NASDAQ:CBAT China BAK Battery Q2 2025 Earnings Report $0.91 -0.01 (-0.61%) Closing price 09/3/2025 04:00 PM EasternExtended Trading$0.92 +0.01 (+0.83%) As of 09/3/2025 06:55 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. ProfileEarnings History China BAK Battery EPS ResultsActual EPS-$0.03Consensus EPS -$0.04Beat/MissBeat by +$0.01One Year Ago EPSN/AChina BAK Battery Revenue ResultsActual Revenue$40.52 millionExpected Revenue$33.56 millionBeat/MissBeat by +$6.97 millionYoY Revenue GrowthN/AChina BAK Battery Announcement DetailsQuarterQ2 2025Date8/18/2025TimeBefore Market OpensConference Call DateMonday, August 18, 2025Conference Call Time8:00AM ETUpcoming EarningsChina BAK Battery's Q3 2025 earnings is scheduled for Tuesday, November 11, 2025, with a conference call scheduled at 8:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by China BAK Battery Q2 2025 Earnings Call TranscriptProvided by QuartrAugust 18, 2025 ShareLink copied to clipboard.Key Takeaways Negative Sentiment: We reported Q2 net revenue of $40.52 M, down 15% year-over-year as the Dalian facility transitions from 26,600-format to the larger 4,135 battery model, weighing on consolidated results. Negative Sentiment: The Nanjing plant is operating at full capacity while its phase II expansion faces a several-month delay to Q4 2025 due to equipment supplier constraints, limiting new order fulfillment. Positive Sentiment: With both the new 4,135 cell production line and Nanjing phase II slated to start in Q3–Q4 2025, management expects a strong recovery in consolidated results by year-end. Positive Sentiment: Hytrance raw materials unit delivered 59% revenue growth to $19.43 M and narrowed net losses by 32%, reflecting improved pricing and successful customer additions. Neutral Sentiment: R&D on high-capacity 46 series cells is progressing toward target mass production by end-2026, but major capex deployment depends on securing large customer commitments. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallChina BAK Battery Q2 202500:00 / 00:00Speed:1x1.25x1.5x2xTranscript SectionsPresentationParticipantsPresentationSkip to Participants Operator00:00:00Good day, ladies and gentlemen. Thank you for standing by, and welcome to Seabeck Energy Technologies Second Quarter and First Half of twenty twenty five Earnings Conference Call. Currently, all participants are in a 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. Operator00:00:28If you have any objections, you may disconnect at this time. Now I will turn the call over to Irina, IR specialist of Seabac Energy. Irina, please proceed. Executive00:00:42Thank you, operator, and hello, everyone. Welcome to CBAK Energy's earnings conference call for the second quarter and the 2025. Joining us today are Mr. Zhi Guang Hu or Jason, chief executive officer of CB AK Energy, mister Siri Li, chief financial officer and company secretary, and Yvan, who will help with our interpretation, will join us for the q and a section. We released our results earlier today. Executive00:01:14The press release is available on the company's IR website at ir.cbak.com.cn as well as from the news web services. A replay of this call will also be available in a few hours on 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 US 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 expectation expressed today. Executive00:01:56Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC. The company does not 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. Executive00:02:22With that, let me now turn the call over to our CEO, Mr. Zhi Guang Hu. Please go ahead, Jason. Zhiguang HuCEO at CBAK Energy Technology00:02:30Hello, everyone. Thank you for joining our earnings conference call for the second quarter and 2025. As discussed last quarter, our Dalian facility are undergoing transition from model 26,000 to 5,000, a small format battery that had been used for nearly two decades to model 4,135, a much larger and a more advanced model that enjoys strong market popularity. This transition has led to a sharp decline in Darien's net revenues and gross profit. Given that we operate two major battery production base, any downturn in Dalian significantly impact our consolidated results. Zhiguang HuCEO at CBAK Energy Technology00:03:27Meanwhile, our Nanjing facility are facing supply constraint due to surging demand for our model thirty two one hundred and forty cells. Phase one of our Nanjing plant will begin operation in 2021 is already running at a full capacity. We reported last quarter that phase two underweight underweight. However, its completion has been delayed by a few months to Q4, limiting our ability to fulfill additional pending orders. In short, Dalian is building a new production line for model forty-thirty five cells. Zhiguang HuCEO at CBAK Energy Technology00:04:17With all existing and prospective customers currently testing samples and awaiting mass production, Nanjing is operating at a full capacity and unable to accommodate further demand until phase two comes online. Since both model 4,135 product and Nanjing phase two expansion are expected to be ready in Q3 to Q4, we anticipate a strong recovery in our consolidated results by year end. This situation explains the slowdown in our performance over the past two quarters. As of 06/30/2025, we reported net revenue of $40,520,000 down 15 percentage from $47,790,000 in the same period of 2024. The primary driver of the decline was a sharp reduction in sales to customers in the in the additional residential energy storage market who had previously purchased large volume model 26,600 cells. Zhiguang HuCEO at CBAK Energy Technology00:05:48Sales in this segment fell by 44.8 percentage year over year. As a result, the composition of our largest customer has shipped with significant growth in order from leading player in the possible power supply sector and 12 manufacturers in India's two and three wheelers market. Our strategy moving forward is to continue targeting high quality European and American customers for our model twenty six thousand hundred and twenty one hundred and forty and upcoming 40,135 cells. Well, further expanding our market share in India and the portable power supply industry with our model thirty two thousand one hundred and forty and forty one hundred and thirty five products. We had previously decided in partnership with our customer to relocate part of our manufacturing lines overseas response to US tariff on Chinese products. Zhiguang HuCEO at CBAK Energy Technology00:07:11However, we have temporarily paused our Malayan project as a short term solution and know that government of both countries are currently engaged in active negotiation to reach an agreement. We believe it is prudent to monitor the outcome of these talks before committing to any major investment. That said, establishing battery cell production capacity in The US remains a core element of our long term strategy. We continue discussion with potential partners to determine the most cost effective approach to realizing this plan. Now let me turn the call to our CFO, J. W. Lee. Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:08:09Thank you, Jason. As Jason just mentioned, our net revenues declined primarily due to our strategic transaction from a small format battery model to a larger, more advanced model. Alongside this revenue decline, we reported net losses attributable to Seabeck Energy shareholders of $3,070,000 and total net losses of 3,360,000.00 Of these, the battery segment accounted for 2,070,000.00 in net losses, while our raw materials production unit, Hytrance, reported net losses of 1,060,000.00. Despite weaker performance in our battery segment, high trends deliver a notably improved result. Net revenues for high trends reached approximately 19,430,000.00, up 59.36% from 12,190,000.00 in the same period of 2024. Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:09:09Its net losses narrowed by 32.02% from 1,560,000.00 in Q2 last year to 1,060,000.00 in the same period this year. This improvement reflects Heitron's sustained efforts to expand its market presence. In the second quarter and 2025, the unit successfully secured several new customers driving growth in raw material sales. Furthermore, a modest decline in raw material price prices during the first half and of twenty twenty five stimulated customer demand and encourage additional order placements. Looking ahead, we firmly believe that with the completion of our product portfolio upgrade and phase two nineteen project by year end, combined with Heitrans' continued expansion into new high quality customers and the ongoing recovery in the raw material prices. Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:10:08The financial performance of both Heitrans and our battery segment will see a strong rebound in near future. Thank you. We will now open the floor for the Q and A section. Operator, please go ahead. Operator00:10:21Thank We will take our first question. And the question comes from the line of Brian Lantier from Saks Small Cap Research. Please go ahead. Your line is open. Brian LantierSenior Research Analyst at Zacks Small Cap Research00:10:53Great. Good evening, gentlemen. I wonder if you could talk a little bit about the competitive landscape right now. And if you're experiencing any pricing pressures or if customers are really focusing on the products and the availability of your products. Zhiguang HuCEO at CBAK Energy Technology00:11:38Okay. I think the the price for us usually the price. As you know, now the battery technology developed very quick. And every year, the performance such as capacity increased. Why the battery cell capacity increased? Zhiguang HuCEO at CBAK Energy Technology00:12:04Because the high capacity can reduce the cost. And the market right now is very sensitive for the cost. So CBK transfer a small battery to a larger battery cell to reduce the cost to meet the market requirement. And the volume act actually, now the market volume is increased very quick too Because now for a inter market now need battery, such as consumer market and two wheels, three wheels, two wheels, three wheels market and electric vehicles. So volume increase is very big. Brian LantierSenior Research Analyst at Zacks Small Cap Research00:13:05Okay. Thank you for that. Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:13:07Sorry, Brian. Let me let me add some points. I think following what Jason just commented, right now, because, our most of the of the leading battery players in China producing prismatic sales, which has a much lower cost advantages over our technical route. However, right now, as you may know that all the manufacturers for cylindrical cells are actually trying their best to upgrade their product to a much larger battery model. So actually the larger your battery will be actually the lower the better cost effective your battery is going to be. Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:13:52So our strategy is just to keep investing in the R and D programs to try to produce a larger size of our batteries. The project of 4,135 is the one that we are currently investing. It's a major upgrade from 26,650. The size will be much, much larger, which means there is cost that would be effectively lower than our current product. In the future, as we always say, we are also investing in the R and D of the Series 46, which will be much larger than all the current products we have. Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:14:34We believe that with the time being and with all our R and D programs going very well, we will eventually have a very cost effective products in the market. And that product would target that order major customer market that values the value that would just pay attention pay great attention to the coast, including the two wheeler and three wheeler markets that Jason just mentioned. Brian LantierSenior Research Analyst at Zacks Small Cap Research00:15:06Great. My next question was going to be on the 46 series cells. Where do you stand in that development? And when do you think best case scenario, you could actually be producing something like a forty six nine fifty or something along those lines? Zhiguang HuCEO at CBAK Energy Technology00:15:49Actually, now we make the research and development for the SIG series from already more than two years. And our target, we will achieve the MAD product of 46 series cell at the end of next year. And the Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:16:17Yeah. Let me add some point. As Jason just say, we have already spent enough time on the IND of Series 46. We have probably a couple of actual models to choose, 46,120 or 46,950. A lot of the models to choose actually depend on our major customers preference. Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:16:43I think the key elements determining when we are going to mass produce for this the Series 46 is actually the capital, because right now the equipment and production line for Series 46 is extremely expensive at this moment, unless we have securing significant orders from our customers. Otherwise, we will be very cautious about investing into this expensive production line, considering especially considering we have already two expansion projects at hand, a project for 4135 and a project for 03/1940. If we have a choice, we would like to complete a fundraising and then proceed with the construction of production life of 46. Otherwise, we prefer the conviction of the current two project first. Brian LantierSenior Research Analyst at Zacks Small Cap Research00:17:40Okay, great. That's helpful. Were there specific factors that caused the delay in the Nanjing expansion? Was it tied to uncertainty around possibly expanding in Malaysia first? Or and just or was it difficulty securing equipment? Brian LantierSenior Research Analyst at Zacks Small Cap Research00:18:01If you have any color around what caused that delay, I'd appreciate it. Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:18:40Let me respond to this question. I think the major issues causing the delay of our Nanjing project actually comes down to our equipment supplier. Some of our major equipment suppliers face problems sending over their equipment. So there so it's just as a result, we have a probably a couple months of delay. We don't think we're going into any legal tussles with these suppliers because that would cause much longer delays. Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:19:12We are going to resolve these problems very soon. So expectedly, we are going to I think we're going to complete the expansion for this phase by the end of this year. Brian LantierSenior Research Analyst at Zacks Small Cap Research00:19:28Okay. Great. And just a housekeeping. Have you been active? Have you disclosed yet if you've been active under the 20,000,000 buyback? Brian LantierSenior Research Analyst at Zacks Small Cap Research00:19:39And if you have, how much capacity is still available under that buyback? Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:19:45Well, yes. After we announced the stock buyback, program, we do, we did, spend certain cash, buying our, our stock back. I think we have so far spent about, roughly, we need to check the number, but roughly between 1.3 to, you know, $1,500,000 at this moment, and the stock price was pushed up above, like, dollars I think it's still strongly underestimated our company, but we will see how the market goes and determine when we're going to buy the stock back again because the program is a one year long program. Brian LantierSenior Research Analyst at Zacks Small Cap Research00:20:34Okay. Great. Thank you for the update. I appreciate it. Thank you. Operator00:20:40Thank you. Thank you. Seeing no more questions in the queue, let me turn the call back to Jason for closing remarks. Zhiguang HuCEO at CBAK Energy Technology00:21:04Thank you, operator, and thank you all for participating in today's call and for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress. Thank you. Operator00:21:23Thank you all again. This concludes the call. You may now disconnect.Read moreParticipantsAnalystsExecutiveZhiguang HuCEO at CBAK Energy TechnologyJiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy TechnologyBrian LantierSenior Research Analyst at Zacks Small Cap ResearchPowered by Earnings DocumentsSlide DeckPress Release(8-K)Quarterly report(10-Q) China BAK Battery Earnings HeadlinesCBAT: The battery cell business remains challenging in 2025, but a substantial capacity upgrade is looming.August 19, 2025 | msn.comCBAK Energy Technology, Inc. (NASDAQ:CBAT) Q2 2025 Earnings Call TranscriptAugust 19, 2025 | insidermonkey.comFree: The Crypto Summit That Could Change Your Life27 industry leaders share urgent market intel (free access)... For a very limited time, you can claim your spot for FREE. | Crypto 101 Media (Ad)CBAK Energy Reports Q2 Loss as Battery Transition Weighs on ResultsAugust 19, 2025 | oilprice.comOCBAK Energy Technology, Inc.: CBAK Energy Reports Second Quarter and First Half 2025 Unaudited Financial ResultsAugust 19, 2025 | finanznachrichten.deCBAK Energy anticipates strong year-end recovery as new battery lines and Nanjing expansion near completionAugust 19, 2025 | msn.comSee More China BAK Battery Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like China BAK Battery? Sign up for Earnings360's daily newsletter to receive timely earnings updates on China BAK Battery and other key companies, straight to your email. Email Address About China BAK BatteryCBAK Energy Technology, Inc., together with its subsidiaries, manufacture, commercialization, and distribution of lithium ion high power rechargeable batteries in Mainland China, the United States, Europe, and internationally. The company operates in two segments, CBAK and Hitrans. Its lithium batteries are used in various applications, including electric vehicles, such as electric cars, electric buses, and hybrid electric cars and buses; light electric vehicles, such as electric bicycles, electric motors, electric tricycles, and smaller-sized electric cars; and electric tools, energy storage, uninterruptible power supply, and other high power applications, as well as cordless power tools. The company also develops and manufactures NCM precursor and cathode materials. The company was formerly known as China BAK Battery (NASDAQ:CBAT) and changed its name to CBAK Energy Technology, Inc. in January 2017. CBAK Energy Technology, Inc. is based in Dalian, China.View China BAK Battery ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles What to Watch for From D-Wave Now That Earnings Are DoneDICKS’s Sporting Goods Stock Dropped After Earnings—Is It a Buy?NVIDIA's Earnings Show a Green Light for Taiwan Semiconductor After Earnings Miss, Walmart Is Still a Top Consumer Staples PlayRoyal Caribbean Earnings Beat Fuels Strong 2025 OutlookDLocal Stock Soars 43% After Earnings Beat and Raised GuidanceGreen Dot's 30% Rally: Turnaround Takes Off on Explosive Earnings Upcoming Earnings Oracle (9/8/2025)Synopsys (9/9/2025)Adobe (9/11/2025)FedEx (9/18/2025)Micron Technology (9/23/2025)AutoZone (9/23/2025)Cintas (9/24/2025)Costco Wholesale (9/25/2025)Accenture (9/25/2025)NIKE (9/30/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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PresentationSkip to Participants Operator00:00:00Good day, ladies and gentlemen. Thank you for standing by, and welcome to Seabeck Energy Technologies Second Quarter and First Half of twenty twenty five Earnings Conference Call. Currently, all participants are in a 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. Operator00:00:28If you have any objections, you may disconnect at this time. Now I will turn the call over to Irina, IR specialist of Seabac Energy. Irina, please proceed. Executive00:00:42Thank you, operator, and hello, everyone. Welcome to CBAK Energy's earnings conference call for the second quarter and the 2025. Joining us today are Mr. Zhi Guang Hu or Jason, chief executive officer of CB AK Energy, mister Siri Li, chief financial officer and company secretary, and Yvan, who will help with our interpretation, will join us for the q and a section. We released our results earlier today. Executive00:01:14The press release is available on the company's IR website at ir.cbak.com.cn as well as from the news web services. A replay of this call will also be available in a few hours on 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 US 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 expectation expressed today. Executive00:01:56Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC. The company does not 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. Executive00:02:22With that, let me now turn the call over to our CEO, Mr. Zhi Guang Hu. Please go ahead, Jason. Zhiguang HuCEO at CBAK Energy Technology00:02:30Hello, everyone. Thank you for joining our earnings conference call for the second quarter and 2025. As discussed last quarter, our Dalian facility are undergoing transition from model 26,000 to 5,000, a small format battery that had been used for nearly two decades to model 4,135, a much larger and a more advanced model that enjoys strong market popularity. This transition has led to a sharp decline in Darien's net revenues and gross profit. Given that we operate two major battery production base, any downturn in Dalian significantly impact our consolidated results. Zhiguang HuCEO at CBAK Energy Technology00:03:27Meanwhile, our Nanjing facility are facing supply constraint due to surging demand for our model thirty two one hundred and forty cells. Phase one of our Nanjing plant will begin operation in 2021 is already running at a full capacity. We reported last quarter that phase two underweight underweight. However, its completion has been delayed by a few months to Q4, limiting our ability to fulfill additional pending orders. In short, Dalian is building a new production line for model forty-thirty five cells. Zhiguang HuCEO at CBAK Energy Technology00:04:17With all existing and prospective customers currently testing samples and awaiting mass production, Nanjing is operating at a full capacity and unable to accommodate further demand until phase two comes online. Since both model 4,135 product and Nanjing phase two expansion are expected to be ready in Q3 to Q4, we anticipate a strong recovery in our consolidated results by year end. This situation explains the slowdown in our performance over the past two quarters. As of 06/30/2025, we reported net revenue of $40,520,000 down 15 percentage from $47,790,000 in the same period of 2024. The primary driver of the decline was a sharp reduction in sales to customers in the in the additional residential energy storage market who had previously purchased large volume model 26,600 cells. Zhiguang HuCEO at CBAK Energy Technology00:05:48Sales in this segment fell by 44.8 percentage year over year. As a result, the composition of our largest customer has shipped with significant growth in order from leading player in the possible power supply sector and 12 manufacturers in India's two and three wheelers market. Our strategy moving forward is to continue targeting high quality European and American customers for our model twenty six thousand hundred and twenty one hundred and forty and upcoming 40,135 cells. Well, further expanding our market share in India and the portable power supply industry with our model thirty two thousand one hundred and forty and forty one hundred and thirty five products. We had previously decided in partnership with our customer to relocate part of our manufacturing lines overseas response to US tariff on Chinese products. Zhiguang HuCEO at CBAK Energy Technology00:07:11However, we have temporarily paused our Malayan project as a short term solution and know that government of both countries are currently engaged in active negotiation to reach an agreement. We believe it is prudent to monitor the outcome of these talks before committing to any major investment. That said, establishing battery cell production capacity in The US remains a core element of our long term strategy. We continue discussion with potential partners to determine the most cost effective approach to realizing this plan. Now let me turn the call to our CFO, J. W. Lee. Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:08:09Thank you, Jason. As Jason just mentioned, our net revenues declined primarily due to our strategic transaction from a small format battery model to a larger, more advanced model. Alongside this revenue decline, we reported net losses attributable to Seabeck Energy shareholders of $3,070,000 and total net losses of 3,360,000.00 Of these, the battery segment accounted for 2,070,000.00 in net losses, while our raw materials production unit, Hytrance, reported net losses of 1,060,000.00. Despite weaker performance in our battery segment, high trends deliver a notably improved result. Net revenues for high trends reached approximately 19,430,000.00, up 59.36% from 12,190,000.00 in the same period of 2024. Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:09:09Its net losses narrowed by 32.02% from 1,560,000.00 in Q2 last year to 1,060,000.00 in the same period this year. This improvement reflects Heitron's sustained efforts to expand its market presence. In the second quarter and 2025, the unit successfully secured several new customers driving growth in raw material sales. Furthermore, a modest decline in raw material price prices during the first half and of twenty twenty five stimulated customer demand and encourage additional order placements. Looking ahead, we firmly believe that with the completion of our product portfolio upgrade and phase two nineteen project by year end, combined with Heitrans' continued expansion into new high quality customers and the ongoing recovery in the raw material prices. Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:10:08The financial performance of both Heitrans and our battery segment will see a strong rebound in near future. Thank you. We will now open the floor for the Q and A section. Operator, please go ahead. Operator00:10:21Thank We will take our first question. And the question comes from the line of Brian Lantier from Saks Small Cap Research. Please go ahead. Your line is open. Brian LantierSenior Research Analyst at Zacks Small Cap Research00:10:53Great. Good evening, gentlemen. I wonder if you could talk a little bit about the competitive landscape right now. And if you're experiencing any pricing pressures or if customers are really focusing on the products and the availability of your products. Zhiguang HuCEO at CBAK Energy Technology00:11:38Okay. I think the the price for us usually the price. As you know, now the battery technology developed very quick. And every year, the performance such as capacity increased. Why the battery cell capacity increased? Zhiguang HuCEO at CBAK Energy Technology00:12:04Because the high capacity can reduce the cost. And the market right now is very sensitive for the cost. So CBK transfer a small battery to a larger battery cell to reduce the cost to meet the market requirement. And the volume act actually, now the market volume is increased very quick too Because now for a inter market now need battery, such as consumer market and two wheels, three wheels, two wheels, three wheels market and electric vehicles. So volume increase is very big. Brian LantierSenior Research Analyst at Zacks Small Cap Research00:13:05Okay. Thank you for that. Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:13:07Sorry, Brian. Let me let me add some points. I think following what Jason just commented, right now, because, our most of the of the leading battery players in China producing prismatic sales, which has a much lower cost advantages over our technical route. However, right now, as you may know that all the manufacturers for cylindrical cells are actually trying their best to upgrade their product to a much larger battery model. So actually the larger your battery will be actually the lower the better cost effective your battery is going to be. Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:13:52So our strategy is just to keep investing in the R and D programs to try to produce a larger size of our batteries. The project of 4,135 is the one that we are currently investing. It's a major upgrade from 26,650. The size will be much, much larger, which means there is cost that would be effectively lower than our current product. In the future, as we always say, we are also investing in the R and D of the Series 46, which will be much larger than all the current products we have. Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:14:34We believe that with the time being and with all our R and D programs going very well, we will eventually have a very cost effective products in the market. And that product would target that order major customer market that values the value that would just pay attention pay great attention to the coast, including the two wheeler and three wheeler markets that Jason just mentioned. Brian LantierSenior Research Analyst at Zacks Small Cap Research00:15:06Great. My next question was going to be on the 46 series cells. Where do you stand in that development? And when do you think best case scenario, you could actually be producing something like a forty six nine fifty or something along those lines? Zhiguang HuCEO at CBAK Energy Technology00:15:49Actually, now we make the research and development for the SIG series from already more than two years. And our target, we will achieve the MAD product of 46 series cell at the end of next year. And the Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:16:17Yeah. Let me add some point. As Jason just say, we have already spent enough time on the IND of Series 46. We have probably a couple of actual models to choose, 46,120 or 46,950. A lot of the models to choose actually depend on our major customers preference. Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:16:43I think the key elements determining when we are going to mass produce for this the Series 46 is actually the capital, because right now the equipment and production line for Series 46 is extremely expensive at this moment, unless we have securing significant orders from our customers. Otherwise, we will be very cautious about investing into this expensive production line, considering especially considering we have already two expansion projects at hand, a project for 4135 and a project for 03/1940. If we have a choice, we would like to complete a fundraising and then proceed with the construction of production life of 46. Otherwise, we prefer the conviction of the current two project first. Brian LantierSenior Research Analyst at Zacks Small Cap Research00:17:40Okay, great. That's helpful. Were there specific factors that caused the delay in the Nanjing expansion? Was it tied to uncertainty around possibly expanding in Malaysia first? Or and just or was it difficulty securing equipment? Brian LantierSenior Research Analyst at Zacks Small Cap Research00:18:01If you have any color around what caused that delay, I'd appreciate it. Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:18:40Let me respond to this question. I think the major issues causing the delay of our Nanjing project actually comes down to our equipment supplier. Some of our major equipment suppliers face problems sending over their equipment. So there so it's just as a result, we have a probably a couple months of delay. We don't think we're going into any legal tussles with these suppliers because that would cause much longer delays. Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:19:12We are going to resolve these problems very soon. So expectedly, we are going to I think we're going to complete the expansion for this phase by the end of this year. Brian LantierSenior Research Analyst at Zacks Small Cap Research00:19:28Okay. Great. And just a housekeeping. Have you been active? Have you disclosed yet if you've been active under the 20,000,000 buyback? Brian LantierSenior Research Analyst at Zacks Small Cap Research00:19:39And if you have, how much capacity is still available under that buyback? Jiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy Technology00:19:45Well, yes. After we announced the stock buyback, program, we do, we did, spend certain cash, buying our, our stock back. I think we have so far spent about, roughly, we need to check the number, but roughly between 1.3 to, you know, $1,500,000 at this moment, and the stock price was pushed up above, like, dollars I think it's still strongly underestimated our company, but we will see how the market goes and determine when we're going to buy the stock back again because the program is a one year long program. Brian LantierSenior Research Analyst at Zacks Small Cap Research00:20:34Okay. Great. Thank you for the update. I appreciate it. Thank you. Operator00:20:40Thank you. Thank you. Seeing no more questions in the queue, let me turn the call back to Jason for closing remarks. Zhiguang HuCEO at CBAK Energy Technology00:21:04Thank you, operator, and thank you all for participating in today's call and for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress. Thank you. Operator00:21:23Thank you all again. This concludes the call. You may now disconnect.Read moreParticipantsAnalystsExecutiveZhiguang HuCEO at CBAK Energy TechnologyJiewei LiCFO, Director & Secretary of the Board of Directors at CBAK Energy TechnologyBrian LantierSenior Research Analyst at Zacks Small Cap ResearchPowered by