Q1 2025 Microvast Holdings Inc Earnings Call
In listen only mode and the conference is being recorded.
Speaker Change: I would now like to turn the conference over to micro vast Investor Relations. Please go ahead.
Speaker Change: Thank you operator, and thank you everyone for joining our update today.
Speaker Change: With me on today's call are Mr. Yang Liu founder, Chairman and CEO and Mr. Pat Schultz CFO.
Speaker Change: Mr. Woo, we'll start off with a high level overview of the first quarter results before providing some operational and business update.
Speaker Change: Mr. Schulz will then discuss our financials in more detail before handing it back to Mr. <unk> to wrap up with our outlook and closing remarks.
Speaker Change: Ahead of this call Microburst issued its first quarter earnings press release, which can be found on the Investor Relations section of our website IR Dot microburst Dot com.
Speaker Change: We have also posted a slide presentation to accompany management's prepared remarks today.
Speaker Change: As a reminder, please note that this call may include forward looking statements. These statements are based on current expectations and assumptions and should not be relied upon as representative of our views for subsequent dates.
Speaker Change: We undertake no obligation to revise or released the results of any revision to these forward looking statements due to new information or future events.
Speaker Change: Actual results may differ materially from expectations due to a variety of risks and uncertainties.
Speaker Change: For more information on material risks and other important factors that could affect our financial results. Please.
Speaker Change: Filings with the SEC.
Speaker Change: We may also discuss non-GAAP financial measures. During this call. These measures should be considered in addition to and not as a substitute for or in isolation from GAAP results.
Speaker Change: non-GAAP measures have been reconciled to their most comparable GAAP metrics in the tables included at the end of our press release.
Speaker Change: After the conclusion of this call a webcast replay will be available on the Investor Relations section of Microvascular website, and now I will turn the call over to Mr. <unk> for opening remarks.
Speaker Change: Thank you.
Speaker Change: And as thank you everyone for joining today's call for those new to <unk> and our via long term listeners.
Speaker Change: To reiterate our company's core identity.
Speaker Change: <unk> funded in Texas in 2006.
Speaker Change: Microbus stands as a global leader in the advanced battery technologies sector.
Speaker Change: Backed by over 810 patents and applications.
Speaker Change: And always our <unk> cyber solutions successfully implemented or white.
Speaker Change: Unwavering commitment is to spearhead innovation in the ongoing energy transition ultimately contributing to a more sustainable future.
Speaker Change: Looking back at the past the toll months please.
Speaker Change: We saw significant product milestones, notably the introduction of the <unk> six our pioneering over horrible LLP based energy storage system engineer in the Florida diverse application spanning utility scale storage to data center power.
Speaker Change: We achieved substantial progress in our silicon based sale of technologists and have continued our advancement towards a development all solid state batteries.
Speaker Change: Innovation remains the cornerstone of our growth strategy.
Speaker Change: And we look forward to sharing further exciting updates on those fronts.
Speaker Change: Please turn to slide four.
And I will cover some key results from our retro first quarter.
Operator: A reminder, all participants are in listen-only mode and the conference is being recorded.
Unknown Executive: based energy storage system, engineered for diverse application, spanning utility scale storage to data center power.
Speaker Change: The business posted record first quarter revenue was 43% growth year over year, delivering $116 5 million.
Engineered for diverse applications spanning utility scale storage to data center power.
Operator: I would now like to turn the conference over to Microvast Investor Relations. Please, go ahead. Thank you, Operator, and thank you, everyone, for joining our update.
Unknown Executive: We achieved substantial progress in our silicon-based cell technologies and continued our advancements toward the development of all solid-state batteries.
We achieved substantial progress in our silicon based cell technologies and have continued our advancement towards a development all solid state batteries.
Speaker Change: We achieved this growth while maintaining our gross margin.
Operator: With me on today's call are Mr. Yang Wu, founder, chairman, and CEO, and Mr. Pat Schultz, CFO.
Speaker Change: 36, 9%.
Speaker Change: At $15 seven point improvement.
Unknown Executive: Innovation remains the cornerstone of our growth strategy. and we look forward to sharing further exciting updates on those fronts.
Innovation remains the cornerstone of our growth strategy.
Speaker Change: Year over year.
Yang Wu: Mr. Wu will start off with a high-level overview of the first quarter results before providing some operational and business.
Speaker Change: Once more so triple digit percentage growth.
And we look forward to sharing further exciting updates on those fronts.
Speaker Change: 108% for EMEA year over year.
Yang Wu: Mr. Schultz will then discuss our financials in more detail before handing it back to Mr. Wu to wrap up with our outlook and closing remarks.
Unknown Executive: Please turn to slide 4, and I will cover some key results from our record first quarter. The business posted record first quarter revenue with 43% growth year-over-year, delivering $116.5 million. We achieved this growth while maintaining a growth margin of 36.9%. a 15.7 point improvement year over year. We once more saw triple-digit percentage growth of 108% for EMEA year-over-year.
Please turn to slide four.
Speaker Change: We continue to focus on improving both efficiency and profitability and I am excited to announce we achieved profitability this quarter.
And I will cover some key results from our record first quarter.
Yang Wu: Ahead of this call, Microvast issued its first quarter earnings press release, which can be found on the investor relations section of our website, ir.microvast.com. We have also posted a slide presentation to accompany management's prepared remarks today. As a reminder, please note that this call may include forward-looking statements. These statements are based on current expectations and assumptions and should not be relied upon as representative of views for subsequent dates. We undertake no obligation to revise or release the results of any revision to these forward-looking statements due to new information or future events. Actual results may differ materially from expectations due to a variety of risks and uncertainties.
The business posted record first quarter revenue was 43% growth year over year, delivering $116 5 billion.
Speaker Change: The company booked a net profit of 61 8 million.
We achieved this growth while maintaining a gross margin of 36, 9%.
Speaker Change: As adjusted and net profit of $19 $3 million and chest at EBITDA of $28 5 million.
At $15 seven point improvement.
Speaker Change: Looking back several years, we have more than triple our Q1 revenue, which indicates the strong market demand for our high performance products. Our gross profit has also continuously improved including a year over year increase of more than 100%.
Year over year.
We have one small saw triple digit percentage growth.
108% for EMEA year over year.
Unknown Executive: We continue to focus on improving both efficiency and profitability, and I am excited to announce we achieved the profitability in the quarter. The company booked a net profit of $61.8 million. with adjusted net profit of $19.3 million and adjusted EBITDA of $28.5 million.
We continue to focus on improving both efficiency and profitability and I am excited to announce we achieved profitability this quarter.
Yang Wu: For more information on material risks and other important factors that could affect our financial results, please refer to our filings with the SEC. We may also discuss non-GAAP financial measures during this. These measures should be considered in addition to, and not as a substitute for, or in isolation from, GAPR. These non-GATT measures have been reconciled to their most comparable GATT metric in the tables included at the end of our press release.
Speaker Change: This milestone represents as significant achievements for <unk> and has a broader batteries sector at the knowledge in the demand in nature and a long term commitment to require in this industry a.
The company booked a net profit of 61 8 million.
With the adjusted net profit of $19 $3 million and adjusted EBITDA of $28 5 million.
Speaker Change: Our rapid growth has provided invaluable learning experiences, enabling us to successfully commercialized products across our diverse technology portfolio and refine our manufacturing processes.
Unknown Executive: Looking back several years, we have more than tripled our Q1 revenue, which indicates the strong market demand for our high-performance products. Our gross profit has also continuously improved, including a year-over-year increase of more than 100 percent.
Looking back several years, we have more than triple our Q1 revenue, which indicates the strong market demand for our high performance products. Our gross profit has also continuously improved including a year over year increase of more than 100%.
Operator: After the conclusion of this call, a webcast replay will be available on the Investor Relations section of Microvast's website.
Speaker Change: Moving forward, our focus remains steadfast on continuous innovation.
Yang Wu: And now I will turn the call over to Mr. Wu for opening remarks. Thank you. And thank you, everyone, for joining today's call. for those new to Microvast and our valuable long-term listeners. I want to reiterate our company's core identity. founded in Texas in 2006. Microvast stands as a global leader in the advanced battery technology sector. back to buy over 810 patents and applications. and with our electrified solutions successfully implemented worldwide. Our unwavering commitment is to spearhead innovation in the ongoing energy transition, ultimately contributing to a more sustainable future.
Speaker Change: The execution of our strategy objectives, and our expansion to meet customer demand.
Unknown Executive: This milestone represents a significant achievement for Microvast and the broader battery sector, acknowledging the demanding nature and the long-term commitment required in this industry. Our rapid growth has provided invaluable learning experiences, enabling us to successfully commercialize products across our diverse technology portfolio and refine our manufacturing process.
This milestone represents as significant achievements for <unk> and <unk>.
Speaker Change: On slide five we.
Speaker Change: We will touch briefly our consistency forecast.
Broader battery sector and technology in the demand in nature and a long term commitment required in this industry.
Speaker Change: As this core micro Ross is a vertically integrated battery technology innovator.
Our rapid growth has provided invaluable learning experiences, enabling us to successfully commercialized products across our diverse technology portfolio and refine our manufacturing processes.
Speaker Change: Our primary engine for growth remains a strong commitment to technology and product development with a promising pipeline of advanced solutions on the horizon.
Speaker Change: We are strategically focused on expanding our revenue streams through a diverse portfolio of products and services that are actively support the global energy transformation.
Unknown Executive: Moving forward, our focus remains diverse on continuous innovation. the execution of our strategy objectives and our expansion to meet customer demand.
Moving forward, our focus remains steadfast on continuous innovation.
The execution of our strategy objectives, and our expansion to meet customer demand.
Speaker Change: A key element of our strategy involves aggressively capturing greater market share.
Unknown Executive: On slide five, we will touch briefly on our consistency focus.
Yang Wu: Looking back at the past 12 months, We saw significant product milestones, notably the introduction of the ME6, our pioneering overhaulable LVP-based energy storage system, engineered for diverse application, spanning utility-scale storage to data center power. We achieved substantial progress in our silicon-based cell technologies and continued our advancements toward the development of all-solid-state batteries. Innovation remains the cornerstone of our growth strategy. and we look forward to sharing further exciting updates on those fronts.
On slide five.
We will touch briefly our consistency forecast.
Unknown Executive: At its core, Microvast is a vertically integrated battery technology innovator. Our primary engine for growth remains a strong commitment to technology and product development with a promising pipeline of advanced solutions on the horizon. We are strategically focused on expanding our revenue streams through a diverse portfolio of products and services that actively support the global energy transformation. A key element of our strategy involves aggressively capturing greater market share. To this end, Microvast is making ongoing investments in the commercialization of both our currently available and our highly anticipated future advanced products. By maintaining this dual focus on pioneering products innovation and strategically expanding our market presence, Microvast strives to achieve significant and sustainable growth.
As this core micro Russ is a vertically integrated battery technology innovator.
Speaker Change: To this end might provide safe, making ongoing investments in the commercialization of both are currently available in our highly anticipated future advanced products.
Our primary engine for growth remains a strong commitment to technology and product development.
Speaker Change: Maintaining this dual focus on pioneering products innovation.
With a promising pipeline of advanced solutions on the horizon.
Speaker Change: And strategically expanding our market presents microvessel strives to achieve significant and sustainable growth and we aim to do this while optimizing our core business operations with a.
We are strategically focused on expanding our revenue streams through a diverse portfolio.
<unk> and his services that actively support the global energy transformation.
A key element of our strategy involves aggressively capturing greater market share.
Speaker Change: Clear of objective of attaining sustained profitability.
Yang Wu: Please turn to slide 4, and I will cover some key results from our record first quarter. The business posted record first quarter revenue with 43% growth year-over-year, delivering $116.5 million. We achieved this growth while maintaining a growth margin of 36.9%. a 15.7 point improvement year over year. We once more saw triple-digit percentage growth of 108% for EMEA year-over-year. We continue to focus on improving both efficiency and profitability, and I am excited to announce we achieved the probability score. The company booked a net profit of $61.8 million. with adjusted net profit of $19.3 million and adjusted EBITDA of $28.5 million.
Speaker Change: Turning to slide six.
To this end I provides is making ongoing investments in the commercialization of both our currently available in our highly anticipated future advanced products.
Speaker Change: I'd like to provide an update to our phase three two expansion.
Speaker Change: <unk> are nearly completed.
Speaker Change: Attunity equipment installation is complete and we are currently installing the production equipment.
By maintaining this dual focus on pioneering products innovation and strategically expanding our market presents micronize strives to achieve significant and sustainable growth and we aim to do this while optimizing our core business operations.
Speaker Change: Our <unk> phase three two expansion project is on track to add output to two.
Speaker Change: Two gigawatt hours of annual production capacity strategically positioned to address the strong market demand the flowers solutions.
Unknown Executive: And we aim to do this while optimizing our core business operations with a clear objective of attaining sustained profitability.
Speaker Change: This expansion Leverages, our established infrastructure and a deep expertise, enabling the production of both our current and next generation battery technologies, we anticipate achieving the first quantify production from this new line in the fourth quarter of <unk>.
Speaker Change: Z <unk>.
Speaker Change: Clear objective of attaining sustained profitability.
Unknown Executive: Turn to slide six.
Speaker Change: Turning to slide six I'd like to provide an update to our phase three two expansion.
Unknown Executive: I'd like to provide an update to our phase 3.2 expansion. The premiums are nearly completed. Utility equipment installation is complete. And we are currently installing the production equipment. Our Huzhou Phase 3.2 expansion project is on track to add up to 2 gigawatt hours of annual production capacity, strategically positioned to address the strong market demand for our solution. This extension leverages our established infrastructure and deep expertise, enabling the production of both our current and next generation battery technologies.
Speaker Change: The term loans are nearly completed utility equipment installation is complete and.
Speaker Change: And we are currently installing the production equipment.
Speaker Change: <unk> 25.
Speaker Change: Now if you will please join me on slide seven.
Speaker Change: Our <unk> phase three two expansion project is on track to add output.
Speaker Change: <unk> continues to achieve significant traction in our commercial vehicle sector, particularly within EMEA, where we saw over 100% growth year over year to support this expanding global footprint and ensure operational excellence, we launched our new.
Speaker Change: Two gigawatt hours of annual production capacity strategically positioned to address the strong market demand for our solutions.
Yang Wu: Looking back several years, we have more than tripled our Q1 revenue, which indicates the strong market demand for our high-performance products. Our gross profit has also continuously improved, including a year-over-year increase of more than 100 percent.
Speaker Change: This expansion Leverages, our established infrastructure and a deep expertise, enabling the production of both our current and next generation battery technologies, we anticipate achieving the first quantify production from this new line in the fourth quarter of <unk>.
Speaker Change: New EMEA 20 center underscoring our commitment to providing world class resources for both our team and our customers.
Unknown Executive: We anticipate achieving the first qualified production from this new line in the fourth quarter of 2025.
Yang Wu: This milestone represents a significant achievement for Microvast and the broader battery sector, acknowledging the demanding nature and the long-term commitment required in this industry. Our rapid growth has provided invaluable learning experiences, enabling us to successfully commercialize products across our diverse technology portfolio and refine our manufacturing processes. Moving forward, our focus remains diverse on continuous innovation. the execution of our strategy objectives and our expansion to meet customer demand.
Speaker Change: A key testament to our strong market reputation is the win backs of our volume customer video.
Speaker Change: 2025.
Unknown Executive: Now, if you will, please join me on slide 7. Microvast continues to achieve significant traction in the commercial vehicle sector, particularly within EMEA, where we saw over 100% growth year over year.
Speaker Change: Now if you will please join me on slide seven.
Speaker Change: While we remain optimistic about our trajectory this past quarter presented headwinds preliminary duty globalized supply chain on certainties and trade disruptions.
Speaker Change: <unk> continues to achieve significant traction in our commercial vehicle sector, particularly within EMEA, where we saw over 100% growth year over year to support this expanding global footprint and to ensure operational excellence, we launched our new.
Unknown Executive: To support this expanding global footprint and ensure operational excellence, we launched our new EMEA training center, underscoring our commitment to providing world-class resources for both our team and our customers.
Speaker Change: <unk> have impacted as they rollout timelines for certain light commercial vehicle platforms.
Speaker Change: New EMEA training center, underscoring our commitment to providing world class resources for both our team and our customers.
Speaker Change: Now if you will join me.
Speaker Change: <unk> eight and nine.
Speaker Change: We have some exciting new business developments in our commercial vehicle segment.
Unknown Executive: A key testament to our strong market reputation is the win-back of our value customer VDL.
Speaker Change: A key testament to our strong market reputation is the win backs of our volume customer video.
Yang Wu: On slide five, we will touch briefly on our consistency focus.
Speaker Change: <unk> is focused on developing manufacturing and as certain large and mid size buses and night vans.
Unknown Executive: While we remain optimistic about our trajectory, this past quarter presented headwinds, preliminary due to global supply chain uncertainties and trade disruptions which have impacted the rollout timelines for certain light commercial vehicle platforms. Now, if you will join me on slide eight and nine. We have some exciting new business developments in our commercial vehicle segment. Kin Long is focused on developing manufacturing and selling large and mid-sized buses and night vans. Our batteries have been utilized in their e-bus platforms for nearly a decade, validating the real-world use case of our products. We will continue working with them to power clean transportation with our 21 mAh battery pack.
Yang Wu: At this call, Microvast is a vertically integrated battery technology innovator. Our primary engine for growth remains a strong commitment to technology and product development, with a promising pipeline of advanced solutions on the horizon. We are strategically focused on expanding our revenue streams through a diverse portfolio of products and services that actively support the global energy transformation. A key element of our strategy involves aggressively capturing greater market share. To this end, Microvast is making ongoing investments in the commercialization of both our currently available and our highly anticipated future advanced products. By maintaining this dual focus on pioneering products innovation and strategically expanding our market presence, Microvast strives to achieve significant and sustainable growth.
Speaker Change: While we remain optimistic about our trajectory this past quarter presented headwinds preliminary due to global supply chain on certainties and trade disruptions.
Speaker Change: Our batteries have been utilized in their <unk> platforms for nearly a decade validated in the real world use case of our products.
Speaker Change: We will continue working with them to powertrain transportation with our 'twenty, one empower battery packs.
Speaker Change: <unk> have impacted as they rollout timelines for certain light commercial vehicle platforms.
Speaker Change: Blackrock is an Indian E bus manufacturer focused on bridging robust and a claim public transportations and it will utilize our $53 five amp hour battery packs.
Now if you will join me.
Speaker Change: <unk> eight and nine.
Speaker Change: We have some exciting new business developments in our commercial vehicle segment.
Speaker Change: Video is the long running European bus OEM focused on smart and sustainable transportation solutions and it won't utilize our 48 empower battery packs and continue our successful multi year relationship.
Speaker Change: <unk> is focused on developing manufacturing and as certain large and mid size buses and night vans.
Speaker Change: Our batteries have been utilized in their <unk> platforms for nearly a decade validate in the real world use case of our products.
Speaker Change: Logo and anti and heavy are two of our largest heavy machinery producer in China.
Speaker Change: We will continue working with them to power clean transportation with our 'twenty, one empower battery packs.
Speaker Change: Focus on offering high tech and a differentiated products, including pure electric and unmanned vehicles. We are excited that both of those customers will utilize our generation for battery packs.
Unknown Executive: PlugBlock is an Indian E-Bus manufacturer focused on bridging robust and clean public transportations, and it will utilize our 53.5 amp hour battery pack. Video is a long-running European BOSS OEM focused on smart and sustainable transportation solutions and will utilize our 48Ah battery packs and continue our successful multi-year relationship. Lobo and Italian Heavy are two of the largest heavy machinery producers in China. focus on offering high-tech and differentiated products, including pure electric and unmanned vehicles. We are excited that both of those customers will utilize our Generation 4 battery pack. Finally, Yuri Molli will be utilizing several variations of our 48-amp hour packs for their easy-to-move hybrid mining trucks.
Speaker Change: Blackrock is an Indian E bus manufacturer focused on bridging robust and our claim public transportations and it will utilize our $53 five amp power battery packs.
Yang Wu: And we aim to do this while optimizing our core business operations with the clear objective of attaining sustained profitability.
Speaker Change: Video is a long running European bus OEM focused on smart and sustainable transportation solutions and it won't utilize our 48 empower battery packs and continue our successful multi year relationship.
Speaker Change: Finally, it remotely will be utilizing several variations of our 48 empower packs for their easy move hybrid mining trucks.
Yang Wu: Turn to slide 6, I'd like to provide an update to our Phase 3.2 expansion. The cleanrooms are nearly completed. Utility equipment installation is complete, and we are currently installing the production equipment.
Speaker Change: Those are just some of the business highlights for the year so far.
Speaker Change: Logo and anti and heavy are two of our largest heavy machinery producer in China.
And we want to thank all of our global customers for their continued trust in our high performance products.
Yang Wu: Our Huzhou Phase 3.2 expansion project is on track to add up to 2 GWh of annual production capacity, strategically positioned to address the strong market demand for our solution. This expansion leverages our established infrastructure and deep expertise, enabling the production of both our current and next generation battery technologies.
Speaker Change: Focus on offering high tech and a differentiated products, including pure electric and unmanned vehicles. We are excited that both of those customers will utilize our generation for battery packs.
Speaker Change: Moving to slide 10.
Speaker Change: I'd like to give a brief update on our advancements in next generation battery technologies.
Speaker Change: As you can see illustrated here, we haven't made a significant strides in our proprietary three D printing capabilities, specifically for all solid state batteries.
Speaker Change: Finally, you remotely will be utilizing several variations of our 48 empower packs for their easy move hybrid mining trucks.
Speaker Change: We have developed both in house printing technology, and a specialized equipment.
Yang Wu: We anticipate achieving the first qualified production from this new line in the fourth quarter of 2025.
Unknown Executive: Those are just some of the business highlights for the year so far. And we want to thank all of our global customers for their continued trust in our high-performance products.
Speaker Change: Those are just some of the business highlights for the year so far.
Speaker Change: This innovative platform is designed to provide us with unprecedented manufacturing flexibility, allowing for fabrication of all solid state sells in a wide range of variable sizes and a customized shapes.
Speaker Change: And we want to thank all of our global customers for their continued trust in our high performance products.
Yang Wu: Now, if you will, please join me on slide 7. Microvast continues to achieve significant traction in the commercial vehicle sector, particularly within EMEA, where we saw over 100% growth year over year.
Unknown Executive: Moving to slide 10. I'd like to give a brief update on our advancements in next-generation battery technology. As you can see illustrated here, we have made significant strides in our proprietary 3D printing capabilities, specifically for all solid state batteries. We have developed both in-house printing technology and specialized equipment. This innovative platform is designed to provide us with unprecedented manufacturing flexibility, allowing for fabrication of all solid-state cells in a wide range of variable sizes and customized shapes.
Speaker Change: Moving to slide 10.
Speaker Change: I'd like to give a brief update on our advancements in next generation battery technologies.
Speaker Change: This adaptability in design could be at significant differentiator in meeting the diverse needs of future applications.
Yang Wu: To support this expanding global footprint and ensure operational excellence, we launched our new EMEA training center, underscoring our commitment to providing world-class resources for both our team and our A key testament to our strong market reputation is the win-back of our value customer video.
Speaker Change: As you can see illustrated here, we haven't made a significant strides in our proprietary three D printing capabilities, specifically for all solid state batteries.
Speaker Change: Turning to the second point, we are also very encouraged by the early results from our bipolar stock cell architecture.
Speaker Change: We have developed both in house printing technology, and a specialized equipment.
Speaker Change: Preliminary testing our five layer sale operating at 0.3 series C raise.
Speaker Change: This innovative platform is designed to provide us with unprecedented manufacturing flexibility, allowing for fabrication of all solid state sells in a wide range of variable sizes and a customized shapes.
Yang Wu: While we remain optimistic about our trajectory, this past quarter presented headwinds, preliminary due to global supply chain uncertainties and trade disruptions, which have impacted the rollout timelines for certain light commercial vehicle platforms. Now, if you will join me on slide eight and nine.
Speaker Change: As already demonstrated a very high current efficiency of 90, 989%.
Speaker Change: This initial findings suggest that this stock to sell design holds considerable promise for enhanced performance and improved system level efficiency compared to traditional sale configurations.
Unknown Executive: This adaptability in design could be a significant differentiator in meeting the diverse needs of future applications.
Speaker Change: This adaptability in design could be a significant differentiator in meeting the diverse needs of future applications.
Unknown Executive: Turning to second point, we are also very encouraged by the early results from our bipolar stock cell architecture. Preliminary testing on a five-layer cell operating at a 0.33C rate has already demonstrated a very high columbic efficiency of 99.89%. These initial findings suggest that this stocked cell design holds considerable promise for enhanced performance and improved system level efficiency compared to traditional cell configurations. While those are early results, we are actively engaged in further validation and rigorous long-term testing to fully understand and optimize the potential of this exciting technology.
Speaker Change: Turning to the second point, we are also very encouraged by the early results from our bipolar stock cell architecture.
Speaker Change: Wireless those are early results, but we are actively engaged in further validation and a rigorous long term testing to fully understand and optimize the potential of this.
Yang Wu: We have some exciting new business developments in our commercial vehicle segment. Kin Long is focused on developing manufacturing and selling large and mid-sized buses and night vans. Our batteries have been utilized in their e-bus platforms for nearly a decade, validating the real-world use case of our products. We will continue working with them to power clean transportation with our 21 mAh battery pack. PlugBlock is an Indian E-Bus manufacturer focused on bridging robust and clean public transportation, and it will utilize our 53.5Ah battery pack. VDL is a long-running European Boss OEM focused on smart and sustainable transportation solutions and will utilize our 48Ah battery packs and continue our successful multi-year relationship.
Speaker Change: Preliminary testing our five layers sale operating at 0.3 series C raise.
Speaker Change: This exciting technology.
Speaker Change: As already demonstrated a very high Colombia efficiency of 90, 989%.
Speaker Change: I would now like to turn the call over to Mr. <unk> to discuss our financials in more detail.
Speaker Change: This initial findings suggest that this doctor cell design holds considerable promise for enhanced performance and improved system level efficiency compared to traditional sale configurations.
Speaker Change: Thank you Mr. <unk> and thank you everyone for tuning in and.
I will now walk you through our financial performance.
Speaker Change: Please turn to slide 12.
Speaker Change: As Mr. <unk> mentioned.
Speaker Change: While those are early results, but we are actively engaged in further validation and a rigorous long term testing to fully understand and optimize the potential of this exciting technology.
Speaker Change: We achieved a record first quarter.
Speaker Change: With revenue, reaching $116 5 million up 43% from $81 4 million in Q1 2024.
Speaker Change: This growth was fueled by strong EMEA sales for commercial vehicles.
Rodney Worthen: I would now like to turn the call over to Mr. Schultz to discuss our financials in more detail. Thank you, Mr. Wu, and thank you everyone for tuning in. I will now walk you through our financial...
Mr. Should: I would now like to turn the call over to Mr should to discuss our financials in more detail.
Speaker Change: Gross profit for Q1, 2025 was $43 million.
Speaker Change: Up from $17 2 million in Q1 2024.
Yang Wu: Lobo and Italian Heavy are two of the largest heavy machinery producers in China. focus on offering high-tech and differentiated products, including pure electric and unmanned vehicles. We are excited that both of those customers will utilize our Generation 4 battery pack. Finally, Yuri Moly will be utilizing several variations of our 48-amp hour packs for their easy-to-move hybrid mining trucks.
Speaker Change: 150% improvement driven by operational execution increased utilization and disciplined cost control implementation.
Speaker Change: Thank you Mr. <unk> and thank you everyone for tuning in.
Speaker Change: I will now walk you through our financial performance.
Rodney Worthen: please turn to slide 12. As Mr. Wu mentioned, We achieved a record first quarter. with revenue reaching $116.5 million, up 43% from $81.4 million in Q1 2020. This growth was fueled by strong EMEA sales for commercial. Gross profit for Q1 2025 was $43 million. up from $17.2 million in Q1 2024, a 150% improvement driven by operational execution, increased utilization, and disciplined cost control implementation. Our gross margin improved to 36.9%, up from 21.2% in Q1 2024, a 15.7 percentage point Operating expenses were reduced to $25.5 million in Q1 2025. compared to 40.9 million in Q1 2024, a 38% decrease from the prior This reduction across GNA and R&D was largely due to reductions in share-based compensation.
Speaker Change: Turn to slide 12.
Speaker Change: Our gross margin improved to 36, 9% up from 21, 2% in Q1 2024, a 15 seven percentage point improvement.
Speaker Change: As Mr. <unk> mentioned.
Speaker Change: We achieved a record first quarter.
Speaker Change: With revenue, reaching $116 5 million up 43% from $81 4 million in Q1 2024.
Speaker Change: Operating expenses were reduced to $25 5 million in Q1 2025.
Speaker Change: Compared to $40 9 million in Q1, 2024, or 38% decrease from the prior period.
Speaker Change: This growth was fueled by strong EMEA sales for commercial vehicles.
Gross profit for Q1, 2025 was $43 million.
Speaker Change: This reduction across G&A and R&D was largely due to reductions in share based compensation and cost control measures we implemented throughout 2024.
Yang Wu: Those are just some of the business highlights for the year so far. And we want to thank all of our global customers for their continued trust in our high-performance products.
Speaker Change: Up from $17 2 million in Q1 2020 for.
Speaker Change: A 150% improvement driven by operational execution increased utilization and disciplined cost control implementation.
Speaker Change: The increase in sales and marketing was primarily due to our global marketing efforts and customer engagement activities as we continue to expand our product footprint.
Yang Wu: Moving to slide 10. I'd like to give a brief update on our advancements in next-generation battery technology. As you can see illustrated here, we have made significant strides in our proprietary 3D printing capabilities, specifically for all solid state batteries. We have developed both in-house printing technology and specialized equipment. This innovative platform is designed to provide us with unprecedented manufacturing flexibility, allowing for fabrication of all solid-state cells in a wide range of variable sizes and customized shapes.
Speaker Change: Our gross margin improved to 36, 9% up from 21, 2% in Q1 2024, a 15 seven percentage point improvement.
Speaker Change: We reported a GAAP net profit of $61 8 million in Q1 2025.
Speaker Change: Compared to net loss of $24 8 million in Q1 2024.
Speaker Change: Operating expenses were reduced to $25 5 million in Q1 2025.
Speaker Change: After adjusting for noncash items, such as share based compensation expenses and fair value changes of our warrant liability and convertible loans. Adjusted net profit came to $19 3 million a substantial improvement from an adjusted net loss of $13 million in Q1 2024.
Speaker Change: Compared to $40 9 million in Q1, 2024, or 38% decrease from the prior period.
Speaker Change: This reduction across G&A and R&D was largely due to reductions in share based compensation and cost control measures we implemented throughout 2024.
Rodney Worthen: and Cost Control Measures we implemented throughout 2020. The increase in sales and marketing was primarily due to our global marketing. Customer Engagement Activities as we continue to expand our product. We reported a gap net profit of $61.8 million in Q1 2025. compared to a net loss of $24.8 million in Q1. After adjusting for non-cash items such as share-based compensation Fair Value Changes of our Warrant Liability and Convertible Loans. Adjusted Net Profit came to $19.3 million, a substantial improvement from an adjusted net loss of $13 million in Q1 2020. After adjusting for non-cash share-based compensation Our adjusted operating expenses in Q1 2025 decreased to $24.9 million, compared to $30.1 million in Q1 2024.
Speaker Change: After adjusting for noncash share based compensation expenses, our adjusted operating expenses in Q1, 2025 decreased to $24 9 million compared to $30 1 million in Q1 2024.
Speaker Change: The increase in sales and marketing was primarily due to our global marketing efforts and customer engagement activities as we continue to expand our product footprint.
Speaker Change: We reported a GAAP net profit of $61 8 million in Q1 2025.
Speaker Change: We reported positive adjusted EBITDA for the quarter, reaching $28 5 million as we maintain our focus on achieving sustainable profitability compared to a negative adjusted EBITDA of $3 7 million in Q1 2024.
Speaker Change: Compared to a net loss of $24 8 million in Q1 2024.
Yang Wu: This adaptability in design could be a significant differentiator in meeting the diverse needs of future applications.
Speaker Change: After adjusting for noncash items, such as share based compensation expenses and fair value changes of our warrant liability and convertible loans. Adjusted net profit came to $19 3 million a substantial improvement from an adjusted net loss of $13 million in Q1 2024.
Yang Wu: Turning to second point, we are also very encouraged by the early results from our Bipolar Stock Cell Architecture. Preliminary testing on a five-layer cell operating at a 0.33C rate has already demonstrated a very high columbic efficiency of 99.89%. These initial findings suggest that this stocked cell design holds considerable promise for enhanced performance and improved system level efficiency compared to traditional cell configurations. While those are early results, we are actively engaged in further validation and rigorous long-term testing to fully understand and optimize the potential of this exciting technology.
Speaker Change: The impact of these adjustments and reconciliations of these non-GAAP metrics to the most comparable GAAP metrics are included in the tables at the end of our press release and the slide presentation.
Speaker Change: After adjusting for non cash share based compensation expenses, our adjusted operating expenses in Q1, 2025 decreased to $24 9 million compared to $30 1 million in Q1 2024.
Speaker Change: On slide 13, we show the geographic breakdown of our revenue mix for Q1 2025 compared to the prior period.
Speaker Change: Our EMEA business grew by 108% year over year and accounted for 52% of our quarterly revenue.
Rodney Worthen: We reported positive adjusted EBITDA for the quarter, reaching $28.5 million, as we maintain our focus on achieving sustainable profitability, compared to a negative adjusted EBITDA of $3.7 million in Q1 2020.
Speaker Change: We reported positive adjusted EBITDA for the quarter, reaching $28 5 million as we maintain our focus on achieving sustainable profitability compared to a negative adjusted EBITDA of $3 7 million in Q1 2024.
Speaker Change: Up from 36% a year ago as we continue to grow our partnerships and key customers continue to ramp their vehicle production.
Speaker Change: The U S increased from 2% to 5% of revenue share compared to Q1 2024, as we continue making inroads with domestic commercial vehicle customers.
Rodney Worthen: The impact of these adjustments and reconciliations of these non-GAAP metrics to the most comparable GAAP metrics are included in the tables at the end of our press release and this slide presentation.
Speaker Change: The impact of these adjustments and reconciliations of these non-GAAP metrics to the most comparable GAAP metrics are included in the tables at the end of our press release and the slide presentation.
Speaker Change: The APAC region saw a decrease of less than 1% year over year as we continue to target higher margin opportunity.
Rodney Worthen: On slide 13, we show the geographic breakdown of our revenue mix for Q1 2025 compared to the prior period. Our EMEA business grew by 108% year-over-year and accounted for 52% of our quarterly revenue, up from 36% a year ago as we continue to grow our partnerships and key customers continue to ramp their vehicle.
Speaker Change: On slide 13, we show the geographic breakdown of our revenue mix for Q1 2025 compared to the prior period.
Speaker Change: Please turn to slide 14, and we will briefly review our cash flow for the period.
Pat Schultz: I would now like to turn the call over to Mr. Schultz to discuss our financials in more detail. Thank you, Mr. Wu, and thank you everyone for tuning in. I will now walk you through our financial...
Speaker Change: Net profit for the three months period was primarily offset by a $19 4 million increase in net receivables.
Speaker Change: Our EMEA business grew by 108% year over year and accounted for 52% of our quarterly revenue up from 36% a year ago as we continue to grow our partnerships and key customers continue to ramp their vehicle production.
Speaker Change: A $15 8 million decrease in inventory.
Speaker Change: And a $21 3 million decrease in net liabilities and accrued expenses.
Speaker Change: There was also a noncash adjustment of $43 2 million from the changes in fair value of warrant liability in convertible loan.
Rodney Worthen: The U.S. increased from 2% to 5% of revenue share compared to Q1 2024 as we continue making inroads with domestic commercial vehicles. The APAC region saw a decrease of less than 1% year-over-year as we continue to target higher-margin islands.
Speaker Change: The U S increased from 2% to 5% of revenue share compared to Q1 2024, as we continue making inroads with domestic commercial vehicle customers.
Pat Schultz: please turn to slide 12. As Mr. Wu mentioned, We achieved a record first quarter. with revenue reaching $116.5 million, up 43% from $81.4 million in Q1 2020. This growth was fueled by strong EMEA sales for commercial. Gross profit for Q1 2025 was $43 million. up from $17.2 million in Q1 2024, a 150% improvement driven by operational execution, increased utilization, and disciplined cost control implementation. Our gross margin improved to 36.9%, up from 21.2% in Q1 2024, a 15.7 percentage point Operating expenses were reduced to $25.5 million in Q1 2025. compared to 40.9 million in Q1 2024, a 38% decrease from the prior This reduction across GNA and R&D was largely due to reductions in share-based compensation.
Speaker Change: This resulted in positive operating cash flow of $7 $2 million.
Speaker Change: The APAC region saw a decrease of less than 1% year over year as we continue to target higher margin opportunity.
Speaker Change: From investing activities, we saw an outflow of $2 3 million for the period, primarily due to net capital expenditures.
Rodney Worthen: Please turn to slide 14 and we will briefly review our cash flow for the period. Net profit for the three-month period was primarily offset by a $19.4 million increase in net receivables. 15.8 million decrease in inventory. and a $21.3 million decrease in net liabilities. There was also a non-cash adjustment of $43.2 million from the changes in fair value of warrant liability and convertible loans. This resulted in positive operating cash flow of $7,000. From investing activities, we saw an outflow of $2.3 million for the period, primarily due to net capital gains. In financing cash flow, we saw a net inflow of 9.5%.
Speaker Change: Please turn to slide 14, and we will briefly review our cash flow for the period.
Speaker Change: For financing cash flow, we saw a net inflow of $9 5 million.
Speaker Change: Net profit for the three months period was primarily offset by a $19 4 million increase in net receivables.
Speaker Change: Overall combined with a slightly negative impact from exchange rates of $1 9 million, we had an increase in cash of $13 4 million.
Speaker Change: A $15 8 million decrease in inventory.
Speaker Change: This resulted in total cash cash equivalents and restricted cash of $123 million at the end of the quarter.
Speaker Change: And a $21 3 million decrease in net liabilities and accrued expenses.
Speaker Change: There was also a noncash adjustment of $43 2 million from the changes in fair value of warrant liability in convertible loan.
Speaker Change: Our financial performance underscores the development of a profitable and resilient foundation supported by increasing market demand, notably in EMEA.
Speaker Change: This resulted in positive operating cash flow of $7 $2 million.
Speaker Change: Our ongoing emphasis on achieving sustainable profitability enhancing margins and improving operational efficiencies is further solidifying our standing we remain dedicated to executing our strategic vision and are confident that our continued progress will increasingly highlight the intrinsic value micro vast off.
Speaker Change: From investing activities, we saw an outflow of $2 3 million for the period, primarily due to net capital expenditures.
Speaker Change: For financing cash flow, we saw a net inflow of $9 $5 million.
Rodney Worthen: Overall, combined with a slightly negative impact from exchange rates of $0.9 million, we had an increase in cash of $13.4 million. This resulted in total cash, cash equivalents, and restricted cash.
Speaker Change: Overall combined with a slightly negative impact from exchange rates of $1 9 million, we had an increase in cash of $13 4 million.
Pat Schultz: and Cost Control Measures we implemented throughout 2020. The increase in sales and marketing was primarily due to our global marketing. Customer Engagement Activities as we continue to expand our product We reported a GAAP net profit of $61.8 million in Q1 2025. compared to a net loss of $24.8 million in Q1. After adjusting for non-cash items, such as share-based compensation, Fair Value Changes of our Warrant Liability and Convertible Loans. Adjusted Net Profit came to $19.3 million, a substantial improvement from an adjusted net loss of $13 million in Q1 2020. After adjusting for non-cash share-based compensation Our adjusted operating expenses in Q1 2025 decreased to $24.9 million, compared to $30.1 million in Q1 2024.
Speaker Change: <unk> to the energy storage and electric vehicle markets.
Speaker Change: This resulted in total cash cash equivalents and restricted cash of $123 million at the end of the quarter.
Mr. <unk>: With that I will hand, it back over to Mr. <unk> to go over our outlook and closing remarks.
Rodney Worthen: $123 million at the end of the quarter. Our financial performance underscores the development of a profitable and resilient foundation, supported by increasing market demand, notably in America. Our ongoing emphasis on achieving sustainable profitability, enhancing margins, and improving operational efficiency. further solidifying.
Speaker Change: Our financial performance underscores the development of a profitable and resilient foundation supported by increasing market demand, notably in EMEA.
Speaker Change: Thank you.
Speaker Change: Please turn to slide 16, which provides a summary outlook for the rest of the year.
Speaker Change: Our ongoing emphasis on achieving sustainable profitability enhancing margins and improving operational efficiencies is further solidifying our standing we remain dedicated to executing our strategic vision and are confident that our continued progress will increasingly highlight the intrinsic value micro <unk>.
Speaker Change: As we look ahead through the remainder of 2025, our initial guidance remains an anticipated year over year revenue increase of 18% to 25%, placing our target range between $450 million and 475.
Rodney Worthen: We remain dedicated to executing our strategic vision and are confident that our continued progress will increasingly highlight the intrinsic value Microvast offers to the energy storage and electric vehicle market.
Speaker Change: Offers to the energy storage and electric vehicle markets.
Speaker Change: Yeah.
Speaker Change: We also continue to aim for a full year gross margin of approximately 70%.
Yang Wu: With that, I will hand it back over to Mr. Wu to go over our outlook and closing remarks. Thank you.
Speaker Change: With that I will hand, it back over to Mr. <unk> to go over our outlook and closing remarks.
Speaker Change: Our APAC operations are focused on bringing the phase three two expansion at our Fujairah facility online later this year.
Speaker Change: Thank you.
Yang Wu: Please turn to slide 16, which provides a summary outlook for the rest of the year. As we look ahead through the remainder of 2025, our initial guidance remains an anticipated year-over-year revenue increase of 18% to 25%, placing our target range between $450 million and $475 million. We also continue to aim for a four-year growth margin of approximately 30 percent.
Speaker Change: Please turn to slide 16, which provides a summary outlook for the rest of the year.
Pat Schultz: We reported positive adjusted EBITDA for the quarter, reaching $28.5 million, as we maintain our focus on achieving sustainable profitability, compared to a negative adjusted EBITDA of $3.7 million in Q1 2020.
Speaker Change: As we look ahead through the remainder of 2025, our initial guidance remains an anticipated year over year revenue increase of 18% to 25%, placing our target range between $450 million and 475.
Speaker Change: This additional capacity expected to reach up to two gigawatt hour annually will be crucial in meeting the robust customer demand across our diverse portfolio.
Pat Schultz: The impact of these adjustments and reconciliations of these non-GAAP metrics to the most comparable GAAP metrics are included in the tables at the end of our press release and this slide presentation.
Speaker Change: Our team now also making significant advancements in developing new and exciting products that will further enrich our offerings.
Speaker Change: Million.
Speaker Change: We also continue to aim for a full year gross margin of approximately 30%.
Pat Schultz: On slide 13, we show the geographic breakdown of our revenue mix for Q1 2025 compared to the prior period. Our EMEA business grew by 108% year-over-year and accounted for 52% of our quarterly revenue, up from 36% a year ago as we continue to grow our partnerships and key customers continue to ramp their vehicle production.
Speaker Change: We anticipate that our high growth EMEA business well maintained its strong momentum.
Yang Wu: Our APAC operations are focused on bridging the Phase 3.2 expansion at our Huzhou facility online later this year. This additional capacity, expected to reach up to 2 gigawatt hours annually, will be crucial in meeting the robust customer demand across our diverse portfolios. Our team are also making significant advancements in developing new and exciting products that will further enrich our offerings. We anticipate that our high-growth EMEA business will maintain a strong momentum, continuing to drive year-over-year revenue increases. We are actively pursuing new strategic partnerships in the region to support both our current and upcoming product lines.
Speaker Change: Our APAC operations are focused on bringing the phase three two expansion at our Fujairah facility online later this year.
Speaker Change: To drive year over year revenue increases we.
Speaker Change: We are actively pursuing new strategic partnerships in the region to support both our current and upcoming product lines.
Speaker Change: This additional capacity expected to reach up to two gigawatt hour annually will be crucial in median Z robust customer demand across our diverse portfolio.
Pat Schultz: The U.S. increased from 2% to 5% of revenue share compared to Q1 2024 as we continue making inroads with domestic commercial vehicles. The APAC region saw a decrease of less than 1% year-over-year as we continue to target higher-margin opportunities.
Speaker Change: In America, we foresee continued revenue growth.
Speaker Change: And our company remains diligent in assessing its financial needs and evaluating available options to support our strategic objectives in current and future markets. Despite navigating a specific regional market pressures our proactive cost.
Speaker Change: Our team now also making significant advancements in developing new and exciting products that will further enrich our offerings.
Pat Schultz: Please turn to slide 14 and we will briefly review our cash flow for the period. Net profit for the three-month period was primarily offset by a $19.4 million increase in net receivables. 15.8 million decrease in inventory. and a $21.3 million decrease in net liabilities and expenses. There was also a non-cash adjustment of $43.2 million from the changes in fair value of warrant liability and convertible loans. This resulted in positive operating cash flow of $7,000. From investing activities, we saw an outflow of $2.3 million for the period, primarily due to net capital expenditures.
Speaker Change: We anticipate that our high growth EMEA business well maintained its strong momentum.
Speaker Change: Management, and our strategic focus on high demand as sectors have positioned us well for continued growth in 2025.
Speaker Change: To drive year over year revenue increases we.
Speaker Change: We are actively pursuing new strategic partnerships in the region to support both our current and upcoming product lines.
Speaker Change: Our priorities for the remainder of this year are firmly set on achieving positive cash flow.
Yang Wu: In America, we foresee continual revenue growth, and our company remains diligent in assessing its financial needs and evaluating available options to support our strategic objectives in current and future markets. Despite navigating specific regional market pressures, our proactive cost management and strategic focus on high-demand sectors have positioned us well for continued growth in 2025.
Speaker Change: In America, we foresee continued revenue growth.
Speaker Change: Turning our strong gross margin profile and expanding our market reach through ongoing innovation and as strategic collaborations.
Speaker Change: And our company remains diligent in assessing its financial needs and evaluating available options to support our strategic objectives in current and future markets. Despite navigating specific regional market pressures our proactive cost.
Pat Schultz: In financing cash flow, we saw a net inflow of $9.5 billion. Overall, combined with a slightly negative impact from exchange rates of $0.9 million, we had an increase in cash of $13.4 million. This resulted in total cash, cash equivalents, and restricted cash. $123 million at the end of the quarter.
Speaker Change: We are confident in our ability to leverage the expanding electrification trend and deliver meaningful long term value to our shareholders.
Speaker Change: Management, and our strategic focus on high demand as sectors have positioned us well for continued growth in 2025.
Speaker Change: Thank you everyone for joining us today to review this historical quarter for the company. We look forward to updating you again next quarter.
Yang Wu: Our priorities for the remainder of this year are firmly set on achieving positive cash flow, sustaining our strong gross margin profile, and expanding our market reach through ongoing innovation and strategic collaborations. We are confident in our ability to leverage the expanding electrification trend and deliver meaningful long-term value to our shareholders.
Speaker Change: Our priorities for the remainder of this year are firmly set on achieving positive cash flow.
Pat Schultz: Our financial performance underscores the development of a profitable and resilient foundation, supported by increasing market demand, notably in America. Our ongoing emphasis on achieving sustainable profitability, enhancing margins, and improving operational efficiency. further solidifying. We remain dedicated to executing our strategic vision and are confident that our continued progress will increasingly highlight the intrinsic value Microvast offers to the energy storage and electric vehicle market.
Speaker Change: This is the conference operator. This concludes the webcast. Thank you for joining micro <unk> first quarter 2025 earnings call you may now disconnect.
Speaker Change: Turning our strong gross margin profile and expanding our market reach through ongoing innovation and as strategic collaborations.
Speaker Change: We are confident in our ability to leverage the expanding electrification trend and deliver meaningful long term value to our shareholders.
Yang Wu: Thank you everyone for joining us today to review this historical quarter for the company.
Speaker Change: Thank you everyone for joining us today to review this historical quarter for the company. We look forward to updating you again next quarter.
Yang Wu: With that, I will hand it back over to Mr. Wu to go over our outlook and closing remarks. Thank you. Please turn to slide 16, which provides a summary outlook for the rest of the year. As we look ahead through the remainder of 2025, our initial guidance remains an anticipated year-over-year revenue increase of 18% to 25%, placing our target range between $450 million and $475 million. We also continue to aim for a four-year growth margin of approximately 30 percent. Our APAC operations are focused on bridging the Phase 3.2 expansion at our Huzhou facility online later this year.
Yang Wu: We look forward to updating you again next quarter.
Operator: This is the conference operator.
Speaker Change: This is the conference operator. This concludes the webcast. Thank you for joining microburst first quarter 2025 earnings call you may now disconnect.
Operator: This concludes the webcast. Thank you for joining Microvast's first quarter 2025 earnings call.
Operator: You may now disconnect. [music]
Speaker Change: Okay.
Speaker Change: [music].
Yang Wu: This additional capacity, expected to reach up to 2 gigawatt hours annually, will be crucial in meeting the robust customer demand across our diverse portfolios. Our team are also making significant advancements in developing new and exciting products that will further enrich our offerings. We anticipate that our high-growth EMEA business will maintain a strong momentum, continuing to drive year-over-year revenue increases. We are actively pursuing new strategic partnerships in the region to support both our current and upcoming product lines. In America, we foresee continual revenue growth, and our company remains diligent in assessing its financial needs and evaluating available options to support our strategic objectives in current and future markets.
Speaker Change: Okay.
Speaker Change: [music].
Yang Wu: Despite navigating specific regional market pressures, our proactive cost management and strategic focus on high-demand sectors have positioned us well for continued growth in 2025. Our priorities for the remainder of this year are firmly set on achieving positive cash flow, sustaining our strong gross margin profile, and expanding our market reach through ongoing innovation and strategic collaborations. We are confident in our ability to leverage the expanding electrification trend and deliver meaningful long-term value to our shareholders.
Speaker Change: Yes.
Speaker Change: [music].
Yang Wu: Thank you everyone for joining us today to review this historical quarter for the company. We look forward to updating you again next quarter.
Operator: This is the conference operator.
Operator: This concludes the webcast. Thank you for joining Microvast's first quarter 2025 earnings call. You may now disconnect.