CBAK Energy Technology (CBAT) 10 May 242024 Q1 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the CBAK Energy Technology's First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, we are recording today's call.

If you have any objections, you may disconnect at this time.

the the to Board turn and Li, will of Secretary of I call Thierry over CFO Now CBAK Energy. Mr. proceed. please Li,

Thank Welcome everyone. XXXX and Energy's operator, Quarter Call. Earnings to First Conference you, CBAK hello,

the today Mr. Energy; Chief Board; Xiujun join CBAK and Tian us Officer of interpreter, our for and myself, are Chief will Financial Li, Joining Executive Q&A Yunfei our of Jennifer, Secretary Officer section. the Mr. general us engineer,

available earlier services. on We available company's The this today. on released is well newswire the few our website release from call results A as ir.cbak.com.cn hours our website. in a be IR press of IR will as also relay

safe Reform continue, Private that Before please harbor of contain Act today's of note forward-looking the Securities will U.S. under Litigation we discussions provisions XXXX. the statements made

involve Forward-looking and risks statements uncertainties. inherent

be company's with uncertainties from information these and may As other today. the such, public expectations results in Further and materially the expressed SEC. included company's regarding different risks actual the the is filings

The in any mentioned Also, except laws. update required to unless as assume dollars. call obligations any applicable statements, note conference are stated, the forward-looking all under during that otherwise figures U.S. please doesn't company

Mr. CEO, now call turn ahead, With speak that, let me Li. over Mr. to Mr. Chinese I Li. the into will Go comments English. our and Yunfei in will Li translate the

conference call. Thank for quarter you XXXX joining everyone. Hello, earnings first [Interpreted] our of

like would to overview our quarter. I First, first an in of performance provide the

a year declining strong our promising faced start experiencing whole of competitors industry last ahead, significant quarter, business gross as sets ] of revenues the profits. a margins of same the with to growth. a XX.X% note million a period to pleased robust battery remarkable pressure the many year have downward announce [ recorded first XXXX the compared are while with that on $XX.XX increase battery the for commenced year. We time we of This In and solid our

Our to and the rapid mark continue business trend achieved growth. battery

especially Our light company's decreased revenue storage strategic XX.X% vehicles in focus portable and remains Similarly, from sector, used storage. vehicles XX.X% declined to our in $X.XX to down on energy energy batteries from used electric revenue electric batteries by million. home energy storage $X.XX million year-over-year. the Consequently,

On last translates a compared the the batteries net Meanwhile, in to other clients XX.X%, the segment's The used quarter, energy million from This continued increase of million, the from year. $X.XX year-over-year. for impressive million from tremendously high first battery of our upward has year in leap trajectory $XX.XX XXX significant same the battery of income hand, applications points to first year. gross in our strong net from energy prior percentage grew coupled our revenues in last fold an propelled is growth same an to storage increase year. business reaching business of in the and year, period income entire XX% last our storage In with margins. of to equivalent gross its quarter, margin XX.X increase high-quality historic a achieved orders from our improvement business $XX.XX the

let Now of the our delve order demand. me into specifics

Nanjing, of major production RMB have X, our approximately in across Shaoxing. but million million approximately we fulfilled As orders be XXX combined in of to XXXX, May $XX.X or yet value facilities recorded Dalian, received

approximately million from May largest accumulated approximately tricycles our electric XXXX, Group, X, as $X.XX and orders of XX.XX Jinpeng manufacturer or our worldwide RMB of million. initiatives Regarding client disclosed totaled the scooters

$X.X BlueTTI, reached million. million approximately a a approximately Our leader storage collaboration with storage PowerOAK, XX.XX or in the subsidiary energy portable and global energy technology RMB brand,

an of heating XX.X impressive Viessmann approximately household RMB storage leading our approximately amounted to Inc.'’s products, accessories energy X of suppliers suppliers European top reached with or one cooling Group, globally the $XX.XX RMB third-party and Innovations, Anker million. Additionally, largest a also billion for Apple one million. our or X.XX Europe's $XXX million manufacturer orders Simultaneously orders systems of with the and

base the are kinds confidentiality to negotiating collaborations expand, energy continues is to the of European we market we channels. the several whom consent orders and company global storage Among strengthen presence share. shareholders increase which substantial our battery with about client, client will to progress have obtain clients, Furthermore, through market and sector our our investors, in from official of received the We a these currently key and industry hope future capital agreements. markets update collaborations them discussing

efforts. Turning pursuing to actively battery new exploring various and product segments across demand diverse research the the development market innovations. while to our We committed remain of

the latest XXXXX effective undertaking, our original safer larger energy model model solution. of expanding of lithium-ion synergical clients battery, and elevates development smoothly. more progressing By cost with effectiveness, the Our synergical a providing and this both is the our battery, density dimensions

We production equipment the quarter our XXXX production and and launch in bolster introduction to quarter year. procure sales. first to plans in the that of market expansion efforts this company of Our increase significantly fourth believe will the next expects mass formally of drive in an product

India market. in attracted supply top companies foreign Meanwhile, some It well battery technology gaining companies chain. many in our attention is has recognition as as the international along the from

synergical foreign manufacturing approached large several acquiring battery about our us giants addition, technology In through technology have transfer.

a or certain are conducting more battery evaluation storage markets considering transferring future. Lithium possibility currently used batteries which licensing commonly ion comprehensive technology in energy of are We in our and the the in market. the

to downstream production customer and innovation in one synergical and energy. Furthermore, various demand world growing interest as for customers in to companies technology, as of production the our groups achieve first factories in the increasing and batteries. the battery large we the mass among application States of X and United We Europe of shall -- sodium of observe the in sodium-ion meet battery continue will strengthen energy storage and to needs the R&D

We about are very trend. this excited

investment for in our financing lithium separate funds and project, in sodium-ion talks We aiming are the industrial future. battery independently development battery promote also the sodium-ion with regarding several to battery investors world-class of segment

CFO, turn performance. over call Thierry who to details our provide the the me our will let Now financial on Li,

Thank time you, to and conference today. everyone, earnings call making Yunfei our join Li, Mr. for thanks,

quarter sustainable We net strong our from XX.X% are significant increased Total first by growth and revenues while marked delighted business net a to by saw year-over-year. profitability. year-over-year, results report uplift of revenues increased XX.X% battery

gross XX.X% to our jumped the addition, points from of XX.X%. year with margin to business In ago, surging battery the XX.X margin year-over-year percentage a X.X% gross

$XX.X the third battery of a As a result, consecutive positive income our $X.X and income business the million, net for quarter. of line positive with net turned million from bottom the

will XXX to we net the RMB XXX that for believe or $XX.X year million $XX.X achieve approximately XXXX. We to RMB of battery income business be million of approximately million or able full a from the million

materials break In addition, year. even slight only or expects battery Hitrans, to our lithium incur losses operated supplies also subsidiary that independently this

is news share There with to exciting we another want you.

evaluations. of market official complete updates We to have transactions Currently, company. investors. the the institutional the year. [ diligence with investors to due hope from Ideally, uncertain gathered of progress provide we our such on shareholders as are capital to channels for of this institutional factors we investors, and these financing will private these ] multiple due development the process we investment relevant is attention Subsequently, through in purposes, while

first Net $XX.X will XX.X%. of overview I quarter increased earlier financial an million. XX.X% encourage increase net press will total of I today We time, revenues the release presenting only. complete $XX.X from refer batteries abbreviated year-over-year XXXX results. our now reached of you first In to revenues interest issued be to our In for year-over-year provide by million, the details. to of quarter, sales our a highlights

margin of to profit gross in the year-over-year prior X.X% profit Our in XXX.X% the compared year for gross million, prior grew resulting period. XX.X% business XX.X% to in battery total to by $XX.X climbing to $XX.X period. Gross from with year year-over-year million, XX.X% increased the XXX.X% a gross margin

Our net $X.X total operating loss shareholders million the $X.X loss year in amounted period. was compared in Net CBAK the $X.X income an million $XX.X prior Energy attributable year million to of compared income of of prior period. to to a operating million to

to prepared That of from income $XX.X $X.X battery in was same Net our million XXXX. compared period million the remarks. concludes business the

Operator, Let's ahead. for questions. the please now go call open

with We're The question. Instructions] comes Brian of now Lantier line to the our first from from question [Operator going Research. proceed Small-Cap Zacks

I last cost more that to bit little how contracts, a bit Congratulations then just dive the gross margin, impressive little over you a and If as me performance. give that from that input could achieving you're of falling into year? the achieve Or able signing you're could you're gross on Thierry, factors here combination a to the the the if improvement? color pricing really margin more a is when the customers

[Interpreted] Okay.

gross to going I'm have question. your X for reasons soaring There you to this main thank So explain. were margin.

Chinese that is the gross the you if other it in leading The is compare battery the with market, one around first XX%. margin manufacturers

with However, And them is the the very price. testimony our complaint in well are been years. and the how Chinese by has that is from zero been our high-end a to almost And big quality Well, cooperation recognized is them. U.S., product we hand, them. about received margin product and these customers from average good on They in quality value for one have has That we X XX%, Why? that our the is Europe because recognized market. product customers. the double well it over customer customers some been by X from

willing they us. the This good reasons why one a are offer is to of to price

indeed, of of declined lithium just the the peak And because it yes, from then is carbonate materials, mentioned, secondly, raw cost XXXX. in the of the also has as just substantially Brian declining

in gross also the margin. our has to contributed of the So reduction the cost increase material

market the average only margin clarify top Yes, XX% to for for gross players. is

If the something gross is medium-sized to manufacturer, battery XX% about somewhere between margin like XX%, you're talking that.

the and, purchases more is I Anecdotally, at cells for their higher I customers? is and customers' looks itself. home larger from it like seeing of the a that if to each how pushing I as are that storage and your you your as demand on lot guess, emergency like systems. that you're cells, products a overall guess, question ask more volume, And of trend market I storage additional impacts they wonder some lead for well, unit it will could seems Great. units storage a looking requiring

a market our the increasing an have actually, we bigger already demand. -- achieved lithium media fill observed have batteries, you a in size. if market And projects. it the and look XXXXX, battery with XXXXX, in XXXXX, size, dimension already be [Interpreted] Yes, our which have change readily. believe the focuses we the announced have we And like release, battery, the a the already that storage large we've as order we witnessed market also larger the blank opened in to our and bigger just the represents orders plans at and stable production And we of cylindrical that able will other household production we for also on strategic a receiving indeed, in

And a prototype then sample, entered XXXXX, we have the into B have development already entered already type for the we -- B into XXXXX stage.

want we're production demand. And XXXXX, going strategic have the market XXXX. are demand, And start So we the we have in XXXXX, besides also mass our place we yes, I this of the what production when making are predicted XXXX. our careful indeed, for plan, it product's to And market and plan we quarter then already. that for that add is well of first are taking then plan ensuring that, we is will in in to match this consideration

at last gigawatts the X of facility if just of expansion about of stand production where end maybe ask XXXX. I guess, your the reaching the capacity, could And you question, I goals Great. and

[Foreign Language]

would I question. to Brian, respond directly your

I are correct. think you

additional of are call. We in our gigawatt earnings the full the as preparing by X year hour we capacity this year, X XXXX or reported end

-- the X in The project first Phase our Nanjing roofed. large factory first, is I large think, of the already

is will equipment are procuring that line what year. doing right now now. all the all for production equipment time are And equipment and very be So the of this procuring ready believe smooth the end by right those we we we runs We're the facility.

will quarter, first production. we start year, next So

is No line. this So the change. time

[Operator Instructions] Seeing queue. more the no questions in

the me back to Mr. Let turn Yunfei for call Li closing remarks.

all you reporting forward for progress. next call you operator, your for you, to our look We thank and appreciate your and today's and support. in again quarter to interest participating on [Interpreted] Thank

again. all This the you call. Thank concludes

spoken disconnect are now by may this you. [Portions interpreter on call.] transcript the of lines. that present [Interpreted] your were You Thank live marked an