China BAK Battery (NASDAQ:CBAT) Posts Earnings Results, Misses Expectations By $0.05 EPS

Key Points

• Missed expectations: China BAK reported EPS of ($0.08), missing consensus by $0.05, and posted revenue of $58.8M versus $64.6M expected, leaving the company with a negative net margin (4.03%) and an FY net loss of about $19.8M.
• Strong top-line momentum and capacity build-out: Q4 consolidated revenue rose 131.8% YoY to $58.8M, driven by a 944.1% rebound in the Hitrans segment to $27.98M, and management has commissioned 2.3 GWh and added 3.0 GWh cell lines with full ramp expected by early 2027 while forecasting record 2026 sales.
• Margin pressure and strategic moves: Aggressive expansion pushed Q4 gross margin down to 7.3% (FY 9.4% vs 23.7% prior year), producing operating and net losses, even as the company launched in‑house pack assembly, set up a Malaysian subsidiary and approved redomicile to the Cayman Islands; management also cited inconsistent full‑year revenue figures on the call that warrant clarification.

China BAK Battery (NASDAQ:CBAT - Get Free Report) released its quarterly earnings results on Monday. The electronics maker reported ($0.08) EPS for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.05), FiscalAI reports. China BAK Battery had a negative net margin of 4.03% and a negative return on equity of 5.50%. The business had revenue of $58.80 million during the quarter, compared to analysts' expectations of $64.57 million.

Here are the key takeaways from China BAK Battery's conference call:

• Demand for new cells far outpaces supply: management commissioned a 2.3 GWh line for the 40135 in Dalian and added 3.0 GWh for the 32140 in Nanjing, with full ramp expected by early 2027.
• Top-line momentum and Hitrans turnaround: Q4 consolidated revenue rose 131.8% YoY to $58.8M, while the Hitrans raw-materials segment rebounded sharply (Q4 Hitrans +944.1% to $27.98M), and management forecasts record sales for 2026.
• Ramp-related margin pressure: aggressive capacity expansion and higher unit costs pushed Q4 gross margin down to 7.3% (FY 9.4% vs 23.7% prior year) and produced operating and net losses (Q4 operating loss $8.01M; FY net loss ~$19.8M).
• Strategic moves to support international growth: launched in-house battery pack assembly for LEV swapping (Spiro is a top-five customer), incorporated a Malaysian subsidiary to hedge export rebate cuts, and approved redomicile to the Cayman Islands.
• Potential investor confusion from inconsistent figures: management cited differing full-year revenue amounts during the call (roughly ~$100M and ~$195M), which warrants clarification.

China BAK Battery Stock Up 1.0%

Shares of CBAT opened at $0.82 on Monday. The company has a market capitalization of $72.96 million, a price-to-earnings ratio of -11.50 and a beta of 1.26. China BAK Battery has a 52 week low of $0.57 and a 52 week high of $1.25. The stock's 50-day moving average price is $0.92 and its 200-day moving average price is $0.91. The company has a quick ratio of 0.54, a current ratio of 0.69 and a debt-to-equity ratio of 0.04.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reiterated a "sell (d)" rating on shares of China BAK Battery in a report on Wednesday, January 21st. One research analyst has rated the stock with a Sell rating, According to data from MarketBeat, the stock presently has an average rating of "Sell".

Hedge Funds Weigh In On China BAK Battery

A hedge fund recently raised its stake in China BAK Battery stock. Empowered Funds LLC lifted its stake in shares of China BAK Battery, Inc. (NASDAQ:CBAT - Free Report) by 8.7% during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 355,536 shares of the electronics maker's stock after acquiring an additional 28,411 shares during the period. Empowered Funds LLC owned 0.40% of China BAK Battery worth $283,000 as of its most recent filing with the Securities & Exchange Commission. Institutional investors own 1.97% of the company's stock.

China BAK Battery Company Profile

China BAK Battery Inc NASDAQ: CBAT is a China-based developer and manufacturer of rechargeable lithium-ion batteries and related power solutions. The company's core product lines include small, medium and large format batteries, battery modules and pack assemblies designed for consumer electronics, electric vehicles, energy storage systems and other industrial applications. China BAK Battery offers polymer lithium-ion cells, prismatic and cylindrical cells, as well as integrated battery systems tailored to meet the performance requirements of its clients.

Founded in 2001 and headquartered in Shenzhen, China BAK Battery has expanded its manufacturing footprint and research and development capabilities over the years to serve customers across Asia, Europe and North America.

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