Q4 2021 CBAK Energy Technology Inc Earnings Call

Good day, ladies and gentlemen, thank you for standing by and welcome to see back energy technologies fourth quarter and full year 2021 earnings conference call.

All participants are in a listen only mode.

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 Mr. Terry Lee Investor Relations Director I'll see back energy Mr. Lee. Please proceed.

Thank you operator, and Hello, everyone welcome to sit back Energy's fourth quarter and full year 2021 earnings conference call.

Joining us today I'm mistaken Bailey, our Chief Executive Officer, and Mrs. You're not pay our interim Chief Financial Officer, We released results earlier today. The press release is available on the company's IR website.

Feedback to conduct CN as well as from Newswire services.

<unk> of this call. We also will be available in a few hours on our IR website.

On the call with me today is Tony <unk>, our Chief Executive Officer, Mr. <unk>, you not pay out into re and financial officer, Mr. <unk> <unk>, our general engineer Mr. Walton.

Our vice President and Mrs.

Our interpreter.

Before we continue please note that today's discussion will contain forward looking statements made under the safe Harbor provisions of the US Private 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 is included in the Companys public filings with the SEC.

The company doesn't assume any obligations to update any forward looking statements, except as required under applicable laws.

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

With that let me now turn the call, but our CEO Mr. Xu.

Mr. Li will speak in Chinese and I will translate comment in English.

Apartment.

Based on the way.

Yeah.

Oh yeah.

All right.

Yeah.

Thank you and Hello, everyone. Thank you for joining our conference call.

Uh huh.

Your next question to John .

Yeah.

A woman talk of unknown and that's one notch.

Hum.

And then as usual well champion Craig <unk>.

<unk> Johnson I'm pushing that seems on the Oh sure.

Well maybe not.

Quite on track down.

I'm going to Miss you intend on future 10.

Sure.

Interesting.

Two women thing.

Johnson with <unk>.

Sometimes they just didn't shoot portion right now.

Hometown to you all the time.

China.

Well I mean, chunky, but would you go.

But I promise you Ghansham panjabi.

John You mentioned the Honeywell went on.

Well Martin so both onsite and finally could you uhm.

When Dabashi you don't do that right.

Right yes.

Inches high.

You.

Generally the whole mindset.

Pete somehow skewed huh.

Could you tell me what I'm trying to say.

Hi, Jonathan.

So that's something that we want them to.

Okay.

Longer women, saying.

Yeah.

So look on Hong Kong.

2021 was a significant year for <unk> energy as we make major achievements in multiple fronts. We continue to strengthen our competitive advantages through innovative technology and product development as scheduled with gear up our production capacity to capitalize on increasing basically.

Demand for light electric vehicles and electric vehicles, specifically, we began production of lithium ion battery at our new facility in Nanjing and expanded capacity at the dock facility. We believe these developments will bring long term benefit that will extend far into the future.

Moreover, we broke gain materially with the lithium ion batteries.

H one wipes.

Equity George.

George on HIFU lithium battery Technology Corporation.

Ill jump in and hence our basically product ecosystem.

Transaction will only have crucial strategic benefits.

A stable supply of raw materials, even amid rising material costs.

We also expect will help us generate greater revenues and an even better financial performance in 2022.

And we can ship.

Oh they are.

I'm curious you cut down call quantity.

I'm not sure what's going on.

Colombian comes out.

Sure.

Sunshine somebody essentially.

Oh, sorry, I was on Kashi.

Hi, Hi.

The Caribbean comes down are you can see by Bosch apartment.

Sure Matt.

So with that I'll turn.

How 'bout Kishore maybe on your.

Fine young.

Sure.

Your women on Sunday.

Yeah, Yeah trade on a woman.

So you're talking about panel.

In 2021, we continue with the higher revenues from high powered lithium basically which grew 46% to $33 3 million.

Emerging of heightened also added revenues of $78 million from December to bring our total net revenues in 2021 to $53 $4 million.

40% from the previous year. This increase was from the.

From the effective execution of our growth strategy, which boosted our expansion in the battery storage market.

Based on these issues.

So is that a woman.

So I don't want my homework.

What are your toy cobo.

Sure.

There's nobody that's for sure.

So if I'm hearing about.

Next let me dive into our recent developments and products, we strive to become a major supplier for top producers.

Based on industry.

Uh huh.

Are they are you know.

Womens conduct pulpwood.

I'm sorry.

Thanks Alastair.

Yeah.

But I would tell you that like all women.

Hi, Shlomo.

Oh I'm sorry.

There's not a song of Hawk sometime.

No no it depends on seem to hold up well.

All right.

Well how are you doing.

Uh huh.

Tristan this is somewhat so we try and sell them.

Well.

Social without Oh sure right now.

Following the conviction of Shaked out past the launch the commercial production of model 2670, virtually and model.

<unk> the former one is our peak voltage electric bicycle while the latter serves <unk> Oh, great pumping market Oh, great passenger vehicle is the category that William Cornwell mini EV the bestselling EV in China is under.

It's an issue.

So our women's outwear and certainly of course, sometimes you don't see Kansas.

Well, the tensor cores and CFO Don of Hudson City, Yeah hypoxia sensible.

Uh-huh gunshot wound out pretty soon.

Sorry.

Yes.

Yeah.

So that goes to the possible within Sabawi lampkin.

So about two young younger you Tushar hunker and things like that.

Ballparkish, sometimes that these will tend on ctrip.

Oh, Yeah, Yeah, do you want me to answer it on seasonality.

Sure Tim.

Hi, Paul.

And the time here.

Additionally, we will develop a customized debate with park for a thoughtful research and development, China, which is the final Japan once we're of Italian producer electronics basically control systems for electric vehicles.

The COVID-19 pandemic has delayed raw material deliberate we are now expecting to spend basically looks at some point I put this April the basically pack will initially be used to obtain low speak movies produced about diehard molecule cooperation.

<unk> theory of Toyota Motor Corporation.

Additional evidence of the industry worked in our solid technology capabilities and supports us in developing more innovative product for <unk>.

Okay.

Well you're right.

Change the antenna.

Then don't trust your tank car parking.

Sure.

Daniel.

Part of it on T does not sure warmer.

I want to hit us in a hole cryptography itself.

We also continue our efforts in developing largest cylindrical batteries for the <unk> and interest rate markets. We will share. This in more detail later this year when you see more concrete progresses.

Sure.

Uh huh.

Well, Josh I think somebody that wants that and all of them that's novel House put on something.

I'm not sure. He's he'll go through you should start to see them to hang onto them.

Sure Tom.

Moving on to capacity expansion, we are very satisfied with the progress which is totally in line with our tenants and with funding to grow in market demand is ultra reported EBIT market in tissue.

She has got a new well.

What are you doing.

Sure.

Oh, sorry offerings in terms of Saddam Nantong Nantong in Washington.

Well no question Q1 town Chinatown Papa syndrome on top.

Oh come aboard accounts itself will go well.

I'm doing all right.

That'd be one time, some good some things up.

So Todd.

Something about.

Sure.

So we are sometimes sorry, often isn't true.

Mr closer woman Pine pulpwood harvest the vegetable side.

Well I'm not going to read out.

Sorry.

Yeah.

More central without careful about talking with them.

Sure.

In London, we began operations at the lead.

In 19, we began operations at the <unk>.

Basically manufacturing paths there late last year with initial annual capacity of seven gigawatt hour model suite two one for all basically as we gradually ramp up the output to the Penn's full production capacity.

The basically stopped being keep labor the bakeries have been delivered to customers. We remain on track and on schedule to complete the first phase by the end of this year when its total capacity will be lifted two two gigawatt hour each year, mainly for the same basically model. Meanwhile, we are also pushing the construction of its technically for which we.

We'll mainly produced a modal suite two one for all basically as well as the largest electrical basically that we are currently in the midst of developing.

Okay.

So I thought it wasn't a woman.

John Jota.

One time no they're not.

So sometimes and sometimes I don't know what else you know.

So it's useful.

Some kind of ceiling change you intend on what's going on in the auto Chinanet.

Sure Bob.

In Montana.

So why don't you.

Oh Geez, you're quite time, you might go sure Tom.

And I'll come back to you soon.

In <unk>, we started a new production line with an annual capacity of four gigawatt hour for our model.

Basically for the <unk> and energy storage sectors.

Addition to the <unk> main production of model two six at five O Patriot.

The dial in facility has almost a which is full capacity. Therefore, we see need to further expand its capacity to meet higher demand for our products.

Did you sign up well my more time selling itself with attention.

So what are the Argos ssangyong.

Yes.

Santander about llama got hung up 500, you'll shut out someone's going to organize the hotline.

As of March we have outstanding basically orders with 230 million RMB or about $36 million.

Approximately 90% end users overseas competition.

That's what I would say sensors had a young.

Well my one turn off one of the cobalt tenses hard, Oklahoma, some highly functional and Gulf power.

I'll tell you.

Well I'm sure Bob Hi, pumps, you know sorry, that's how we're supposed to do you don't you end up and beyond.

Your heart pump going down too.

So you are there or not.

No not at all it's high or low.

You're going to wait.

So going back to your phone.

So I'm glad that cobalt more women.

One month in Q.

Two months.

Hi, Tanaka Gaucher corner, Yeah, Hi, Tom was that whole, Montana, that's one time.

Sure.

Can you just I know, sometimes called social sort of high touch.

Yeah.

The incentive fees.

Okay.

Hum.

Someone who could yeah.

Because it sounds like some cities all across.

Hum.

Okay.

With that I'll now turn to our page for immaterial with it in late November . We finally completed the acquisition of China's linking lithium ion battery materials.

Given the closing date of that you. We only took account of the December rate hike into our book emerging approaches is expected to significantly benefit our financial performance in 2022 and beyond we are very optimistic about its future system is well established customer network most of the heightened sky.

Domestic companies and is currently operating at full capacity by focusing on production and sales of MCM precursors and cathode materials for Libre in bakery.

Great performance and advanced northeast also allow it to be among the small and medium size enterprises that dominate major markets in niches sectors.

And secure increased financial and tech support.

Credit policies from the government.

Sure.

Two one once you know you sort of assume 10.

But as you have heard.

And essentially it's hard now to them, but sometimes it yourself.

Conduct Sheila.

I don't know how long how to shoot.

Got it sounds good.

Wondering why it took truckloads menarche her.

Our dog food yarn somebody's cell phone.

Yes.

So well see no antitrust you, Tom So I'm talking about both Boston summed up.

Hung us yelling across you know you go down you saw already.

Let's see so that's the only country since you're not you don't want that all about.

So our attention.

Sometimes.

Hung on kind of a sense it sounds like pretty quickly.

Turning to our target.

Without that.

Sure.

Hi, Bob.

Thompson.

Yeah, no until essentially that's wrong, but.

As 2022 evolves, we see electrification wave of new energy vehicles, continuing and becoming even stronger despite the short term impacts, resulting from chip shortage and rising material costs for lithium basically with multiple factors such as favorable policies at home and abroad, our supply chain locations.

Increasing material and component cost, we expect the new energy vehicle market with the explosive sales growth.

Based on forecast from indefinitely, unless flotation and financial position.

What we can tell we're basically it's likely to be 400, and particularly from our hours in 2022.

Six current basically supply and it's raising basically prices.

However, we expect to repurchase will be more rational in the long run continuous knowledge.

<unk>.

Development <unk> largest electrical basically the OSV wiped out lithium basically coast.

Thank you.

Tim do you intend on trough on that one.

One I didn't answer it all one Gulf South panel.

Two a hunger pipe hung out you don't know where Samsung.

Some girl talking you had some counter detail.

Yeah Yeah.

Jonathan on truck, but essentially as time goes on quite yet quantum's hold onto them.

So you can shop.

Tuesday, Wednesday ultra harsh is hunting for quota tobacco counsel Martin Daum.

Sure.

Hum.

With the implementation of new National standard four <unk> sales of this vehicle type will accelerate and drive the industry's consolidation and bringing sector leaders into the spotlight. The entire industry is now evolving in the direction of lithium electrification alongside intelligent and long range technologies.

Lithium batteries for Evs also performed exceptionally well in vehicle sharing basically scrapping and super charging at the same time under the impact from the pandemic. The overseas market for <unk> has also grown especially for E bikes high speed electric motorcycles and electric three wheelers and tissue.

We might as well with Samsung.

I'm sorry, you change you intend on trend as usual.

I'm sorry are they are in 10 year Treasury, all changan product I know you will bump up so yeah, we're not going to see it sounds like 19 hardship hometown finish off with hometown puncture.

Yeah, right, sometimes tweaking dongle.

So you don't want a young well my Shuang you already are in yen.

E T don't jump with hold on that.

In time I'm not told all clustered amongst young people to your call Homeserve didn't see quite the showroom.

Sprint's that'd be a woman who don't trust your top she told me all about coupons while puncture.

Oh, Hi, it's all about trying to counter corridor.

<unk> done some cross selling I'm, sorry, Oh, yeah, well Mt potency long way too closely tied out they'll go.

Oh sure Yeah Hirano.

Since I know it sounds like shutting down early.

Right.

Sometimes it goes up you don't you don't do well.

Well magazine shovel Hunt showroom jumping to you don't want sociable. So they already are.

Cool.

No.

It's not one way glass for me.

So I said sometime.

Well I'm trying to show them that hung yeah Don.

It seems on it and.

So nuncle younger babies attention, sometimes go up then I'm, saying you'll find.

To meet the aforementioned demands from Evs and <unk>, we will continue our focus on ramping up capacity and broadening the materials business in fiscal year 2022, first we will accelerate construction and conviction in for the second phase of the 19 patent this year at the same time another production line obvious first phases.

<unk> also been built and as noted earlier, we hope that the entire first phase will be put into production in 2022.

<unk> and release of 19th production capacity will further increase to company's revenues from that basically business and will be of significant support for our stay at the entry into the EV market. Meanwhile, we will use the strategic value of high teens to expand our raw material business and integrate our upstream and Dell.

Stream, we hope to not only maintain the stability of raw material supply chain, but also grow the raw material business, which is now a popular due to the rising material prices into one of our main business lines. We believe this segment of revenues will play a significant role in driving up our sales in 2022.

As we look ahead, we believe these growth drivers our strategies position or is very competitively in the industry and empowers us as a leader in lithium ion battery production and luxury energy solutions.

And based on the D C.

Some of them that's right Paul.

Okay.

So that's how it will be onshore.

Now, let me turn the call virtual interim CFO .

We'll provide details on our financial performance.

Okay.

Thank you Mr. Mr Liang Terry.

Yeah, and thank you everyone joining our call today I will now go over our key financial results for the fourth quarter and full year of <unk>.

Full details of our financial results. Please refer to our earnings press release.

And in 2020 , one we continue to expand the revenue and gross margin levels that are challenged by stronger sales of tablet, so interruptible supplies and our events as well as the addition of that material that is brought by the application of <unk>.

We also tend to profitability in term date can be lumpy from a loss in the previous year, notably way continue to chew in mice in the new comp.

Bedroom is as well as research and development two jobs further girls, we believe best in mud Lachman combined with our strong financial position and powerful battery products to the ecosystem will propel us toward long term profits.

Okay.

Moving on to our results in the sales culture of churns HSV, one notch revenues as such the 8-K.

Chris It to 27 point.

$8 million, some less than that of 2020, primarily due to strong sales of ultra high powered lithium batteries and additional revenue some days on battery grade materials.

Outside of the acquisition of hedges from November .

<unk> 21 to December .

31st 2021.

Full year 2021, <unk> revenues were up 30% to 52 7 million.

Ah yes dollars.

Page.

Thank you Scott.

He was from high power led to exacerbate, which grew 14, 9% year over year and 17.8, maybe U S dollars with some actions since the acquisition.

Cost of revenues was $26.8 million.

Corporate and poultry.

One maybe last dollars.

The full year 2021 .

86%.

36%, respectively from the prior there yet.

Gross margin was three points that are present in the fourth quarter compared with 6.8% in the same period of 2020, as though mature real costs.

Still in terms of any one our gross margin rose 250 basis points, Youre always better to nine points down 1%.

The improvement in gross margin was primarily attributable to the increase in the quality.

Passing rate of our product, which was a result of our quality control and upgrades on production lines.

In the fourth quarter decreased operating expenses by the way a percent from the previous year to 6.8, making last dollar as they recovered from doubtful accounts and there is no impairment charge Tom property along.

And the equipment, which offset the impact.

The expenses related to research and development sales and marketing and General administration.

While our full year 2021 .

Operating expense.

50% to.

16.8, maybe $9 primarily due to corona.

<unk> com together with the acquisition of Hudson.

Within that our research and development expenses were five.

<unk> plus when measured in U S dollars and sales and marketing expenses were two clients right now.

S dollars.

It's more than triple from the previous year.

Our R&D expenses accounted for about 10% of revenues in Kensington to Brown <unk> Brown. The farm has done in 2020 as they expanded our efforts to upgrade your technology and products.

Additionally, John Munro and other men attrition expenses increased 168 prison shoot tend to made in U S.

Still our operating expense ratio was 32% in 2021 compared with 30% in 2020.

Our challenge is a variety of wallets.

Upon six many U S dollars in the fourth quarter compared to 2.1, mainly U S dollar in the prior year.

That's not incumbent cheap you are attributable to shareholders.

K honestly.

<unk>.

Ninth wants to maybe not doing that here yet comparator.

Compared to net loss attributable.

Triggered go to shareholders.

The AK allergy.

<unk> remaining at dollar.

Yeah, right now for 2020.

For the full year, our change in fair value of Walgreens was 61.8, maybe last dollar.

Compared with $2.1 million in the prior year.

<unk> income attributable to shareholders feedback energy was $61 million compared to net loss attributable to shareholders be back down to seven.

Seven eight.

$8 million in 2020.

As of December 31, <unk> can be one our cash and cash equivalents reached it.

$7.4 million compared to $2 million as of September 32000.

That concludes our prepared remarks, that's not open the cultural patchy.

Operator, Please go ahead.

Thanks.

Thank you we will now begin the question and answer session. If you wish you also a question. Please press star one on your telephone and wait to be announced if you wish to withdraw your request. Please press the pound or harsh key please standby, while we compile the question and answer roster. So once again Thats star one.

Questions.

Yeah.

Uh huh.

As a reminder, if you wish you ask a question. Please press star one on your telephone keypad.

Our first question comes from the line of Laura.

Sam Stone Street group. Please ask your question.

No. It's you can't what his thoughts were on the Lora.

Oh sure Yeah.

To finish with electric.

Can you and it sounds a little once you hit a council.

The high fall short potentially in parallel.

Golden Showtime translate at least didn't shrink or pulling out of your own stock.

I was wondering on Cabo San Diego or somebody you don't go into the clinic without a question on kind of a push remark.

Mhm due to the conflict between Russia, and Ukraine, the price of cobalt and nickel has increased sharply how will this impact the raw material predictions in high change and the prediction of lithium ion batteries.

<unk> energy and won't make it to the two companies have in place to cope with the rise in metal price.

Hello.

<unk> laid out a whole bunch of them.

Thank you.

No no no.

They go into an appetizer.

So Jim Jim to you.

Two men who enter for sure we are there.

<unk>, what's your inventory really didn't hit.

Yes, yes.

Yeah.

Uh huh.

Yes.

Are you talking prototypes.

I know you're wondering.

Excuse me.

Well, thank you for your ease of use.

Bruce.

This was hydrogen above book.

Hum.

So as I just noted.

Yes definitely.

Hello.

You may take.

They wanted to Internet.

Uh huh.

Is it could you wouldn't do it.

Kudos on that trajectory.

So I think that sometime earlier.

Hello, gentlemen.

Thanks.

Some of it is in the UK.

Sure.

So as you can go to the liver.

You mentioned that they didn't hear it.

Sure.

Sure.

Well <unk> cohort to Gordon who will keep in Alto <unk>.

Douglas.

Dave could you go through it alone.

Several of the Utah.

Sure.

Yes.

Presuming that you quote.

Mhm, Okay. Thank God.

Yes, with regard to battery business their materials.

Most oh, Jason shipment of feedback energy.

Lithium iron phosphate enterprise rice of cobalt and nickel has little influence on our projects in terms of mid tier real business. The estimation of a rise in metal price does have some impact, but the company you cannot.

Advocate by taking various measures for example give them back.

Shelf life of nickel.

And my goodness.

His long is quite low compared with all the metals, we have replenished the stock when the price is low and we have replenished to quite a high level. So we can knock the prediction profits and also build a linkage between the sales price and material real price and.

With all these measures we can mitigate the impact on our material business and an even mix in profit from it.

And on another hand, now that did raise a scarce resources in the market and the customers can basically.

Digest the price increase caused by the.

External factors after week communicated with them they can understand and B. They also told us that the impact on the material preparation and sales.

That's acceptable to them.

Okay.

Yeah.

Yeah.

Yeah.

Thank you Laura do you have any follow up questions.

Our policy in Ohio.

So sure.

And of course, something anything in an offshore or onshore and Fisher Hollywood movies Homer.

Okay I have a second question.

How do you see the electric vehicle or electric vehicle battery market in 2022.

It won't be too long is one that could help at all.

Junior.

Good answer John .

Sure.

I'm sorry, the Shandong.

EMEA kind of larger system.

Well it changed.

<unk>.

You go further parse out how true Shaun Kelley of Piper Jaffray.

Oh did you answer logic.

So let me I know Asia Yoyo.

Turning to Asia.

Could you find it useful.

So to kind of lay another good Joshua yeah.

Sure.

To adopt <unk>.

Shelby.

Yes sure.

Ashish I Wonder is there to go.

And the answer you answered it.

We found out about it.

Yeah.

Now George Tong.

Got it.

Sure sure sure well manage it all.

Junior high shale.

Well somebody that you've got Thunder.

Sure.

Don't you have a toehold Asia.

She has a couple of I'll.

<unk> seen initially rubbish.

But you don't have that off for a long time.

Sorry to go well then also deal with that at all.

Turning to the to the only.

Alright good.

Gordon didn't touch any of them.

Any man parmesan shrimp.

I had a chance I mean.

Archie on the Ha sung <unk>.

It's also down to <unk>.

Got it got it.

Sure Tara Silva you should note that most of it's always wrong.

Hi, there.

I certainly felt like I'm not sure.

That's good to know.

All of them to grow at GBM.

Sorry.

So finally OE light chips.

I want you to add I think.

Sure.

Three questions Linda.

Part of it.

Julia Garner.

So as usual we are soon.

Well that has been done.

Yeah sure of Goldman.

Sure.

Ty Abujihaad Libra <expletive> Hungary.

Do it.

Okay.

Mhm.

Okay.

So due to the price increase of raw materials, we did see some impact to the market. So I'd say, if we have a look at a long term market.

Potential we can see that the whole market is turning into electrification.

And but we also have to admit that the conflict between Russia, and Ukraine together with some.

Political issues.

<unk> fluctuation is quite huge however, we're happy to see that the consumers can digest and understand and also they can absorb.

Pressure dropped by.

Price increase of raw materials.

We have a look at the veterinary industry and E&P industry in China, we can see that Dan <unk>, a big increase.

Double or even cheaper increase in domestic <unk> market.

Including we see a sharp increase in the sales of some major car manufacturer of companies like Tesla and B a b.

<unk> White B E X X Chi.

And if we look at the eight passenger cars, we can see that metric does sales.

Hi, and on medium and low and our sales are.

Mount rank almost ranked top three and last year in terms of eight eight passenger cars in terms of sales volume the total EV consumer be coax in.

In the sense, we also.

We also occupied number one and number two in the markets. So if we look into the future. We can see that the EV market still maintained a rapid growth momentum and intense.

Market demand for battery will also increase correspondingly and all these market situations are in line with our industrial lay out in our market predictions.

Okay.

Uh huh.

Hi, <unk>.

Yeah.

I'd, rather take a human.

Each of US are now going to be paid.

<unk> vessels.

You can do that didn't do too.

Two medium two took a huge hit upon a duke with other.

So the U S retail.

So you can also comment upon the yesterday.

Gotcha.

Great.

Susan Berliner of unknown, the igo Ugo <unk> T.

T cell.

No.

Yes.

So you're going to be different.

Yes.

For the quarter.

Mccain choosing them until there is a high efficacy part.

Hi, This is omar.

You can find them.

He didn't want to know why you touched upon them.

Jim didn't whether you can give us.

No matter how important it is.

She is in Oklahoma.

Good thing indeed.

The interest is just around the corner honestly.

There you go.

Mhm mhm.

Uh-huh.

Yes, I want to add some more information according to the Enbridge Inc.

Oh, sorry, according to the industrial institution and data from the Cat Fund. It just asking me to adopt the same volume of new energy vehicles will reach $4 8 million and $4.

Median at home and abroad, respectively in 2022, and we have to look at the demand for power battery. It just asked it may take to reach 450 gigawatt.

Size that in terms of light electric vehicles, the sales volume of eclectic two wheelers in China amounted to 48 million in 2021, and the penetration rates of lithium battery with 225%.

And are you <unk>.

In 2022 with the implementation of new National standards.

Uh huh.

Weapon of electric vehicle.

Accelerates.

The reshuffle of the light electric vehicle industry.

And the industry will become more.

Consolidated and it will be featuring lithium battery powered electrification intelligent and long range and Oh.

At all this together, we will see that the lithium battery life to be closed while also developing rapidly and car sharing power what pain fast.

Charging et cetera, So we believe that the market prospects will be promising.

The future in terms of time too.

Okay.

Yeah.

Yeah.

Thank you.

Thank you.

Your next question comes from the line of co broke himself from <unk>. Please go ahead.

Okay.

Eric can trust investment services call Birkenfeld Yorke.

The question I have is the first question I have is.

As the.

The Lockdowns and Covid adversely affected your.

Your.

Production facilities.

Daily on in Nanjing.

And.

That's my first question.

Has it affected us.

Facilities.

Mhm, how would the bigger wins, he or she like Jamaica hardwood at Eagle and teachers, Shea, our English and Glen E. G changing those things so we'll bleed the Italian high on $19 10.

Sure sure sure.

Yes.

To win new team Peco grilling channel on Youtube.

So now as you know it is Joe Shoen.

No more or less in Guangzhou.

Are they aren't immune to ocean site rollout into the shipyard now more women in.

Shanghai Tang J vocal in EDA, each young female that giuliani and sheet, yet still naoto women that Angela and June Dr. Sean <unk>.

<unk> got that again shop now more women cheeky angle.

Well it shows that you got caught.

Uh huh.

Yeah, Thanks, Jacob Shishido issue, yes.

Uh huh.

So you mentioned that passion mail showed I'll try that and jumped up.

Okay. So.

Since the outbreak of COVID-19 in the beginning of 2020. It has been two years now, but we have a look at China. We have to say that there is no major impact in our production facilities in both Italian and Nanjing, Although we did underwent undergo.

Some shut down Uh huh.

It didn't last long so it didn't exist.

Is it a big impact on our prediction.

Well it was home cocoa showed on the chart do like kind of not much.

She did a neat she know Randy.

There are also turned up.

So are you along in that in that you should see that zoom Jacques felt some cobalt plans on me and I can do my offshore the Tidewater yacht.

Mhm and if we look at this issue from the perspective of customer need during these past two years.

We witnessed a sharp increase in the need for new energy vehicles and D. C. In batteries that is why our old days have been increasing so we have to say that there is no impact no negative impact in Oh edge from the perspective of consumer need.

Yeah.

Thank you my.

Second question.

I think was answered in the previous person.

And that was the material cost increase in the lithium batteries I guess you guys are passing the increased costs on to your consumers.

To keep.

Keep the margins the same.

Okay. So two questions.

Uh huh.

Yes.

Uh-huh say would be uncle when Tina issue than downside. When you should have <unk> question, just a counter to that moment in time that would've Genco change this is sean jumping around.

Sure sure sure woman concession Pacifico, Nintendo Jack Shang Chuang Bikini falls in the back half 'twenty bottling does shell feature James O'shea, Shaun say tweak went down like a function that Alex you woman does end up.

P M.

So when do you think pays off.

No just your total yeah. So now, but you can't do I Shouldnt Giggle Lindsay National cancer woman does.

Uhm.

Hi, no change with that.

Our Australia pulled back some.

<unk> got Ghio, San Antonio and Linda Jojo to China, Chocolate, So Ian Douglas Shandong PDL will need up clean ton Ddos JP.

<unk> Toyo diet Coke as well too.

As you tie that with Jamba, you're going into shock.

The <unk> you gave a Chinese Linda trigger totally automated and much how did that trend up.

Hello.

So make sure you get your hotel number within that.

Sure Shinya Yamanaka Nations solar.

Is there any thought whether Shanghai, Algeria, one Linda.

Thank you Michelle I should take a shot at that.

R E.

No.

Thank you.

Uh huh.

Who should trend up elements of style.

Yeah.

Mhm.

Okay.

So we are going to answer this question from two different business segments first of all let's have a look at our material business as our material business spend at the upstream of the <unk> churn. So it is more easy for us to pass the price.

Trees to the median or the low end and AEP have a look at the second segment that is our business our battery business better business me spent in at a median median and and then Jorge passing Oh.

Of the price increase it will be.

A little bit slowly there would be some latency in it.

So for <unk> due to the increase of the price of lithium carbonate.

There will be some impact in our business and we are going to see a influence starting from Q4 of Kinder do one and then also in this year, we think you'll see a passing down of the price increase to the downstream gradually.

Yeah.

Thank you.

Yeah.

Thank you.

Once again, if you wish you'll ask a question. Please press star one on your telephone keypad.

We have a follow up question from the line of Laura Liu from Stone Street.

Please go ahead.

I don't know how high are you going to go to.

Well you can go to the Gulf kind of medical and get closer to you want.

Crosses then I feel comfortable with it.

<unk> pulled out of your system.

Uh huh.

I have got.

Oh sure.

Alright.

They did finished.

Okay. So I have a question you asked a question consuming the strategic priority of the company in 2022 could you give us some updates.

So one of them.

Great.

Oh.

What else is out there.

Thank you Pamela.

Oh, Yeah, yeah yeah.

Yeah.

Got it.

All four of them.

On a year over hall.

Are you either deal with it.

All right.

Oh yeah.

Yeah.

Right.

Yeah COBOL.

Quota.

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Our roofing board others, though it's really that Youll make oh sorry.

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Yes.

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Okay.

Right.

Is there somebody who may be negative.

Sure.

<unk>.

So we're doing that.

Women.

Yes.

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Yes.

Yes.

Yes.

Yes.

Yeah.

That's helpful.

Okay.

Yes.

Are you as I sit here.

Yes.

Yeah.

The law here in Basel.

Yes.

Oh man.

Would you imagine that as well.

Angela.

Yes, Andrew.

In partnership with Us.

Good day.

Okay.

Yes.

We said to get you to talk with us.

Yep.

But this is what you know what I'm, okay with that.

The woman that mobile home and there is a failure.

With all the downside from here.

Not a simple answer.

Well, probably it would be at home.

Imagine Oh.

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Cable system that help them.

Oh no no.

Yes.

Hello, I'm comfortable at home.

There's a pantry.

Nicole.

Yeah.

Mhm.

Okay. So.

We have <unk> to answer this question I'm going to say that there were two areas of priorities that we will pay special attention to in the year to date due to first of all we are going to try to maintain our advantages in Dutch additional business include.

<unk> energy storage and our E B E.

We will try to maintain our rapid growth in this area and because I said, we will also try to research and develop more high end products and secondly, we will also try to gain more customers.

Because eventually big customers in our vehicle.

Business.

And this year, we are going to focusing and centering on these strategies. So as to ensure that these two priorities wont dwell attend.

And in terms of those product lines.

The allocation I, we will try our best to promote the construction and operation of 19 Phase two project and also try to accumulate more market needs to ensure that up to the expansion of capacity I would tell you that with Weil.

Well meet the needs of the.

<unk> of the customers that median and and and big customers and I also want to add that's a that's a.

According to our business our strategy actually our NDA.

Energy Star reach business witnessed peak growth, especially that we have again a lot of orders from the overseas market.

Our oldest scheduling has being night until 2023 already and we will also try to attain more of a two wheeler Wheeler and our <unk> customers.

On the overseas, but also in the domestic market.

And we will also try to grow our business in our E b, especially in some business with big profits like batteries, what Peng and battery charging and for 19. We will also have the plan to disrupt a large cylindrical batteries.

<unk>, which we believe will be suitable for the eight O N E O persons.

Think of cost so we will childbirth to make all of this priority well unplanned maintenance.

Yeah.

Well.

What does gen Dunlap controlling between.

Just kind of ongoing at tissue removed.

So John the thing that gives you couldn't we ensure that you've got you know.

Number one is that alright, alright.

And as you get to lunch home, <unk>, 19 down, but <unk> gigabit shutting them down.

Jim got Union that should get a quote on a long term hold normal format.

Change in Cuba.

<unk> jaw that channel.

So we all know kubota in that Jay is that.

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The Dol.

Now that you've got some docs.

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I'll turn now to the knee in the dishwasher now tissue doesn't just sit on Shaw like colleague Jim Shaw will then start implementing that she has deep channel the tissue project now.

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Jake our initial go to the high tranche Hello, Doug a woman Jacob junk Rush I'm, sorry, Oh, yes.

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<unk>, yes. So he was on R&D in the 10 year highs.

Yes.

In the I should say counter that should add up to.

Mhm.

Uh-huh so just.

Just I want to add more points so as.

That the previous speaker, just mentioned about that our old. They have been received in 2023 that is to say that now the supply has outperformed the market.

The big moat has outperformed the supply exceeds the supply and in 2020 . One we used one year to expand the production capacity of our Italian and Nanjing facilities.

Which have put us in a very good position to prove by enough production capacity and on the other hand, we have already again sufficient odors and all these two favorable conditions would lead to which we believe.

<unk> spending our financial performance in the year 2022, and we will try our best to make good use of existing capacity and we will also have a close look at the market needs and to decide whether to expand further expand our capacity in Nanjing or Italian.

So what has been talking about is our battery business. If we have a look at our material business outgrew the prediction of high trends, we have well integrate the upstream and downstream supply chain.

And given that the price of raw materials have been it has been increasing D and predictions will also will predictions is.

In favorable condition, our prediction and I believe that our material business will also be the heightened night in our major business in 2022, so with all of this.

I think all these factors together I believe that the performance of our company in 2022 can be well anticipated we have confidence in it.

Sure.

Thank you Laura do you have any further questions.

Merrill Lynch triangle horsewoman.

I have no more questions. Thank you.

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

So sometimes it turns out you can look at Hawk with women should I say you know we've.

We've all.

Sundar Kinder.

Yes.

Thank you all again.

Thank you all for joining this meeting and we're looking forward to providing you more updates in the next quarters and then meeting.

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

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Good day, ladies and gentlemen, thank you for standing by and welcome to see back energy technologies fourth quarter and full year 2021 earnings.

<unk> 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 no.

Now I'll turn the call over to Mr. Terry Lee Investor Relations Director of <unk> Energy Mr. Lee. Please proceed.

Thank you operator, and Hello, everyone welcome to <unk> Energy's fourth quarter and full year 2021 earnings conference call joining us today I'm mistaken Bailey, our Chief Executive Officer I missed this you not pay our interim Chief Financial Officer, We released results earlier today. The press release is available under <unk>.

Companys IR website.

<unk> com CN as well as from Newswire services relay of this call will also be available in a few hours on our IR website.

On the call with me today are Mr.

<unk>, our Chief Executive Officer, Mr. Yona pay our interim financial officer, Mr. Chau Cheng Cheng our general engineer Mr. Wong.

Our vice President and Mrs Yao our interpreter before.

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 Litigation Reform Act of 1995 forward looking statements involve inherent risks and uncertainties as such the company's actual results may be materially different from the expectations expressed today.

Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC.

It doesn't assume any obligations to update any forward looking statements, except as required under applicable laws.

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

With that let me now turn the call back to our CEO . Mr. <unk>, Mr. Ravi will speak in Chinese and I will just comment in English.

And based on the way.

Okay. That's.

All right.

Hopefully.

Thank you and Hello, everyone. Thank you for joining our conference call.

Alright.

So it would be nice rushes to.

Turning on Dania.

A woman sorry, Joseph I mentioned.

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And then as usual champion Craig Paul well.

<unk> Johnson I'm pushing that seems on the ocean.

Quite on track, none shall intuition intend on future, but in Q.

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Through <unk>.

Sometimes these vinci function right now.

Our hometown to outside China.

One any chance you would you.

Yeah, Ben I Changsha Shelly.

John You mentioned the Honeywell went on.

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Doug could you what you're going through.

500, partially you don't do that.

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Hi, Jim.

Yeah.

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True champion Shanghai Pudong.

Joe you put into your.

Hi, John .

I, sometimes wonder woman two about one <unk>.

Okay.

Women are they are yeah.

Yeah.

Sure.

Okay.

2021 was a significant year for <unk> energy as we make major shipments in multiple fronts. We continue to strengthen our competitive advantages through innovative technology and product development as scheduled with scale.

Our production capacity to capitalize on increasing demand for light electric vehicles and electric vehicles, specifically, we began production of lithium ion battery at our new facility in Nanjing and expanded capacity at the dog and facilities. We believe this development will bring long term benefit.

10 far into the future.

Moreover, with broking mature with the lithium ion batteries with an acquisition of H one.

Equity into GA, Hiseq lithium battery technology Corporation to build up and enhance our basically product ecosystem.

The transaction will not only have crucial strategic benefits, which are secure a stable supply of raw materials, even amid rising material costs.

But we also expect it will help us generate greater revenues and an even better financial performance in 2022 based on relationship.

Countries, you conduct corker Warner did.

I'm not sure if I'm wrong.

Columbia comes off parts into such a deal.

Sure.

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Hi.

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Sure Tycho.

So kind of by Kishore.

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All three elements.

Sure.

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Okay.

In 2021, we continue to see higher revenues from high powered lithium battery, which grew 46% to $33 3 million.

Merging of heightened also added revenues of $17 8 million from December to bring our total net revenues in 2021% to $53 $7 million.

Up 40% from the previous year. This increase was from the from.

The effective execution of our growth strategy, which boosted our expansion in the battery storage market.

Sure.

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What are you targeting cobo either use.

Sure.

Annuity that's for sure.

Thank you so we'll touch on here.

Uh huh.

Next let me dive into our recent developments and products, we strive to become a major phase III supplier for <unk> producers.

Based on inflation.

Uh huh.

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I'm sorry.

Thanks Joshua.

Yes.

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Auto Chilean adventurer, who I'm sorry also that was done.

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Brenda.

No no it depends on Ctrip Hadar, Therefore, Oh you are right.

Cool.

Sure Tom.

Each listener should somewhat so we try and sell them.

We have gone to yourself.

Social without having them to hold true.

Thanks, Joe.

Following the conviction of shakeout pest swiftly launched the commercial production of model 2670 bakery and model three to one four or basically the former one is applicable to two wheel electric bicycle while the latter serves.

Oh, great putting to the market.

Oh, great passenger vehicle is the category that will inform what many EV the bestselling EV in China is under.

Based on Washington.

So our women's out where it should be of course, sometimes you don't see yourself.

Well I can't share quadrant.

Yeah, Hi, Bob.

<unk>.

Rents are now rolled out pretty soon I mean, it sounds very easy yes.

Yeah.

Does that go through talking with them about lumpiness.

First of all its very true.

Tushar function too hung sensors products.

Ballparkish.

These will tend on Cisco So you always have something there.

Oh, Yeah, Yeah, do you want me to answer the seasonality that kindred.

Sure Howard.

So our credit box.

Anytime soon.

Additionally, we will develop a customized debate with park for a proper research development, China, which is the final Japan.

But the type and produces electronics basically control systems for electric vehicles as the COVID-19 pandemic has delayed raw material deliberate we are now expecting to spend basically accept samples to absorb this April .

Basically pack will initially be used to obtain.

Low spec <unk> produced about Diehard molecule Corporation, a subsidiary of Toyota Motor Corporation.

Additional evidence of the industry slumped in our solid technology capabilities and supports us in developing more innovative product base.

Okay.

What may have changed.

Jonathan I'm not sure Tony might be.

Then don't Trust your tank car parking was languishing adventure.

Daniel.

Oh Gee product.

So not sure warmer.

And you don't want to give us the whole bankruptcy sale.

We also continue our efforts in developing largest cylindrical batteries for the LTV and perhaps into a great TV markets. We will share. This in more detail later this year when you see more concrete progresses.

Sure.

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So first I'm not neither one of them I know them, that's U haul novel House.

I'm not sure he's he'll go to you.

Sure sure.

Sure Tom.

Moving on to capacity expansion, we are very satisfied with the progress which is totally in line with our tanks and responding to a growing market demand is ultra reported an EBIT market in tissue.

Chikungunya.

How are you managing that essentially contact them wholesale.

Sorry offerings, sometimes Saddam nantong, nantong and thought on that.

Sure.

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Welcome aboard against a double cohort.

I'm doing all right.

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Sure John .

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Sure.

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This is harsher women by Commvault.

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Sorry.

Yeah.

So more to answer without careful about talking with Brunswick friendship.

In London, we began operations at the lead.

In 19 with Gan operations, the lithium battery manufacturing patent there late last year with an initial annual capacity of seven gigawatt hour model suite two one for all battery as we gradually ramp up the output to the plans.

Production capacity.

The base rates are being to flavor. The bakeries have been delivered to customers. We remain on track and on schedule to complete the first phase by the end of this year when its total capacity will be lifted two two gigawatt hour each year, mainly for the same basically module. Meanwhile, we are also pushing the construction of its technically for which we.

We'll mainly produced the model three to one for <unk> as well as loss of cylindrical batteries that we are currently in the midst of developing.

Okay.

They want so I thought ill woman woman.

Jen Jota.

No they're not.

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Essentially neutral without some kind of ceiling change you intend on sort of what's going on in the auto generally no ghansham.

Sure.

Montana.

So why don't you choose your quota you might go sure Tom most of the.

I'll come back to you soon.

In <unk>, we started a new production line with an annual capacity of four gigawatt hour for our model.

So basically for the <unk> and energy storage et cetera. In addition to the plan's main production of model 3665 O Patriot.

That facility has almost a which is full capacity. Therefore, we see need to further expand its capacity to meet higher demand for our products.

Yeah.

Did you say up one more time selling itself with attention.

And what are the Argos.

Oh, yeah, well Santander about lumber yard hung up 500, Oh <expletive> out someone comes on board.

Right.

As of March we have outstanding basically orders was 230 million RMB or about $36 million.

Approximately 90% end users overseas competition.

Listen I went to Chicago.

Hi, Daniel.

Well my one follow up one of the cobalt answers hard Oklahoma heart.

Oh no no.

Yeah, well I'm not sure Bob Hi, pontoon I started with a powerful you don't confuse you end up and beyond.

Yeah, Hi, Tom.

So you are now or not don't know about Taiwan.

Your thoughts to yourself.

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Two months.

Bauble bar horizontal cohort gaucher quantity, yeah, hi.

Tom with that.

Montana, that's one time.

Throughout your supplier incentives.

I know sometimes called social.

Hi, Tom.

Chelsea, yes. Thank you.

The incentive fees could you tell us.

Hum.

Correct Yeah.

Because it sounds like without <unk>.

Hum.

With that I'll now turn to our page for a material in late November . We finally completed the acquisition of Chinas, leading lithium ion battery materials.

Given the closing date of the two we only put the calendar the December results.

Our book the merging of hygiene is expected to significantly benefit our financial performance in 2022 and beyond we are very optimistic about its future.

Publish customer network most of the heightened sky domestic companies and is currently operating at full capacity by focusing on production and sales of MCM precursors and cathode materials for Libre and Patriot.

Just great performance and advance Nordic based also allow it to be among the small and medium sized enterprises that dominate major markets in niches sectors, and secure increased financial and tech support and hence the credit policies from the government.

And tissue.

Two one once you know you saw the same trend bunch you apart in essentially panned out for them, but sometimes it yourself.

Well now conduct she's not unchanged.

Hmm.

Gotcha.

So wondering why how drunk truck hard out there John .

Samsung phone.

Yes, without going home phone as well.

Well no.

Sure So I'm talking about both boxes I'm done thank you.

Hung is you're absolutely right you know you go into Utah.

I'm sorry, what's your thoughts on retention.

One battle.

So our attention south of Russia.

Or how long kind of attention it sounds I don't quite quickly.

Turning to our joint venture with or without Doc.

Sure.

Hi, Bob.

Yeah Young children. These sensors that you're talking about.

As 2022 evolves, we see electrification wave of new energy vehicles, continuing and becoming even stronger despite the short term impacts, resulting from chip shortage and rising material costs for lithium basically with multiple factors such as favorable policies at home and abroad, our supply chain.

<unk>.

Increasing material and component cost, we expect the new energy vehicle market with the explosive sales growth.

Based on forecast from indefinitely, unless flotation and financial fiduciary demand what would be our basically likelihood for particularly for our 2020.

The truth with <unk>.

<unk> current basically supply and it's raising basically prices. However, we expect to repurchase will be more rational in the long run.

And I'll actually innovation.

The development of <unk> largest electrical basically also slipped out lithium basically coast.

Sure.

Children don't show up on that.

Can you walk around the body wondering depend on first of all one called jackpot last chance you don't belong to a hunger heart hundreds you don't deal with Samsung.

Sounds good.

Sure Noah.

Oh, yes.

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Oh sure so even so.

Sure Jonathan Ultra high rises or something for Carla Baca, cultural Denmark Dong.

Thank God.

South with them down.

With the implementation of new National standards for <unk> sales of this vehicle type will accelerate and drive the industry consolidation and bring sector leaders into the spotlight. The entire industry is now unfolding in the direction of lithium electrification alongside intelligent and long range technologies.

Lithium batteries for Evs also performed exceptionally well in vehicle sharing basically scrapping and supercharging at the same time under the impact from the pandemic. The overseas market for <unk> is also growing especially for E bikes high speed electric motorcycles and electric three wheelers and tissue.

We might go assumption sorry for that.

On chart <unk> turned on to and as usual well Mike.

I'm sorry pardon.

Yeah.

I'll chime noncore product right now so we're not going to stop our 90 <unk> gone from saying show up with wholesale portion you choose I didn't touch on heart check right, sometimes tweaking dongle.

So you don't want a young woman Shuang you already are in yen.

On SEDAR SEDAR jump with wholesale banking.

Thank you Tun I'm not total Hershey.

People turn your call Homeserve can see yellow button quite the showroom.

So I do want to extend on trust your top she's out somewhere around about three months ago.

Sure.

Oh, Hi, it's all about trying to a doctor corridor.

Some crush I'm, sorry, Oh, yeah, well multiple.

But on balance you won't weigh true wholesale I'm, sorry about that.

Oh sure, Yes, you won't know.

Since I know it sounds like Shandong <unk>.

Rather you have tied up sometimes it goes up so you don't you don't too young.

Well magazine shovel Hunt showroom, Jonathan Poole, you don't sociable, so they already are.

Please go ahead.

So I'm not worried about Johnson said sometime probably well I'm trying to ask Sean hung up.

Yes.

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To meet the aforementioned demands from Evs Evs, we will continue our focus on ramping up capacity and broadening the materials business in fiscal year 2022, first we will accelerate construction and conviction in for the second phase of the 19 plant. This year at the same time another production line obvious first phase is.

Also being built and as noted earlier, we hope that the entire first phase will be put into production in 2022.

The investment in release of 19th production capacity will further increase to company's revenues from that basically business and will be of significant support for our stare at the entry into the EV market. Meanwhile, we will use the strategic value of high chance to expand our raw material business and integrate our upstream.

Gulf stream, we hope to not only maintain the stability of raw material supply chain, but also grow the raw material business, which is now popular due to the rising material prices into one of our main business lines. We believe this segment of revenues will play a significant role in driving up our sales in 2022.

As we look ahead, we believe these growth drivers and strategies position us very competitively in the industry and empowers us as a leader in lithium ion battery production and luxury energy solutions.

And based on the D C.

Can I count some of them, that's a pretty long polka dot coms.

So that's how it will be out yet.

Now, let me turn the call virtual interim CFO .

Who will provide details on our financial performance.

Okay.

Thank you Mr. Mr. Leon retiree.

Yeah, and thank you everyone for joining our call today I will now go over our key financial results for the fourth quarter and full year of <unk>. So the full details of our financial results. Please refer to our earnings press release.

But in 2020 , one we'll continue to expand the revenue and gross margin levels that are driven by stronger sales of tablet.

Interruptible supplies and our events as well as the addition of the material doesn't is brought by the acquisition of Hudson.

Also to ensure profitability in terms of <unk> can be lumpy from a loss in the previous year, notably way continue to do in life to a new habit com no.

Business as well as research and development two jobs further girls.

I believe that in March the last months combined with our strong financial position and powerful battery product to the ecosystem.

Ecosystem will propel us towards long term profitable growth.

Moving on to our results in the fourth quarter of <unk> one.

<unk> revenue was as such the 8-K.

Chris It to 27.8.

$8 million from there's been periods of 2020.

Primarily due to strong sales of ultra high powered lithium batteries and additional revenues from the battery materials brought by the acquisition of hedges.

Number.

<unk> 21 to December .

31st 2021.

Full year 2021, <unk> revenues were up 30% to <unk> two plants that are moving.

U S dollars.

Of Bache, our 34 plants.

He was from high power led the bathrooms, which grew 14, 9% year over year.

The balancing point a Canadian U S.

What's happened since the acquisition.

Cost of revenues was $26.8 million.

Fourth quarter.

On the floaters.

Once that meaning less dollars for the full year 2021.

86%.

36%, respectively from the prior year.

Gross margin was three points of that improvement in the fourth quarter compared with 6.8% in the same period of 2020 as grow mature real costs.

Still in 2021 gross margin rose 250 basis points Youre always Eric two nine points down 1%.

The improvement in gross margin was primarily attributed to the increase in the quality.

Passing rate of our product, which was a result of our quality control and upgrades on production lines.

In the fourth quarter were decreased operating expenses.

The re presented from the previous year to six point page, making last dollar as they recovered some doubtful accounts and there is no impairment charge Tom Kroll.

Pretty large and equipment.

I'll start with the impact of some increased expenses related to research and development.

<unk> and marketing and General administration.

For the full year 2021, our operating expense base.

8% to 16.8, maybe $9, primarily due to Cologne had contact with the acquisition of Hudson.

Within that our research and development expenses were five points were mainly U S dollars and sales and marketing expenses were two clients right now.

And it's more than triple from the previous year.

Our R&D expenses accounted for about 10% of revenues in 2021 Gram of Florida has done in 2020 as they expanded our efforts to upgrade technology and products a.

Additionally, John Munro and other mammals, Patricia expenses increased 168 prison to 10, Megan and Steve.

Still our operating expense ratio was 32% in 2021 compared with 30% in 2020.

Our challenge is for a variety of wallets for plants six many U S dollars in the fourth quarter compared to two two points.

One mainly U S dollar in the prior year.

That's not income per chip you are attributable to shareholders of <unk>.

K energy was.

Yes.

Nine plants, two mainly U S dollars during the.

Compared to net loss attributable.

Triggered both to shareholders.

The AK allergy Alpha four points remaining at dollar.

NPL ratio for 2020.

For the full year, our change in fair value of Walgreens was fixed.

<unk> 1.8, maybe last dollar.

Compared with $2.1 million in the prior year.

<unk> income attributable to shareholders feedback energy was.

<unk> one points from many U S dollar compared to National quick cheap, let's go to shareholder feedback on that.

<unk>.

$8 million in 'twenty 'twenty.

As of December 31, <unk> one.

Our cash and cash equivalents reached it.

Seven $4 million compared to $2 million as of September 30th tending to do what.

That concludes our prepared remarks.

I'll open the call for questions.

Operator, Please go ahead.

Thanks.

Thank you we will now begin the question and answer session.

If you wish to ask a question. Please press star one on your telephone and wait for your name to be announced if you wish to withdraw your request. Please press the pound or harsh key please standby, while we compile the question and answer roster. So once again Thats star one so questions.

Yeah.

Uh huh.

As a reminder.

If you wish you ask a question. Please press star one on your telephone keypad.

Our first question comes from the line of.

Laura Liu from Stone Street Group. Please ask your question.

No. It's you can't wash or sponsor in the Lora.

So for instance, you wanted to for sure.

Can you talk a little bit of counsel.

Is that the high vol, a shorthand influence Hello.

Dolby Showtime because when you lose them going out and doing so well how's the dog Walker from Diego Somebody you don't go into the clinic for example around the time of course your remark.

Mhm.

Due to the conflict between Russia, and Ukraine, the price of cobalt and nickel has increased sharply how will this impact the raw material production in high change and the prediction of lithium ion batteries feedback.

Feedback energy and walked matches do the two companies have in place to cope with the rise in metal price.

Hello.

Oh wait a whole bundle them.

Okay.

No no no.

Thank you Linda and appetite.

So Jim the MTO.

Two men who enter for sure.

<unk>, what's your lives until it into.

Yes.

Andrew.

Or would you acquire you down in Brazil.

Finally, I was wondering excuse.

Excuse me.

Ease of use.

Bruce.

This was hydro in the DJ.

Bye now.

So they're difficult.

Yes definitely.

Hello, just for you may take.

Due to the Internet.

Uh huh.

Is it a good year.

Kudos on that trajectory.

Comparable that you wanted to so I think that sometime earlier Jonathan.

So Doug Hello, well in North America.

Thank you Patrick.

Yeah.

Some of it isn't.

Sure.

So once you convert the lira.

Good morning Timna.

Sure.

Sure.

You too.

Romero your cohort to Gordon.

So when you talk to the.

Yes.

Hello.

Several of the Utah.

Sure.

Great.

And then presuming that you want.

Mhm.

Thank God.

Yes, with regard to battery business the materials.

In most orders and shipments of feedback energy lithium ion.

All states and price rise of cobalt and nickel has little influence on our project in terms of mid tier real business.

Estimation of a rise in metal price does have some impact but the company you can navigate by taking various measures for example, given that the shelf life of nickel.

And madness.

His long is quite low compared with all the metals, we have replenished the stock when the price is low and we have replenished to quite a high level. So we can lock the prediction profits and also build a linkage between the sales price and material real price and.

With all these measures we can mitigate the impact on our material business and an even mix in profit from it.

Oh, no not hand, now better race scarce resources in the market and the customers can basically.

Digest, the price increase close to by the.

External factors after week communicated with them they can understand and B. They also talk here is that the impact on the material preparation and sales.

Our scepter boat to them.

Yes.

Yeah.

Yeah.

Thank you Laura do you have any follow up questions.

Our policy of Ohio, They are going to go sure.

And of course, we're doing anything and in onshore or offshore thing Fissured Hollywood movies Homer.

Okay I have a second question, how do you see the electric vehicle or electric vehicle battery market in 2022.

It was getting a long drawn out to help at all.

Jim.

Good answer.

Yes, yes sure.

Sure.

Yes.

Shandong.

EMEA kind of larger system.

The change order.

No.

Further parse out how sure Shaun Kelley of Piper Jaffray.

So Jonathan Magic.

Sure.

Sure.

But we will turn to <unk>.

Could you find it useful.

So we're trying to lay a lot of good Joshua.

Yes sure.

To adopt <unk>.

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Yes sure.

Ashish I Wonder is there to go.

And the answer you answered it.

I found out about it.

Jody.

So in other words in yellow.

So what is the general.

Sure sure sure well manage it all.

Qinghai shale.

Well somebody that you've got Sundar.

Sure.

No sugar cohort this year.

A couple of I'll.

<unk> initially that we share.

So is that after a long time.

Sorry to go and then also deal with that at all.

Turning to the to the Onyx So have you taken.

Alright good.

Gordon design touch any of them.

And I apologize I should say either a chance I mean, our.

Archie on Ha sung <unk>.

Its Andrei <unk>.

Sure.

Got it.

Sylvia you should all day long so there's always wrong.

As I 75, I am not sure.

Thats it.

To grow GBS sorry.

You bet.

So I'm sorry, yeah, we like Chitra the launch of <unk>.

Sure sure.

Three questions Linda.

Yeah.

Part of it.

Julia.

Yes, thats useful.

I will then open it up.

Yes sure for all women.

Uh huh.

<unk> heard Libra <expletive> Honda.

Do it.

Mhm.

Okay.

So due to the price.

Kris of raw materials, we did see some impact to the market. However, if we have a look at our long term market.

<unk> potential we can see that the whole market is turning into electrification.

But we also have to admit that the conflict between Russia, and Ukraine together with some geopolitical issues.

Price fluctuation is quite huge.

So we're happy to see that the consumers can digest and understand and also they can absorb.

<unk> brought by this.

Price increase of raw materials, and if we have a look at the veterinary industry and EV industry in China, we can see that there's a big increase double or even triple increase in domestic <unk> market.

Including we see a sharp increase in the sales of some major car manufacturer of companies like Tesla and B, a b Y D E X X Chi and if we look at the eight passenger cars, we can see that matter does sales.

High end or medium and low and our sales.

Rank always ranked top three and last year in terms of eight eight passenger cars in terms of sales volume the total EV consumer be coax in the sense. We also.

We also occupied number one and number two in the market. So if we look into the future. We can see that the EV market still maintained a rapid growth momentum and intense.

Market demand for battery will also increase correspondingly and all these market situations are in line with our industrial lay out in our market predictions.

Sure.

Sure.

Okay.

Luisa.

Hi, <unk>.

Yes.

You probably heard you.

However.

Humans can.

Some do but other supervisory use messenger RNA.

You can do that didn't do.

To me the intuitive as usual you do it with other.

We should do for the future.

J&J nonperforming upon yesterday.

Gotcha.

Great.

Susan.

Sure Joe.

Listen politically.

Hey, Phil.

Yes, it does seem like whether you're going to be.

One it gives them.

There are no further questions.

One of them has a machine.

<unk> been treated at the high end of support.

Hi, This is omar.

If you go further.

He was appointed.

I want to know why do you talk to your home and furniture.

Jim didn't whether you guys yet.

The film.

Madame upon it as of yet.

Sales of alcohol.

On hernia.

Certainly the interest is just follow up on the.

Tissue there you go.

Mhm.

Mhm.

Yes, I want to add some more information according to the interest in.

Oh, sorry, according to the industrial.

Institution and a data some b.

Tests on it just asked it made it that the sales volume of new energy vehicles will reached $4 8 million and $4.

Median at home and abroad, respectively. In 2022, and we have a look at the demand for power battery. It is asking me to reach 450 gigawatt.

Size that in terms of light electric vehicles, the sales volume of electric two wheelers in China amounted to 48 million in 2021, and the penetration rates of lithium battery with 225%.

And are you.

In 2022 with the implementation of new National standards.

Uh huh.

What ping of electric vehicle will accelerate.

The reshuffle open light electric vehicles in the sheet.

And the industry will become more more consolidated and it will be featuring lithium battery in pallet electrification intelligent and long range and I'll add.

At all this together, we will see that the lithium battery life to be closed while also developing rapidly in cost sharing our powers what pain.

Charging et cetera, So we believe that the market prospects will be promising in.

In the future in terms of them too.

Yeah.

Yeah.

Yeah.

Yeah. Thank you. Thank you.

Thank you.

Your next question comes from the line of Cold broken itself from <unk>. Please go ahead.

Okay.

American Trust investment services called Birkenfeld Yorke.

The question I have is the first question I have is.

As the.

Lockdowns and Covid adversely affected your.

Your.

Production facilities in Dalian in Nanjing.

And.

That's my first question.

Some of the affected those.

Those facilities.

Mhm, how would the bigger wins, he or she like Jimmy guar, whether it be eagle when teachers are English and Glen E. G.

So we'll believe Italian hydro 19th Chung Ching Tao Chicago.

Joe and his team to take on Grilling channel issue.

So now as you know it is.

Joseph a.

No more or less in Guangzhou.

Alright.

<unk> do you go down into the shipyard normal woman.

Hi, Jacob coordinator E Shields, PMA I'll do it.

Giuliani and she get the amount they are women that Angela in June that shouldn't shock a solid tone drop out again shop now more women cheeky angle that will show you got caught a change.

Yeah that should you should issue yes.

<unk> Oh, sorry.

Michelle on Kashi mail showed a pad out and jumped up.

Yeah.

Okay. So since the outbreak of COVID-19 in the beginning of 2020. It has been two years now, but we have a look at China. We have to say that there was no major impact in our production facilities in both Italian and Nanjing, Although we did.

Underwent undergo some shut down Uh huh.

It didn't last long so it didn't exist it is it a big impact on our production.

Well it was home cocoa showed on the chart do like not materially I mean should there Nate.

<unk> also done.

So are you along in that in that you should see some chop felt from cohort one formula E Mail showed at <unk>.

Mhm and if we look at this issue from the perspective of customer need during these past two years.

We witnessed a sharp increase in the need for new energy vehicles, and lithium batteries that is why our old days have been increasing so we have to say that there is no impact no negative impact in Oh ash from the perspective of consuming it.

Yeah.

Thank you.

Good question.

I think was answered.

Previous person.

Question and that was the material cost increase in the lithium batteries.

I guess you guys are passing the increase cause.

And to your consumers.

Two.

Two.

Keep the margins the same.

Okay. So two questions right.

Uh huh.

Yes.

Uh-huh, saying would be uncle when Tina issue, then dump type B. When you should have to go into the exam question, though just to point out that woman entirely outage outgrow Chichester Shang Chuang block.

Super Shoe show, where maintenance issue Pacifico Nintendo Jack.

I'm talking about Jamie.

Oh 25, Dwayne does shell feature adult chain grocery shop.

It goes down like a function of snap out human beings and dealt with BMO.

When do you think pays off.

No just your total yeah.

So no but you shouldnt.

Suddenly jiggle Lindsay National's, yes sure Doug.

Got you.

Uhm.

Hi.

Yes.

Some of that impact.

<unk>, San Antonio and Antonio to China, Jacob Chacko, So young payout Douglas Shandong PDL, you'll need a <unk> Ddos Jake.

<unk>.

Scott.

So should parallel shock.

No not that Goldman <unk>, you gave a Chinese Linda truth, I totally automated and much how does that come up and tell all the machines will pay off.

Yeah, no more than that.

Sure Shinya Yamanaka of nations solar.

Take a pause on it.

Well Theres Shandong voucher, what Linda.

Well, thank you Michelle and surgical you Michelle.

Got it.

Could you do it.

Ah yes.

Who should trend up element is that okay.

Mhm.

Okay.

So we I think to answer this question from two different business segments first of all let's have a look at our material business as our material business spend at the upstream of the industrial channel. So it is more easy for us to parse the pressure.

This increase to the median or the low end and helped AEP have a look at the second segment that is our business our battery business. After a business. We spent in at a median median and and then for a passing.

Okay of the price increase it will be a little bit slowly there would be some latency in it.

Those four due to the increase of the price of lithium carbonate.

There will be some impact in our business and we are going to see an influence starting from Q4 of <unk>. One and then also in this year, we think youll see a passing down of the price increase to the downstream gradually.

Thank you.

Thank you.

Once again, if you wish to ask a question. Please press star one on your telephone keypad.

We have a follow up question from the line of Laura Liu from Stone Street. Please.

Please go ahead.

Anyhow I O U.

Please go ahead.

Well you can go to the Gulf kind of vertical or do you want crosses IMAX accountable to their homes.

<unk> pulled out of your system.

Uh huh.

I have got.

Oh sure.

Alright.

They did finished.

Okay. So I have a question you asked a question consuming the strategic priority of the company in 2022 could you give us some updates.

So one of them.

Yes.

Oh.

What else is out there.

In conclusion.

Oh yeah.

Yeah, Yeah yeah.

Yeah.

Got it.

All four men.

I'm going to add Brazil on a year overhaul.

Are you able to deal with it.

No.

Ingo.

Right.

Yeah.

Paul.

For the quarter.

Yeah, one of this year.

All right.

Let's see.

The open door to others, though.

Oh, sorry.

There are a whole number.

And then could be higher.

Okay.

Yeah.

Yeah.

Oh.

Oh no.

No.

Yes.

Sure.

All of them.

And that's the norm.

Okay.

Yeah.

December <unk>.

Oh.

So we're doing that.

Well then.

Got it.

Wendy.

Yes.

Yeah.

Yeah.

Yes.

Got it.

Yeah.

That's helpful.

Okay.

Okay.

Are you able to sit here and there.

Yeah.

All the more volatile.

Yes.

Once you've done all that for women.

Would you imagine that as well.

Hi, Andrew.

Hi, Andrew.

And in partnership with Us.

With all of them.

Yes. It is.

He said I got to say.

Industrial.

But this is what you know I'm, okay with that.

There's a woman that mobile home and Oh.

With all the sort of ammonia not a simple one to go and be able to get hold of me okay.

Alright.

Yeah.

You saw that delay.

Tomorrow, our system that her name.

Oh no no.

How are you doing there.

Comparable hotel EBITDA.

ANZ mingle.

Sure.

Yeah.

Mhm.

Okay. So.

We have <unk> to answer this question I'm going to say that there were two areas of priorities that we will pay special attention to in the year completely to first of all we are going to try to maintain our advantages in Dutch additional business, including <unk>.

Energy storage and our E B E.

We will try to maintain our rapid growth in this area and besides that we will also try to research and develop more high end product and secondly, we will also try to Dan Moore.

Customers.

Initially big customers in our <unk> business.

And this year, we are going to focusing and centering on these strategies. So as to ensure that these two priorities wont dwell attend and in terms of product line allocation I, we will.

Our best to promote the construction and operation of 19 Phase two project and also try to accumulate more market needs to ensure that up due to expansion of capacity out there that's with real well meets the needs of.

Oh of detached and Mezz debt median N M and big customers and.

I also want to add that's that's.

According to our business our strategy actually our <unk>.

Energy Star reach business witnessed peak growth, especially that we have again a lot of orders from the overseas market and our oldest scheduling has being night until 2023 already and we will also try to attain more.

Two Wheeler Wheeler and our <unk> customers.

On the overseas, but also in the domestic market.

We will also try to aim to grow our business in L. E B, especially in some business with break profit like batteries, what Peng and battery charging and for Nanjing. We will also have the plan to take that a large cylindrical batteries.

<unk>, which we believe will be suitable for the eight O N E O passengers passenger cost. So we will try our best to make all of this priority well unplanned maintenance.

Yeah.

Just kind of ongoing it ticks all the merchant.

Joan the in dining Joseph Quintillion ensure that Gucci part.

Number one is that alright, alright.

And as you get to lunch home <unk> 19 downward <unk> Jacob shutting them down.

Jim got Union issue Dear co doll line, Tom Horton a mouthful.

No change in Cuba.

Joe how that channel E solar.

Now could we do that Jay is that are the army and the tenure thoughtfully a woman does how should you shop for you guys.

Pete.

Now how about you got some docs.

A woman with that.

I'll turn now to the knee on the dishwasher now tissue doesn't just sit on schedule.

My colleague, Jim Shaw woman that England on June <unk> that China on the tissue project.

If I may is again.

No mining was titled under Johan I don't no moment flow.

Jake our initial go live of high tranche flow tug of war.

Jacob Junk, Russia, India and.

Jonathan It's Anthony.

No.

Uhm.

How should tissue sounds off that Tricia now mostly.

Yes Hello.

<unk>, yes. So he was on iron in the tenure heights are women.

Oh gosh it she can answer that should add up.

Mhm.

Uh-huh so.

Just I want to add more points, so ask them that.

The previous Speaker you just mentioned about that's our all day has been received in 2023 that is to say that now with the supply has outperformed the market.

Mt has outperformed the supply exceeds the supply and in 2020 . One we used one year to expand the production capacity of our Italian and Nanjing facilities.

Which have put us in a very good position to prove by enough production capacity.

And on the other hand, we have already gained sufficient orders and all these two favorable conditions would lead to which we believe.

<unk> spending our financial performance in the year 2022, and we will try our best to make good use of the existing capacity and we will also have a close look at the market need and to decide whether to expand further expand our capacity in Nanjing or Italian.

So what <unk> been talking about is our battery business. If we have a look at our material business outdated and prediction of high trends, we have well integrate the upstream and downstream supply chain.

And given that the price of raw materials have been it has been increasing D and predictions will also will predictions is.

In favorable condition, our prediction and I believe that our material business will also be the heightened night in our major business in 2022, so with all this.

I think all these factors together I believe that the performance of our company in 2022 can be well anticipated we have confidence in it.

Sure.

Thank you Laura do you have any further questions.

Mail or you found go horsewoman.

I have no more questions. Thank you.

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

So sometimes it turns out you can look at along with women should I say, you know thankfully outgoing equivalent Sundar Kinder.

Yeah.

Okay.

Okay.

Thank you all again.

Thank you all for joining this meeting and we're looking forward to providing you more updates in the next quarters and then meeting.

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