CBAK Energy Technology delivers cutting-edge supercapacitors and battery modules for EVs and grid storage, having recently turned profitable with $176.6M in 2024 revenue.
Investors may buy this stock because it has successfully transitioned from a cash-burning entity to a profitable one with $9.6M in net income for 2024 while retaining strong liquidity of $6.7M in cash equivalents. The demand for grid-scale storage and EV components provides a clear growth runway as the energy transition accelerates globally. Proprietary technology that outperforms traditional capacitors offers a defensible niche with high switching costs for industrial clients.
Potential buyers should avoid this stock due to the massive retained earnings deficit of -$122.6M which suggests ongoing operational inefficiencies or historical strategic missteps despite recent profitability. The decline in revenue over the last three years from $248.7M in 2022 to $176.6M in 2024 raises concerns about market saturation or loss of key contracts. High levels of current liabilities relative to current assets indicate potential short-term liquidity pressure if cash flow generation weakens in the coming quarters.
CBAK Energy Technology Inc. specializes in advanced energy storage solutions, including supercapacitors and battery modules, serving markets in electric vehicles, renewable energy integration, and industrial power systems. The company generates revenue through the design, manufacturing, and global distribution of high-performance electrochemical devices for stationary storage and mobile applications. With a recent pivot to profitability in 2024, the firm is leveraging its proprietary electrode technology to capture market share in the rapidly expanding clean energy infrastructure sector.
In 2024, the company achieved a significant turnaround by generating $9.6M in net profit and maintaining strong operating cash flow of $39.7M despite a decline in total revenue to $176.6M. The reduction in accounts receivable and strategic inventory management helped balance the books after years of losses, while capital expenditures focused on optimizing production efficiency rather than expansion. However, the company still carries a substantial retained earnings deficit of -$122.6M, indicating that historical burn rates have significantly impacted the balance sheet.
The global energy storage market is expanding rapidly driven by the need for grid stability and the electrification of transportation, creating immense opportunities for supercapacitor and battery manufacturers. Competitors range from traditional capacitor makers to new entrants in the EV supply chain, all vying for dominance in high-energy-density applications. Regulatory support for green infrastructure and carbon reduction goals continues to fuel demand for advanced electrochemical energy solutions.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $248.7M | $204.4M | $176.6M |
| Cost of Revenue | $230.6M | $172.7M | $134.8M |
| Gross Profit | $18.1M | $31.7M | $41.8M |
| Operating Expenses | $29.6M | $39.0M | $33.0M |
| Operating Income | $-11.5M | $-7.3M | $8.8M |
| R&D | $10.6M | $11.9M | $13.0M |
| G&A | $9.7M | $13.8M | $13.9M |
| Marketing | $2.0M | $4.9M | $5.2M |
| Stock-Based Comp | — | $1.2M | $376.6K |
| D&A | $8.1M | $9.7M | $8.0M |
| Depreciation | $251.6K | $10.4M | $7.8M |
| Amortization | $513.3K | $473.0K | $470.2K |
| Other OpEx | $7.2M | $8.4M | $831.4K |
| Non-Operating Income | $-1.1M | $1.2M | $2.4M |
| Interest Expense | $646.0K | $637.7K | $1.1M |
| Pre-Tax Income | $-12.6M | $-6.1M | $11.1M |
| Income Tax | $-1.2M | $2.5M | $1.6M |
| Continuing Ops | $-11.3M | $-8.5M | $9.6M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-11.3M | $-8.5M | $9.6M |
| Minority Interest | $0 | $-6.1M | $-2.2M |
| Net to Common | $-11.3M | $-2.4M | $11.8M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | — | $128.4M | $141.4M |
| Cash & Equivalents | $6.5M | $4.6M | $6.7M |
| Marketable Securities | — | — | $4.2M |
| Accounts Receivable | $27.4M | $28.7M | $32.9M |
| Inventory | $49.4M | $33.4M | $22.9M |
| Prepaid Expenses | — | $7.5M | $20.0M |
| Other Current Assets | — | $54.3M | $54.6M |
| Long-Term Assets | — | $152.7M | $160.8M |
| PP&E (Net) | $90.0M | $91.6M | $85.5M |
| Intangibles | $1.3M | $841.4K | $383.0K |
| Operating Leases | $1.3M | $1.1M | $3.2M |
| LT Securities | $945.2K | — | — |
| LT Investments | $945.2K | $2.6M | $2.2M |
| Other LT Assets | — | $54.7M | $67.8M |
| Total Assets | $244.0M | $281.2M | $302.2M |
| Current Liabilities | $111.9M | $160.5M | $171.7M |
| Accounts Payable | $32.5M | $82.4M | $84.7M |
| Current Leases | $575.5K | $692.0K | $1.3M |
| Deferred Revenue | — | — | $4.8M |
| Taxes Payable | — | — | $1.2M |
| Other Current Liab | $78.8M | $77.4M | $76.4M |
| Long-Term Liabilities | $7.7M | $7.2M | $10.4M |
| LT Operating Leases | $607.2K | $475.3K | $2.4M |
| Other LT Liab | $6.0M | $6.7M | $6.9M |
| Total Liabilities | $119.7M | $167.7M | $182.2M |
| Shareholders' Equity | $124.4M | $113.5M | $120.1M |
| Paid-In Capital | $246.2M | — | — |
| Retained Earnings | $-131.9M | $-134.4M | $-122.6M |
| AOCI | $-8.2M | $-11.6M | $-14.9M |
| Treasury Stock | $4.1M | — | — |
| Total L&E | $244.0M | $281.2M | $302.2M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-11.3M | $-8.5M | $9.6M |
| Non-Cash Adjustments | $27.0M | $54.2M | $-21.4M |
| Working Capital Changes | $-539.7K | $813.6K | $51.5M |
| Cash from Operations | $15.1M | $46.5M | $39.7M |
| Capital Expenditures | $12.4M | $31.1M | $17.2M |
| Cash from Investing | $-7.9M | $-42.3M | $-23.4M |
| Cash from Financing | $5.6M | $18.6M | $-11.7M |
| FX Effect | $-1.8M | $-1.3M | $-2.6M |
| Net Change in Cash | $11.0M | $21.5M | $2.0M |
| Beginning Cash | $26.4M | $37.4M | $58.8M |
| Ending Cash | $37.4M | $58.8M | $60.8M |
Primary segments include sales of high-voltage supercapacitor banks for electric vehicle traction applications, stationary energy storage systems for renewable grid integration, and proprietary battery module solutions for industrial backup power and telecommunications infrastructure.
The company faces significant exposure to fluctuations in lithium and other critical mineral prices which can erode gross margins on battery module sales. Intensifying competition from established semiconductor and battery giants could pressure pricing power and market share for supercapacitor products. Heavy reliance on a few key customers creates concentration risk if any major contract is terminated or downsized.
The company possesses a proprietary electrode manufacturing process that allows for higher energy density and longer cycle life compared to standard double-layer capacitors. Its vertically integrated production capabilities reduce unit costs while maintaining agility in supply chain management during raw material volatility. Strong partnerships with major automotive and utility clients provide recurring revenue streams and entry barriers against new entrants.
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