CBAK Energy Technology, Inc.

Q4 2025 consolidated net revenue was $58.80 million, up 131.8% year over year. Q4 gross profit was about $4.28 million and gross margin was 7.3%, versus 13.1% a year ago; operating loss was about $8.01 million and net loss attributable to shareholders was $7.38 million. Full-year 2025 net revenue was $195.19 million, up about 11% year over year; full-year gross profit was about $18.42 million with a 9.4% gross margin, versus 23.7% in 2024; operating loss was about $18.44 million and net loss attributable to shareholders was about $9.38 million. For guidance, management said 2026 consolidated sales should hit a record high, and gross margin should improve gradually in the second half of 2026, with a reasonable timetable for Nanjing Phase II reaching full capacity by early 2027.

CEO Zhiguang Hu framed 2025 as a transition year centered on product mix upgrades, capacity expansion, and a shift toward next-generation form factors. He emphasized that demand for the new 40135 cells is exceeding supply, that the company is selling every unit it can make, and that the Dalian and Nanjing expansions are strategic investments that should support a “dramatic and sustained” recovery in revenue. He also highlighted international expansion, especially Africa, India, and Vietnam, plus localization in Malaysia to reduce tariff and export-rebate risk.

CFO Thierry Li detailed the financial drag from ramping new lines: Q4 gross margin fell to 7.3% from 13.1%, and full-year gross margin fell to 9.4% from 23.7%, citing suboptimal yields, fixed-cost absorption, and ramp-up friction. He said operating expenses rose to $36.86 million, including R&D of $15.8 million and G&A of $16.20 million, while other income increased to $8.27 million, boosted by a $5 million compensation payment. On liquidity, he reported $75.68 million of cash and restricted cash at year-end, $48.55 million of operating cash flow in 2025, and $44.65 million of capex funded across new facilities.

Analysts focused mainly on battery gross margins, the timeline for normalization, and whether the cell packing business could become a meaningful growth driver. Management said Dalian ramp-up should be completed in the first half of 2026, Nanjing Phase II is expected to reach full capacity by early 2027, and gross margin should gradually improve in the second half of 2026. On cell packing, management said a major African customer has already become one of the company’s top five customers and that the company is exploring deeper collaboration, potentially extending beyond LEV into energy storage. They also said current ESS focus is on smaller products like home, balcony, and portable systems, while a larger prismatic cell for grid storage remains under R&D.