CBAK Energy Technology reports Q4 revenue $58.8M vs. $25.37M last year

Gross profit for the fourth quarter of 2025 was $4.28M, representing a gross margin of 7.3%, compared to a gross profit of $3.31M and a margin of 13.1% in the fourth quarter of 2024. The sharp margin compression in Q4 2025 was fundamentally driven by the intensive transitional period at both Dalian and Nanjing. The friction costs, sub-optimal yields, and disproportionately high fixed-cost absorption inherent to the initial ramp-up phase of the new Model 40135 and Phase II Model 32140 production lines heavily burdened the quarterly gross margin. Zhiguang Hu, CEO of CBAK Energy, commented, “The fiscal year 2025 was a definitive transitional period for CBAK Energy, characterized by a comprehensive structural upgrade of our product portfolio and a deliberate pivot toward next-generation form factors. At our Dalian facility, our customers are actively transitioning from our legacy 26-series batteries-a product line with over a decade of history-to our newly introduced, highly advanced Model 40135 cells. To support this, we successfully commissioned a new 40135 production line with a 2.3 GWh capacity at the end of 2025. The market reception has been unprecedented; demand for the 40135 cells currently far exceeds our available supply, and our order book heavily outpaces our current ramp-up trajectory. While the initial capacity ramp-up phase inherently carries higher unit costs that have temporarily suppressed our gross margins and short-term profitability, this is a necessary and highly strategic investment. As our customers complete their transition to the Model 40135 throughout 2026 and 2027, we anticipate a dramatic and sustained resurgence in both top-line revenue and bottom-line profitability. Importantly, we have proactively engineered a strategic response to the impending phase-out of the PRC’s export tax rebate policy for lithium-ion batteries-which reduces rebates to 6% in 2026 and zeroes out by 2027. By officially establishing our Malaysian manufacturing subsidiary in April 2025, we are constructing an unassailable overseas supply chain firewall. This strategic maneuver ensures that our expanding international margins will remain completely insulated from domestic tariff dynamics, cementing our competitive superiority on the global stage.”