Q1 2023 CBAK Energy Technology Inc Earnings Call
Good day, ladies and gentlemen, thank you for standing by and welcome to the Sea Bank Energy Technology's first quarter 2023 earnings Conference call. Currently all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time as.
As a reminder, we are recording today's call. If you have any objections you may disconnect at any time.
Now I'll turn the call over to <unk>.
Terry Lee Investor Relations Director of Sea Bank Energy Mr. Lee. Please proceed.
Thank you operator, Hello, everyone welcome to CVR Energy's first quarter 2023 earnings conference call. Joining us today are Mr. <unk>, our Chief Executive Officer, Mr. Youre, not pay our interim Chief Financial Officer, Mr. George <unk>, Our general engineer and Jennifer I'll interpreter will release results earlier today.
The press release is available on the company's IR website.
So.
That's where it's from Newswire services every day of this call will also be available in a few hours.
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 up 1995 forward looking statements involve inherent risks and uncertainties as such the company's actual results may be materially different from the experts.
Patients expressed today further information regarding these and other bricks certainties 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.
So please note that unless otherwise stated all figures mentioned during the conference call.
With that let me now turn the call over to our CEO Mr. <unk>.
Mr. Li will speak in Chinese and I will translate his comments into English go ahead, Mr. Hayes.
Sure.
Uh huh.
Hey, John alcohol.
Got you got you are transacting.
Pete.
Thank you and Hello, everyone. Thank you for joining our earnings conference call today.
Well, then conduct popular Hardy, our Sanya and Thai baht.
Oh, that's right out.
Yeah, we're short on time.
He's talking to young.
Chunky, Unfortunately kind of choppy.
Thank you Carlo Monaco young yeah, what essentially social.
My issue is home pool, and telling them that should work out couch without aramark you'd actually see.
You didn't see yellow young adult all.
Sure.
Toby Shanghai Pharma partners.
Got it.
She don't young youthful.
I don't know.
Yeah, Joe Boshart Romney Congress, Shanghai backfill that she saw that aren't you.
Young children tend to shut ins you got 10 share showing a pattern that you might see.
Don't be shy.
So you should see the art.
I know you two trillion, we don't tend to see a showroom.
Bosch arm I mean.
M P P teaching and coaching comes out now which empower by geography.
Well I'm, putting tied to them.
Yeah.
She turned out some time.
Julia with our money.
Kimball E.
Sure.
I don't know if Saddam.
Sundar Basel Homebase Sangamo.
So Dara signed you got back in yeah.
So you know I would tell you what time to push your phone question, Saudi the put on Keystone.
My way and I know Marty this is Don.
It sounds like that's coming out in Korea.
We have just released our financial results for the first quarter of 2023 Regrettably. Our total revenues have declined as a result of reduced revenues from our machinery with strategic stemming from a significant fall in the price of raw materials. Despite the current market conditions, we have achieved a satisfactory result.
In our primary business, which involves salary lithium batteries in particular, our bakery business generated revenues of $29 $6 million, representing a 97, 1% increase from the same period last year. Among these revenues 25 $82 million camp.
From <unk> energy storage applications, which is a.
72, 9% increase while $1 $97 million came from <unk>, you're seeing light electric vehicles, reflecting an impressive gross or 2000 and 117, 2%.
Moreover, revenues from <unk> vehicles reached $182 million, marking a remarkable increase of 5800, <unk> and 18, and 18 9.8 times compared to the same period last year. In addition to achieving significant revenue growth. We have also witnessed a significant.
Peru improvement in our gross profit margin for our battery business to grow the gross profit margin in the first quarter reached 10 point, 85%, representing an increase of $4 31 percentage points from the previous year. We are competent to our gross profit margin will continue to improve.
In the future as our capacity gradually releases and production efficiency continuously improved in tissue.
Yeah.
Yeah, we're not going to.
So with that thank you all.
Dealer.
Gotcha, Alright sannyasi essentially.
Well my friend Bill what are your thought in 19 Charlotte.
T D.
Uh huh.
Alright, Thank you all for that getting down to a <unk>.
But he bought online shopping I tell you.
I mean, Peter Greenleaf.
Sure.
Sean It's just too hard.
So Sheila sure so you're you're also yeah.
Sure Cai.
Hello, Crump without thinking about 200000 shortly.
That's usually the army understanding thanks.
Young chul funneling that seem crime.
Sure.
No comment.
In corn shale, Colorado.
Sure.
As usual I would like to begin by providing an update on the total value of orders that we have received but yet to fulfill as of April 32023, the combined value of pending orders across our three main production facility situated in Guardian nudging and shouting has reached roughly one.
$187 million.
This figure has rights and since our previous earnings call, suggesting a favorable development in our efforts to acquire new customers and secured new orders from existing ones. We maintain a high level of optimism regarding our market revenue prospects for 2023, particularly with respect to the revenue.
From our primary business operations, which is the sales of lithium batteries.
Tissue.
If you look at our Coke, we can learn from Yun Kim from Teton County.
Mike you know yarn.
<unk> put up fluids work showed that women are you ready.
From a young team will come down.
Our son, Yes, essentially same quality time did you quantify that.
On Sunday.
Now on Saturday and essentially you are not in that thank.
Thank you <unk>.
Got it.
On retention at least until essentially drunk at onshore U S U K E Charlie Okay.
Sure Man.
And then she valentines Kung.
So no it's useful Ho Chi a huge hurdle.
Finally.
Goodbye.
Bacci, you set up close off on that.
Sure.
Senior commercial sandbox.
Well my easy a whole huge chunk of our top box yourself on that Steve who treat them.
Our revenues from the EV and EV sectors has continued to grow as a result of further collaboration with <unk> group and its affiliated Gmail.
As of April 32023 Kingdom group and its affiliates have placed orders with RMB $28 $31 million since 2023 as the result, we had consecutively rank among the top 15.
P lithium battery suppliers in China in terms of installed capacity for EV and EV applications in January and February .
According to publicly available data.
After consolidating our existing foundation and the energy storage field. Our aim is to continue our efforts to worsening our EV and EV markets as of April 30th.
We had also received orders totaling approximately RMB $358 million. This year from our cooperation with <unk> and <unk> models, and we expect to further promote the cooperation with <unk> modules in the future and tissue.
Quentin government's attempts you don't cut off.
Yeah, Sean Gilmartin, China client and partner in doing table, that's wanted to assure you that problem.
<unk> was on the China, your well count quite commvault to something that looks like.
So you got strong Hong Kong Guangzhou.
Shanghai, but changeable went down.
She is having fun.
Oh, no talk of a horror show, what's the thinking around the general account.
Aren't going down.
We have had in depth discussions with our major European clients as we previously disclosed to further our collaboration for this year. Both parties have expressed a strong willingness to continue working together and we expect to announce details of Dr. Greet you soon.
As our coal as a cooperative relationship that deepens and becomes more stable, we anticipate receiving larger orders from different European client that we have in the past.
Issue.
So Goldman Sachs Furry friend that shareholder kilowatt hour Mark.
Oh, excuse me Hi, G T D.
He Chi Tompkins Park.
What are the assumed mortgage insurance, so you don't which we're not sure Tom <unk>, 10th annual wholesale well, maybe you see me so you're going to see that go up.
Yeah, sorry, yeah. She theories here, let me show dialogue, Yeah, Santander by partial one darn humid.
Hi, John .
Archie starting that you read on what you see me so that's one thing.
Thank you chase.
Since your pension.
Additionally, we announced in April our collaboration with <unk>, a company that ranks among the top three global players in the portable power supply market through its subsidiary rebrand brew GTI.
Partnership with power away KN <unk> started in March 2022, and we have received orders worth approximately $5 $35 million so far.
Paul Ak's expecting to place orders on a monthly basis, indicating that or the volume of our collaboration with power rate case expected to continue increasing.
Tissue.
Do you see that.
There's a bump but surely the cartilage trends. So you don't have an answer Tom.
Sure sure of course, the more channels based on quantum two natural gas G.
In conclusion <unk> cash at home time in sharing data.
Being a wildly culturally hooked.
<unk>.
Got it.
Yes.
We have been able to enter and expand in the global market for pulp for portable power supplies, mostly.
Through our collaboration with <unk>, which is also one of the key markets that the company is paying close attention to it.
At present, we are actively reaching out to the top clients in this market and are hopeful.
To present to our investors and shareholders with Bachelor of cooperation projects and all the information.
Tissue.
So im not money Grimsson downtime in California.
Hold on I'm sure that closer to the goal.
Tom Koch with everyone soon.
Oh gosh, there's all kinds of money against some tough comps.
You aren't going to totaling <unk> cuando them constantly.
So the woman that Sean.
Also on July 19th Prevention Retentions go attention.
Hum.
These events were talking.
Talking more downtown.
Can you quantify them to buy more time coming back.
So I'm not sure how soon that turns on that issue.
Wholesale funds.
So we're not a we're not Bonnie Zhang finality the grants were.
Sure.
Thank you.
Oh sure, Yes sure woman.
Mark I don't know.
We have received inquiries from several institutional investors and potential clients about the stages of our sodium buying bakeries in the near future. We plan to hold a product launch event for the hour sodium ion bakeries, and hope that our investors and shareholders with state that for our announcement as we mentioned in.
Our previous earnings call podium on beta is currently a major focus for many basically companies whilst produced on a large scale sodium on batesville is expected to pace lead asset base rates that are widely used in light electric vehicles, which have a negative environmental impact.
Our development of sodium <unk> and beta release, not only positions us to enter that market works about tens of billions of dollars, but also reflects our commitment to environmental responsibility and tissue.
Hello, Matt.
Archie.
Yeah.
We tell them.
Charles you know one kind of funding several hundred compounds two requires it sounds that opinion total should go well each homeaway posted about Chi Fong with <unk>.
First question I shall Amelia Tsang young to further close sooner or don't tell them, who says I'm going to kind of show on the 19 Archie assembled a great one.
In terms of the progress of our 19 phase III project, we have committed kicked our roof searing of some of our factories.
<unk> to be operational by the end of this year at the earliest.
We are also making preparations for an investor day, and we'll invite all investors and shareholders with faith in our company at an appropriate time to walk through our 19 project. Once we're ready we will release breath and information about investor day and tissue.
Oh, I'm sorry for pay zone.
Good morning, Jason.
So not sure.
Now, let me turn the call over to our interim CFO , you're not paying who will provide details on our financial performance.
Okay.
In Q3.
Thank you everyone for joining our call today I will now go over our key financial results.
Sure.
Our first quarter 10-K.
Further details of <unk> financial group.
Please refer to.
Really.
Okay.
Sure.
<unk>.
Phil.
We are prudent.
David.
We reached agreement with a major European ground.
In developing in the global.
Portable power.
Our gross margin from <unk>.
Thank you.
Sure.
Recovered too.
<unk>.
Hey.
Our revenue capacity.
Yeah.
Brexit decision.
Improved.
We are confident.
Gross margin for others.
We will continue to grow.
Moving onto other commercial boom.
Yeah.
<unk> got improvement decreased.
Revenue in the first quarter jumping too.
<unk> two <unk>.
Sure.
It is intended to be to the moon.
This degree of drop another material goodness.
Which have been negatively.
Impacted by their fluctuation.
218.
Matilda.
All right.
This strong performance.
Dave.
Bill.
The change in revenue.
<unk> nine <unk>.
Rich.
So an increase of 91%.
Among the revenue plenty for them.
$8 million.
We're from bandwidth.
Just early application.
Representing a group.
Good to know.
<unk>.
One to nine to remain hidden from view. Thank you.
Got it.
Soon.
Improved with increased 2017.
Additionally, revenues from Greenfield in that to date.
One <unk>.
Meaning.
Honored.
Yes.
Xbox and no growth over Brahma.
889.
Compared to the same period.
Yeah.
They didn't need the kind of improvement in our primary.
Alrighty.
At the.
Momentum to continue and wait and confidence.
To broaden the result this year.
The cost of revenue.
For the quarter way.
13 nine points.
Alright rich.
Accrued upfront.
Robert.
From Imperial.
Yes.
Action in cost of.
Revenue was consistent with the current month's revenue.
In the first quarter, our gross profit.
Christopher.
13.
Perfect.
On year to 2.9 meeting.
Well the gross margin.
Slightly increased in Q.
Yes.
Chris.
Good.
Yeah.
This was largely due to the increase.
Increase in gross profit margin of other brought with it.
The Martinsville boundary.
One 8%.
Thanks, Paul.
Really.
Right.
At this point.
Sure.
Yes.
Often.
Welcome.
As you can.
Sure.
Okay.
Sure.
Harper.
Thank you.
Bye.
Two.
Glen.
Hum.
True.
Great.
Okay.
Okay.
Great.
Uh huh.
I wanted my opinion too.
Uh huh.
Yes.
Uh huh.
Uh huh.
Two.
Yeah.
Okay.
Yes.
Yeah.
Yeah.
Okay.
Two two.
Sure.
No.
Okay.
Okay.
Paul.
Right.
Great.
Yeah.
Hum.
Thank you.
Sure.
Okay.
Yeah.
Lauren.
For the quarter.
Okay.
You can follow along.
Okay.
Awesome.
Nike.
From an assortment.
Okay.
Okay.
Yeah.
Hum.
For the quarter.
Wow.
Yeah.
Pat.
Hum.
Perfect.
Pat.
Hum.
Firm.
Sure.
Yes.
Okay.
Okay.
No.
Okay.
No.
Sure.
Right.
Sure Jonathan.
No.
Okay.
2019.
Sure.
One client.
No.
The concert.
Sure.
No.
Mark.
Okay.
Operator, Please go ahead.
Thank you.
Yeah.
Thank you to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please stand by while we compile the Q&A roster.
Yeah.
Yeah.
Again to ask a question press star one one.
Yes.
Yeah.
Our first question comes from Sam.
San from TPG Your line is open.
So I think I said why don't you to industrial action.
You won't see kind of thing.
Yes, the English language and not actually yellow chargeable since I guess I mean, David.
Alcohol.
I'm also a couple of days.
Oh I see.
So I guess, you're going to be the hot coffee shop.
Oh did you have another in case, you're going into your guidance.
But anytime you close the joke here how long do you like how long is your cost issues all hanging towards their endorsing a town.
I Hope you got a.
$2 19 art to that.
Sure sure sure.
Hello.
And I think Jan just yet.
Okay. So first of all I'd like to saying to you for taking my question and also wanted to congratulate you for your strong performance in the first quarter of the year I have two questions. The fish one they start it seems that sodium battery is about to be put into production.
Can you tell us what that is but so did I am better leased as a replacement of lead acid batteries.
It can bring to the environmental protection and my second question is that you just mentioned the company has a plan to launch an investors day at an appropriate eight pan.
In this case all welcome to visit the company on this Investor day, what's the progress of the construction and equipment installation in the 19 Vista project, if we pay a visit to the production facility on the Investor day, what can we see one fact.
Q.
<unk> I don't think a 10 nanometer <unk>.
Got it.
These are indeed, one advertiser.
Gemma Chan fund interest.
Yes.
He was on the agenda. This agenda when you did the opinion on the non <unk> and the 100 gig.
I don't recall that.
Hi, Jim.
Do you do.
Well, if we are not going to do in China.
Changing.
We introduce the surgeon who says yes.
Does that mean.
We introduced our Lindsay the Digitalglobe.
Thank you to Jim Coll trickle.
The R&D summit.
No.
I wanted to know if we can partner with them.
Well this is not all of them and those are shipping now.
No more no letup in Hindustan zinc.
Russell <unk>.
<unk>.
Hum.
Not in the one that you guys were sure were continuing to finance Stuart.
Lisa.
Uh huh.
Steve I'm not to the bird flu.
Hello, Michelle did not equal to one on at Johnson <unk> Johnson hundreds so it's known and they are doing.
So we're going to do this we are not in Peter <unk>.
Ooh efforts will trigger one module collateral harrisville how did it do.
<unk> Center.
So you'd have to ask them legal.
In terms of Lumpiness.
Okay.
Jim is going to address the first question.
Well if it lets have a look at the difference between lead acid battery and.
So Dan I am better reach for lead acid batteries. They are liquid state battery compact with sodium ion battery electric battery is easier to scratch.
E T E G.
As a happy motto it can cause pollution to soil and water and if not enter into human body. It may cause poison pill.
Positive.
It can also lead to some big visits in human beings and.
Human beings intake a large amount of let it may even pose a threat to the life.
Two the safety of dispersion.
If we have to look at so didn't I am better be Davis, a loss still reach of net.
Sodium in our nature.
Actually it just also if the recruitment ingredients.
Men elements in our food it just even be regarded as an indispensable element to a human being so we can say so Dan I better. He is all we can say sodium if they reach friends leap to a human being and sodium and battery.
He is very friendly to the nature.
And if we can use sodium better read and better reach that we can really embark on their journey towards green development.
And.
We believe that HSA debit good supplement to the <unk>.
Lead acid batteries. It is not only environmental friendly, but also it is economically competitive in the industry.
Yeah.
Yeah.
That's it for that one.
Thank you for that one.
Mhm.
2019.
Our deal flow and Teva.
Oh My God, that's on my shoulders for dollar Euro amount.
Yeah, No no no.
It holds it Oh, California at all.
Finally, I'm wondering to Friedhelm Quentin you outgrow Don.
Paul good job by $10.
And that's your tagline familiar with all of my key.
Sure.
Yeah.
That's our plan.
Hmm.
Going towards the door.
I don't understand how that chunghwa.
Thank you Archie and attention of the Tucano at Sarnia in Canada.
19, Archie can shell, Michigan Archie the E T.
You don't want sure pockets you aren't as Hong Kong.
He is trying to do we are doing their thing pretty Tien term.
A good chunk of what happens to the sheer bankruptcy you walk on Paypal Paypal done there for sure.
From temporary downtime.
And I'm not gonna scrubbing that you're not going to jump right.
Bye bye.
Five pocket cause a permanent shop, so not 119 United for sure.
They're shipping.
So I'm going to trial.
A follow up on the.
Therefore.
Yeah, So you know them.
I think our partner.
Gartner does not come out with another team.
Yeah.
Well I should say.
Well normally about social as a whole could kind of talk about some good don't survey.
I'm going off another another month.
Four months ago.
Im going to talk with them.
No argument.
Hi Chi.
Tom go ahead.
Sure.
Okay. So.
With regard to the second question concerning investors say Wow, we do have the plan to organize an investor day event in the near future.
And our sincere welcome to all the shareholders and investors to pay a visit to our our prediction.
Facility and two <unk> on the Investor day and on that day, we will also invite the media to do with the publicity and to do a media campaign thoughts.
And equally if you would like to know the.
So Greg for the construction of 19 seconds based project I would be very happy to give you more update so for a there will be a building that is.
It's designated to be earned.
Kilowatt battery production facility and it won't.
The construction will be finished by June this year.
And by then the 18 gigawatt hour supporting set of factories will also be completed at the time.
And we already sent the specification of our equipment.
To the suppliers and we are about to send them the bidding documents.
Very soon so if you pay a visit to the our production facilities all the Investor Day, We believe that you will see our victories are already for the installation of equipment by Dan.
And once again, we would like to extend an invitation to all the shareholders and investors you're more than welcome to visit us.
Yes.
Okay.
Okay.
One moment for our next question.
Yes.
Okay.
Okay.
We have a question from Psycho woo from TPG. Your line is open.
Anyhow. So here it goes to one is Oh geez.
Sure.
Just your confidence the thing you're right Dan.
Oh, Yeah, So I don't really think home care, Carl Icahn Heisler economy.
No.
I'm going to dig into is there like a again.
So we're trying to tackle oil suddenly trauma.
Yeah I'll just show you how are you there or you are adding showdown between sometimes I wish him much homegrown, though.
Yeah.
Yeah.
Okay, we noticed that the better way business of the company is growing very rapidly in recent years, especially the energy storage segment, how do see the prediction of revenue from the battery business independent <expletive> to what extent can the share of revenue.
H E B and EP business increase.
Okay.
So when Tino and petulant way Donna.
Yeah.
How does she doesn't mean that she wants.
Who among either <unk> or <unk>.
So how should you go really non bulk shiga E arch remaining new way to truly relief.
With John Pat I'm not much for Nanya, we don't know for sure John Women, who show to show the passenger Bashi shop, Oh, My God, you still you pleasure being done in Cambridge, how known E E.
She also go a loan.
John Specie Pollock, Zhejiang Hot a cash amount that you weren't really easy do the power to meet <unk> sure. So no I don't see any issues in there yeah, Yeah, no women E V E. All using either Yahoo, Shaw Ah 90 degrees.
I'm not sure.
Not single women launching Toms channel issue from a if you want.
T M tissue that truly either Jacob Shane Shane when.
E train when you jumped on knee, which we think are both actually.
Thank you.
Mhm.
So, yes youre right.
The sales revenue of the first quarter, we can see that.
Energy Star reach business segment Das.
Does occupy a big proportion of our sales revenue and the revenue from the EP and our EV occupies a secondary prediction and if we have a look at our revenue composition, we can see that the revenue from.
Star range and as you start reach takes up about a more than 80% of our total revenue.
So based on the old days that we have in hand, and as well as.
Production capacity. It is estimated that this year, we are still going to maintain similar revenue complexion.
Similar to the first quarter.
But if we have very deep.
Deeper D Oh, we dive deeper into the.
Figure out.
First quarter. We are also very happy to see that the sales revenue of the L. L. Bean from the L. E D and E V also witnessed a substantial grills, if we compared with the previous year, we achieved a three 7 million U S dollars.
It was a value in E P and L E P and we believe that with the increase of the production capacity in our non gene.
Production facilities next year as well as the continuous effort that we're going to put in the P and L E B markets.
We predict that next year, we're going to see an explosive growth in our L. E. P. M E V revenue.
Okay.
Yes.
Thank you see no more questions in the queue, Let me turn the call back to Mr. You'd say Lee for closing remarks.
I was wondering so it hurts your footprint.
Chuck always turned out you cannot the heartbeat.
Should I start with.
Jason the short remarks.
Thank you operator, and thank you all for participating in today's call and for your support we appreciate your interest and look forward to reporting to you again next quarter on our progress.
Thank you all again this concludes the call and you may now disconnect.
Yeah.
Okay.
[music].
Yes.
[music].