Overview

* CBAK Energy ( CBAT ) Q3 revenue grows 36.5% yr/yr, driven by battery raw materials segment

* Net income for Q3 increases significantly, driven by battery business profitability

* Company faces declining gross margin and operating loss due to product transition

Outlook

* CBAK Energy ( CBAT ) expects growth from new production lines starting mid-November

* Company anticipates continued favorable conditions from rising raw material prices

* CBAK Energy ( CBAT ) sees strong demand for upgraded Model 40135

Result Drivers

* RAW MATERIALS RECOVERY - Co attributes revenue growth to recovery in battery raw materials industry and rising prices

* MODEL 32140 DEMAND - Strong demand for Model 32140 drives battery business net income growth despite supply constraints

* PRODUCT TRANSITION IMPACT - Transition to upgraded Model 40135 affects gross margins due to higher costs of legacy Model 26650

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 $60.92

Revenue mln

Q3 Net $2.65

Income mln

Q3 Gross 8.00%

Margin

Q3 -$4.03

Operatin mln

g Income

Analyst Coverage

* Wall Street's median 12-month price target for CBAK Energy Technology Inc ( CBAT ) is $1.50, about 41.4% above its November 7 closing price of $0.88

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)