CBAK Energy Technology, Inc. (NASDAQ:CBAT) 2024 Q1 Financial Results Call Record May 10, 2024
CBAK Energy Technology, Inc. beat profit expectations. Reported EPS was $0.11, compared to estimate of -$0.01. CBAK Energy Technology, Inc. wasn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (Please see here for the detail).
operator: Hello everyone. Thank you for your cooperation. Welcome to CBAK Energy Technology's Q1 2024 Earnings Conference Call. All participants are currently in listen-only mode. After that, we will have a question and answer session, and I will give you instructions at that time. Just in case, I'm recording today's call. If you have any objections, you may disconnect at this point. I will now turn the call over to Thierry Li, his CFO and Executive Director of the Board of Directors at CBAK Energy. Mr. Lee, please continue.
Thierry Lee: Thank you, operator. And hello everyone. Welcome to his 2024 Q1 earnings conference call for CBAK Energy. Joining us today is Mr. Yunfei Li, Chief Executive Officer of CBAK Energy, and myself, Chief Financial Officer and Secretary of the Board of Directors. And Jennifer, the interpreter. Mr. Xiujun Tian, our general engineer, will participate in the Q&A session. We announced the results earlier today. The press release can be viewed on the company's IR website @ir.cbak.com.cn. Also from newswire services. A broadcast of this call will also be available on our Investor Relations website in the coming hours. Before continuing, please note that today's discussion includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve inherent risks and uncertainties that could cause the Company's actual results to differ materially from the expectations expressed today. Further information regarding these and other risks and uncertainties is contained in the company's public filings with the SEC. We undertake no obligation to update any forward-looking statements except as required by applicable law. Please also note that all numbers referenced during the conference call are in U.S. dollars unless otherwise specified. I will now transfer the call to Mr. Yunfei Li, our CEO. Mr. Lee speaks in Chinese, so I will translate his comments into English. Please, Mr. Lee.
Yunfei Lee: Hi guys. Thank you for joining us for our Q1 2024 Earnings Conference Call. First, I would like to provide an overview of our business results for the first quarter. We are pleased to announce that 2024 has started well with strong growth. In the first quarter, our battery business recorded revenue of $44.84 million, a significant increase of 51.5% year over year. This strong start will determine what times we can expect next year. While many of our competitors are experiencing declining growth rates and profits, and the battery industry as a whole faces significant downward pressure, our battery business continues to drive that trend and achieve rapid growth. I am. Our strategy continues to focus on the energy storage sector, particularly home energy storage and portable energy storage.
As a result, our revenue from batteries used in electric vehicles decreased to $480,000, now 73.6% year over year. Similarly, revenue from batteries used in small electric vehicles decreased by 23.3% to $1.51 million. Meanwhile, revenue from batteries used for energy storage applications increased significantly by 66% year over year to $42.85 million. This strong growth in our energy storage business and high-quality customer orders drove our improved growth rate. In the first quarter, our battery business achieved a historically high gross margin of 41.2%, an increase of 30.3 percentage points compared to the same period last year. Meanwhile, net income from the battery business continued its upward trajectory last year, reaching $11.68 million in the first quarter, a significant increase from $0.11 million in the same period last year.
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