Business

CBAK Energy Technology Inc (NASDAQ: CBAT) Announces Outline Arrangement to Obtain Mainstream Stake in Zhejiang Meidu Hitrans Lithium Battery Technology Co

CBAK Energy Technology Inc (NASDAQ: CBAT) announced that its subsidiary Dalian CBAK Power Battery Co., Ltd. arrived into an outline contract to purchase a mainstream stake in Zhejiang Meidu Hitrans Lithium Battery Technology Co.

CBAK Energy will pay around RMB158.74 million to purchase 81.56% of the equity interests

CBAK Energy will purchase 81.56% of the equity interest in Hitrans presently owned by Zhejiang Meidu Graphene Technology Co. and Hitrans’s administration stockholders for an amassed consideration RMB158.74. CBAK Power targets to conclude the purchase in the third quarter of 2021.

Hitrans was established in December 2015 to engage in R&D, production, and sales of ternary precursors and terminal resources. Additionally, Hitrans was one of the leading suppliers of the company in fiscal 2020. The company expects to reinforce its supply chain and competitiveness in the high-power lithium battery market through the purchase.

CBAK Energy total net incomes improved by 69.3% to $37.6 million in the fiscal year 2020

The total net incomes of CBAK Energy augmented by 69.3% to $37.6 million in the financial year 2020 from $22.2 million in the financial year 2019. As a result, its gross return improved to $2.7 million from $0.6 million in the fiscal year 2019.

Its net incomes from deals of arrays for electric automobiles diminished to $259,955 in the fiscal year 2020 from $4.5 million in the financial year 2019. The reduction was primarily attributable to fluctuations of the Chinese government’s new vigor vehicle funding strategies.

Yunfei Li, Chief Executive Officer of CBAK Energy, observed, “Notwithstanding macro trials in 2020, we raised our top-line by 69.3% year over year. Such healthy development was mainly owed to the augmented market acknowledgement of our R&D competences as well as our greater brand consciousness in the verve stowage market. With our viable compensations in R&D and extended global existence, we remain self-confident in our forthcoming development forecasts.”

Xiangyu Pei, Acting Chief Financial Officer, further observed, “In the full year of 2020, we raised our total net incomes while also meaningfully plummeting our net loss. This strong presentation was chiefly due to our operative business plan, strong business paradigm, and functioning influence enhancements.”

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