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CBAK Energy Technology , Inc. InvestorRoom CBAK Energy Reports Third Quarter 2021 Unaudited Financial Results Q3 Revenue from high power lithium batteries grew 51 % YoY to $ 9.6 million DALIAN , China , Nov. 12 , 2021 / PRNewswire / -- CBAK Energy Technology , Inc. ( NASDAQ : CBAT ) ( " CBAK Energy , " or the " Company " ) a leading lithium - ion battery manufacturer and electric energy solution provider in China , today reported its unaudited financial results for the third quarter ended September 30 , 2021 . Third Quarter 2021 Financial Highlights • Net revenues were $ 9.6 million . Excluding revenues from raw material trades , approximately $ 9.6 million was from high power lithium batteries business , a 51 % year - over - year growth in high power lithium battery revenues over the same period of 2020 . • Gross profit was $ 1.1 million , a decrease of 17 % from $ 1.4 million in the same period of 2020 . • Gross margin was 12 % , a decrease of 1 percentage point from the same period of 2020 . • Net Income was $ 20.0 million , compared to net income of $ 41,715 in the same period of 2020 . Yunfei Li , Chairman and Chief Executive Officer of the Company , noted : " We are very pleased with our robust battery sales in the third quarter . Notably , revenues from high - power lithium batteries totaled $ 9.6 million , representing 51 % year - over - year growth . These results attest to the quality and level of recognition our industry - leading products have in the market . Mr. Li continued : " As scheduled , we are expanding our production capacity despite global energy shortage and commodity price hikes . This is a much - needed action as the new capacity will yield positive business outcomes and augment our ability to supply . Additionally , in order to address growing and diversified demands for batteries , we made meaningful progress in research and development while extending our product portfolio . Our operations and growth strategies are well on track , which we believe solidifies our market - leading position and capabilities to deliver long - term growth in this thriving industry . " Xiangyu Pei , Interim Chief Financial Officer of the Company , noted : " Our financial performance for high - power lithium batteries remained solid in the third quarter , a testament to the strong demand for our advanced and dependable products . Despite the increase in commodity prices , raw material cost was carefully managed through our previous contracts that have locked prices for certain materials . As evidenced by our healthy financial position and vigorous growth , we have the capabilities for executing our growth strategies that will push us further on the path to consistent , sustainable success . " Third Quarter 2021 Business Highlights & Recent Developments • In August , the Company secured performance certification from the world's leading testing , inspection and certification company SGS for its special 26650 lithium - ion battery , specifically designed for use in ultra - low temperatures . Third Quarter 2021 Financial Results Net revenues were $ 9.6 million . Revenues from high power lithium batteries was approximately $ 9.6 million , representing 51 % year - over- year growth compared to the same period of 2020. The Company did not have new raw material trades in this quarter and had a minor adjustment in revenues from previous raw material trades , and the new production line installation in Dalian plant had a temporarily adverse impact on existing production . Net Revenues by End - product Applications ( $ thousands ) 2021 Third Quarter 2020 Third Quarter % Change ΥΟΥ High power lithium batteries used in : Uninterruptable supplies $ 9,336 $ 5,920 Light electric vehicles 227 23 58 887 Electric vehicles 1 Total high power lithium batteries $ 9,563 408 $ 6,351 ( 100 ) Raw materials used in lithium batteries Total ( 1 ) $ 9,562 4,269 $ 10,620 51 ( 100 ) ( 10 ) Cost of revenues was $ 8.4 million , a decrease of 9 % from $ 9.2 million in the same period of 2020 . Gross profit was $ 1.1 million , a decrease of 18 % from $ 1.4 million in the same period of 2020. Gross margin was 12 % , a decrease of 1 percentage point from the same period of 2020. The inflation in raw material prices resulted in the increase in production costs . Total operating expenses were $ 4.3 million , an increase of 339 % from $ 1.0 million in the same period of 2020. Most of the increase in all expense categories was due to growing headcount and research and development expenses associated with the Nanjing production facility , along with the expiration of the Chinese government's COVID - 19 relief policy that had reduced social insurance contributions during the pandemic . • Research and development expenses were $ 1.8 million , an increase of 307 % from $ 0.4 million in the same period of 2020. The increase in research and development expenses was also due to the Company's efforts in optimizing performance and cost - efficiency for battery products . • Sales and marketing expenses were $ 0.5 million , an increase of 223 % from $ 0.2 million in the same period of 2020. Given the growth in revenues from high power lithium batteries , we increased salaries and benefits for sales and marketing employees . • General and administrative expenses were $ 2.2 million , an increase of 191 % from $ 0.7 million in the same period of 2020. The Company's rental expenses increased as it rented spaces for manufacturing , warehouse , and staff accommodation for the Nanjing production facility . • Recovery of doubtful accounts was $ 0.2 million , compared to a recovery of doubtful accounts of $ 0.4 million in the same period of 2020 . Operating Loss was $ 3.2 million , compared to operating profit of $ 0.4 million in the same period of 2020 . Finance income , net was $ 0.1 million , compared to finance expenses of $ 0.4 million in the same period of 2020 , and was a result of lower loan balances and interest income generated from vehicle leasing in 2021 .