CBAK Energy Technology (CBAT) 9 Aug 242024 Q2 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by, and welcome to CBAK Energy Technology's Second Quarter and the First Half of 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.

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

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

Joining Mr. of section. We the Executive and release Jennifer, the from Li, myself, is Mr. ir.cbak.com.cn, Q&A our services. available our website. the Financial will Board; on us General The join interpreter; CBAK results for Engineer, released Chief this website as Secretary of earlier our company's Tian, be Energy; a of as Chief and replay press Officer our today are well Xiujun also Officer Yunfei available newswire today. A IR IR will few on call in us hours

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

uncertainties. involve inherent risks statements Forward-looking and

risks today. in the expectations dollars. As conference regarding these such, The are obligations all from any different SEC. the the other as except figures uncertainties company's statements, otherwise materially actual Further filings with information be laws. Also, to company's during that under public may any and is applicable expressed mentioned results and the company forward-looking the required please U.S. stated, update in note doesn't included assume unless call

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

Language] [Foreign

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

[Foreign Language]

battery surged a the second the new reached unprecedented Revenues to has $XX.X within year-on-year once overall sector. downturns quarter from an remarkable and sales feat growth, XX% in year. representing company's impressive given pressures again The performance energy [Interpreted] million, of this business the our heights

X-wheelers million growth. Revenues a XX% a of batteries for dominant for to in a notable in rise reflecting storage marking look foreseeable driver increase. contributed and for energy anticipate year. generated XX% a including X-wheelers Batteries EV year-on-year the Batteries revenue be year-on-year reviews. light the principal growth a energy previous is breakdown remains $XX.XX future. $XXX,XXX, Here at vehicles to closer the sector million, compared composition, our storage we revenue continue with our and it XX% force brought will the the $X.XX from sector electric

this uptick we in X-wheelers sales for in X-wheeler foresee market and Indian significant of a batteries year. orders Additionally, the latter from half

percentage second business our margin a of In impressive an terms XX.X and a than the demonstrates of the surpassing same in with period quarter, our performance profitability, points robust in XX.X% strong our quality maintains market competitors. position. battery exceptional higher the gross reaching and This most batteries XXXX

this first we year, in quarter, the $XX.XX sustained with quarters. positive battery and consecutive our net trend a profitable a profit this So quarter, in second net resulting of business far the of million achieved profit have $X.XX million in

million. has with $XX.XX first the year-over-year XX% net half division's battery million, XX% our margin to $XX.XX and of profit of a of increased revenue a For by gross XXXX, approximately

Language] [Foreign

X, substantial undelivered. remains August million, our accumulated Dalian, have totaling production Nanjing order X facilities XXXX, a XX which million of As XXX primary [Interpreted] USD approximately CNY or backlog in

orders million. amounting our X.X has USD whose million disclosed customers, PowerOAK CNY For were known before, XX.X about names placed approximately or to

million around XXX totaling equivalent has million. Jinpeng secured to committed has orders CNY approximately $X.XX a Group to USD substantial orders million. XX.XX roughly million, Group Viessmann worth XXX EUR

approximately cumulative $XX.XX CNY XXX the million. million with has or volume order Anker reached Additionally,

this the latter from half year. placements clients order and market continued substantial receiving about are anticipate from these the Indian established optimistic or orders of We new in

Language] [Foreign

completed R&D new cylindrical large battery team our the and research regarding model, development XXXXX. a [Interpreted] has development, successfully of

strong the complete September track of purchase mass model plan on equipment commissioning year, production battery address the battery anticipated existing officially sales scheduled next and driven significantly highly are in that thereafter. The market current gaps market, on will commence are equipment production market the in to boost by XXXXX year March shortly Based demand. our comprehensive our batteries to we XXXXX growth. by is We to research, this with and confident

XXX% our base. of The in the XX% XXXXX a battery technical Dalian line and production density capacity, XX% is battery, for specifications, production terms to represents at a the advancement XXXXX to over XXX% a current XXXXX in featuring enhancement energy model, XX% XX% to cycle improvement In life. battery our substantial established in model be set a to increase

Language] [Foreign

business from success notable gross battery in quarter. The robust well our maintaining sales profit margins as increases momentum company Overall, profits. net impressive has as the with substantial achieved first and growth sustained [Interpreted] has revenue

We in year our for of XXXX. positive are confident full the outlook

With another and drive launch in XXXXX anticipated model new to our share the surge are sales we poised capture of battery, performance. market our

[Foreign Language]

who Li, our [Interpreted] details to today. Li, thanks, me our on for to call the Mr. over you, performance. Thank our will Now everyone, making let time turn financial join CFO, and conference provide Thierry earnings call

has results highlighted, net double-digit As for and positive achieving the revenues battery second second quarter, financial in our business delivered increase income net consecutive our XXXX. impressive of a the quarter CEO for marking

in anticipate confident XXXX momentum delighted for full the year remain and robust witness net a business. for are foundation, our achieving We battery to trajectory strong in ongoing profit our division. our we our growth battery of remainder growth With

experiencing may understanding the our investors As performance, section is I with on second previously business segment. will overview an our operates results battery business' financial our interest and will which the of business. Acquired provide release earnings the clear the of performance quarter, To manufacturing we appreciated purposes, this refer in Hitrans influence is $XX.X sales to raw to affect a We highlights net XXXX investors focuses financial battery statements. a In the independently for of million, core core by business $XX.X segment our the where time, battery our total the encourage for issued presenting you to specifically Form acquired, provide million. information increase losses the noted, Hitrans, our revenues encourage performance of XX-Q, battery battery of primarily now for details. In our reached and unit from our from review of consolidated XXXX. to be directly financial our Hitrans of doesn't only. of We currently materials battery separately. I presented second net earlier of complete revenues increased Net year-over-year XX%. year-over-year press release today XX% the quarter investment

grew to year period. total in resulting year-over-year million, of a margin to in the gross Our X.X% compared prior profit $XX.X XX.X% XXX% gross

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

income period. in the in growth prior summary, net a same have income of to Our exceptionally income total and CBAK to amounted to the operating to loss in in net the million year deducting $X.XX period an income compared net were million achieved quarter period. Net of the of XXXX of from battery an year to after Energy $X.XX operating the million of XXXX. In high warrants Net in compared second shareholders million $X.X the business loss margin. prior attributable $X.XX million was change consecutive fair a compared $X.XX of loss million value $X.XX we for secured

the order volumes. to begin we As in XXXXX, of model increase mass we anticipate production significant prepare new a

sales concludes revenues. That confident growth in our continued that our will this are remarks. We prepared drive

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

questions of from from [Operator Lantier Brian Instructions] The Research. come Zacks the line Small-Cap

wondering question now. if could a seeing was you're I ask the I just in what about market right

right competition for now. any increased pretty relative competitors. Are to posting bids? about attractive margins that's seeing guess you still You're market question the landscape first the I

Okay. [Interpreted]

terms the substantial differentiated the differentiated have that customers. industry we reason and in because of gross products gained recognition and we in profitability, So in provide that have can we gross the well, profits also the development margins from seek for the always maintain

batteries Germany, clients all our As raise allow in requirements it product the that, we products colleague us, who the will to with have to same achieved the a to X high situation a power in of landscape, will And side, market. And especially you sector, a the and believe ensure to combination. a because that from peers we believe market and but edge the That lay the look a quality also customers is from a lot we've we data that, differentiate profitability we terms competitive have also of we us if higher maintain why more good to happens complaint the and also orders because we battery. through on our with for that, storage ourselves that, we the at have that foundation industry, acquire our and add us maintain the focused always cylindrical see do another our small customers. And the customers. of besides can the portfolio, also will that, besides producing utmost the same a we on that been product solid we also in in and notable secure on that in continue tried flexible tricycles recognition is export from from

XXXXX segmented adding, maintain we why markets. Mr. secure to that very able existing Yunfei a just that to good into it And mentioned we and market a deep position. diving developing new is And XXXXX, the supplement is that model called our is are And we customers' that are our and Li in as believe model are been differentiation the we we XXXXX. #X us market to small also, allows demand, have then

answer. quality maintain a our profitability. our for share our and us That's And superior product it also also to market allow good

about you model things I'm share the technical the product? fast appreciate serve yet. any the about not customer think Do when guess have that the an, base regarding information maybe charging might you because that a I XXXXX yes, existing a business? we about charging announcement battery then And lot storage questions of the detail A-sample heat that hear batteries, I new will ask like that, and that in that. that. for If also dissipation if on your heard something about And wondering fast the could I you just principally couple I on think of We've XXXXX, XXXXX. can

okay. [Interpreted]

So question market XXXXX. about of Mr. Tian just answered the the

household this use can also XXXXX. It is like between energy model, For similar battery. storage model the of these it But and difference the portable to storage, in the this XXXXX. some there allow storage of of energy X just both is in put us be used to sequence models. course, It

for have XXXXX, But amp X is we -- it the capacity per the energy is hour. the new one, For XX.

XX. is So we and also XX, you XXXXX, XX the offer XX. XX, have [Foreign it The the XXXXX, the for XX is capacity the and will Language]. for different. And new can also But capacity, see we model,

the new can applicable to So can our address also see, as believe product you this we also the And market very that, be model And a supplement scooters. gap. that good to it besides the existing us line. for will help is

answer So this question. the to first is the

to going up are one. with the second come We

Okay.

and I for our with UPS. line. we amp would rate. And ], XXXXX. is for XX dissipation So supplying products joining the [ the like the new to these It the very -- with player, Well, Chinese in our outstanding say the market for and high highlight our well-known second answer are with product these client. hands heat the terms are to the I also products very product have end then our mainly technical player already to charging one partner, products, of of model its question the dissipation charging robust called business that through is of fast And we is Eaton about fast

hour -- product new XXXXX, its well can -- the as it And we and say high And X rate besides is capacity. for very a the also amp, charging product we X product gear is dissipation with set ampere a the is the so that full product. with is for as it have highlight that, and fast

to Let me it. add

have research full designed We design, are heat would or of tab to allow right very the and XXXXX is with in battery design battery. of in battery characteristics. facilities, that this and now dissipation development new a Dalian process our good cables That development, our

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

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

[Foreign Language]

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

conference today's you Thank all participating. concludes This you. for Thank call.

and You day. disconnect you, may a lines. Thank great your now have