Q2 2021 CBAK Energy Technology Inc Earnings Call

[music].

Good day, ladies and gentlemen, thank you for standing by and welcome to see be AK allergy technology second quarter and first half of 2021 earnings conference call.

All participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will follow at a time.

As a reminder, we are recording today's call. If you have any objections you may disconnect at this time.

Now I'll turn the call over to Terry P.

That's your relations director of C. B, a K energy Mr. Lee. Please proceed.

Thank you operator, and Hello, everyone welcome to <unk> energy.

Second.

2021 earnings conference call, we released results earlier today the press.

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You bet dotcom.

As well as from Newswire services.

This call will also be available in a few hours.

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On the call with me today.

Who is our Chief Executive Officer, Mrs. You not pay who is our chief financial Officer Mr. Children.

Our general engineer and missed it being our interpreter.

Before we continue please note that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S private securities.

Asian Reform Act up 1995 forward looking statements involve inherent risks and uncertainties.

The company's actual results may be materially different from the expectations expressed today further information regarding these and other risks and uncertainties.

Rooted in the company's public filings with the SEC the company doesn't assume any obligation to update any forward looking statement, except as required under applicable law.

Also please note that unless otherwise stated all figures mentioned during the conference call U S dollar.

With that let me now tend to Covid policy. All misheard, you can say midterm will speak in Chinese and I will translate his comments.

Go ahead medicine.

Is it a go.

Right.

And Oh.

Thank you and Hello, everyone.

Thank you for joining our earnings conference call today.

Alright.

Some of them went to.

Yeah.

I'm talking about free time on it. So you can go and tell you I'm century, south of assumptions in that party.

Pardon.

Some are not doing so well back to if you want to meet you on slot.

And send somebody.

Frank do you want me.

Only thing did come down by 1000.

Central time, so could you find many of them are younger.

I'm still not sure.

Wholesale is still not all of them.

So what I'm trying to if you can.

You know some of them well, we know mortality sorry about that.

Uh huh.

Sometimes she doesn't have it.

We are very pleased with our solid financial performance for the first half of 2021, thanks to the robust sales growth for reputable power type Atria net revenues grew to five 9 million in the second quarter and $15.3 million in the first half of 2021.

27% and 33% year over year, respectively.

The school market, a pure for our industry, leading base with products and how it affects your business strategy execution.

Gross margin increased by 15, 6% from the prior year to 19, 2% in the first half of this year.

Oh the argument somebody.

Ooh Ooh Saturday.

Hum Punky people quite honest answers.

Oh boy.

Just horrible for needy Houston, starting from the top.

So I wonder if it goes without saying, it's kind of a thing.

So you can see that I didn't.

Cause guidance, what does it kind of I think John's guidance.

According to CDC.

Yeah, we've seen that.

Sure.

He will tweet a woman she sent some of its own policy.

It's well known to people.

People in China, but he said he thinks there's somehow trying to find out with them.

During the first half of 2021, we continue to leverage our advanced research and development capabilities to innovate our products, which then help us broaden product applications with additional capital raised revenue financing, we are well positioned to execute our business plan such as capacity expansion.

Moreover, we made a strategic consolidation across the supply chain for great synergies I'd like now to share with you more information on these recent developments, which have further our mission to become a leading innovative energy storage solution provider and medium I am basically producer in China.

No.

So when I kind of took arches unfolds.

And so I'm not cheap.

Yeah.

And people.

Let me dive into the remarkable stripe.

We have made for product innovation during this period and our future development plans.

Well since we've only done an assortment that Saudi win can you talk about.

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Sure.

Every season into summer.

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So.

How do you think.

Sure John.

She played a critical until they found yet.

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Good news.

But he's not supposed to give one.

We don't see you when do you and so again we were told.

Well take one DC.

Florida, Tennessee upon him Hong Kong hung in California.

Oh E G.

With that well it was a cool thing.

Well, let me hit them.

Actual downtime so far I'm close on it are there other reasons.

Sure.

Keybanc.

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We have successfully developed a special 2665 year old Bay, two weeks, especially for ultra low temperature applications.

This new basically designed to operate in temperatures as low as -40 to -50 degrees Celsius and discharge a maximum ratio of 60 C at room temperature.

On top of positive test performance results.

<unk> 2665 fold basically is highly attractive for product skus at extremely low temperature conviction.

In China, Northern region harsh weather conditions as well as for the aviation and Aerospace industries at this point our clients have all been very positive initial responses and we are anticipating mass production of the special $2 six its five Oh basically at the end of this year as well.

Suspecting it's meaningful contribution to production volume in coming years.

Boucher well learn from that.

Yeah Yeah.

Two 1%.

Hi, Dara.

Tim can you Dimensionalize finches sorry.

You know what I'm trying to I'm gonna tension.

So it doesn't feel right.

Well it sounds like some of your body washes.

Sure Jason.

So why don't we pause if off I'm, assuming it's all those things and you can't go into all sometimes I'm not walking the shop floor.

Oh sure where we're going.

Cook with T SEC Shenandoah.

Central PA.

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Meanwhile, we are actively developing a series of large cylindrical battery for the L. E B market the base rates for light electric vehicles have a capacity of nearly four times that of regular bakeries, and 20% lower than post making this product a perfect solution for the market we aim to.

A major bakery supplier for top L E B manufacturers and expect growing traction amount and expanding customer base with our high quality performance ratios and strong ability to adapt to customer needs.

Oh, you want but I think it's just time to get out.

We're not trying to call wholesome with telephone somehow controversial topic.

Opinions talk Vishal.

Some of them don't Yahoo somebody on to so called fun.

Hi, shrug off Thai baht.

So we'll know more about who so it's going quite well.

The stuff that's been going on.

Right.

Oh boy that sounds I don't hope, especially.

One of the things you're going to find someone who I'll start date.

Painful as usual bundle them in court.

Uh huh.

Oh yeah.

Yeah.

Hello.

Hello.

Uh huh.

Hello again.

Both of them.

Policy and blah Blah blah blah blah.

Yeah.

Sure, it's really almost like on senior notes to Barclays will you posted I think John C and stuff like that.

We were capable of broadening use scenarios by the support of our high quality and dependable beta with products earlier. This year, we started cooperating with Chengdu Rajan you energy automotive Technology Corporation to jointly develop faithfully rapidly project with Katie Murray and the logistics industry.

As well as an uninterrupted power supply project for Catholic life.

It's delivery services are becoming an increasingly independent ballpark of life. The base rates rapidly project aims to provide solution for delivery riders that suffer from more basically weight as well as inconveniences and risks and charges the UBS for check or traffic lights on the other hand keeps road.

By ensuring the traffic light based on during power all ages.

So far our cooperation with blackout went well and we will provide updates in the polling fortunate should there be any new programs.

They want to.

It is possible that comeback I think sometime soon.

Hum.

Right exactly.

Hello, Honky Huntington Gene back then too.

Yeah. So how are you talking about doing both now.

She's been on pushes off FY 'twenty guidance.

When we started out on that at all times.

Keep pumping.

Yeah got it are you seeing.

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Excuse me in terms of the type of thing Paul.

Prudential thoughtful conversation.

Oh I'm sorry go ahead.

Well I'm not sure Hum.

So until the funky about hung in Europe.

In addiction will also focus our R&D efforts on developing next generation basically.

<unk> E. These fostered exploration and longer wrenches and driving the bakeries will have lower loss rates and lower coast and presents a huge opportunity in EBIT market, our strong research and development capabilities are treatment by continuous product innovation.

Product development roadmap is led by the new generation of technology and market potential in the clean energy sector.

We have established partnership to develop hydrogen fuel cells and solid state batteries and these initial chips will allow us to maintain the long term industry advantages through technological innovation.

Some.

On PC product.

No.

Ooh Ooh Ooh.

You bet.

Milton.

Got it.

And for Chicago.

Going ahead, we will continue expanding our operations in China and establish our foothold in the global market through an increase investment in R&D and the company's technical advantages and cylindrical batteries.

Yeah I think.

Hold on comes on well there I'm sure Tom speaking it sounds like.

I would put on it so you know sometimes they don't pay for it.

So clothing Donaldson got four months in advance sometimes.

Okay.

Got it.

He was that much of southern California.

So you're going to find us.

Well no.

Tomorrow.

Yes.

So I'm, sorry, I thought I got Florida, sometimes yes.

So you don't have to spend on one time with you all.

Mhm.

Yeah Ali.

Our union one time fishing.

Long time no.

Now on to all.

Sure you caught that makes.

So one part of the Liberty issue starting to sandwiches.

So we're not that good.

Yeah sure.

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Sometimes hunting.

E T O.

You want to go home.

Well, they've gone well I teach them I mean do you have.

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Okay Yeah.

Yeah.

We thought we would do that.

Sure.

Yeah.

Nice job on that told me that China put them both out of Australia.

Nothing was done so it seems like Santa Martin, Let me back up.

Women.

With regard couponing.

Keeping our forces.

Hmm.

Ooh sounds like Huntington's Powershop SEC.

Our strategy is your capacity expansion and a growing addressable market with continued new product developments and increasing customer demand and orders we are ramping up our production packages to major projects underway. The first being the saga pants expansion mainly for products used in <unk>.

<unk> storage sector, we plan to invest RMB 50 media, which is equivalent to USD seven points seven.

$7.4 million to add additional product lines in our thoughts on perhaps the new production line has an annual capacity of four gigawatt hour and it's expected to be completed by the end of 'twenty 'twenty. One the total annual capacity in toggle patch will increase to two gigawatt hour in 2021. This is.

Spansion allow us to plan to produce an additional 100000 units of module choose that six five <unk> per day.

Secondly, 19 patents will be established in two phases, two mainly produce products for the EV and LTV buckets.

One we plan to invest a total of RMB 70 media, which is a route USD 11 media.

10000 square meter space to develop production volumes with an initial capacity of <unk> seven gigawatt hour. Both projects are on the right track of expansion and we are pleased with the progress.

The USD 17 million, we raised in February support our business expansion strategies and accelerates the product to go to the market.

Yes.

Well most of them four times revenue.

She can get home safe.

Two housekeeping things.

Answer a part of who you go away from the center.

Well welcome.

I'll give you my mandate.

So Doug government pumped hydro.

Okay.

Some of the boxes that will hold up with time.

Hi, Tom exact cause somebody to send all fun right.

Right.

Jump off, but sometimes you actually told me not to alcohol consumption.

Maybe I forgot sometimes home alone.

500 person.

So you want my number.

So whole create bundled woman she said I thought it was disappointing.

When you start looking at home.

Jason go through China quote Unquote cool Shlomo.

Okay.

Uh huh.

Uh huh.

Okay.

It's also quite honestly I'm not sure.

So Tom how quickly people if he got a whole slew of dollar for your answer.

Somewhat choosy youre about a quality issue.

I can tell you I have a fool himself ourselves.

Sorry, I don't know.

Your son, Who's a one time.

Through our strategic consolidation across the industry supply chain, we are pursuing remarkable synergies, which will further drive the company's future growth and expansion. That's a part of this strategy, we decided to buy 80, 156% of patrons equity interest via our subsidiary Italians C. B.

A power basically corporation.

Patriot is a leading developer and manufacturer of tuna reap precursors and cancel materials in China and he is one of seabed energies key suppliers in the production of lithium ion batteries. The coastal council materials accounts for about 40% of the total coast. So we believe this acquisition.

<unk> for reliable raw material supply will taste heightens as a strategy and complementary addiction to fewer the continuous expansion of <unk> production and unlock potential for close to control you.

You will complete months, you bet Energy's fitness portfolio, forming and in a way chip equal system across all our businesses. This move will also advanced the company in diversifying products Jetstream and support continue improvement iterations to maintain our market competitiveness.

This transaction is still subject to certain closing conditions and is expected to complete in the third quarter of 2021.

Don can I, let me ask you one box and see how it works.

But sometimes people reduce without whom none of them you can't don't teach yeah.

Yeah, Jeff bonds or something.

People are quoting.

Hi, I'm quote on quote young box. So you don't you're not going to loosen up.

Similarly in terms of docs, who.

Sometimes it's kind of a thing.

Gotcha.

Well New York.

Well put on it.

We've got them all.

Hello cloth.

And you'll see it.

What are your Tango T totally.

Why can't you should.

Some of them.

Our goal is to build an innovative ecosystem based solution to power electric storage facilities and electric vehicles, we are moving forward to drive raw picture for growth.

We increased our investment in expanding our capacities kept it and R&D capabilities.

Our innovation further strengthen our existing product portfolio and drives growth in our addressable market with new products, we are competent and taking our business into new areas that we're back to serve our customers by leveraging our core competences and deploying new products, we are well positioned to ensure.

Sure rapid growth in the bakery market.

Okay.

Yeah.

It's also about getting out and talking to them.

Now, let me turn the call over at trial, which therefore, you will not pay who will provide details on our financial performance.

Thank you Tim.

Yeah, Kerry and thank you everybody last for join our call today I will now go over our key financial results for the second quarter and first half of the 10 day can be found out through details of our financial.

Financial results. Please refer to our earnings press release.

Our solid financial performance Donald J J, just draw a market does that guidance to our high college holiday pay and they will allow both adjuvant.

Parents with us they I'm sure that's not the year, our Nast revenues increased changes that I'm Kristen Oh, a year two five points nine main got dollars in the second call Terry of J&J to nuance and their tastes to 8% to 15 point just doing $99 plan.

I'll, let Jim and back of the only Mickey mouse in batteries and I'll have a better tasteful.

Basketball supplies.

Do you get by the increase in net sales volume our cost of revenues cause me true full plunge H, mainly U S dollars in the second quarter and get child Punch. There are many us dollar in the first half.

6% and 10% year over year, respectively.

Parents or their revenue goals were still generate positive operating leverage of 21% and the attendant president respectively.

In salt and our confidence in our build job Jive with Jamie.

Children by her sale volume and the cost of management asset.

Well, that's a bad Okay also increased gross profit was $1.1 million in.

In the second quarter, and then two $9 million.

In the first half our income.

<unk> 1100, they're supposed to a 12 inch and 819, 9% year over year, respectively.

Also on a year over year basis, our gross margin also increased by 1006.

607 basis points to eight 2.6% in the second quarter and get 1650 basis points to 19.2 person in the front half of the year.

The margin increase is primarily driven by higher utilization of plants kept out our capacity and our optimization of manufacturing engineering.

Total operating expenses was the rate plans H, mainly like Dallas, and that's that can call Terry and that's five points better than many I started in the first half.

Interest that choose hangar that a bank has the right.

Perfect and then 17, 9% from downstream they have to be honest that we increased our research and development expanded by 117, one 717, 1% year over year to one maybe last dollar in the second quarter.

And 110% to 12% to one clients that maybe have thought I know first half of it yet.

The increase was primarily due to the exploration of Chinese government COVID-19 related policy and a letter at chip corporations don't show insurance burden and the increase in Cat M D.

Patient Tonight, the cabinet and create that you expanded into new model of bandwidth for life electrical.

Electrical being coke and batteries.

Also low temperature environment.

That's sales and marketing expense as well applying fab, mainly U S dollars in the second quarter again deployment.

It's mainly a dollar in the first half at this stage.

So our hands are that they can stop it and then she hanger that 8-K H.

Yeah, well like the others.

Back in line.

Our general and administrative expenses were two plants remaining half dollar affects conger and there's three points down in the mailing out dollar index loves huh.

290% and 90, 996% respectively.

Apart from the aforementioned exploration of Chinese government's COVID-19 at least policy the increase in G&A expenses also increased.

The employees of the new plant construction in 19 ASP.

19, six one project and inflation no problem on Kalana and <unk>, they will be completed and in production by Q4 of temperatures alone. We expect to ramp up the 12 vaccine has kept them, they're all there and they've got.

Saturday's as basketball games.

We continue to manage and improve customer relationship and the quality of our customers.

I would like Halloween of doubtful accounts was.

One point.

But there are parts of our mainland my second culture oftentimes that people want.

<unk> two pilots you may and then I'm sure that's something hanging in there.

So top of transition into one the totally of doubtful accounts was one remaining comparator there are provisions for doubtful accounts of applying for terminating indefinitely there yeah.

All of the change in fair value of flooring was five times as many have followed in the second quarter.

Second of all claims with too many dollars in there.

Half of Europe compared to both in Europe.

Yes.

Yeah.

So part of the biotic.

Dominant into the gross margin the positive change since I got it wrong.

Able to generate modest income of two upon many as dollars in the second half of it and there is a.

The COVID-19 to possibly a solid.

Canada to my local bond funds remaining on Saturday Wednesday.

Upon SEC man.

I'm not sure that that's temporary tenants.

Absolutely magic the gathering really.

Basketball is a $17 million.

Iraq, the offering of all the new shares to finance our business plan.

Working capital.

Two is starting to sell it in the 10-K one hour.

Our cash and cash equivalents rates that are subject to me honestly.

I can tell you that in transaminase.

Oh yeah.

With the 31.2021.

With strong cash position.

Improvement is being financed with bulk billion yen cognizant back on the last possible accelerated cleanup.

And that concludes our prepared remarks that is now open the call for Crouchy operator. Please go ahead.

Thank you ladies and gentlemen.

If you wish to ask a question. Please press star on the bottom left if your telephone keypad, followed by the number one.

If you wish to cancel your request please press the pound or hash key please standby, while we compare the question and answer roster.

Once again the star one.

Distance.

Our first question comes from the line of Cow broken sell from American Trust. Please go ahead.

Good evening.

<unk>.

Management there.

The C B a K.

Businesses involved sensitive technology.

Cause the Chinese government to terminate its exports this thing.

It is in the U S.

And revenue.

A few more questions to ask.

Thank you for the question.

Just waiting for your question to our management phase twos at this moment. Thank you.

Go eating dogfish I'm kind of <expletive> shouldn't say women Jewish Simpson attached yields somebody you go win T. A Jewish a shorter you tend not to be the Navy I'm not sure, which him say took a year with the fungi downhole shifts search at all or you ship me gotten into good tissue to be a shift going on.

The truckload dolphy with Xiaomi.

Now you make what does it mean, you which helps them.

Joe Tangshan quake.

Solid trend.

For the year, which actually you can shop H M. B, you've got you for that.

Cool.

Sure to make sure that we didn't.

And then go into teaching go away from tissue.

Tim General play forward, a whole shovel fleet.

Yeah.

Sundar missiles.

Sure sure.

I think the interesting.

Although we didn't hear the financial return to the G photos with some kind of purchase.

You touched on it with the financial perform B or does it have on food.

There's no question to me.

Operating income.

No no.

How do I know, what you can finance a couple things on hold.

Thanks, Alright, thanks, very much for the answering and actually.

The director mentioned actually the new what we are dealing with is the industrial energy in this terms all the relevant of technologists are open to the public around the world and actually be.

There is nothing related to the sensitive technologists and also on the art of handlers to Chinese government gave me the largest support to the development of the new entry and the relevant development business globally. So we don't have to worry about any sensitivity.

In terms of a tech knowledge in a way we will have another director to also out of some more information for a reference thank you.

So thank you. Thank you for putting Oh my investors at ease.

I have other questions here.

Just a moment big horse.

Sorry, just a moment because we have another manager to add more information for you in this term.

Okay, great. Thank you. Thank you.

Well certainly yourself right.

So you hold a white zhengzhou to someone with a younger.

And I feel it's about simply Chipotle.

Gotcha.

Bob Ultrashape you thought from pizza.

Okay.

The only true password.

Just wonder woman.

Yeah.

<unk> seen us take without our people can get pulled forward some maintenance so it's harder to okay.

What you might call them for sure.

We'll make sure we all want to do that.

And also.

Additional information for you kind of reference actually in August 11, the Chinese Central Committee.

The central government issued a very.

Part of the fire.

This fire there are some several key points are taken into the key considerations and monitoring.

In terms of the cross border business, there like a big theater Fine Tech.

Computing.

And the relevant business, how do we have to say the new energy. What are we are dealing with now is not included in those businesses, which are all under various stream.

Range strict.

Monitoring of the Chinese Central government. So that's also additional information for all kind of reference to where you could totally be released from the NIH.

Coming to level monitoring or sensation. Thank you.

Yeah.

Thank you very much for putting us that he's here.

Who are the SEC.

<unk> direct competitors peers in each business segment, the battery materials Electric L E D.

That is for ultra low, but your applications mhm how.

Well. Thank you that's perfect I suppose.

All right.

Domestic in Florida.

Domestic going forward, Okay, and then just for Xiaomi and you go into you know Shashank go wading into our children that sure Simon.

Jumping in your guidance actually you got through our science diet.

So of course, you saw Jim. Thank you. So hi, sorry, I just had a question downzone when you're a jumbo ginger yeah.

Goldman sorry at SEC Gov.

Shimon and she should it take a year ballpark, how do you win that's if I remember a year when does it.

Such a cheap form into hot doesn't that make what she thought should we all the children three so nevertheless, co leading golf finished orange tissue.

Okay.

Oh, there's all kinds of ways.

How about what you end up with is.

Hi.

The tool should either yeah would upon our sensors go from here.

No problem yeah.

So the fact that are attendant to hill Phoenix.

Got it you know that they are autonomous truck OEM.

No.

Yeah.

Well in Shanghai, Shanghai about Fannie.

Hey, Wendy.

That's one of them in total.

Got it.

If I may follow up on that God, you'll notice so what led to you know good day, but I cannot do so without.

Sand dune jingle.

Doing well.

An additional element that drove them to either.

Digital.

I'm glad to hear that.

No wonder woman agenda of the Toyota Hudson's Bay a tender.

And then threw out a couple of them on a departure to show you that.

Or what is the bizarre to me I'm not thinking about guidance yet.

Aside from that not so hot.

101.

Sure <unk> got the people in Canada are all coming together.

Yeah.

And.

Thanks very much for your question and our director is going to give you the answers from the three main aspects. The first one is the storage energy ASP, while the key pathway for Christmas. He had one is also to transportation.

31 is the ultra low temperature.

And our director just gave the answer for the first.

For the first appointment that is the story of energy in terms of the story and luxury domestically or globally. There are two competitors.

Two competitors both from China. The one the first one is Shandong jingle B one is Tony Leila.

And but.

We have the two main kept competitors, but our altitudes.

Wished me well what multiple of shipment is larger than them in terms of a quantity.

And also our business the CB Ak's business is largely connected to the global market.

We have many.

Fortune five hundreds.

Partners and customers in key accounts.

For example, Schneider so.

Sorry to foundation helped the global key accounts.

We are surpassing the two main competitors as you just mentioned in terms of output and the business think of this is that for the first one in terms of storage and storage.

And we are going to share with you about 0.2.

They're not in the hockey.

Gosh I'd tissue.

Okay, sorry that no one is sure didn't do intrusion.

Number one part of the restaurant a little harsher I know you've answered how physicians are going to find out what you know do at all your hunting.

I'm seeing you at Hydro channel toy.

That's really Europe.

Women, who we are the general users or woman's hiring you Andrew she'll listen carry the day on the timeshare.

You've done well on Sunday.

Okay.

It should be done.

I'm Gonna take Entre New hotel doing Hopkins Yorkshire.

Hmm.

And for the second one is about the power or electric powered driven transportation that is many actually Eric E V. As we should have before and in this term globally or domestically there too.

Main competitors.

First one is Shanghai, Seattle, one is it timna and Charlie.

And also the two actually local of their business in China.

And comparing to them our more main competitiveness if data first one hour production is more easy to use or to be stored.

Toward the course, we are producing the cylindrical battery that is the lithium iron phosphate.

And comparing to comparing to the competitors prismatic batteries. It is easier to use for it being stored and of course, we're using the lithium are in phosphates.

And also the design we are safer.

Then the competitors products. So our main competitiveness is flexibility and safety. Thank you.

And we are moving on to the third point.

She said okay.

Defendant knowhow necessary at all of them the target of indenture.

In Europe, and Asia Europe, the jobs got on there you got cut food or even fund you know month, Hashers, Oh man Husky quarter, Fisher's aren't going to be found that take.

You couldnt be done given the unusual and you know what I thought I'd take a funding side.

You said, you're going to use that one isn't that times of Hamilton.

And Vishal.

And a 31 hour show low temperature application and our Mi or key markets is first one is the extreme cuda arris being American.

Aim the macarena area and also in the European area and also the other key.

Market is in the north part of China, which is.

Let me quote, especially in the winter.

So we are facing base.

<unk> markets and also acknowledge develop ourselves we couldn't say currently has no of fierce competitors in this term no mass domestically or globally.

Thank you.

Okay.

Great Oh No. My next question and your last question.

Uh huh.

Actually my next and last question is the feedback has announced numerous business partnerships and investments in factories and new products. What is the capital expenditure required to meet the commitments in 2021, how much has feedback invested so far and how much does it.

Went through this what are the expected sales and revenues.

That they expect to get from this additional investment in this world.

Thank you.

No matter, how many go MTN, Nigeria should come from contact him the chance to show how much.

And to me the only right so not quite as to whether you can find Jim mentioned, that's not quite at the China Bob.

Bob Cushing Ghansham, there's a good chance sure.

Shuffled adult from Cantor Fitzgerald, your shot more channel or does it go single ensure EG.

Oh sure sure what kind of towards the door shop minimum without G. R. G.

Or do you have a single income the Jim Shaw told me Corey will tell a social good you can get a social network.

Go to <unk>.

Coverdale, Florida, Georgia, and I'm going to talk about.

Yes, sure chip on Chip, where you bought woman that's you got toilet tissue.

People want you to know what makes yep, okay. So in that regard.

Pedro.

Hum.

Yes on 19 Yang.

Jim you got hold issue onshore 19 battalion by J D.

Ms Suzanne E D.

You called out, particularly even in Pizza hut.

Yeah, Hi.

C J.

Let's kick off with a $10, making <unk> even better.

Yes, she only 19.

Yeah sure No my day.

<unk> send out thank you two quick Kashi.

She and Dave St has got attractive now who do you see.

So they've got Catlin shampoo sheets Bath quays, she can't Jacob.

Hum.

Hi.

And thanks very much for it.

Claris Oh the <unk>.

Extra nation and as you may have already heard from previous introduction that we have put it into the construction the plant in Nanjing advanced entirely in cities and now we have invested almost 100 million RMB.

And we plant in DC in this year to invest another around.

50.

RMB 201 million RMB.

And we expect it to factories.

<unk> going to be put into the operation.

In the third or.

The fourth quarter of this year.

And we expect to generate the revenue or profits.

In the next year in 'twenty to 'twenty, two when the two factories capacity put into the full usage.

A certain time of operation.

<unk>.

Okay.

My final question is does the company have a plan to raise capital again and what's the estimated size of the raise and when will it be used and for what purpose.

Thank you now, let's see how where you go into your window Careening, daughter, Joe Shan Shan woman, Jim ill jump in and maybe they'll find sheepishly Jimmy you put that you go through that.

It was almost with outside the heart to go John showed that docket equate more doses outdoor shop now my job I just want to go.

John I thought I'd, just switching well known quick Covid, what's that Navy ships.

Everything down.

Our tier one tier two and CFO Pedro lumpy.

Hi, This is Dan.

Luciano will not quantify the 19 <unk> what that income courthouse, yeah sure that.

Jacob so that you're in Peru, and Chile.

Total one 915, she comes with Dr. Jaeger light and just you want that.

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Sure.

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19 <unk> download.

My children Archie the download hold up when you can get that.

Now my take lets you keep talking about how she out that weren't met 19 Goodbye and she does jumbo hold times actually.

That's awesome.

How the system is up and.

Thanks, very much for the deck the pace data here.

The explanation in terms of the final question and actually as we mentioned the Nanjing on down in plants is going to be put into the operation.

Around a third and fourth quarter of this year that is going to be at the face one plants.

And we used the fifth.

<unk> in Nanjing, Anthony are going to be putting into the operation.

Wait say currently according to our calculation the founder raised it before how being enough to cover our phase II.

Instruction and accretion in both Nanjing and Natalia.

And we expect to do more analysis about the quality of our.

Product capacities.

And also the acceptance of the market of our products manufactured from the new two new factories in Nanjing and Italian.

All of this data to be collected after two factors putting to the operation we could understand that.

The phase two.

<unk> factory is going to be expand it and how much fund needs to be raised and so basically we will need the two factories to be putting into operation and to collect more information through the operation and give you at this stage are you.

Being shifted.

Sure.

Thank you very much for supporting me.

With full disclosure and a concise.

Description of your intentions. Thank you.

My pleasure fish on kind of Cfe hung kind of shake awaiting Doctor you open when downside does so window when cheese sandwiches.

Is it changing the way that these aren't gotcha.

Thank you. All next question comes from the line of Howard you from a leading capital. Please ask your question.

Covering the army Mohawk.

I'm not sure you call it.

Since you ended up our boardroom.

Women who are.

Hum to grow some of the longer term.

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Son, Nguyen attorneys to Cancun Cabos turnkey.

Women OEM tusa sort of somewhat hurting our union in good times and good ourselves.

Your meal you see her come home health outcomes in those years.

It was on the screen.

Are you using the current fossil outages at times here I'm sure you'd make a goofy.

Thank you.

Uh huh.

Thanks very much for your question and we have a question about that's where I'm reading the report issued debt to CB 8-K habits, Stablish cooperation and partnership with <unk> by signing an agreement.

And according to this agreement is going to be a three years partnership to develop new products.

And his question is about how much revenue could be generated through this cooperation and also.

If there is any.

First our commitment.

This agreement for the partnership like the financial commitment and third one is that in terms of the IP for the co designed or developed our products, who is going to be the owner of the IP. Thank you.

Karen do you want me Kim Kendall with Ikea.

Yeah.

Uh huh.

Like a to do them then they jumped by demand.

Yeah.

You went to using a client.

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Auto sheet.

In that sense it up on the tissue that took a hurdle if I'm in on it.

Do you shop, our Hudson stores.

Oh, excuse me and that at a time when hydrocodone.

Two of them that you guys income.

No most of it.

Cumulative.

Non-GAAP other divisions, how NATO for gender.

Thanks.

It was really a dupont palliative I somehow now more seriously.

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Linda.

Drew Sunshine.

Wanted to take a.

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Peter.

To put this on to assure the Buda Eagle regionally you've done it.

Hmm.

Beyond kind of citizens.

Thanks, very much for the direct to noise.

Answer for this question and when he first of all you have to mention that this cooperation with the GSA by CBA Cape is now on the right track.

R&D or stage and but one thing we'd like to point out that this cooperation is focusing on the development of beer cool.

And a vehicle it is it's a generally needs and at least two years for that.

Indeed to be finished.

And now we're on the right track and in the process of the R&D development and also from the current progress when you say J C space, maybe satisfied ways with it and also the product. We are co. Developing is also a hot product that is the full six to zero.

And this product is.

IP is owned by US and also this product.

It's not going to be only to be supplied to JC is also only going to be provided to Arthur vehicle manufacturers and producers.

Leif that will help us to generate the provost, but profit and the loan book and the currently where you could say in conclusion, the development or the partnership based upon a Reg track. Thank you.

Although sometimes yeah.

Well they are the ones you see.

Hi, it's Tim.

We choose so called junk geology hydrants two.

So some really Tim that's my concern.

Hum sort of Green hosts who maybe Tien tsin, sorry, Sam.

It didn't go your whole Homeaway, Tim so it seems to be a police.

Thank you.

Oh, Thanks very much for your question and also from the previous introduction, where you've come to notice that severe case going to acquire a company called high Trust, which is the app stream manufacturer.

For the lithium batteries, so would you like to share with us if available the scale or the revenue of this company. The high trust the better we are going to be to acquire and apt acquisition merger and acquisition if high Schronce is going to be integrated into the CBA case.

Who business map or it is going to operate it.

Its own Sir thank you.

It's in Europe hazelnuts.

Yeah.

How does a.

So we can take a look or had trumping go to Angola.

<unk> to the high chance that sounds good Oh quality.

So I hope that each of the Shanxi Osaka goes till I don't quite meet up does show up nine ONEOK, Terry Gilliam child take out well menthol I kind of want anytime doing it but tissue type that youll have to read out by anytime they like Tivo 10 day lag.

No much at your towers should finish I don't know even what may.

Is that how should that sounds actually we don't go down go down hole, well, no wait and keep that incentive income, which outgrew the market uncertainty that I wish you well know quite that high but you do that how quickly shop go away towards that license will finish out Scott.

So citizens and thanks very much for the missed missed pace revenue due to the explanation in this term before this question first.

After merchant acquisition to be finished and chairman Mr. Those general management and finance and also the risk management.

Hi, Sean this is going to be integrated into the CVA case.

Who management and operation management.

Scheme, but on the other hand, we are going to lift the hydro's. After merchant acquisition are searching independence in terms of the business development and business operation that is going to be many domestic hurt by their previous technology team.

And managing amendment team for business and a business operation.

So that is going to be a good complementary of our support and also they are long Europe experiments and technology accumulation.

What I had in terms of financial and finance data and of course, we are still in the progress of finishing the exchange and the transaction with them. So I think we are going to share with you the detailed data and information in the next time.

<unk>.

Uh huh.

Meeting at a conference for your reference thank you.

Sometimes you have a whole new look on boardman to Europe.

Thank you chip.

Yeah.

Thank you. Our next question comes from the line of Laura Liu from Stone Street Group. Please ask your question.

Thank you everyone. So my question is about the rapid and girls are four different business segments. So can you tell us more about our strategy in Florida girls on going forward and I'm also a what's the rationale behind it is it gonna be merger or.

Launching new technologies.

So you can kind of see that just show up and did show you. It does take a win T and that sort of quantum you Ching woman.

I'll turn them full finish how many shout woman whaler I see that you can <unk> channel.

Bulk quote woman difficult challenging times PE quota.

What's your shares that you own them.

Got it to me on the call what's your shot.

Oh, sorry can I confirm with the last point do you mean, the rationale of the strategy and to be quite a similar issue I'm not quite a ketchup all the information, especially the last 10 times. Thank you.

Yeah, sorry about that yes, so what's the rationale behind that on the DAU growth strategy, because I saw the company well do some mergers.

And maybe potentially launching some new technology.

What does it make it wont be between yeah.

Thank you and also behind the endocrine. Thank you. Thanks for that clarification. Thank you Oh go ahead Cheerlead you suggest you're sure that many of the wins you know Joseph ecosystem that you could tell me. The fact that the channel. It is the Auburn Township, I'd say generally if they hold them to watch it ballpark because it sounded at the Honda should we eat.

So do we usually don't give assortment.

How ya Qin Dalma, what are your tongue, where you see a shopping go to function. So you don't have the Fontana.

Sure sure sure, but would you able to treat them at least the John Bingle I found out in the year when the actual tissue tissue that you don't find Honda Toyota and you can find out across your.

Hi, Julien.

Coming down quickly to actually ship.

Our message and kinzel to we all operate IHOP keybank between.

Hi.

Okay.

<unk> syndrome ensure take.

Yeah.

Nobody agenda E T solution until the close of the fund was yeah within.

Jim do take a while.

It was a partial.

Hum.

I think part of it.

We should have a ship into your guidance.

Sure Jason.

But what I found your huh.

First that.

Because the way without having done a director to also answer your question and the first of the mist direct Tam sure. His answer to your question is that in the long run that is definitely savvy AK is going to be focusing on the tech knowledge driven business.

And especially for.

The batteries, new technologists update and development waste like the emerge acquisition I was kind of support so DC is our main strategy and our rationale.

And of course, where you will have some niche markets, but to pick a time limit I do not.

Expense about here. Thank you.

And then maybe waiting waiting them just yet.

How about now.

Patrolling Dan Joseph.

<unk> City, New Orleans that Didnt ship, I think you should actually Eagle Mead Johnson.

Twiddle no malware.

Hi, Tanya she wasn't that into.

The fact that she chose I just show.

<unk> one days in that.

Now Mark.

Or has it can't go through all of the data.

Yeah, that'd be down how should we go back into Chinese market.

Sure. Thanks, very much for the color further.

Further explanation.

NTT information and also.

Of course, ASP, we mentioned before we are a technology driven company and it is also our main stream for the development.

And also that merchant acquisition for example, the high Trump case is also of course, the other ones could you help us to provide stable supply of the key materials for our batteries.

It is of great importance strategically so that's why we issued this merchant acquisition case.

And so we could say this is not just a merchant acquisition. We are not just taking it to as a driving force for our business. It is a big course.

It could add up to our tech knowledge driven strategies to further strengthen our foundation and technology. Thank you.

Okay, great. Thank you. That's my question. Thank you.

Thank you.

Thank you. Our next question comes from Lucy Liu from Valuable capital. Please go ahead.

I'm going to give anything money is anyway.

<unk>.

E L E b market have pressed.

All major battery manufacturers are seeing production capacity expansion, while PPA, Kate just decided to return to the E. L. L bean market isn't it sort of lag.

Hmm.

Hello, you can move up.

Hello.

Oh sure sure she called Navy or has it been team channel.

Hello.

Hello, Oh.

I'm sorry can you maybe.

Yeah. We can hear you we heard data you talk I'm talking about the EV and EV and they are also a lot of the players have been expanding their capacity, but the only out of hand, and maybe you see be AK is just entering into this business and then the signal loft.

Oh, okay.

Can you repeat the question again.

All major battery manufacturer service eating up their production.

And while it could be okay, just decided to within Q E D L hughley market isn't notably.

How should we be thinking how're you.

Let's see.

Uh huh.

Good with you to help with the.

It looks like you are disconnected from the call.

Yeah.

Yes.

Yeah.

Hello.

Hello.

Sorry, sorry for this particular issue.

Okay.

Uh huh.

Linear.

Yes.

Maybe you're thinking there's not good no problem.

At present, all major battery manufacturer.

Given that their production capacity expansion well, maybe I can just decided to make into the evening and LNG market.

Got it Blake.

I haven't thought of as like a default you Shankar your meal.

Yeah.

Yeah.

Jorge Jorge hardening.

And then kind of sure what you can.

We had thought that maybe.

When do you can you.

Shifting to orders from us.

This is the audio operator, maybe I can repeat the question is about whether is it too late to enter al.

EV market.

Okay.

Oh, just show them with Shan Shan Shan, though because you can't all just your cooker.

Yeah.

To ensure that this year when job Aqua dress shirts is shipped out of Changsha in time does that Chad quite much IBM, the Sun's out having to turn them into human C. D. I cannot assure the heart or by shipyards runs with that how are you basically Sean I'm shuffle Conundrum Schwartz.

And Shaoshan bushel.

<unk> seen Kendall my plane woman.

You shouldn't your format.

Hi.

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There's a bunch of English here.

What are you doing.

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Douglas.

Number of women I understand that you don't actually get into financial into outside Kenosha shingle.

Okay.

Lee with Huntington.

Q1, <unk> to one <unk> what are you guys should either you got hospital, let me send that to him.

There's a lot that quickly.

Uh huh.

So listen.

Sure.

Yeah.

So as you said.

Hi, and thanks very much for for the detailed explanation for what the renter.

And actually one thing with a light to clarify is that we are not a newcomer to EEP in the area of the market actually we are back just like the very.

Famous scared of where back from this market pay across Europe ears before we.

Strategically decided to exit the EV and AV EV market because at that time, we <unk>.

And then is the policy of the government and also the timing we start that it was not quite as supportive for us to developed.

Business or generate a profit in evs EV and.

And that's why at that time, we decided to put more energy into the development of the story and it just storage markets, which do generate a profit for us to sustain our development, but on out of hand, it now with the continuous understanding of the market we see it as a good time for us to re enter.

Well back to the E Vita area of the market. So we see we already have the commuter.

Accumulation no matter of the technology of experience in this term. Thank you.

Sure.

These are the utilities.

And this is how you end up on a woman to Cook with other devices in Russia, Colombia at San Juan do you need to show her Columbia pneumonia.

Beltran <unk> she thought down there soon.

I was just trying to find out what Mr. Siddharth Fujita.

EMEA the financial element that is versus on the financial trunk wasn't it.

Eight inches in width.

Jason.

That should take to churn think sits on the front end.

You may hit it well.

What's that doing to that you said you need.

So again I want to take a step.

Uh huh.

Uh huh.

Yeah, that's useful.

I'll take the tons yet.

I will mention that easily.

Huntington don't tell leaving 200 individual bonds outstanding.

No Matt.

She finishes her she then Jonathan.

Could be cut.

Come in intra you sound on time charter.

Oh sure sorry, I know I'm not sure.

Good evening good afternoon, Dave.

Hum.

So therefore that leaves until you're endorsing venture gone.

Awesome.

The alien drone shot with young tundra.

Digital.

Sure.

Thank you Anthony so that they could put it that way so I hope that.

Linda Ginger Susanne.

The times and the user quickly gave us a shopping plaza key ventures. Please sure.

So as well.

David <unk> Chicago.

Hi, Thanks, and also one thing we would like to emphasize is that now we are back to this market. It is a bit of course, we have the strategic understanding.

<unk> the market so.

And first of all I would like to.

Share with you some additional information actually previously years before people fall, we exit the E V. O E V. We are to what we were the ones taking part of it.

Into the standard making up for the EV.

But at that time this was only a stand that.

We only have the standard for the industry, but now we have China's national level standard and we are also one part of it of the standard making up.

It also Europe before we saw that EV and EV DAU grew very fast.

Industrial is hard to make profit. So that's why we decided to temporarily exit from go to market, but are focusing our business that it can generate a profit and sustain our long term government. So that is our actually policy or for the day.

But that is to find the right business or industry to generate a profit with a profit of it we can take a steady steps to move forward and are following this policies, we now state of whom market Europe dilemma has been more mature.

And so that's why we decided to go back and also we are not just a back to a market to compete with those top level players focused on a beach a big player, but we are more focusing on the 18th.

<unk> Mato cars, but we choose another niche market niche market that is 800 motto and also the arrow UV minute to worse, the iqos, which which means where you folks more onto the light.

And.

The light type model there COSE we.

We focused on a different niche markets.

Comparing to other key players. Thank you.

This is Jim.

Thank you.

Let's see do you have any follow up questions.

Yeah I heard that.

The second question is then that the company received a gunman subsided and there what's the how the regulation and the incentive pool.

Great.

But.

Sorry, the SEC.

It's not a quite good would you like to repeat again. Thank you.

Yeah.

The company received the government and society.

What's the regulation and incentive for batteries.

Oh man should not just a chemical and fishing Guy you shut the lights. So you Jim Foote from him does he have got true that NIM.

So you could see that you found manta Hot Chipotle.

You would say on the ECS is all true.

Sure sure you leader.

So yeah. So as you know I'm Tricia Fulton Japanese Josh.

Chain channel in which we operate on a whole page.

Hi.

Uh huh.

Sure do you should know that I can answer it in two of them in the portal Kenosha income I thought that.

Do you tend to fund me and one that should be taken.

Sure no hurt them for the quarter.

Oh, Hello finances will you 70 Meg.

<unk> yeah.

Yeah.

Do further you're going to hear from them.

We'll see the fruits of the partnership.

Hum.

And firstly I think thanks very much for a Christian I think maybe because we are in the new energy markets. So we're kind of affected or impacted by the general image. The Chinese government has given a lot of us.

Subsidiaries or incentives for the new energy.

Is that actually there is no incentive or subsidiary I was in China, when the government level to battery manufacturers. There's one thing I'd like to clarify but on out of hand, we are provincial level high Tech enterprise. So we do receive.

Some incentives from the local provincial government.

This is one thing I'd like to kind of a fun fishing about ching peaceful.

Uh huh.

No much as usual <unk> Mayo Giga Hanmi assumed it up until now.

The amendment to ensure that you get with dual shale junk food gender is they'd be a pet.

So I'll take a.

Sometimes yes.

So you got all are <unk> here in Canada.

Sure a J.

Godaddy.

Don't forget women.

We are taking down the road.

Hmm.

And also as we mentioned that before that we are the provincial level High Tech company.

And we do see a receiving sandy from them for example that the local government gave us.

Found studies could only be specially especially is used for upgrading and expansion of our production lines and our capacities. So we do receive some type of this subsidiary lighting incentives from the government for the special purpose business also watching but one thing we'd like to clarify.

Alright.

<unk>.

Yeah.

Thank you D. C. Do you have further questions.

Thank you. Thank you for the answers and that's all my question. Thank you. Thank you.

Sure.

Thank you no more questions in the queue, let me turn the call back to Mr say Lee for closing remarks.

Okay.

I'm done.

From my side.

Hey, Bob.

Thank you operator, and thank you all blacks paging and today's call at West point. We appreciate your interest and look forward to reporting to you again next quarter on our next on our progress.

Thank you all again this concludes the call you may now disconnect.

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Thank you.

Good day, ladies and gentlemen, thank you for standing by and welcome to CBA K energy Technology's second quarter and first half of 2021 earnings conference call.

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

Now I'll turn the call over to Terry Lee Investor Relations Director of CBA can't Energy Mr. Lee. Please proceed.

Thank you operator, and Hello, everyone welcome to see back energy second quarter and first half of 2021 earnings Conference call. We released results earlier today. The press release is available on the company's IR website at IR.

Awesome feedback dotcom duct yen as well as from Newswire services are really of this call will also be available in a few hours on our IR website.

On the call with me today are you Bailey, who is our Chief Executive Officer, Mrs. <unk>, who is our chief financial Officer Mr. Children.

Our general engineer and missed it means our interpreter.

Before we continue please note that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S.

Securities Litigation Reform Act of 1995 forward looking statements involve inherent risks and uncertainties.

The company's actual results may be materially different from the expectations expressed today further information regarding these and other risks and uncertainties.

Rooted in the company's public filings with the SEC the company it doesn't assume any obligation to update any forward looking statement, except as required under <unk>.

Peekaboo node.

Also please note that unless otherwise stated all figures mentioned during the conference call I can do I start.

With that let me now kind of Covid call as CEO.

You can say missing with baked in Chinese and I will.

Comment.

Go ahead Cindy.

Okay.

Right.

And Oh.

Thank you and Hello, everyone.

Thank you for joining our earnings conference call today.

Alright.

I like that I wouldn't see that up when Jenna.

Hey, Sue them in fact.

Thanks, so much.

E N G.

So there's some things out.

Yeah.

Alright.

Somewhere in there so.

Oh, all bankers, who want to make one plus one and Samsung by.

Thank you.

Oh, yes.

Some of that.

It sounds like that they're putting in.

In fact, many of them out.

Agenda item six.

Sure.

Horses.

So what I'm trying to if you can.

You know some of them well minority sagana.

Yoga or holding some guidance.

Yeah.

We are very pleased with our solid financial performance for the first half of 2021, thanks to the robust sales growth.

Got to both power type Adrian net revenues grew to five 9 million in the second quarter and $15 three media in the first half of 2021 up 27% and 33% year over year, respectively.

Second a strong market for pure for our industry, leading beta with botox and our attractive business strategy execution.

Our gross margin increased by 15, 6% from the prior year to 19, 2% in the first half of this year.

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Saturday.

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His normal when needed.

Sorry for the fall.

Uh huh.

Well I think it goes without saying.

Jonathan.

So you can see that it didnt.

Well I think that Oh.

Yeah, we've seen that.

Sure.

We will treat a woman she said.

I don't really think about it.

<unk>.

We will not get there by people.

Uh huh.

Can you go into what he thinks there's sometimes I'm a farm out with them.

During the first half of 2021, we continue to leverage our advanced research and development capabilities to innovate our products, which then help us broaden product applications with additional capital raised revenue. Finally, we are well positioned to execute our business plan such as capacity expansion.

Moreover, we maintenance strategy consolidation across the supply chain for great synergies.

Fly now to share with you more information on these recent developments, which have further our mission to become a leading innovative energy storage solution provider and medium I am basically producer in China.

So is that how you factored oxygen.

Oh I'm not cheap.

Thank you Wayne.

First let me dive into the Midmarket host right.

We have made for product innovation during this period and our future development plan.

Well since we've owned them in fact, Saudi win you talked about.

Alright.

Sure.

Yes.

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No.

Thank you.

I think they're crazy, it's not a ceiling.

No no.

He played a critical.

Look on auto.

Put into that are keeping them busy.

How about you.

We don't see.

Yeah.

Well I'll take one DC.

Hello there.

Yeah.

Hum.

Oh.

With that well Mcdonald cool thanks for your time.

Well, let me hit them.

Actually just one quick.

Two of them.

Thank you.

Keybanc.

Uh huh.

We have successfully developed a special 2665 for <unk>, especially for ultra low temperature applications. This new basically designed to operate in temperatures at low at -40, -50 degrees Celsius and discharge at maximum see radio 60, the at room temperature.

On top of positive performance results, especially.

2665 fold basically highly attractive for product skus at extremely low temperature conviction.

In China, Northern region harsh weather conditions, as well as the Asian and Aerospace industries.

At this point, our clients have or keep them very positive initial responses and we are anticipating mass production of the special $2.665 old basically at the end of this year as we're expecting meaningful contribution to production volume in coming years.

Oh sure.

Yeah.

Yeah.

Okay.

Hi, Bob.

Thank you and tendons lost inches.

Yeah.

Thank you.

Yes.

Sure.

Mark talked about.

Y J.

Can you kind of go into Washington.

Why don't we pause upon maturity.

You can't go into off sometimes I'm not walking the shop.

Got it.

Central bonds.

Okay.

Meanwhile, we are actively developing a series of large cylindrical battery for the <unk> market. The base rates were light electric vehicles have a capacity of nearly four times that of <unk>.

Regulatory agencies, and 20% lower than post, making this product a perfect solution for the LNG market, we aim to be a major basically supplier.

L E be manufactured and expect roaming traction among them expanding customer base with our high quality performance ratios and strong <unk> abilities adapt to customer needs.

Joe you want but that takes some time.

Oh, well, you're not going to call also novel chemical tanker vessels.

India and Pakistan, all women hung on Yahoo.

Uh huh.

Hi, Chicago, Hong Kong Python.

So we'll know more about who is going quite well.

Let's see I'll call themselves.

Young demo.

Oh yeah.

And that's one word on corporate centre.

One other thing I should have gone quiet summer sandeep.

Hey, Keith I'll bundle them as well.

Cool.

Oh, Yeah, yeah yeah.

Hello.

Yeah.

No what I care about.

Hello again.

The.

Well I.

I don't know I'm, saying, well not enough work last.

Sure.

Thank you Bob.

You pulled it up and down.

We were capable broadening use scenarios by the support of our high quality and dependable base with products earlier. This year, we started cooperating with Roche on new energy multi technology Corporation to jointly develop a phase III wrapping project with Katie Murray and the logistics.

St.

As well as <unk> powered high project for Cabot lives.

That's delivery services are becoming increasingly independent ballpark of life. The bakeries rapidly project aims to provide solution for delivery riders that suffer from more basically wait that's inconvenient.

In charge off.

Check or traffic light.

Other hand keeps road space by ensuring the traffic light based on during all of all ages.

So far our cooperation with blackout went well and we will provide updates in the polling fortunate.

There will be any new program.

Meanwhile, well not yet.

Yeah.

Not exactly.

Hum.

Hum.

That's quite a mouthful.

Hum Huntington Gene back then too.

Yeah, So Hollywood.

Yeah.

He's our general pushes huh.

Goodbye.

I'm not on that.

What are you seeing that.

Uh huh.

Hi, Paul Paul.

Uh huh.

Oh hi.

Hi, Farha.

101.

Well I'm not sure who wants to.

Hum.

Okay.

In addition, we will also focus our R&D efforts on developing next generation basically enable easy fast or exploration and longer wrenches and driving the bakeries will have lower loss rates and lower code and presents a huge opportunity in EBIT market, our strong research and development campus.

Abilities of treatment by continuous product innovation, our product development roadmap is led by the new generation of technology and market potential in the clean energy sector. We have established partnership to develop hydro yourself and solid state batteries and these initiatives will allow us.

To maintain the long term industry advantages through technological innovation.

Some of them later on.

What about that.

Oh boy.

Yes.

Okay.

Milton.

Yes, it does.

To enforce it.

Going ahead, we will continue expanding our operations in China and establish our foothold in the global market through an increase investment in R&D and the company's technical advantages and cylindrical batteries.

Yeah. Thanks, John.

Uh huh.

Hum.

We don't pay for them.

So clothing Donaldson.

Awesome.

With that I'd like a hot summer.

Got it.

When you look that much better.

Yes.

Oh, no you can pick up on that.

Well no.

Sure.

Yes, you bet.

So we've got Florida, sometimes yeah.

Sometimes it depends on your time away.

Cool.

Yeah.

Yeah Ali.

Our Union one time.

Uh-huh home timeline.

Yeah sure.

Sure you caught that.

I'll ask one on revenue.

Notwithstanding.

Yeah.

Yeah sure.

Got it.

Sometimes hunting.

Oh I'm sorry.

Hum.

Well I meant on rollout.

Right.

Yeah.

Okay.

Yes.

We thought we would do that lawsuit.

All right.

Yeah.

Sure.

What I'm, saying.

One thing I'm talking about Santa.

On a mountain.

Hi.

Women.

Looking at a coupon.

Given our forces.

Hmm.

Okay.

Second our strategic capacity expansion and a growing addressable market with continued new product developments and increasing customer demand and orders we are ramping up our production packages to major projects underway. The first being the target expansion mainly for products.

Used in energy storage sector, we plan to invest RMB 50 media, which is equivalent to USD seven seven.

$7.4 million to add additional product line in our stock and the new production line has an annual capacity of <unk>.

Four gigawatt hour and it's expected to be completed by the end of 2021, the total annual capacity in dog and cat.

Kris to two gigawatt hour in 2021. This expansion allows us to plan to produce and ship.

100000 units of modules to 665 <unk> per day secondly.

Secondly, 19 patents will be established in choose basis, mainly produce products for EV and how will you be biopsies in phase one we plan to invest a total of RMB 70 media, which is a route USD 11 media.

10000 square meter space to develop production line with an initial capacity of <unk>.

70 Goodbye hour both projects are on the right track of expansion and we are pleased with the progress.

The USD 17 million, we raised in February really support our business expansion strategies and accelerates the product to go to the market.

Sizable women's encore.

She has done so well.

Q2 run rate.

Hum.

Yes.

Once he's done.

Well Mike.

Some of you might say.

So Doug on the floor.

Got it.

Okay.

Boxes.

Uh huh.

Hi, Tom exactly somebody sent on assignment.

I know that young path, well, sometimes you actually still being hung on that.

Thanks Anthony.

These actions I forgot how long ago.

500.

Uh huh.

So you want my number.

It's a whole bundle woman she said I thought it was.

So Nicole.

Yes.

Hum.

Jason.

Uh-huh quote unquote push along.

Well good luck.

Oh God.

Oh, well no it wasn't higher.

Hey, Paul.

Yeah.

So uh huh.

We'll keep all the tools in the dark.

Uh huh.

Yeah about a quality issue.

Thank you.

Okay.

Hum.

Thank you the next.

Next.

Our strategic consolidation across the industry supply chain, we are pursuing remarkable synergies, which will further drive the company's future growth and expansion.

Part of this strategy, we decided to buy 80, 156% of patrons equity interest via our subsidiary Italians CVA, a powered bakery Corporation hygiene.

<unk> is a leading developer and manufacturer of tuna re precursors and castle materials in China and he is one of <unk> Energy's key suppliers in the production of lithium ion batteries. The coastal council material accounts for about 40% of the total coast.

We believe this acquisition, we're reliable raw material supply we are paced hydrants as a strategy.

Entry addiction to fewer the continuous expansion of <unk> production and unlock potential for cost control.

Complete months, you bet Energy's business portfolio, forming an innovative equal system across all our businesses. This move will also advanced the company in diversifying products, Jackie and support continue improvement iterations to maintain our market competitiveness. This.

This transaction is still subject to certain closing conditions and is expected to complete in the third quarter of 2021.

Sounds good.

Do you want to talk about how it works once you stop.

Sometimes people reduce without tool now.

Keith.

Yes, Jeff on for Tom.

People are quoting.

Hi, I'm quote on quote young Bob.

You're not going to loosen up.

Uh huh.

In terms of job placement.

Hum.

Gotcha.

Well no.

Well, Florida.

Got it.

Hello quite closely.

Sure.

What are your tongue.

Absolutely not.

No no no.

So quite a bit.

Above all our goal is to build.

<unk> ecosystem based solution to power electric storage facilities and electric vehicles, we are moving forward to drive profitable growth.

We increased our investment in expanding our capacity.

And R&D capabilities.

Innovation further strengthen our existing product portfolio and drives growth in our addressable market with new products, we are competent and taking our business into new areas that will better serve our customers by leveraging our core competencies and deploying new products, we are well position to ensure.

Our rapid growth in the bakery market.

Yeah.

Examples of that.

Now, let me turn the call over I trial, which therefore, you will not pay who will provide details on our financial performance.

Okay.

Thank you <unk> and thank you everybody laszlo join our call today I will now go over our key financial results for the second quarter and first half of the time. They can do what followed us through details of either.

Financial results. Please refer to our earnings press release.

Our solid financial performance Donald J J, just draw a market does that guidance to our high college holiday pay and they will allow both bajarin.

Compared to the same share that was not the year, our net revenues increased 27% year over year.

Two five plus $9 million in the second quarter of J&J to nuance and their tastes represents 215 point just doing mainly not dollars primarily relate Jim and back growing demand in batteries and a better taste all anthem.

Cause optimal price.

If you get by the increase in net sales volume our cost of revenue to fall $28 million in the second quarter and the child punch. There are many us dollar industrial top six person and 10% year over year, respectively.

Compared to the revenue will still generate positive operating leverage of 21% and attendance may present, respectively.

And so our confidence in our GAAP.

<unk>, it's Geoff again.

Driven by higher sale volume and cost management.

Japan also increased gross profit was $1.1 million in the second quarter.

<unk> $9 million.

In the first half.

<unk>, 1148% and 819, 9% year over year, respectively.

Also.

Although Europe business.

Our gross margin also increased by 1000 Gen.

670 basis points to 18.6% in the second quarter and get 1650 basis points to 19, 2% in the front half of EMEA.

The margin increase is primarily driven by higher utilization of plants.

Our capacity and optimization of manufacturing engineer.

Total operating expenses.

Plus $8 million.

And the second commentary.

Five upon that many have done it.

In the first half.

<unk> 208, 8% and 79% from the previous Yandex taxi.

Okay.

We increased our research and development expanded by 117, one 717, 1% year over year to one maybe last dollar in the second quarter and 100 attendees to one person two one points that maybe has no effect.

Yes.

The increase was primarily related to the exploration of the Chinese government COVID-19 related policy and.

<unk> Corporation.

And the increase in talent.

In addition to light the cabinet increase.

Such expenditure into new model off pathways for life electrical.

We like being Coke batteries, Paul also low temperature environment.

Sales and marketing expenses.

Mainly U S dollar in the second quarter at the end points.

It's mainly Europe.

The first half at this stage.

Our hands on it.

And then 388.

Yeah.

Back in <unk>.

Our general and administrative expenses were two plus remaining us dollars Beckman Coulter and waypoint seven Marianne dollar index was up <unk>, 9% and 99, 9%.

Percentage respectively.

Apart from the all formats into exploration of Chinese government COVID-19 policy the increase in G&A expenses.

Also our results include the employee.

<unk> 19.

The 19th just one project inflation no product <unk>.

They will be completed.

In production by Q4 of 21.

Back to ramp up the 12 vaccine that customer all the gyrations basketball.

We continue to manage it.

Two customer relationship and the quality of our customers.

On the risk tolerance of doubtful accounts.

At one point.

While many of the most that can call centers into one compared to prior to May.

Yes.

In the first half of 2021, the totally of doubtful accounts.

Remaining compatible.

And both doubtful accounts plus for me Doug.

Yeah Yeah.

Our Tianjin style, while volume was five.

Cloud fund as normal in the second quarter.

Second of all claims of $2 million.

Gross profit compared to both.

Yes.

Yeah.

So part of the biotic.

Dominant into the gross margin the positive change in volume.

We were able to formulate Martin income.

Two upon many wallets.

And.

Covid coupons remain solid and that's very.

Hum and candidates enough local bond funds to more solid.

Alrighty conflicts.

Sure.

Great.

Absolutely I mean, you mentioned earlier.

Is that a woman with successful lately.

<unk>.

Iraq, they're ultimately all the new shares to finance our button.

Capital as of June 32021.

Our cash and cash equivalents.

But it's really only I can tell you that Antoine.

Yeah.

That's good.

31 <unk>.

With strong cash position.

Improvement in financial results.

On top of things that went on.

Is that possible.

Yep.

Let's conclude our per category.

That's now open the call for questions. Operator. Please go ahead.

Thank you, ladies and gentlemen, if.

If you wish to ask a question. Please press star on the bottom left of your telephone keypad, followed by the number one.

If you wish you can say your request please press the pound or husky.

By wall, we compare the question and answer roster.

Once again Thats star one full questions.

Our first question comes from the line of.

<unk> broken sell from American Trust. Please go ahead.

Good evening.

Yes.

Management there.

The C B a K.

Businesses involved sensitive technology.

Because the Chinese government to terminate its exports most things.

That is in the U S.

And.

I have a few more questions to ask.

Thank you thanks for the question.

Translating your question to our management seems to us at this moment. Thank you.

Go eating dogfish I can kind of see it since that woman J Simpson attached yield somebody <unk> Joshi short do you tend to Ciampino, maybe I'm not sure more Tien Tai.

For the year with a fungi townhome shuffle shirts at all or.

You see I mean, that's a good tissue to be a sugar and then John what sounds with the truckload top it with Xiaomi.

So you make what does it mean here, but you also don't Joe I'm Tangshan cutting them quick.

Solid trend.

Could you.

And you can shop HMD you got you.

Sure to make <unk> tissue candidate we didn't.

And then go Chase and go away.

Yes.

Tim handled quite fluid a horizontal platform.

Hi, Sean.

Sundar missiles.

It was a partnership with <unk>.

But there is a natural return to the shareholders.

Those who can kind of do it to do.

You touched on it with one financial performance.

So unfortunately, there's no pressure on me.

Operating income.

Amanda.

And finally, a couple things on hold.

Can you talk about.

Thanks, very much for the answering and actually.

The director mentioned actually the new what we are dealing with the industry.

In this term all the relevant and technologists are open to the public around the world.

And actually.

There is nothing related to the sensitive technologists and also on the outer handlers to Chinese government is giving the largest support to the development of the new energy and the relevant development business globally. So we don't have to worry about any sensitivity.

In terms of a tech knowledge. Thank you and we will have another director to also out of some more information for a reference thank you.

So thank you thank you for putting all.

My investors at ease.

I have other questions.

Just a moment of course okay.

Alright, just a moment because where you have another manager to add more information for you in this term.

Okay, great. Thank you. Thank you.

Alright.

<unk> won't be younger.

Kung Yeung, calling out without simply.

Oh I gotcha.

Bob will ship you thought from piece sounds like about what Oh.

Uh huh.

Yeah.

Yeah.

We haven't seen I would say.

Without our people if you will get some forward some maintenance like how does he is okay. What's your.

Tell me for sure.

Wish you all mentioned, we all went through this before.

And also.

Additional information for you kind of reference actually in August 11, the Chinese Central Committee dosing.

The central government issued.

Part of the fire.

This fire there are some several key points are taken into the key considerations and monitoring.

In terms of the cross border business, there like a big theater Fine Tech.

Computing.

The relevant business and we have to say the new energy. What are we are dealing with now is not included in those businesses, which are under very stream.

Range strict.

Monitoring of the China Central government. So that's also additional information for a kind of reference to where you could totally be released from the NIH.

Coming to level monitoring or sensation. Thank you.

Yeah.

Thank you very much for putting us that he's here.

Who are the.

<unk> direct competitors peers in each business segment, the battery materials electric L. B.

<unk> for ultra low, but your applications mhm.

Thank you Dennis for transport.

Alright.

Domestic in Florida.

Domestic going forward okay.

Joseph Xiaomi and you go into you know Souchong, then go wading dog Chilean.

Simon <unk> jumping in your guidance that you've got your thoughts around that.

That wasn't a coke or do something with it.

Tien tsin. Thank you so hi, Joshua.

A question Downzone when you're a jumbo.

Yes.

Bulk Goldman say take.

Sure. That's a good ballpark how do you when does if I'm into Europe, with physical fungi and budgets from mid to high <unk>.

The change in three so therefore can we didnt finish out.

Some people were not because of Brexit.

How that would end up with us.

Hi.

That also was up on SMT Carfagna, you can comment on that.

From you.

So the fact that tandem Trujillo.

Hum.

Got it okay, but how do you measure newmont is a truck OEM.

No.

Hi, Matt.

Our new Shanghai, Shanghai about Fannie.

Hey, Wendy.

Well, that's one of them in total.

The guidance, we'll know if I met the final one I had gotten onto itself.

Good day, but I cannot do so without.

Sand dune jingle.

No no no.

Additional government that's driven.

In addition, a.

I'm glad to hear that.

Hum.

No wonder woman agenda, as a tool to buy the Hudson's Bay tender.

And then throughout the cohort of on a declared here to show you the autos or what is the demand uptick back on that yet.

A fast manner, so they're going to quantify that.

P J I'll call you hit it.

And.

Thanks very much for your question and our director is going to give you the answers showing the street may aspects. The first one is the storage of energy ASP, while the key pathway for Christmas. Yeah. One is also to transportation and a 31 is to ultra low temperature.

And our director just gave the answer for the first.

For the first appointment that is the story of energy in terms of the story and Legendry domestically or globally. There are two competitors. The two competitors both from China. The one the first one is Shandong jingle B one is don't want Leila.

And but do we have the two main competitors, but our attitudes wished me well what multiple of shipment is larger than them in terms of quantity.

And also our business the CB Ak's business.

Is largely connected to the global market.

We have many.

500.

Partners and customers in key accounts for US for example, Schneider so with the solid foundation helped the global key accounts.

We are surpassing the two.

Competitors as you just mentioned in terms of output and business think of this is that for the first one in terms of storage energy storage.

We are going to share with you about 0.2.

They're not new hockey.

Gosh I have to ship.

Sorry again.

Then Don Trigg.

Number one part of Russia is a little harsher I know you've answered.

This is on the phone that Toyota and Honda at all.

So I cant hunting you at hydro channel toy.

That's really Europe on a woman, who we are the <unk> women's hiring you anchor with young men's and kids down the timeshare.

Nope I might be telling you.

Same to you.

Okay.

It should be done.

I'm going to take until our new hotel doing Hopkins Yorkshire.

Hum.

And for the sake of the one that is about the <unk>.

Power electric powered driven transportation that is many actually Ara EV ASP.

She had it before.

In this term globally or domestically there too.

Main competitors. The first one is the Shinhan Beata want is it timna and shall we.

And also the two actually local of their business in China.

And comparing to them our more main.

Main competitiveness if that first one our product is more easy to use or to be stored.

Stored because we are producing the cylindrical battery that is the lithium iron phosphate.

And comparing to comparing to the competitors prismatic batteries, it is easier to use or to being stored and of course, we're using the lithium iron phosphate.

And also the design we are safer.

Then the competitors product so our main competitiveness is flexibility and safety. Thank you.

And we are moving on to the third point.

Can you talk about guidance just yet.

The Sunday no unnecessary.

Todd you are indenture.

In Europe, and Asia, Europe Ito Gordon.

Further you can fund your number.

Oh man.

Each quarter I appreciate it's not going to be found uptake.

Could it be done given that no.

I thought I'd take a funding side.

So suddenly you have one isn't that Angela Hamilton.

And yourself.

And a 31 is the ultra low temperature application.

Our mi or key markets is first one is the extreme cuda arris being American.

The macro area and also in European area and also the other key.

Market is in the north part of China, which is.

Let me quote, especially in the winter.

We are facing this.

Markets.

And also our tech knowledge.

Power's tariffs we could obtain currently has no of viewers competitors in this term no mass domestically or globally.

Thank you.

Okay.

Great Oh No. My next question and your last question.

Uh huh.

Actually my next question is the feedback has announced numerous business partnerships and investments in factories and new products. What is the capital expenditure required to meet the commitments in 2021, how much has feedback invested so far and how much does it.

When to invest what are the expected sales and revenues.

That they expect to get from this additional investment.

Yes.

Thank you.

Now Michelle MA <unk> Joshi come from contact him the chance of a townhome EMEA launched yet.

That's all.

So not quite as to whether you can project mentioned, that's not quit out since you had the bulk of shingles, how does it change much.

Shuffled from being.

Finishing line shot more channel does have you seen ghansham.

We want a door to door shop in a way that you want so in job growth.

EG, but do you have a single income the Jim Shaw.

Okay.

With that ill toss all that you can get a social them go shoot Coverdale cordless youre sure that I'm going to talk about yes, social Schumann Choo, where you bought woman that take a total tissue.

Two when do you see a woman CFO Pedro unlikely guidance.

My friend Pedro.

Uh huh.

Yes, we'll maintain Yang you changed you got hold issue onshore mid 19.

J P GAAP machine in EP.

You called out.

Particularly even in pizza hut's whole no.

Yeah, Hi.

I assume that might take.

Take off about $10, making <unk> even better.

Oh, yes, she only lighting.

Yes sure no my day.

Is that a spend.

Thank you two quick <unk>.

Sure Jake.

The capital now who you see.

So I would say about <unk>.

She began to take hold up quite well.

Hi.

First on guidance, you and thanks very much for it.

Oh, the explanation and as you may have already heard from the previous introduction that we have.

<unk> put it into the construction the plants in Nanjing advanced entirely in cities.

And now we have invested almost 100 million.

M B.

And we play in.

In this year to invest another around.

50.

RMB 201 million RMB.

And we expect it to factories.

Are going to be put into the operation.

In the third or.

The fourth quarter of this year.

And we expect to generate the revenue or profit.

In the next year in 'twenty to 'twenty, two when the two factories capacity put into the full usage.

A certain time of operation.

Okay.

My final question is does the company have a plan to raise capital again and what's the estimated size of the raise.

It would be used and for what purpose.

Thank you.

So when you go into your window, creating doctor, Josh when Shannon woman, Jim mentioned, and maybe I should mention to you what you need to put that you've got going so that's the.

William Jones with outside the heart to go Jones food that docket equate more doses at the workshop and I'm not sure, but I just want.

Because John.

Well no.

<unk> told you what is that mix shift.

Everything about box.

Finish out.

<unk> CFO.

Hi, This is Dan.

Luciano will now quantify that <unk> brought that income courthouse, yeah sure does.

Jacob Trouba.

To date here in Peru, and Chile.

And then she.

It holds a Dr. Jacob light and just you weren't met.

I saw the Jacob.

It goes onto it.

Yeah, Matt So I'm not sure.

Sure No malware no way at all.

Ooh, Jake <unk> clock tangible should have social door.

<unk> <unk> 19 <unk>.

That shouldnt Archie the download hold acclaimed triangle.

How much it lets you keep talking about how she all that were meant 19, we've got that and she does Samuel Crowley.

Got it that's really caused disruption.

How the system is up and.

Thanks, very much for the Duke Derrick the pace detailed explanation in terms of the final question and actually as we mentioned the Nanjing and down in plants is going to be put into the operation.

Around a third and fourth quarter of this year that is going to be at the face one plants.

And we used the fifth plant in Nanjing, Anthony are going to be pertaining to the operation and a weight to the SEC currently according to our calculation the fund raised it before how being enough to cover our phase two <unk>.

Construction and operation in both Nanjing and Natalia.

And we expect to do more analysis about the quality of <unk>.

Products capacities.

And also the acceptance of the market of our products manufactured from the new two new factories in Nanjing, and Italian and with all this data to be collected after two factors putting into the operation.

Or you could understand that.

The phase two.

<unk> engine factory is going to be expand it and how much fund needs to be raised and so basically we were neat.

Two factories to be putting the operation and to collect more information through the operation and give you at this stage are you.

Aren't being shifted.

Yeah.

Thank you very much for supplying me.

With full disclosure and a concise.

Description of your intentions.

Yeah.

My pleasure outpatient Cfe Shako evening talk to you a man win comes higher does that window when cheese sandwiches.

Is it changing the way that piece on guidance yet.

Thank you. All next question comes from the line of Howard you from a leading capital. Please ask your question.

Uh huh.

So since you ended up our boardroom.

Alright.

Hum.

It will be longer and so as home prices.

Son, Nguyen tenders Cancun Cabos Crimson.

Woman OEM tusa to the SEC.

Even in good times and put ourselves.

Neil you circle in home <unk>.

I wish I was her note.

It is what are the current thoughts related to sometime soon called issue you'd make a gucci.

Thank you.

Uh huh.

Thanks very much for your question and we have a question about that when reading the report issued debt to CB 8-K half is dabbling, a cooperation and partnership with J&J by signing an agreement.

And according to this agreement is going to be a three years partnership to develop new products.

So the question is about how much revenue could be generated through this cooperation and also.

If there is any.

First our commitment.

This agreement for the partnership like the financial commitment and third one is that in terms of the IP for the co designed or developed products, who is going to be the owner of the IP.

No.

Two when do you open Kim Kendall with Ikea.

Yes.

Uh huh.

To do anything that jumped out demand.

Or what's your thought there.

Even if you're using a new client to the Thai baht.

Firstly on your summer.

Auto sheet.

In that sense it upon a tissue that take a hurdle if I'm in on it.

Uh huh.

Hudson stores.

Susan.

On our hydrocodone <unk>.

You guys income.

And what do you do.

Generally.

Who knows her father to the shallow nature sure.

And that is all.

Yes.

Palliative Mysore no matter what.

Sure.

And then do it.

<unk>.

No.

Into the take.

Ah well, Michigan.

Yeah, John jumper.

On chip hardware take out.

We'll take our.

Does that are you guys social.

Two part of Honeywell.

Just send it good job either take a photo of a hypothetical Peter.

Don't get.

Sure.

Regionally you've done that.

Hum.

John can you see any of them.

Thanks, very much for the direct to noise.

The answer for this question and when you first of all you have to mention that this cooperation with the GSA by CBA Cape is now on the right track.

R&D or daman stage, and but one thing we would like to point out.

This cooperation is focusing on the development of beer cool.

A vehicle it is it's a generally needs at least two years for that.

Indeed to be finished.

And now we are on the right track in the process.

R&D development and also from the current progress when you say Jay say ASP.

Maybe satisfied ways with it.

And also the product we are co developing is also a hot product that is the 4620.

This product is.

The IP is owned by US and also this product.

It's not going to be only to be supplied to JC is also only going to be provided to Arthur <unk> manufacturers and producers.

The lift that will help us to generate the provost profit and the loan book and the currently where you could say in conclusion to draw.

<unk> or the partnership based upon a wrench track. Thank you.

And if all those things sometimes yeah.

Well they are the ones you see.

Hi, it's Tim.

It's unclear to silicone gel geology, hi trends too.

Somewhere early Tim that's my concern.

Oh, so you're talking sort of agreed mobile Sogou maintained then there's always something.

It didn't go your whole Homeaway symposium in San Diego Police.

Thank you.

Oh, Thanks very much for your question and also from the previous introduction, where you've come to notice that severe case going to acquire a company called high Trust, which is the app stream manufacturer.

For the lithium batteries, so would you like to share with us if available the scale or the revenue of this company. The high trust the better we're going to be to acquire and the apt acquisition merger and acquisition. If has shrunk is going to be integrated into the CBA.

Screw business map or it is going to operate.

Its own Sir thank you.

It's in Europe, Hazelnuts do it either way.

How about.

Sure. We can take a look or had trumping go to I don't know why.

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It does show up nine ONEOK helium.

Gilliam shop, they've got Womanpower, when I kind of want anytime doing it but tissue.

Youll have to read out.

Due to a 10 day light thank you Julia.

Now much of it how should you be Shan Shan.

Is that how should that sounds actually we don't go down go down hole will now give guidance.

That is 72 income without girl now Malcolm's. He does how should you will know quite that high but you do that.

Please go.

So, let's hold that license Youll see yeah.

So citizens and thanks very much for missed missed pace revenue due to the explanation in this term a full discretion first that app to merchant acquisition to be finished and chairman Mr. Those General management and finance and also the risk management of the <unk>.

<unk> is going to be integrated into the CVA case.

Who management and operation management.

Scheme.

On the other hand, we are going to lift the hydrants. After merchant acquisition are sort of thinking independence in terms of the business development and business operation that is going to be many domestic <unk> by their previous technology team and management team for business.

And our business operation.

So that is going to be a good complementary of our support and the also the our long experience and technology accumulation.

I had in terms of the financial.

Finance nature and of course, we are still in the progress of finishing the exchange and the transaction with them. So I think we are going to share with you. The detailed the beecher and any information in the next the times.

The meeting at a conference for your reference thank you.

Okay, sometimes who may look on boardman to Europe.

Thank you chip.

Thank you. Our next question comes from the line of Laura Liu from Stone Street Group. Please ask your question.

Thank you everyone.

My question is about the rapid and girls.

Four different business segments. So can you tell us more about the strategy for the girls on going forward and also what's the rationale behind it is it gonna be merger or launching new technologies.

First on guidance, Yeah, just show up and did see Shire with those take a win Tms Reacquaint you.

Ching women.

Linda I'll turn them full finish I want to shout woman whaler I see that you can <unk> channel to get them a bump quote woman's <unk> channel Your top Bay Hotel, you can or should that you own them.

Got it to me on the call.

Oh, sorry can I confirm we still lost a point or you mean, the rationale of the strategy and to be quite a similar issue I'm not quite a catch up for all the information, especially the last 10 times. Thank you.

Yeah, sorry about that yes, so what's the rationale behind that.

The girl strategy, because I saw the company well do some mergers.

And maybe potentially launching some new technology so what.

What is the major one being between yeah.

And also behind me on no problem. Thank you. Thanks for your clarification. Thank you Oh go ahead cheerleaders Joseph Shaw dominates the winter Joseph ecosystem that you could tell me the fact that the channel.

Thomas you find out if they hold them to watch at Borgwarner, because it sounded at the Honda should we.

So do we just don't give assortment content Qingdao my tongue, where you see a shopping go to function.

I'm here with the Fontana.

Sure sure sure, but would you be able to treat them on leases you end up being good and I found out in the year when the actual tissue piece with it you don't find out that soil women that you can find under ship portfolio.

Cutting down that quickly.

Alright.

Our message and handle we all operate I hope for that.

Okay.

<unk> syndrome ensure take duena soon.

So there's a lot of our network <unk> until everyone thinks of the fund was yeah, Jim do you take.

Tim tickets with a partial.

I think part of the equity you issued it is even though you're going to get easier.

Sure.

Please go ahead.

But were not found Johan.

First that.

Because without having not a director to also answer your question and the first of the mist direct Tam sure. His answer to your question is that in the long run that is definitely savvy AK is going to be focusing on the tech knowledge, driven business and especially for.

The batteries, new technologists update and development waste like the merchant acquisition I was kind of support.

This is our main strategy and our rationale.

And of course, where you will have some niche markets, but because of time limit I do not at expense. Upon here. Thank you Coleman being waiting waiting them off at Tcf.

Oh, no patrolling Zhengzhou, Suzhou, well monoxide Danielle <unk>.

32, new woman and she came true and I think she actually Eagle Mead Johnson.

We don't know Mala.

It didn't go high trying to ship into.

The fact that she chose I could show you one data in that.

Number two our high <expletive> Jacob G. All of the data.

Yeah, that'd be down how should we go back into Chinese market.

Thanks very much for further.

Further explanation.

NTT information and also.

Of course, ASP, we mentioned before we are a technology driven company and it is also our main stream for the development and also that merchant acquisition for example to high Trump. It's case is also of course they out of one could you help us to provide stable supply.

The key materials for our batteries.

It is of great importance strategically so that's why we issue of this merchant acquisition case.

And so we could say this is not just a merchant acquisition, we are not just taking it to ASP.

Jai enforced for business. It is a big course.

It could add up to our tech knowledge driven strategies to further strengthen our foundation and technology. Thank you.

Okay, great. Thank you. That's my question. Thank you.

Thank you.

Thank you. Our next question comes from Lucy Li from Valuable capital. Please go ahead.

Good evening and good morning, everyone.

In EMEA.

L E D market at present, all major battery manufacturer, that's being I'd say production capacity expansion, while PPA case, just decided to back into the <unk> market is in this sort of lag.

Hmm.

Hello, you can move up.

Hello.

Oh sure she called Navy or has it been team in Seattle.

Hello.

Oh, sorry, yeah.

Yeah. We can hear you. We've heard you talk I'm talking about the EV and EV and they are also a lot of the players have been expanding their capacity, but the only out of hand, it maybe CPA case just to entering into this business and then the signal was locked.

Oh, Okay I can you repeat the question again.

All major battery manufacturer service eating up their production capacity.

Well, maybe I could just decided to return to the EV and EV market is like.

How should we how are you.

Hum.

Did we show up with that.

It looks like you are disconnected from the call.

Yeah.

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Yeah.

Okay.

Hello.

Hello.

Sorry, sorry for this particular issue.

Okay.

Yep.

Let me say the question again, sorry, maybe you are taking there is not good.

Okay.

At present, all major battery manufacturers are speeding up their production capacity expansion well, maybe I can just decided to make into the evening and LNG market and then there's sort of late.

So those obviously could default you Shankar your meal.

[laughter].

Jorge.

And then kind of sure what Youre kind of just don't see.

We've had to make a winter you.

So you should think about orders from us.

This is the audio operator, maybe I can repeat the question is about whether is it too late to <unk>.

Al EV market.

Okay.

Oh sure.

Sure Sean on that one because you can do to assure cooker.

To ensure that this year when job Aqua dress shirts is your thought of Changsha in time does that Chad quite much IBM, the singe out having to turn them into human CVA cannot assure the heart what my suggestion to that how are you basically sitting on the shelf.

Shuffle cannot ensure that you've got tons of ore Shaoshan Shaoshan bushel.

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Hi.

Okay.

I thought they would.

Do you see that mix, you're talking about in a city on women are teetotal shuttle.

Natasha I apologize religion, so they can take between <unk> you take the <unk> English here.

What data you touched upon your Iot even without them.

Number of women gender diversity on the financial into outside Kenosha shingle.

Okay.

You go live with Huntington.

Q1, <unk> to one.

Yeah, Jorge Hugo City, though you got comfortable when we said that the tuition.

There's a lot that quickly.

Sure.

Sure.

Sure.

Hey.

Yes.

So have you said.

Hi.

Thanks, very much for the detailed explanation for what the renter and actually one thing we would like to clarify is that we are not a newcomer to EV and EV market actually we are back just like the very famous.

My script, we are back from this market pay across Europe years before.

Strategically decided to exit the EV and AV EV market because at that time, we analyze the policy of the government and also the timing we start that it was not quite as supportive.

US too developed our business or generate a profit in <unk>.

And that's why at that time, we decided to put more energy into the development of the story and it just storage markets, which do generate a profit for us to sustain our development, but on other hand, it now with the continuous understanding of the market, we see it as a good time for us.

To re enter or back to the area of the market. So we see we already have the community.

Accumulation no matter of the technology or the experience in this term. Thank you.

I think so.

Data usage.

And this is how you end up on a woman to Cook, which other device in Russia.

And one thing that's real hard Colombia pneumonia.

And to me all the <expletive> out of it.

Uh huh.

It's just around the corner.

How should we see that.

EMEA the final necessary that diagnosis on the financial it shrunk.

Ah Tony to answer it.

But I'm not sure.

Ken.

On the phone.

You may.

Does that answer that you said you need to identify that.

Uh huh.

So there's no.

So oh, yeah, that's useful.

Take the tons in switching.

Well Michelle Ash.

Yeah.

I'm going to leave it to the individual.

Got it.

She finishes her she will.

While mark will be cut should've done yes.

Hey, guys.

Coming in intra you sound that time charter.

Sure.

Sure.

Turning to the toothbrush is also critical.

Uh huh.

So that's not where the lease until you actually can venture gosh.

Alien drone shot with young contour.

How would you say that <unk> been doing.

Sure.

Thank you Anthony.

Yeah that is Linda.

Linda Ginger.

The times and the user quickly take luxury shopping blago key events yourself. Please sure.

So as well.

Chicago.

Hi, Thanks, and also one thing we would like to emphasize is that now we are back to this market. It is a bit of course, we have the strategic understanding now.

Out to market so.

And at first I would like to.

Share with you some additional information actually previously years before before we exit the Evs EV, we are to what we were the ones taking part of it.

Into the standard making up for the EV and EV.

This was only a stand that.

We only have the standard for the industry, but now we have China's national level standard and we are also one part of it of the standard making up.

And also in Europe before we saw that EV and EV DAU grew very fast.

Industrial is hard to make profit. So that's why we decided to temporarily exit from go to market, but are focusing on a business that it can generate a profit and sustain our long term government. So that is our actually policy or for the day.

But that is to find the right business or industry to generate a profit with a profit of it we can take a steady steps to move forward.

This policy is we now state of whom market demand, but has been more mature.

And so thats why we decided to go back and also we're not a just a back to a market to compete with those top level players focused on a beach a big player, but we are more focusing on the eight type.

Mato cars, but we choose another niche market niche market.

Zero zero motto and also the Arrow Ub midnight the two worse there COSE we wished.

Which means where you folks more.

The light and.

The light type model there COSE.

We focused on a different niche markets.

Comparing to other key players. Thank you.

This is Jim.

Thank you.

Let's see do you have any follow up questions.

Yeah I heard the second question is in that sense.

The company received the gunman subsided.

And there what's the how is regulation and incentive programs in this space.

But.

Sorry DC.

It's not a quite good would you like to repeat again. Thank you.

Yeah.

The company received the government and society.

What's the other regulation and incentives for the battery space.

Oh man should not just a technical associate income shut down so your chin from N does take up with the.

So you could see onshore Amanda Hot Chipotle.

You would say on the ECS is all true.

Sure sure you leader.

So yeah, especially around Patricia Nympho for Japanese Josh.

Chain in general in which we operate on my own.

Hi.

Uh huh.

Sure. So you should know that I can answer it in two of them in the portal Kenosha income I thought that that day.

Do you two for me and one that should take.

Sure they were no hurt them for the quarter.

Oh, Hello find answers for you.

Some G Navy.

Oh, gosh engine, which here so there's I'll say AT&T.

Do further going to hear from them.

Non-GAAP.

We'll see the fruits of the policy.

Hum.

And firstly I think thank you very much for a Christian I think maybe the course, we are in the new energy markets.

So we're kind of affected or impacted by the general image. The Chinese government gave a lot of the.

Subsidiaries or incentives for the new energy.

Business, but actually there is no incentive or subsidiary I was in China, when the government level to battery manufacturers. This is one of the thing I'd like to clarify but on out of hand, we are provincial level high Tech enterprise. So we do receive.

<unk>.

Vantiv from the local provincial government.

This is one thing I'd like to kind of a shifting.

So as you think about ching peaceful.

Uh huh.

No much as usual.

Sure.

Yeah, sure Mayo Jahani assumed it up to <unk>.

And then once you ensure that you get with tuition junk food tender is maybe in the future.

Ill take a.

Sometimes yes.

So you got all are <unk>.

In jumbo so Jacob.

Oh go Daddy.

Okay, well, then maybe you're taking down the <unk>.

Hum.

And also as we mentioned before that we are probing show level High Tech company.

And we do see a receiving sandy from them for example that the local government gave us.

Found studies could only be specially especially is used for upgrading and expansion of our production lines and our capacities. So we do receive some stuff with a subsidiary of incentives from the government for the special purpose. This is also launching but one thing we'd like to collateral.

Alright, thank you.

Thank you Lisa do you have further questions.

Thank you. Thank you for the answers and that's all my question. Thank you. Thank you.

Sure.

Thank you no more questions in the queue, let me turn the call back to Mr. Yang.

Ya Li for closing remarks.

Okay.

I'm done.

Right.

Definitely not.

Thank you operator, and thank you all participating in todays call at which point. We appreciate your interest and look forward to reporting to you again next quarter on our next on our progress.

Thank you all again this concludes the call you may now disconnect.