CBAT - Earnings call transcript Q1 2022 | CBAK Energy Technology, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, thank you for standing by, and welcome to CBAK Energy Technology First Quarter 2022 Earnings conference call. Currently, all participants are in listen-only mode. Later, we will conduct a question-and-answer session and instruction will follow at the time.

As a reminder, we are recording today call. [Operator Instructions] Now, I will turn the call over to Thierry Li, Investor Relations, Director of CBAK Energy. Mr. proceed. Please Li,

Thierry Li

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

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

On is are Xiangyu and the who Mr. Yunfei Pei, Mr. President with me Jennifer. call today Engineer; Wang, Li, Xiujun our Wenwu Vice interpreter Mrs. Tian, Mr. our who is our General

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

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

Yunfei Li

call earnings you [Interpreted] Thank Language] you, [Foreign Thank hello, everyone. today. for our joining conference and

quarter. off excited strong a very to XXXX with are We kick first

of battery Hitrans was more battery than business and million. year-over-year right business for was by net about the from Of the making merger. that brought revenue from cells, $XX.X million the $XX which roughly materials the lithium $XX million was Our to surged eight-fold

high Spectacular increased power usage growth of the sales continue growth also strong for led light its in by contributed the in rapid supplies lithium reflected battery Additionally, and were still revenues. thus potential batteries in our uninterruptable while and vehicles its ramping electric of to that and Nanjing even up ecosystem. at manufacturing immense made battery plant our were performance production product we results

facility Nanjing and XX as business. capacity Our times is production, hour, optimistic our multiple our our with a battery increasing maximum more current Nanjing Along if future capacity, has fully of pan is of (ph) we're about facility and even growth the gigawatt operated. gradually about grounded which

production. recent move let's on to Next, developments product our and

continue passenger to We markets. to EV at and target develop large batteries cylindrical LEP grade

In this efforts performance and have continue and addition of research cylindrical we are battery the progress produce plans battery. development to At our moment, products, a to we optimizing a (ph) the expect we XXXXX [indiscernible] to prototype current battery for designed already XXXXX as model planned. for working model steady

for strong We happy basically market are that been -- to has products feedback our and also product see positive.

million. X, $XX approximately million outstanding May worth of orders for have we battery JPYXXX As about

our in factory production production Dalian main our is orders we full increasing are Nanjing these With at in and plant.

main products In to the suggested by batteries stable on announced raw further and quarter, maintaining that major focus which used material revenues the also $XX about recognized be We supplies million, of the performance orders global players. of clients from key will from one business. uninterruptible worth receive our quality being in our second and are our widely

revenue continue EV share also In cylindrical expanding by new the that, we of will sticking batteries manufacturers. large and contracts with to addition LEV

Hitrans. from resulted turn to let's the Now business of our material acquisition

strategic Hitrans and of has leveraging our and energy product of improve material its become number research advanced a inflation, power range price profits materials in and business taken is cathode the the hikes we is we technology innovations quality. Meanwhile, new major lithium of by battery benefiting expected, stream current downstream reliable material make of As revenues electric worlds accumulated decreased vehicles from main a to Hitrans as now is and full make make business. business and professional XXXX, investments and (ph). to Hitrans impact, operations, core materials into will have its will (ph) safety development to first-class seek counter cathode In actively aspects. in for further value price to Hitrans maintain while In that order batteries. high we measures our this can nickel, manufacturer and production. three strengthening material for customers

with long-term we (ph) to security device production. ensure suppliers some materials to major First, supply agreements signed and the

expanded we are decrease of plants. capable the materials of inflation use that Hitrans, in upstream gross to have the we our the raw some merging material so Second, profits offset managing price into of or battery with the the

our started downstream customers. key with to in customers stood transmit to added, material prices for to Third, customers. cash increase as price prices renegotiate our flow have pressure rising we The it our time successfully downstream and to the of takes prices few raised

are raw the solutions and to and a return decrease as that, material lead material the for expand profit market. to (ph) expect to gradually gross level. into we expansion reasonable manufacturers the business increase production in will value lithium-ion production, shareholders short-term the swift future. and our these materials response maximizing to However, fluctuations, our to energy We With while of aim with the raw the the prices electric

stabilized an investment surge valuable will also downstream chain industry attempt supply highly returns. assets upstream the actively quality Going and of forward, we to enhance invest energy and along the our new our targets for and to in

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

Xiangyu Pei

and thank everyone you. of will our XXXX. the you, I for Mr. first our joining go Thank results Li Thank today. financial Okay. key you, call for over now quarter

the refer our to financial please press of details our full For earnings results, release.

mitigate remained impact. as material headwinds short-term the in [indiscernible] hikes the expansion battery revenue price order growth validates The our significant strategy. business. Our effectiveness of to its to raw action

into on our for research investments primary with as focus expanded growth. of next development we and infrastructure our as sales phase marketing well Additionally, our and

the at the In from first in the net XXXX, quarter, the $XX.X XXX% brought previous XXX% raw XXXX, $XX.X material results. our to on X.X% quarter, strong margin in in up the batteries. an of compared period Gross due the costs million battery the was acquisition same in revenues million, year. this XX.X% lows (ph). of first the Hitrans XXX% from of from was of quarter, sales first as period stood was increase Gross and materials revenues of prior $X.X revenues Cost of with primarily to power profit by from same million the additional to Moving high lithium year.

were clients industry. As tackle million. to headcount capacity with the general increased X.X% expenses noted million, expected suppliers XXXX. growing to bigger relative to that only the the million. and we increased raw material our while added XX% same of period primarily prices Hitrans. to the hikes. to administration And these rose Within other being compared due expanded our and marketing increased the acquisition XX.X% earlier, raw million. to business price $X.X operating expenses in XXX% revenues, within the long-term new expenses research held is contracts by the was XXX% Even with of materials decrease quarter, and of $X.X with the our development $X.X and our And Sales And operating and renegotiation increases, the $X.X certain to to XXX% this to into expenses expenses with

prior in million quarter Our the to was period, of the of in compared year. warrants in shareholders Thus attributed same Energy the to $X.X fair during XXXX. first change in $XX.X to compared of value million was the million $XX.X income million net $X.X period CBAK

cash $X.X compared million As as of $X.X end of of to March equivalent XX, the cash XXXX, our XXXX. million reached and

will concludes development the to strategies remain our long-term we ahead, for growth our Looking That prepared committed industry. in our remarks.

you. the call for ahead. Operator, please open Let's question. Thank now

Operator

Thank you.

We session. the Laura [Operator Instructions] ahead. Language] question-and-answer [Foreign we First (ph) Street Please question, have will Stone begin go Group. from now

Unidentified Participant

model interested Language] development Thank are XXXXX in of released series company the you once could development on of and the update the about you. nowadays of progress your has us [Interpreted] production progress markets more Before very all give [Foreign the the battery, XXX XXXXX?

Yunfei Li

Okay. [Foreign [Interpreted] Language]

that, our can and as buy satisfied can on we we on and yes, be we development, battery in as requirements further proceed going and this announcements model this of of at development well XXXXX our XXXXX steadily released the the R&D this the continue presence, to we're well of prototype developments. our development development investment and So -- prototype original design did to in the have the finished already

Unidentified Participant

[Interpreted] Okay. Language] [Foreign

the development the the in So coming progress also, quarters, with concerning some Nanjing And products will my be at the in second be development the produced development about could production to customer the you to products that plants. plan know what and Nanjing plants? in the major four company’s in And to in the produced I the would customers, situation will plant? of share three targeting Nanjing? be in like us Nanjing question updates more

Yunfei Li

Okay. [Foreign Language] [Interpreted]

beginning brought be main exploring we We to happy now to that according big the have be end $X us. to the and happy business, we focus of products. So year we capacity And products reached see place since order leasing. expect of about mainly at see demand. product second clients coming that the batteries we and the will of develop orders total the have in will market to see sector or the expected amount and to expected we been capacity already we -- and are we the the the arrive two-wheelers quarter, this can been more the production of of $X.X at and is -- according end the orders be we order and And will if of on clients the million. the three-wheelers to talk beginning to almost production we the to And departing business of deal we about third and there with Nanjing, for more and we that are then by and present, as have quarter demand June, market market always this swapping million the developing our on be and focused have to sales believe been a the we from -- have increasing and

estimate projects to develop to market have orders -- And three efforts in that when so to it. keep We enough increasing comes look $XXX test these And in are order. three sales they customers passenger production shakedown we're products the more big to and been the have or will on -- where a vehicles the And is already were quantity in or for it this for regard XX-gigawatt introduced orders attention will say have will lots already vehicle, the after paying then a even we already and our our several the try of have or as that was to as quarter, rest started business And you. target that coming two this our of so future, capacity the from to that we bunch the business That's Thank ready, enough that. vehicle to can production bigger secondly, going new making plan expected -- rest the storage, customers. from bigger in two customers have and been we energy million. a with our small of securing quarter. have receive lay lines have it is small started orders after is us quarters, sales customers. we for folks it fourth fulfill and for folk-led believe So also their We them a logistics. great third reach our close the orders let's develop in year more to quantity, AAO well the and foundation if then focusing that going then vehicle, -- areas solid some big (ph) we production low-speed at the customers we

Unidentified Participant

the last My by serious pandemic. Okay. concerning [Interpreted] question the COVID is Language] [Foreign situation that brought

surge we the there tight quite one the see undergoing cities hand, to can been pandemic lockdown And that of of the China secondly, we are the at lot also On in supply moment. has a noticed chain. in due

year? what the impact rest the performance of like would whereas kind will the bring to know to second it of as we company in the quarter the of So

Yunfei Li

to [Interpreted] the has Language] [Foreign running pandemic uncertainties So admit that the of some we the factory. brought

the and as Shaoxing locating of COVID-XX since However, we affected lockdown. beginning Nanjing outbreak COVID-XX, our the respectively know, of been the at by Dalian hasn't three in XXXX, plants

Although, in the future, of possibility lockdown under the exclude the we cannot to due pandemic.

far places. plants scarcely happy that say, located. we have our we are lucky excellent The three but located we are feel so to plants also -- in good, However, so are three

one the impact. is we the can city, if one the So have then active take happening if to in to future, mitigate confidence day the lockdown in the measures of

Unidentified Participant

[Foreign Language] [Interpreted] That’s for question. it my

Yunfei Li

you, Thank [Interpreted] Language] Laura. [Foreign

Operator

Thank you.

Next Please question from Linden. is (ph) ahead. go Howard

Unidentified Participant

acquisition company is other doing battery kind or or you're out if Language] [Interpreted] sectors it have the strategic behind other plans Hitrans, the [Foreign And us, merge of Okay. does After what kind plants share with also -- what's it or to considering you acquire this downstream? could of yes, the of upstream motive that acquisitions?

Yunfei Li

Language] Okay. [Foreign [Interpreted]

your for question. So, thank yes, you

our with that of is to our successful cooperation equity or We Hitrans companies terms say terms of in have it strategic and like cooperation. in a that of recognition can we more have Hitrans is hope acquisition

this We perspectives. in of two because kind have cooperation of interest

The first investment. is, one financial

the If China the world, our one is green including perspective countries nowadays clean financial the business energy as advocating the whereas second The investments, we have development. are in development at know, low financial we and a larger core -- of development of of looked number the of carbon as of company. the

the we and So believe industry industry and pillar promising clean new will future. energy a in that renewable a energy be

boost the So to downstream it lithium in strategically it important the of terms future. potential We especially renewable battery. is new energy, for in very resources integrate and believe will of that upstream great us

is financial CBAK that lithium this of quality a give have raw (ph) stability believe well high-end as in is know, material we a capacity investments, future. as we the capacity we well part us of market. XX a look be in the our of perspective, we the development we ensure the of second importance or the so at the that will So our fully as and products is of are experience, And based for supply products. battery on perspective – a the of (ph) will raw the from as -- the the edge, years’ shader of competitive is bright that That later of lithium In aware particular, our of the battery the production region and in so the company's ensure our and development core as the long-term to why of the crucial stability of quality upstream as to competitiveness our material development chain, core downstream, great company. resources as attached sharpening

Unidentified Participant

you recently remanufacturers I Language] production the capacity [Foreign and have that us the battery to noticed is just in that that from plans a [Interpreted] Dalian Okay. is and it new quite now, full realize lines. few I reports full capacity And build production also their gave in

production of what terms lines? to the know in have kind reproduction material (ph) would for XXXX, of year like of I new for plan or development battery you do So that feedback in the a battery

Yunfei Li

Okay. [Interpreted] Language] [Foreign

focusing are we'll our -- also we So, on are to are expanding in in are market, because see production the or manufacturers that major us, those plants capacity players, quickly and not see in especially players more market, noticed vehicles. it I But overlapping the announcing yeah any storage tools. those customers and same, our electric they but they’re power don't we the other for for our supplying because back, market are can small the major -- for --major vehicle conflict focusing the their Dalian energy we

is three customer in meet already well we can offers two But new the far, in raw energy out of which to downstream line keep Dalian then future. production lines more the new possible believe the at production to And production look allocate we -- in after have lines. in kept has Dalian what requirements invest orders -- the also operation, our been and will our Dalian our have their increased close their future, our doubled in and gradually going we full satisfied already a new new capacity, so the more production production so in terms will past. increase have And we're customer line So, have into And the into and we actively new need expand demand the if -- to also a better that after production material, requirements orders we look near lines if we production storage, needs. to they at the increasing, that are production in and in finance placed entering have capacity and it as sharply our phase. and customer come of the their

Unidentified Participant

[Interpreted] more Language] questions. [Foreign have I no

Operator

It questions more in Howard. no you, seems the Thank queue.

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

Yunfei Li

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

Operator

This again. all call. concludes you Thank the

You now disconnect. may

CBAK Energy Technology (CBAT) 20 May 222022 Q1 Earnings call transcript