Yahoo Finance CBAK Energy Technology, Inc. (NASDAQ:CBAT) Q1 2024 Earnings Call Transcript
CBAK Energy Technology, Inc. (NASDAQ:CBAT) Q1 2024 Earnings Call Transcript May 10, 2024
CBAK Energy Technology, Inc. beats earnings expectations. Reported EPS is $0.11, expectations were $-0.01. CBAK Energy Technology, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good day, ladies and gentlemen. Thank you for standing by. And welcome to CBAK Energy Technology's First Quarter 2024 Earnings Conference Call. Currently, all participants are in listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now, I will turn the call over to Thierry Li, CFO and Secretary of the Board of CBAK Energy. Mr. Li, please proceed.
Thierry Li: Thank you, operator. And hello, everyone. Welcome to CBAK Energy's first quarter 2024 earnings conference call. Joining us today are Mr. Yunfei Li, Chief Executive Officer of CBAK Energy, myself, Chief Financial Officer and Secretary of the Board; and Jennifer, our interpreter. Our General Engineer, Mr. Xiujun Tian will join for Q&A session. We released our results earlier today. The press release is available on the company’s IR website @ ir.cbak.com.cn. as well as from newswire Services. The relay of this call will also be available in a few hours in our IR website. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve inherent risks and uncertainties as such, the company's actual results may be materially different from the expectations expressed today. Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC. The company doesn't assume any obligations to update any forward-looking statements except as required under applicable laws. Also, please note that, unless otherwise stated, all figures mentioned during the conference call are in U.S. dollars. With that, let me now turn the call over to our CEO, Mr. Yunfei Li. Mr. Li will speak in Chinese and I will translate his comments into English. Go ahead, Mr. Li.
Yunfei Li: Hello, everyone. Thank you for joining our first quarter 2024 earnings conference call. First, I would like to provide an overview of our performance in the first quarter. We are pleased to announce that we have commenced the year 2024 on a solid note with robust growth. In the first quarter, our battery business recorded revenues of $44.84 million, a remarkable increase of 51.5% compared to the same period of last year. This strong start sets a promising time for the year ahead. While the battery industry as a whole face significant downward pressure with many of our competitors experiencing declining growth margins and profits, our battery business continues to back the trend and achieve rapid growth. Our company's strategy focus remains on the energy storage sector, especially home energy storage and portable energy storage.
Consequently, our revenue from batteries used in electric vehicles declined to $0.48 million, now 73.6% year-over-year. Similarly, revenue from batteries used in light electric vehicles decreased by 23.3% to $1.51 million. On the other hand, our revenues from batteries used in energy storage applications grew tremendously to $42.85 million, an impressive increase of 66% year-over-year. This strong growth in our energy storage business, coupled with orders from high-quality clients, has propelled improvement in our growth margins. In the first quarter, our battery business achieved a historic high gross margin of 41.2%, an increase of 30.3 percentage points compared to the same period of last year. Meanwhile, net income from our battery business continued its upward trajectory from last year, reaching $11.68 million in the first quarter, a significant leap from $0.11 million in the same year of last year.
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