China BAK Battery Q4 Earnings Call Highlights

China BAK Battery (NASDAQ:CBAT) executives said fiscal 2025 marked a “definitive transitional period” arsenic the institution shifted its merchandise premix toward newer cylindrical compartment formats and expanded capacity, driving crisp fourth-quarter gross maturation portion pressuring margins during accumulation ramp-ups.

Chief Executive Officer Zhiguang Hu said consolidated nett gross successful the 4th fourth roseate 131.80% twelvemonth implicit twelvemonth to $58.80 million. Chief Financial Officer Jiewei Li added that the quarter’s gross was divided betwixt the artillery concern and the company’s Hitrans earthy materials segment.

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Li said artillery concern gross was astir $30.82 million, up 35.8% from the prior-year period, adjacent arsenic vigor retention assemblage gross declined 10.6% owed to the phase-out of bequest 26650 income from the Dalian facility. That diminution was “offset,” helium said, by “explosive growth” successful airy electrical conveyance (LEV) revenue, which “skyrocketed by 524.2% to $12.92 million” successful the 4th quarter.

Hitrans gross successful the 4th was $27.98 million, which Li described arsenic a 944.1% summation from Q4 2024, reflecting higher earthy worldly prices and downstream bid placement.

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While income roseate sharply, the institution reported profitability pressure. Li said gross nett successful Q4 2025 was astir $4.28 million, with gross borderline of 7.3% versus 13.1% successful Q4 2024.

He attributed the borderline compression to “transitional friction costs,” “suboptimal use,” and precocious fixed-cost absorption during the archetypal ramp-up of the caller Model 40135 enactment successful Dalian and Phase Two Model 32140 lines successful Nanjing. Operating nonaccomplishment for the 4th was astir $8.01 million, and nett nonaccomplishment attributable to shareholders was $7.38 million, helium said.

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On a full-year basis, Hu said consolidated nett gross reached $100.19 million, up 11% from 2024. Li besides discussed full-year performance, stating that nett revenues were $195.19 million, up astir 11% twelvemonth implicit year, with Hitrans contributing $188.92 cardinal (up 123%) and the artillery concern contributing $105.98 million.

Li said full-year gross nett was astir $18.42 million, for a 9.4% margin, down from 23.7% successful 2024. Operating expenses accrued 12% to $36.86 million, driven by a 21% emergence successful R&D to $15.8 cardinal and a 16% summation successful wide and administrative disbursal to $16.20 million.