Power is the first company in the world to receive such certification for battery technology in ultra-low temperature environments from SGS, an internationally recognized inspection, appraisal, testing, and certification organization and a globally recognized benchmark for quality and integrity. After completing various rate performance tests on a sample group given by CBAK Power at temperatures ranging from -50°C to 30°C, SGS awarded the certification to the Special 26650 Battery.
The accreditation is a reference to both the cutting-edge research and development capabilities as well as the operating efficiency of unique batteries in ultra-low temperature conditions. This accreditation for the Special 26650 Battery further solidifies technological leadership in the market. CBAT is well-positioned to have this innovative product resonate with an expanding user base by using the famous third-party test report. To meet a wide range of market demands, the company will continue to develop and extend the battery product lines, leveraging strong technological capabilities.