CBAK Energy Technology, Inc. reported third‑quarter 2025 results that included a 36.5% year‑over‑year rise in net revenue to $60.92 million and a net income of $2.65 million, a turnaround from a $18,000 loss in the same period a year earlier. The earnings per share of $0.03 beat the consensus estimate of –$0.03, a $0.06 or 200% surprise, while revenue exceeded the $34.66 million forecast by $26.26 million, a 75.8% beat.
Revenue growth was driven almost entirely by the battery raw‑materials segment (Hitrans), which posted a 143.7% increase to $27.22 million from $11.17 million in Q3 2024. The battery segment itself grew modestly, but the raw‑materials surge offset the modest lift in battery‑segment revenue. Year‑to‑date, however, revenue fell 9.8% to $136.39 million versus $151.24 million in the prior year, and the company recorded a $2.00 million net loss for the first nine months, compared with a $16.30 million profit in 2024.
Gross profit declined to $4.90 million, a 29.9% drop from $6.95 million in Q3 2024, and the gross margin contracted to 8% from 15.6%. The compression reflects the transition from the legacy Model 26650 to the new Model 40135, which carries higher material and manufacturing costs and is produced at lower volumes. The lower volume of the legacy model also raises unit costs, further eroding margins. Operating expenses rose, pushing the company into a $4.03 million loss for the quarter, compared with an operating profit of $0.83 million in Q3 2024.
Management highlighted the launch of the Model 40135 production line in Dalian, expected to add 2.3 GWh of annual capacity, and the planned addition of 2 GWh of Model 32140 capacity at the Nanjing plant in mid‑November. CEO Zhiguang Hu said the company is confident that expanding capacity will strengthen its competitive position and drive sustainable growth. He also acknowledged “substantial doubt” about the company’s ability to continue as a going concern, citing a working‑capital deficit and liquidity concerns that will require additional financing.
The market reacted positively, with the stock rising 2.39% in pre‑market trading. Analysts noted the earnings beat as evidence of strong execution, while also pointing to margin compression and liquidity risks as headwinds that could temper enthusiasm in the longer term.
The results suggest a short‑term turnaround driven by raw‑material sales, but the company remains under pressure from higher unit costs and liquidity constraints. Successful ramp‑up of the new production lines and improved cost efficiencies will be critical for restoring profitability and sustaining growth.
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