CBAK Energy Technology Inc. reported its unaudited financial results for the first quarter of 2025, indicating a significant decline in financial performance. The company experienced a 41% decrease in net revenues, reaching $34.9 million compared to $58.8 million in the same period of 2024. This decline is primarily attributed to the transition at their Dalian facilities from the outdated Model 26650 to the more advanced Model 40135. The company reported a gross margin of 13.7%, down from 31.9% in the same period of the previous year. Additionally, CBAK Energy reported an operating loss of $2.86 million, a stark contrast to the operating income of $10.3 million reported in the first quarter of 2024. The net loss attributable to shareholders amounted to $1.58 million, compared to a net income of $9.8 million in the same period last year. The transition to the new Model 40135 is expected to eventually stabilize revenues, with the construction of new manufacturing lines anticipated to be completed in the second half of the year. Simultaneously, the company's Nanjing facilities are experiencing strong growth, driven by demand for the Model 32140, their most advanced product. CBAK Energy is also in the final stages of securing a long-term order from a key customer, which is expected to be finalized soon.