CBAK Energy Technology (CBAT) 12 Nov 242024 Q3 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the CBAK Energy Technology's Third 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 of to CBAK turn ], Yixian will Specialist IR Energy. I call [ over Tian Now Ms. Tian, Please go ahead.

Yvan Board; [ help And the Thank Welcome section. We join you, [ our the and and Energy; Xiujun quarter website. few a Jason press also will services. at ], for of Executive for Hu, Financial results us Officer our replay on Mr. Newswire to everyone. Mr. today available the hours from XXXX. third Tian CBAK website is CBAK A Energy's ], The Secretary Mr. will will operator, be earnings who ir.cbak.com.cn, our of interpretation available conference our with as call or and Zhiguang IR as today. Engineer, a joining us hello, in Jiewei General Officer Chief on released Q&A are Chief IR call release well of company's earlier Li, this

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

statements risks involve uncertainties. Forward-looking and inherent

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

on the the this our third performance earnings and you the quarter the pleased Thank of first report third to for for of year. X everyone. Hello, battery our for XXXX. of I'm business quarter call conference joining months

in the year-on-year of the is considering $XX.X third business business our from net $XXX first a This of in reaching Although, in The the business of the industry. energy quarter the the for from suspension battery September. percentage, the revenue of slightly decline the quarter. The in a third general our in the production entire downturn growth battery revenue declined in revenue XX.X main battery the Dalian remarkable achieved X-month our pressure and the overall new million quite to million. line net quarters facility reason X was

energy compared increase million, last including storage same percentage. Overall, X-wheelers our on market remains business of exceptionally battery percentage vehicles, full Battery electric battery $X.X the resulted As of XXX light the line production for XX at for line in brought the and year. cost a operating and closer refurbishment. to decrease year. EV in provide focused supplemented a X-wheelers look needed $XXX,XXX, increase. year-on-year be by the the exploring to previous production operating revenue energy proportion in revenue been decrease order high an our that the light beginning vehicle capacity light from endeavor our sector since vehicles would the compared reached percentage of battery to our from of with electric electric and battery at period the believe the customers. energy to $XX.XX continuing revenue the million, breakdown has for XX a will year, like market to continue business. The We We Vietnamese suspended increase a Indian gradually in storage contributed

gross the that in our well-known including X in higher gens has the figure battery reaching margin, this [ some the competitors, first XX.X margin increase in the first competitors business of quarter monthly high percentage achieved year, million XX.X quarter. Our is of suffering third compared a million percentage once XXXX. maintained profit million are profit profit business created ]. This When quarter, of in of quarters to net of than X downturn, million. year, net $X.XX period of industry quarters approximately the $XX.X and of industry-wide an in a second a $X.XX points This managed battery gross most same make net to consecutive our again profit $XX.XX we

also update will we usual, As on provide plans. the announced an

$X.XX of [ As bases of X, Nanjing November but million delivered November XXXX. RMB orders approximately major of the XX.XX and yet our production total million X, reached Dalian XXXX, received amount in not ], at through as

accumulated reached order XX.XX has million, $XX.XX amount approximately RMB Our with about PowerOAK million.

Our EUR million. XXX about orders has million $XXX Viessmann up to with reached Group

accumulated our RMB Group, approximately Jinpeng about for $X.XX has value million, XX.XX reached orders As million.

move made In willing a and have our to has pushing encouraging us, customer our million, addition, approximately This XXX for RMB our Anker some since stable the are to important are with of and overseas. facilitate of them collaboration. and help of our overseas million relationship advance orders expand us order to establishment in factories clients, $XX.XX place

of QX, X-year manufacturing new business have have X end hard work been Nanjing team, only profitability. period. our factory the has In see Thanks successfully are been has we large less our facility Nanjing battery the for cylindrical achieved factory, and Dalian profitable. years. Originally, facility than we our operation ahead would to XXXXX profitable of Nanjing to suffer also in started Our long losses XXXX schedule. we model for of factory to The become net that anticipated Nanjing pleased the a the at

are operating production Nanjing to the plan. importantly, to at line our us due our demand, prompting full currently expansion high factory capacity capacity accelerate at More

and are X.X we an will plan steadily efforts, hour half. Furthermore, equipment for development compatible and XXXXX mass a installation advancing in model half model production with year, for next the XXXXX hour new of gigawatt followed of estimated with of XXXXX Nanjing anticipate model. As our the add factory the model We line production enable and of second in battery XXXXX. now, phase of in the we to first equipment with approximately gigawatt by a respect of second R&D that battery contract have X.X new production to signed capacity supplier procurement

cylindrical As strong just mass cylindrical such reported, The we XXXXX in energy and market XXXXX vehicles able light demand model a storage. battery. large model the be have large will as applications soon to battery electric produce

Nanjing the the momentum the ability maintaining of Overall, in by this tablet net high Additionally, battery business the production developed XXXXX tablet model to the started is to the profit the model energy characteristic in and and The to are we current practical of power from we our XXXXX the market data growth. can for companies at cell our in factory profit. Considering discharge few battery. fast successfully successfully XXX great supply mass discharging just performed drive continued has gross minutes, drones, model a we X produced new margin will well for our XXXXX cells, XX sustaining in applications with desktop Dalian. significance which that maintained a and XXXXX that we demand product added charged capacity accelerate for rapid newly center. Currently, charging require and in high our as a the percentage capacity expansion require tablet really and such revenue pace one battery and strong the model be cylindrical release. Besides, produce XXC XXXXX rate of applications cells,

call let turn Jiewei me Li. the our CFO, Now to

in the has encourage to details. In earnings today for release Thank be earlier interest presentation numbers. complete the introduced join I conference for refer to the our financial Jason our metrics, of key you, third slowdown. today. to of will time We issued business Since duplicating experienced Jason, our the and thanks, our call battery everyone, making not time, a press quarter, you

his in a Dalian was remarks, mentioned this of production due to at X-month suspension Jason As factory. primarily our

capacity which a significant mitigate For led of month. these increase the first year, upgrades, and a paused the without breaks, any in operations the energy to X operated costs at enable months for we factory full costs. To

upgraded and During our production optimized this support to tablet line to the we new of period, cells. one production energy XXXXX model usage

our approximately face now steady X fully from profitable center has it its of with we for Nanjing, production its underscoring cells year, Nanjing flow transitioned the capacity. Currently, As strong a a a supply factory, million booking in demand. orders shortage of into successfully third

we than net yet typical new construction, although ahead, has losses contributor lines been our due Dalian key factory anticipate gross new gradual has to initially Looking Nanjing our to higher summary, of a setup profits, exceptionally levels, while to our promotion production high, competitors. In more been a our industry incurred still battery long of margin the models. return facility and

in expect future. the has that growth Now will that drive our turned both Nanjing financial profitable, factories we

go year, the open now will floor performance. Thank Operator, capacity next about for Q&A section. you, and Nanjing ahead. company's the the in we remain With expanded we the please optimistic

Lantier Brian question Research. [Operator the Small-Cap Instructions] now the of We first from will from Zacks take line

guess, new and environment difficult battery seeing some side I some the the pressures, pricing the good more it you're on the is of appreciate is from navigating demand principally see it or that the around is a just clients updates. in I business. your to first of of some derived Europe? weakness from the with you're Is in competitors That from question success all having products.

we the performance increase cell. XXXXX, the then can first of So [Interpreted] design C-rate the we are of all, using as tablet our for

us the engine business, well. and used be the help the combustion our new So the for in vehicle like, to this start-up energy achieve, as battery easily to battery product more will start-up especially also let vehicle

we a reasonable business, So from can new this profit. get

we then So the gradually of secondly, energy increased capacity product. product, for our our

industry, So so of more we all density our compared to competitor, for summary, from the more energy the that's answers which ourselves, in myself. makes terms then compatible. To our have product

in do X doing this maintenance process back anticipate or would you do annual jump X this? that years to How Dalian? that's if frequently at I'll another every shutdowns with you an question, okay. like you Is did

[Foreign Language].

shutdown is to cell. upgrading from from high energy product the cell the our because [Interpreted] mainly So factory battery we the C-rate Dalian are battery

an of also production it's our line. and upgrade the So optimization

And this order trend. the optimization, to shut doing So decided to down the then by is on is need in cell the this. this why we that also to are do market we carry reason --

this year. already in we So of and shutting also half have down, first planned for this the

operation So the year. this is planned from as start the of the normal

the until any as operated beginning just we production And mentioned since for the the been year simply Yes. the has very because our suspension for of reason breaks. in factory Dalian the remarks, other Dalian without September month of X is also, at

at that reduce was decided to that cost can so we high energy energy So we production cost. the suspend the the moment

production same the upgrade time, we to have lines. On time our

Vietnam obviously Is from that a right bright now. principally are LEVs The coming and India? spot

Sorry, can your question? you repeat

LEV Sorry, in the is and business, electric vehicles, that customers from India Vietnam? demand principally coming the light

[Interpreted] Yes.

India, et cetera. LEV So the includes main is Vietnam, business area, for Asia mainly so Southeast the Indonesia, that

so the themselves, So import are these relying from battery battery for on China. they countries, cannot to by they produce the

the are products of all stable. terms most cell manufacturers in in our So the of China,

a So see that's demand. our why you can increase dramatic of

is, like you're on the The time you think one overseas heard heard I for that, last I expansion. any that? looking, me lines, that things where I If mention details prospect correctly, of

I question, that moment, will directly respond to client-driven. simply Brian. we the only can this information this tell is you is your At

coming need of saying us We that clients factory. have to certain we the overseas accelerate setup big to

with of for do actually ourselves. interest. will that but yet lines. demand, is Certainly, by U.S. not country that we which best we're looking we our production fits we solely also, places to build decided consideration, it So are some going our have our that not And under

domestic help some government manage like for the looking actually applications, management, something are and daily also that can issues, operations that. us We partners

this early stage, issue jobs. an but the in still as take one routine of management it's our So

with parties. in And remarks, in our We factory. only This orders lot thing we're place have build as is we now, clients advance to up discussions to very a right are the review. we serious push having to us can -- willing mentioned very of this

questions turn queue, call Jason Instructions] for to no [Operator me more closing in the Seeing back remarks. let the

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

the This call. again. concludes all you Thank

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