We are very pleased you've joined us for our Clean Energy Metals Conference. The next presentation is from CBAK Energy. Please note you may submit questions for the presenter at any time. You can also view a company's availability for one-on-one meetings by clicking "Book a meeting." At this point, I am very pleased to welcome Clara Blady, North America Business Development and Investor Relations of CBAK Energy, which trades on Nasdaq under the symbol CBAT. Welcome, Clara.
Thank you so much, Lily. Good morning, ladies and gentlemen. Thank you so much for joining me today. My name is Clara Blady, and I am proud to represent CBAK Energy. We are a commercially proven, Nasdaq-listed battery company with 25 years of innovation in lithium and sodium-ion battery technologies. For over 25 years, we've been at the forefront of powering the transition to sustainable energy through high-performance, safe, and scalable battery solutions. Today, I will show you why CBAK is not only deeply undervalued but positioned for significant growth in the fastest-growing segments of the global battery market. Please note that this presentation includes forward-looking statements subject to risks and uncertainties. This is for informational purposes only and does not constitute investment advice.
With 25 years in cylindrical cell technology, CBAK Energy is a leading producer of cylindrical lithium iron phosphate battery cells and the first in China to produce large-format sodium-ion cells. With net revenues reaching $195 million in fiscal year 2025, CBAK is a leader in the market for cylindrical LFP cells. Our technology has already been chosen by global leaders, including Anker, a world leader in portable power and charging solutions. Viessmann, a premium European home energy storage and climate solutions provider that was acquired by Carrier Corporation, a global leader in intelligent climate and energy solutions. Ather, one of India's leading premium electric two-wheeler manufacturers. We also supply cells to India's top two and three-wheeler makers. CBAK is an established company. We bring together technical expertise, proven manufacturing, and a strong global customer base, and this has created a foundation for long-term value.
Our growth is not only speculative. It is already underway. We currently operate 8.3 GWh of capacity and have a design capacity for a production capacity of 38 GWh . Our planned Southeast Asia facility, which I'll talk about a little bit more and is targeted for 2028, will add another 3 GWh . We've maintained our top five customers for an average of five years, and just last year increased total orders by more than 11%. We currently carry a $78 million backlog. I'll explain that figure a little bit more later, but these firm orders already demonstrate the consistent, ongoing demand from our customers. At the same time, we're perfectly positioned in several multi-billion dollar high-growth markets, electric two and three-wheelers, battery swapping, and portable power. Those markets are not our only focus.
Our newly developed full-tab 26650 LFP cell builds on two decades of research and development and is now well-suited for one of the fastest-growing markets, battery backup powers for AI data centers. CBAK's new full-tab 26650 cells, they are built for AI data center backup power and can push power extremely fast. 40C continuous, which is fully discharging the battery in about 90 seconds, and 100C pulse, which is a massive power burst. They deliver 310 watts of constant output and hold that load for a full 100 seconds, far ahead of typical cells. The design also allows us to have fewer cells, freeing up about 20% more rack space and lowering cooling costs by 5%-10% with longer operating life.
We are already advancing module-level testing with multiple Tier 1 customers and are in the process of securing the UL and CE certifications needed for the U.S. and European markets. I will come back to this later. This is where the opportunity becomes exceptionally attractive. As of August 25th, just this week, CBAK was trading at a 0.37 x PS on trailing 12-month revenue, with a market capitalization of approximately $84 million. Our stock has experienced substantial increase recently as market recognition of CBAK's progress has increased. However, even after recent rerating, CBAK continues to trade at a significant discount relative to its revenue scale, manufacturing capacity, and growth potential.
We are a company that has generated nearly $200 million in revenue last year with a current capacity of 8.3 GWh today, but potential for 38 GWh , and yet the market is valuing us at well under one time sales. Compare that to our peers. Compared to Enovix, despite generating about 6.4 x higher revenue, our market cap represents only about 11% of theirs. Compared to Microvast, our closest U.S.-listed competitor, at their multiple of 0.8 x PS, our implied market cap would be about $184 million, highlighting the continued valuation gap between CBAK and our comparable companies. CBAK is an established scaling battery leader with superior cylindrical technology and elite global partnerships, trading at a deeply discounted 0.37 x PS, while selected revenue-generating peers trade at 0.8x- 1.5 x.
Even though recently the market has begun to recognize our progress, we believe the current valuation still does not fully reflect our revenue base, operating scale, and long-term growth opportunity. The reality, and what we hope the market recognizes, is that CBAK is the first China-based lithium battery company to list on Nasdaq with two decades of sustained capital market compliance. We operate over 500,000 sq m of facilities and deliver 8.3 GWh of annual capacity today, with a focus on our large cylindrical cells, materials, and modules for high growth applications. Our journey reflects consistent leadership and execution. From pioneering our LFP mass production in 2005, to our Nasdaq listing in 2006, to becoming a top five player in key Chinese cell segments, we have repeatedly turned innovation into commercial success.
Today, we are expanding our sodium-ion battery technology and expanding physically into Southeast Asia while strengthening our operational capacity. Our leadership team has a global mindset. Our CEO, Jason Hu, has over 20 years with the company and deep sales and marketing experience. Our CFO, Thierry Li, who is with us today, brings strong global capital markets and fund management experience, while Director Una oversees procurement with her experience in world economics. This team has a vision and execution track record to deliver. We serve customers in more than 40 countries across every major region. In Europe, we partner with Viessmann. In India and Africa, we are gaining significant traction in the two- and three-wheeler markets and battery swapping with leaders like Ather, Bajaj, Hero, and Spiro. In North America, we deliver reliable solutions to major internet and energy customers, including Schneider Electric, a global leader in energy management and automation.
This global presence de-risks our business and opens multiple growth vectors simultaneously, and we are striving to continue that growth. Our technology is already proven in the market. As of July 2026, we have generated $153 million in cumulative sales with Viessmann and $65 million with Anker. We continue to do significant business with Northvolt's most profitable division, now part of Scania, and we are steadily growing volumes with Ather and other key customers. These are multi-year expanding relationships with Tier 1 partners who keep increasing their commitments to us. For example, we recently secured a $96 million battery cell order from a leading Indian two- and three-wheeler manufacturer. The press release for this came out only a few days ago. That order is expected to bring our designated manufacturing facility to full capacity and further strengthen our position in India's electric mobility market.
We are also in active discussions with another India-based customer on a potential large volume order. One quick clarification on the backlog that you see here. The $96 million order I just mentioned is placed quarterly. So far, we have received the quarter one 2027 order, which is included in our current backlog. The remaining orders will be placed over the next three quarters and added to the backlog as they are received. We remain focused on deepening and expanding these Tier 1 partnerships. Looking a little more closely at what CBAK's core competency is, our product matrix. We offer a strong differentiated lineup of large cylindrical cells. Our Model 26 Series represents our first mass-produced LFP cylindrical batteries. The Model 32 Series is a core part of our portfolio, and along with our Model 40 Series, has been adopted by Anker, Spiro, and other key customers.
Our Model 32 Series sodium-ion cell is the future. It is our alternative technology offering and allows us the option of supporting customers with a high-performance cell capable at operating at ultra-low temperatures. But I want to again highlight our Model 26 Series. These are the high-performance LFP batteries designed specifically for AI data center backup power. We are already in the process of running joint testing with leading well-known AI data center companies for these cells. We have locked in long-term material supply and are advancing our global certifications to support broader deployment. With this Model 26 Series, CBAK is positioning itself as a key supplier for the high-performance backup power that AI data centers will increasingly require. Looking a little more closely at our large cylindrical platform, this is our competitive advantage.
Cylindrical cells offer inherent safety advantages over other cell designs because pressure is distributed evenly, reducing the risk of swelling or failure. Our larger format cells also deliver better economics. They have roughly 15% lower manufacturing costs, 25% higher energy density, and up to eight times the capacity of traditional size cells. This combination of safety, performance, and cost efficiency is exactly what customers demand, especially those in the AI data center industry, and that is what CBAK provides. We have invested heavily in R&D. 8% of our sales are reinvested back into our research and development. Our 462 patents give us a competitive edge, and 20% of our staff is dedicated to research. This has delivered real results. Over 92 million model 32 Series cells have been shipped with no safety incidents. CBAK operates three main strategic facilities across China.
Our Dalian cell research and development and production base currently runs at 3.3 GWh , with plans to expand that to 16 GWh . I am going to jump to our Changzhou cell production base, which adds 0.5 GWh today and will grow to 2 GWh . I want to look more at our Nanjing cell R&D and production base. Nanjing is our largest site today at 4.5 GWh , scaling towards 20 GWh . In a recent press release as well, we announced that shipments of our module 32140 cells during the first seven months of 2026 totaled 32 million units, up 101% from 16 million units in the same period of 2025. This is due to a continued ramp-up of what we call our Phase 2 production lines in Nanjing. The seven-month shipments in 2026 also surpassed the full year 2025 by approximately 8.6%.
We are on track to increase the production capacity of our Nanjing Phase 2 production lines to 220,000 cells per day by the end of 2026, and have already achieved around 80% of this target as of last month. This growth in Nanjing and in our other production facilities not only ensures that we can fulfill this growing customer demand, but also provides geographic diversification within China and strong operational flexibility. Combined with our planned Southeast Asia facility, we are building a resilient global manufacturing platform designed to support our sustained growth. Beyond our core battery cell production, CBAK has also expanded into other growth areas through our materials subsidiary, Hitrans Technology. Hitrans is a leading developer and manufacturer of key lithium battery materials, with operations across multiple locations in China, including production bases in Ningxia, Shaanxi, and Anh ui.
These facilities bring 23,000 tons of cathode material capacity, with 10,000 tons under construction, and 5,000 tons of precursor capacity, including 37,000 tons under construction. We also have facilities in Sichuan and our Zhejiang headquarters, which features a 50,000-ton precursor manufacturing base. This strategic investment gives us greater control over raw material costs and supply chain stability. It helps improve our margins and provides a natural hedge against price volatility. Hitrans is recognized as a national-level high-tech enterprise and ranks among the top providers of cathode and other key cell material in China. We are methodically scaling capacity across our Chinese facilities, as I mentioned, while also adding strategic production in Southeast Asia.
While our plans for this facility are still in progress, we are targeting this plant to open in 2028 to help mitigate geopolitical risks, secure supply chains, and this positions us to serve our global customers more competitively. In fiscal year 2025, we delivered strong revenue growth with a well-balanced mix. Residential storage and UPS accounted for approximately 65% of our battery business revenue. Light EV and EV accounted for about 35%. Hitrans is also turning the quarter rapidly with a positive outlook for profitability due to the rising material costs over the past few years. Hitrans is a growing strategic arm of CBAK and a key aspect to our future business. At the group level, we posted solid gross profit of $18.42 million and a positive adjusted EBITDA of $7.05 million for fiscal year 2025.
In quarter one of 2026, group net revenue reached $69.62 million, a 99% increase compared to quarter one of 2025, with net income for Hitrans reaching $1.57 million. At CBAK, our sustainable development strategy drives strong ESG performance across environmental protection, occupational health and safety, supplier responsibility, and employee growth. Notably, our robust environmental management system is proudly certified by EcoVadis, backed by our ISO and other globally recognized certifications. These initiatives reflect our commitment to powering sustainable living through responsible, transparent operations, and we will continue to act that way. CBAK stands apart with a powerful combination of strengths that few peers can match.
We have a world-class customer base of Tier 1 global leaders, a substantial revenue scale paired with highly scalable operations, and more than 20 years of proprietary expertise in cylindrical battery technology, expertise that has been continuously validated by our major customers and proven by our ongoing commercial success. Together, these advantages place CBAK Energy at a highly compelling valuation, significantly undervalued relative to industry peers of similar revenue scale. This is a rare opportunity to invest in a scaled, technically proven player operating in one of the fastest growing sectors at an attractive entry point. We would like to invite you to join CBAK Energy on the next phase of our growth journey. I really appreciate you being here today. Thank you so much. We will open for questions.
I will be going through the questions and providing them to both Thierry, our CFO, and Sam, who is here, Head of Investor Relations. Okay, let me pop these up. All right. The first question that came in was: as Nanjing Phase 2 ramps automated production, where do you expect to see the biggest benefits, output yields, labor efficiency, or product consistency? Thierry or Sam?
Let me answer this question. First of all, I would like to thank everyone to attend this section and to stay with us. Regarding this question, as you know, our Nanjing Phase 2 has ramped up so quickly. Within the first half of this year, we have already almost completed ramp up. I would say, for Phase 1 in our Nanjing phase, we have two lines, and each line is a 60 ppm efficiency. That means that we will be able to produce 60 cells per minute. For Nanjing Phase 2, we were using the latest equipment that enable us to produce 200 cells per minute. That means that, for the same personnel and for the same cost, we will be able to produce more cells.
As Nanjing Phase 2 ramp up completed, you will be able to see that we would reach a much lower cost per unit very soon.
Thank you, Sam. We have a lot of questions, I will go through as quickly as possible so we can try and make as many as we can in the next 10 or so minutes. The next question is: that approximately $96 million India order is meaningful. What gives you confidence it can become a repeat multi-year customer relationship? Sam? Or Thierry.
I'm Thierry, let me answer—
Oh, yeah.
We'll reply to this question. Everyone saw that we just made a recent press release that we received a significant order from our Indian customer. This is, as you say, meaningful. This customer has been in contact with us for a long period of time. They have been seriously testing, validating our cells, alongside with their car, their bikes. If you were in the battery industry, you will know that once the customer choose one cell supplier, they will not easily change it because they would need to align the size of their pack with the size of our cells. Once they choose us to be their suppliers, that means several cells from our size will fit into their battery pack. That means if they want to change to another supplier, that'll be very time-consuming and very costly.
On another side, our battery in the Chinese battery market is very famous for its quality and reliability. Very few customers who work with us would like to choose another supplier. Maybe they will choose the secondary suppliers because our cells is usually much more expensive than the cells from our competitors. But very few customers would, at the end, turn from us to some other customers because of the cost of the price and some other reasons.
Adding to that, Thierry, the large order that was announced this past week for the Indian customer, would that be the 26 Series cells or the 32 Series?
That actually will be for the 26 Series.
Great. Next question: as larger orders move through the production system, when should investors expect operating leverage to become more visible?
Well, like we have made public in the past earnings release, we always say that because in our Dalian facilities, we increase a new capacity for a new series of batteries called 40 Series. Some of our customers choose to switch from 26 Series to 40 Series, which actually result in a situation where we have fewer customers for the 26 Series. The production line for the 26 Series cannot run all day, and it just increases our cost. With this significant order coming in and the production capacity for 26 Series would just continuously running, then we believe that unit cost for 26 Series would be significantly lower down. Very soon you will be able to see the operating leverage for the Series 26 reflecting in our financials.
Great. We've got about five minutes left, and I know that I can respond to everyone's questions via email after this, but I want to try and get through a couple more. With Q1 revenue up 99% year-over-year, how much of that growth reflects demand normalization versus new customer and product momentum?
Well, most of the sales actually come from our Nanjing Phase 2, and Nanjing Phase 2 has actually the same product as Nanjing Phase 1. I would say it's because we have so much demand for our 32 Series, so it's just like new customers for existing products continuously coming in, and we believe that these sales will just continue. In the future, we are planning a larger size of sales, but at the current stage, we believe that the Series 32 will just bring us as many sales as it can.
Mm-hmm. Great. For investors new to the story, why is this a particularly compelling moment to evaluate CBAK Energy's growth trajectory?
Well, CBAK Energy is a company with two decades history. We are always in the market, and we are very well-known in China's battery market. Now, in the recent, I would say recent five years, the company is in really rapid development and growth. We have built up a very, very solid customer base. All these announced customers are internationally renowned customers, and they place significant orders with us. We believe that with our capacity expansion plan continue, the company's revenue growth and even the profits would just be very satisfactory in the coming years.
At this moment, CBAK Energy is, as we believe, strong undervalue in the stock market, and the company's relatively still small, but it's growing really fast. With this long relationship with solid customers, we believe that this would be a good choice for you to stay with us at this moment.
Great. Okay. With 2 more minutes left, what do you believe is CBAK's strongest competitive advantage when competing for large international battery cell programs?
Well, I would say it's because of our technology. Like I said, the company's in the market for two decades, and everyone knows us. For one company to stay in a very competitive market for two decades, it must have some technological competitiveness, and that's what we rely on. Like I said before, the company's cells is very famous for its reliability and quality. Before, with our German clients, our cells have been working on their device for, I would say five years, probably longer than five years, and no incidents were reported. We are very proud of that, and this is why a lot of the internationally renowned customers will still choose us, even though our company's relatively smaller than those giant.
Yeah. Okay. There are about 12 questions that I haven't gotten to, so I'll have to follow up afterwards, but I'll ask one more here. Apologize to anyone who I didn't get to. But the last question here is what does progress look like in North America, i.e., have you been able to enter into long-term supply agreements given the extensive demand for data center builds in that region?
Well, like we say in the presentation, our cells is currently being tested and being validated by some very, very famous AI data center operator. We can't just disclose their name at this moment. I think the progress is very satisfactory, and I believe that the application in AI data center is very promising for our business. But at this moment, there's no definitive agreements or purchase orders from these customers. Considering the time is running out, I would like to respond to one more questions regarding the shelf offering that you see last night. This is not a new shelf offering. The company has a $500 million shelf offering, as it were, as a Nevada company. Everyone knows that recently we re-domiciled to the Cayman Islands. The originally S-8 becomes ineffective, and so we just basically switch from the original S-8 to right now F-8.
Got it.
It's just basically a switch. It's not a new one.
That was the question, could you comment on the recent news of a $500 million mixed shelf offering and an accumulated deficit of $133 million as of December 31st, 2025?
Yeah. That's my final comment.
Great.
Please be assured that the company, within a very short period of time, we are not going to do any private placement or any dilutive actions considering that the stock price at this moment, as we believe, is very, very strongly underestimated.
Thank you, Thierry. I know we're a little over, so thank you, Andrea, for the extra one minute. Thank you everyone again. I really appreciate it. If you have any questions, QR codes are on the screen, and we'll follow up with answers to the questions I didn't get to answer. Thank you again, and we look forward to hoping you join us on the next phase of our journey. Thank you so much.
Thank you, everyone.