- CBAK Energy (CBAT, Financial) launches a $20 million share buyback program to enhance shareholder value.
- The program aims to regain compliance with Nasdaq's minimum bid price requirement.
- In 2024, CBAK Energy reported a 31.5% gross margin in its battery segment and a 23.7% overall.
CBAK Energy Technology, Inc. (CBAT), a leading Chinese lithium-ion battery manufacturer, has initiated a significant share repurchase program authorizing the buyback of up to $20 million worth of its common stock. This initiative will span the next 12 months, concluding on May 20, 2026. The primary objective of this program is to enhance shareholder value and address the company's current non-compliance with Nasdaq's minimum bid price requirement.
The repurchase plan is flexible, allowing CBAK Energy to buy shares via open market purchases, private transactions, or other means, including Rule 10b5-1 trading plans. This approach offers strategic flexibility in the timing and method of execution, making it responsive to varying market conditions and company goals.
The company's strong financial performance underpins the buyback initiative. In 2024, CBAK Energy reported an impressive 31.5% gross margin within its battery segment, alongside a 23.7% gross margin across its entire business operations. Notably, their flagship Model 32140 battery achieved a 19% share of the global market, underscoring the company's competitive edge in the lithium-ion battery sector.
CEO Zhiguang Hu emphasized that the share repurchase program reflects the company's confidence in its long-term value, suggesting that the current stock price underestimates the company's intrinsic worth. The buyback also serves to support the company's stock price while addressing regulatory compliance challenges on Nasdaq.
