CBAT - Earnings call 3 2023 | CBAK Energy Technology, Inc.

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Operator

Good day, ladies and gentlemen. Thank you for standing by, and welcome to CBAK Energy Technologies Third Quarter 2023 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. Mr. proceed. please Li,

Jiewei Li Thierry

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

of Financial Joining us of and our Chief Officer Chief Li, and Secretary interpreter. Officer today are CBAK Mr. Energy; Yunfei the Jennifer, Board; Executive myself,

engineer, available join for of Our as IR at on section. the Mr. website. the The today. well Tian also results be few a our will Newswire call ir.seabank.com.cn relay our company's this released earlier Xiujun services. as press Q&A will general in us We release A on from is website available hours IR

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

and uncertainties. risks inherent involve statements Forward-looking

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

Yunfei Li

conference today. Thank you for joining call our earnings

battery year. XX.X% the loss to revenues XX.XX in are operating same in XXXX, the of quarter our generated growth to recorded period battery of outstanding our In another by third the year-over-year. last quarter showing We business. of million, Compared delighted achieve business

these million, operating came income Of electric in million During this year-over-year. and period Moreover, in XX.XX $X.XX batteries vehicles, while million, a a used XX.X% used X.X% that $X.XX of $X.XX electric net million was XX.Xx applications, in were of we surge from last from energy X.Xx of year. of an same light revenues, batteries increase came income vehicles delivered the year-over-year, which $X.X million batteries storage quarter, year-over-year. from down an of used revenues

million. X of an Battery XX.XX% operating XXXX, was our primarily have income growth $X.XX first attributed $XX.XX our financial The and from particularly clients, clients sustainability. while the $X.XX with income exceptional U.S. clients and months from million, the our delivering revenues year-over-year, metrics of increase foundation a stability strong generated of high-value business to For of of million, along these net Orders of across key an Europe demonstrated

periods. performance faces We challenges, including are growth the the various confident the in slowdown. still sustaining upcoming in external reporting pressures Today, profit economy robust and and global market

Battery amidst proud the rapid profitability manufacturers and current Chinese are out growth of macroeconomic one few the to as environment. We stand achieving

Our private reached who regarding investors remarkable us has performance garnered our have equity developments. out substantial latest interest from to

Let reputation rise. our me our the order and update business enhanced with during more third quarter our volume continued on share increased initiatives worldwide, detailed a visibility to

an XXX be RMB production TTI supply moving Incoming approximately company million. totaling of end RMB manufacturer in Currently, but robust of to provided station already towards as further and and facilities have orders revenue words, client we scheduled our orders In overwhelmed. is the to of of Dalian received momentum facility been November recorded for orders will profitability million portable also announced, new top-rated Nanjing. the initiatives have Nanjing collaboration across have from over Dalian in facility world's Blue we brand the our XX.X horizon.Regarding will around based OAK, and with Power battery power XXXX, has parent yet our extended main XXXX, with combined X, XXXX, growth X, clients other and fulfill scheduling. power subject November both X leading the us of As value our have portable the maintain

We and electric amounting RMB worldwide. also roughly orders Group, to made great tricycles strides scooters manufacturer the of partnership XXX million. Generating with in our Gingko largest

I In highlight continued to a European Visma, cooling heating with leading and of want addition, our initiatives systems. manufacturer

productive up translated has XXXX collaboration into November Our EUR XXX.X from X. of totaling to the orders million to beginning

is products. third-party largest of Another for major incorporated Anchor the partner of APCo suppliers globally ours one accessory Innovations,

to It sign I spur Furthermore, in significant continued understood that and have our have from product fact is Europe Anchor received basis. major RMB expected from for in Following to samples amounting the million. customers U.S. that providing place demand including our orders Innovations we the Anchor regarding September, will monthly and orders several various is we on Innovations XX.XX want corporations, to been highlight a discussions deep with bakeries

third keep will With with gigawatt R&D. significant production a quarter Dalian both plans have XXXX, client meeting our informed sale in facilities and We focus on our of of the capacity and any investors of updates. reached production Nanjing X capacity a our hour. investment In of

energy development Our new the XXX in are an currently new due is of density energy extended and larger market market subsidiary than favorite models the scenarios. in and which CBK model to lifespan. XX down storage for are XX.XX model higher and Model engaged with the large-scale Power XXA These current BM batteries,

initiatives these capacity current The meantime, In the address overwhelming this equipped our will for we to capacity we project team the hours been highlight first Hence, facility, ramp further and gigawatt to the X be which XX Nanjing driving year expand of fool swing. the capacity rule production we expect I delivered capacity produce soon. client to at has have the in mass has gigawatt will enables the factory hours the batteries have in wish long-term supply of next in bateries fully R&D operational to is And forward, construction up. X that expect plan, the capability been Series stage. In we demand. year. full production next XX diligently Phase Dalian Model to greater completed, the production and Our achieving XXXXX to

growth. further will We top production propel our elevate efficiency line and

mass let you walk production sodium through our batteries. me importantly, in and Finally of

As hours. company development of extensive of a batteries, the sodium only in with investors future, In equity in financing of expect with production discussions building to expedite private capacity producing the battery capable multiple plant. we sodium-baseplant mass we a a amount near target sodium XX engaged have the on and substantial finalize gigawatt our to of China

energy With of batteries, stations power become the industrial solutions. believe vehicles, low-speed it across as scooters, hospital pivotal adoption storage elective focus sodium we and such a various energy subsectors will accelerated storage and

be batteries. sector twin bakeries growth of capacity environmental the our engine impressive and protection with an a look new XX to collaborating the capacity and technologies company with partners XX-gigawatt-hour evolution advance gigawatt nonissue. hour will empowered remarkable model, of ahead, investors production and forward in We a by production energy the sodium Looking of medium to

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

Jiewei Li Thierry

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

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

on technology year-over-year the the higher-margin course battery growth growing to of also by Alongside investing production margin. sharp to underpinned expansion growing further for will as find and in reduction and continue leverage in improve the and in the revenues we we increase long-term battery a capacity efficiency. battery to while third business our a This number profit business As our enhance between R&D recorded balance of orders operating margin improvements was production products, and in the returned our in gross quarter, growth the we of to right sustainable competitiveness. our profitability contribution

financial Turning to our performance.

compared million This of the was in period in for revenue an third $XX.X of increase net million, the representing attributable to was primarily Our the the company's $XX.X XXXX. business. quarter bakery to same growth increase X.X%

batteries from a In million, same addition, was XX.X% period growth third XXXX. quarter $XX.X strong our representing in the the net from of in revenue

in of million, was compared for gross profit from points of the increase in higher the same the third the revenues an $XX.X the of in the gross battery the revenues $X.X quarter XXXX. decrease margin in to to of period percentage $XX.X Battery in same cost an profit in period of Gross of representing representing quarter XX.X in quarter third the company's a XXXX. Gross was XXXX. Our was period The increase XXXX. the segment. cost X.X% XX.X% in the in million quarter of X.X% million of $XX.X same corresponds of from the XXX% same the from million, decrease third X% XX.X%, from The was margin third business period

Sales quarter. million increased administration XX.X% million. marketing Our the third research total to the third to and quarter. to $X.X in third million $X.X expenses million. by rose quarter to XX.X% in $X increased our expenses that, Within and expenses XX.X% by operating General X.X% by development the by increased in expenses $X.X and

Our quarter operating compared the million third X.XX the loss period XXXX. value of fair of income to million quarter period the amounted to warrants change was in the our the in an same The compared to same in XXXX. $X.X of operating in of in $X.X third $X.XX million million

prepared Energy shareholders net Energy result, income $X.X loss XXX XXXX. in same quarter our period million net attributable of the compared concludes to of to shareholders of to a CBAK CBAK third As of attributable was That remarks.

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

Operator

Small-Cap Zacks first [Operator comes Research. Brian with Lantier Instructions] question Our from

Brian Lantier

I'll in growth? with And with of impressive in the of customers uninterruptible If higher like to new bit some power light by performance could going in new base. after -- you the Do volumes existing customer drill little then that more was feel sounds a or that. I principally forward, question up really I'm a portion quarter, going And contribute on larger business. environment. operating down wins of driven like your challenging another a that customer third are the follow it power

Yunfei Li

to response the third season, that customers third due indeed, growth in have. your existing our partly quarter, the we question, in yes, to So, first

For we the and And also customers orders, growth who value have example, new our our that of to our sales. also developed that, have volume. growth their contribute of sales increased suspend some the managing lead to also and customers besides

XXXXX the the because for our certification. this the can passed in third already So situation you see And have that we for that, is model quarter. example,

a small fixes meantime, contribute to production gradually So XXth the expanding lines our into terms production, are in sales capacity mass we production, production for as that our serie the also And also started as the log a and projects. our will transformed growth. we this -- well and further from believe in production we our of have

also future. we sales the more believe bring that So volumes in this in will

Brian Lantier

just guess, about ask something update Great. material and the interest there's Or been past, the could where an in material from the you're today. general raw if know Is overall just And still that raw business a exploring? I I I that some investors. question business. stands outside on

Jiewei Li Thierry

Brian, I questions. your will respond to

experiencing suffering and see, industry heighten subsidies raw very, client As the all almost units. very material producers actually our clients. the from in at decline decent industry you Hiten a sales CATL a is can is volume, a to But material -- the same also raw material slowdown, has structure are raw good their

independent completely separate release, from our business. So our did we in we moreover, improve press Hiten's recovers, our our the in bakery That's Form why our will our And in into from financial reasonable. once hires industry team Hiten performance investors. that their financial on the Their and from That's business. the business XX-Q actually We is much believe always we financial act more integrate battery team. performance shortly.

as as industry lot recoveries, they in we a can you say, and you good. there will interested that believe investors of be -- trends, getting an are So high

the equity of So lot we private encourage investors. a

able a a also see to lot with of the will refer investors good from be hires them we expand of their and get private to if also -- deal will We funding those for investors. capacity the equity purpose to to

Operator

Instructions] [indiscernible] next Our Heiko TPG. [Operator comes with question from

Unknown Analyst

Okay.

sodium at more also company update? plan a like the in is the the you that to preparation now, progress? ion you would your and what in we I battery. technology speech, ion stage pose give battery. project you getting give can talk with you So concerning about that the been Could you stage, about mentioned me project question sodium of If update like engaged you I construction another know, just this the dementation the to have sodium. investing I'd has in if the

Yunfei Li

for this are well, the we in the ion they net China, battery. in And the this sodium So, in realize also doing to production response first battery, released your sodium the company question, or ion that first that June the to sodium of sodium is some we battery these research ion of products. battery we can products. market, ion announced -- say year, in production although competitors first of the are And

company can more turned this that realize satisfactory. installation even our out this we the runs. the and effect a it realize sold However, to than really for of battery also we battery ion are in products, to vehicle X,XXX X,XXX And And mass achieved really be production. in can year, the

very at have are place. can And product but a So very only and line we say say there in stage. the In other already we have the construction, market, some popular. our we talking stable about our well, system they product is early production can were company the competitors,

have teams they only or some start-up the For have only example, samples. they

and up a production managed the future. to have gigawatts However, product will in capacity us, expanded be for X.X feedback our the for come with company, with

partners trying for line, this, in to we one next in cater a What even our this, present, one say X. then better in at local approached select to And capacity the the of for expand So are to going high trying put place. are to the trying will us X that to best construction we're can as governments place XX the we and be have are has select as year, production of to the and production for our select it to position And case, demand the we customers. from we approached gigawatts.

Unknown Analyst

for become with business partner Anchor. Anchor has of -- to And be? that will I'd volume like know order And also I your the CBAK with share introduction, mentioned you big expectation how Innovation. And your of mentioned you a Anchor can in about partnership your us

Yunfei Li

Europe Anchor the Anchor So pilot and to with about And their items, deepening look order value we and future opening at to present, present state, export results and of the XX the that, our already battery. a because expection decided X communication our products actually, And be will started future talking million. X our in has out why production XXX,XXX -- Japan to turned And if XXX,XXX projects fact with at we they of talking of the use order at it have and the is already to be X India. value will to with great. of to finished expected they XX increased and in-depth been gains models here it be is Anchor That is that have future, the to about cooperation cooperation. with volume, RMB RMB order items about about for in is And million. here to increased X.X about million

Operator

more the no in Thank you. Seeing questions queue.

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

Yunfei Li

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

Operator

call. again. the Thank you This all concludes

may You disconnect. now

CBAK Energy Technology (CBAT) 9 Nov 232023 Q3 Earnings call transcript