CBAK Energy Technology, Inc. ( CBAT ) shares are trading higher after the company reported first-quarter FY24 results.

Revenue rose 38.7% Y/Y to $58.82 million, missing the consensus of $62.78 million. 

Revenues growth benefitted from the battery business (+51.5% Y/Y), led by an increase of 66.0% Y/Y from revenues from residential energy supply & uninterruptible supplies. However, net revenues from batteries used in light electric vehicles declined 23.3% Y/Y.

Gross profit increased significantly to $18.8 million from $2.9 million a year ago. Consequently, gross margin jumped to 31.9% from 6.9% a year ago.

Attributable net income (after deducting the change in fair value of warrants) stood at $9.8 million, vs. a net loss of $(1.5) million in the prior year quarter, led by the strong performance of its battery business. 

EPS of $0.11 beat the consensus loss of $(0.01).

Yunfei Li, Chairman and Chief Executive Officer, stated, “At the same time, we further reduced losses at Hitrans, our acquired and independently operated materials company, reaching a consolidated net income of $9.6 million for the first quarter, an outstanding achievement during an industry-wide downturn. We expect even faster growth for the rest of the year while remaining committed to our higher profitability goals for our battery business.”

As of March-end, cash and cash equivalents stood at $3.0 million.

Jiewei Li, CFO and Secretary of the Board, said, “For the full year of 2024, we expected net income from the battery business to reach between RMB220 million (or approximately $30.5 million) and RMB250 million (or approximately $34.6 million) for the full year of 2024. We will continue prudently investing while maintaining cost discipline as we aim to ensure long-term sustainable growth.”

Price Action: CBAT shares are trading higher by 1.80% at $1.13 at the last check Friday.