CBAT - Earnings call transcript Q3 2021 | CBAK Energy Technology, Inc.

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Operator

Good day, ladies and gentlemen. Thank you for standing by and welcome to CBAK Energy Technology’s Third Quarter 2021 Earnings Conference Call. Currently all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time.

As a reminder, we are recording today's call.

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

please call like of Mr. Li, to I'd over CBAK turn Mr. Director Now Relations the to Investor Terry Energy. proceed. Li,

Terry Li

everyone. Welcome you, XXXX conference call. and Thank to earnings operator, Energy’s third CBAK quarter hello

Pei, today results Xiangyu well earlier on press is website. Interim us today. and in Yunfei are the our Officer. Services. hours A call Newswire a this be available website from as Mr. The as Chief Joining Chief at company's Officer; IR Financial Executive our Li, of Mrs. few the released ir.cbak.com.cn, on also IR We release replay will available

On our Xiangyu Mr. CBAK the Yunfei Energy; Mr. Wenwu interpreter, me, Tian, President Li; are our General of Mrs. Pei; Xiujun call Yang. Engineer; Mrs. Wang, with today Mr. the Vice

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

unless comments CEO, Mr. our will will translate laws. that, to I let With Li. Go dollars. stated, in as actual forward-looking other public under turn the please risks except all certain the is expectations call information company in as with and English. ahead, are risks Yunfei these Forward-looking different any that The over be in to assume speak the applicable U.S. regarding obligation included expressed doesn't today. in conference and the Mr. otherwise SEC. me note the results such, and and any Also, statements figures his call from Li. Chinese mentioned materially during Mr. filings the may Further involve uncertainties, update company's company's Li now required uncertainties statements,

Yunfei Li

batteries, I'm testament is in reach Terry, performance year-over-year and lithium quality pleased to for everyone. from very saw today. million and [Foreign with Language] [Foreign joining the on and track expansion that and battery products. a yield hikes, are a our our US$X.X ability I to route Language] of installations am and the excellent to high growth also you rapid production power the plants our to positive global Nanjing believe earnings which business growth XX% our conference and call revenue Despite we Thank report Thank commodity price new the our you, to of Dalian hello, will outcomes and progressing schedule. according energy shortage new happy supply. all amplify

momentum decision also energy line response us In our in As for us exceeding necessary This sales to the demand strategic customers clean was Dalian, increased the help products. line global more orders. which secure we the made based a new accelerate continue and as we was timely in have our quarter, supply. third to demand in product build with confidence the installation

in is As position demand believe expanded with designed share research make Language] our our following battery are development. [Foreign inspection our battery ensure well safer world's with advancements while dedicated and our in Language] the existing and special from now battery and efforts leading our research we you would ongoing operations certification for to SGS. recent innovating strategies to specifically Overall, and opportunities product August, ultra-low products and for various storage I testing, performance vigorous and have We like capturing executed [Foreign the our company broadening further expanding our and product portfolio, priority for growth offerings. tremendous our we and our lithium-ion XXXXX our development innovations. certification in made some In temperatures market.

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expect and results. performance product. quarter, batteries expansion my the the upgrade the our to XXXXX battery XXXXX line third product production among generate model replace special XXXXX portfolio We of In added [Foreign newly superior batteries model Language] to with we the original of

two-wheel model commercial battery to new Meanwhile, with the The shakedown year. the a XXXXX of model LEV we by equipment cost. producers also targets our and supported for of test the market lower battery, batteries, unique XXXXX for completed capacity positive production end the As significantly to a ability than responses a address we production battery end will have This convicted process. Language] that XXXXX improved a for at new but bigger shakedown model and from the of be EV electric and test by garnered which price new has battery client September, the vehicle performance ready needs. ratios stellar [Foreign diversify

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Xiangyu Pei

same a Net power performance the go industry-leading year-over-year reflecting for in In $X.X period Please battery the strong demand third the growth quarter of call everyone XX% lithium of this Li, from our and key and you, $X.X didn’t material today. business, in for and results third revenues revenues third XXXX to where Thank financial results. approximately details battery excluding were batteries dependable trades, for new remained high quarter, our the robust products. raw our quarter XXXX, will our our high full for raw our joining you the million sales during over lithium Yunfei of it for Mr. press financial material was period. you. release. refer I transactions incur from power financial to now thank Thank from million revenues earnings

active trading materials year. the this interest our to suit for Hitrans only for in batteries which buy occur around, in majority a quarter did such transactions, Before not when third as raw of move made were opportunities of

we and opportunities to the raw revenues its the interest For expect Hitrans, completed more Hitrans see once we materials. in council and of financial acquisition the account, equity from

Additionally, line. temporary existing had Mr. Li the plant mentioned on a Dalian impact production production had line our installation new adverse

existing the will increase Cost While at to revenues newly control to our material fell $X.X of control X% future raw production the both established and capacity. million production be the our by in supported cost this in prices. job to

range. to we process have in in which with us Our growing Meanwhile, previous helped within the process, raw avoid the efforts impact to as accepted from lock along peers, hikes. commodity from the of battery blow a battery customers materials supply is such our have increase our released process bigger material a reasonable offset price to

contributions materials year. Gross price earlier. Total of million. associated research reduced Most policy social operating the profit production gross expenses Chinese the quarter that during points relief to $X.X $X.X in rose expenses was million. government’s Nanjing well our pandemic. The the and Our percentage a from marketing and in development the million. administrative year from was of expenses X research categories decrease resulted had General utilization XXX% third all XX% million COVID-XX headcount insurance increase raw increased $X.X Of year-over-year down expenses previous that million, of and with as XXX% as operating the and cost. expiration development the a due expenses in the was XX% facility, up $X.X to in were to XXX% and the of Sales XXX% expenses growing the to margin year-over-year. increase rose the $X.X of

relationships and $X.X of million recover $X.X compared year and As we improve recovery the the earlier. our a the a we quality doubtful million customers, of managed customer accounts with of to

the fair income they to $XX $XX,XXX of $XX period to prior the during generate Thus, the XXXX. income of a value of of in was nil the period in in net compared third to net same quarter change in million compared million able year. warrants were Our

position, $XX.X XXXX, and XX, our as With increased for future. million and further $X capacity, our our equivalent of concludes fully capable remarks. to June cash enhancing compared are and growth on cash us expanding XXXX. financial of was XX, product track of setting As That into solid success September the our production with we offerings million prepared

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

Operator

Please of and [Operator question from ahead. session. Stone Street Ladies Our begin comes now we Group. the will question-and-answer gentlemen, you. go line Liu Instructions] Thank from the Laura first

Laura Liu

Good evening, everyone.

questions So a about the company structures. and strategy the of have couple also I

raw core first customers revenue sales the my strategy like is question Language] [Foreign and was about ascended. why of the So the and materials

Yunfei Li

Language] [Foreign

Xiangyu Pei

came we industry at were [Foreign a felt material based in that raw our raw on time, year Language] same price. the The material that to of last our At from materials experience, futures raw revenue trading. low related period the some sales reported

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Laura Liu

you. Thank Okay.

Terry Li

questions? other Any

Laura Liu

Thank Yes. That's great. you.

So the EV about like next companies plants. is manufacturing question the

companies, do think the and you in market? manufacturing over like of the plants. [Foreign the market there some EV they Language] opportunity customers major So What have call

Yunfei Li

Okay. Language] [Foreign

market has we the has a the consumers. that really So and has entered can the become – more more – sufficient been popular already that believe EV we and stage, EV see market among entered

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large more cylindrical a up high-end kind goal our it And our then models. for the are models at translation. for high-end to to this Our ramp is for batteries, That's production up capacity mini going start as extend and target and to we we scale will market. of

Laura Liu

you. Thank

last my also the risk. about structure the and question So is

under structure? there's side, like you And the company add. the auditor certified? auditor PCAOB the And if Language] is is operating how So VIE about [Foreign feedback, the would any

Xiangyu Pei

Language] adopting not [Foreign is VIE. CBAT

Our United States internet Kong subjects Hong control operating the listed The and than control different indirectly entities the traditional the much much, is is holds structure entities companies us in directly agreements. subsidiaries Kong operation smaller in the China. with Hong the risk who It through the for Company the investors. in essentially of operation directly more from

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Laura Liu

These Great. you questions. Thank my much. are very all Language] Okay. [Foreign

Operator

you. Thank

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Unidentified Analyst

to EV and have no CBAT of But so lot there's know, is taken the wanted what news supplying I people of a doing market. itself. control

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Xiangyu Pei

rollout we as Nanjing, exact half So started our year. as in production we started it strategy the line installation And Xiujun as of cylindrical as second and Language] the Tesla. AOO vehicles. [Foreign the LEV at the of for have is mentioned, early then focus for vehicles markets passenger large time, the we the the is what And used plan of some to which production such be can the on and batteries, last

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Unidentified Analyst

of interest, had is Language] there any these [Foreign you've up any deals with? of So significance signing

Yunfei Li

at [Foreign to on technical probably need channels. And some or will we agreements, then website So that published stage informal are refer we the of you discussion. to the Language] for official our announcement as

Unidentified Analyst

Language] Okay, [Foreign thank you.

Operator

Seeing Thank no more Great. you. the questions in queue.

me Let closing back the for remarks. call turn to Yunfei Mr. [Foreign Li Language]

Yunfei Li

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

Operator

call. concludes Thank the you This all, again.

You may now disconnect.

CBAK Energy Technology (CBAT) 12 Nov 212021 Q3 Earnings call transcript