Company overview

CBAK Energy Technology, Inc., since renamed CBAK Energy Technology Ltd, supplies lithium and sodium battery cells and packs to customers making electric vehicles and energy-storage products. Batteries contribute the larger share of revenue, mainly from uses in light electric vehicles, home energy storage and backup power systems. Major battery customers include Anker Innovations and Spiro Mobility. Its Hitrans business supplies battery manufacturers with cathode materials and the precursors used to make them, providing another substantial source of revenue.

Sales depend on repeat orders from a limited group of major customers. Customers make no long-term purchase commitments, and prices and quantities are set through individual orders. Raw-material costs also matter: the company buys mainly through short-term arrangements and has not always been able to pass higher input costs on to battery-cell buyers.

Manufacturing operations are primarily in China. The listed parent is a holding company that depends on distributions from its Chinese operating subsidiaries for cash. Chinese rules limit dividends to accumulated profits after required reserve allocations, while foreign-exchange controls can restrict transfers to the parent.