CBAK Energy Technology Inc (CBAT) 2023 Q3 法說會逐字稿

Good day, ladies and gentlemen. Thank you for standing by and welcome to CBAK Energy Technology's third-quarter 2023 earnings conference call. (Operator Instructions) As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time.

美好的一天，女士們先生們。感謝您的耐心等待並歡迎參加 CBAK Energy Technology 的 2023 年第三季財報電話會議。 （操作員說明）謹此提醒，我們正在對今天的通話進行錄音。如果您有任何異議，您可以此時斷開連接。

Now, I will turn the call over to Thierry Li, CFO and Secretary of the Board. Mr. Li, please proceed.

現在，我將把電話轉給財務長兼董事會秘書李蒂埃里。李先生，請繼續。

Thank you, operator, and hello, everyone. Welcome to CBAK Energy's third-quarter of 2023 earnings conference call. Joining us today are Mr. Yunfei Li, Chief Executive Officer of CBAK Energy; myself, Chief Financial Officer and Secretary of the Board; and Jennifer, our interpreter. Our General Engineer, Mr. Xiujun Tian, will join us for the Q&A section.

謝謝接線員，大家好。歡迎參加 CBAK Energy 2023 年第三季財報電話會議。今天加入我們的是CBAK能源執行長李雲飛先生；我本人，財務長兼董事會秘書；還有我們的翻譯珍妮佛。我們的總工程師田秀軍先生將參加我們的問答環節。

We released our results earlier today. The press release is available on the company's IR website at ir.cbak.com.cn as well as from Newswire services. A relay of this call will also be available in a few hours on our IR website.

我們今天早些時候發布了結果。新聞稿可在公司IR網站ir.cbak.com.cn以及Newswire服務上取得。幾小時後我們的 IR 網站上也將轉播此電話會議。

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

在我們繼續之前，請注意，今天的討論將包含根據 1995 年美國私人證券和訴訟改革法案的安全港條款做出的前瞻性陳述。前瞻性陳述涉及固有的風險和不確定性。因此，公司的實際結果可能與今天表達的預期有重大差異。有關這些以及其他風險和不確定性的更多資訊包含在該公司向 SEC 提交的公開文件中。

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 US dollars.

除適用法律要求外，本公司不承擔更新任何前瞻性聲明的任何義務。另請注意，除非另有說明，電話會議中提到的所有數字均以美元為單位。

With that, let me now turn the call over to our CEO, Mr. Yunfei Li. Mr. Li will speak in Chinese, and I will translate his comments into English. Go ahead, Mr. Lee. (spoken in Chinese)

現在讓我將電話轉給我們的執行長李雲飛先生。李先生用中文發言，我將他的評論翻譯成英文。繼續吧，李先生。 (用中文說)

(spoken in Chinese)

(用中文說)

Thank you and hello, everyone. Thank you for joining our earnings conference call today.

謝謝大家，大家好。感謝您今天參加我們的財報電話會議。

(spoken in Chinese)

(用中文說)

We are delighted to achieve another outstanding quarter of growth in our battery business. In the third quarter of 2023, our battery business generated revenues of $44.33 million, soaring by 71.51% year over year. Compared to the operating loss recorded in the same period last year, during this quarter, we delivered an operating income of $7.58 million and a net income of $7.77 million, which was 6.3 times that of the same period last year.

我們很高興電池業務又實現了一個季度的出色成長。 2023年第三季度，我們的電池業務實現營收4,433萬美元，年增71.51%。與去年同期錄得的營業虧損相比，本季我們實現營業收入758萬美元，淨利777萬美元，是去年同期的6.3倍。

Of these revenues, $42.81 million came from batteries used in energy storage applications, a surge of 73.5% year over year; while $0.4 million came from batteries used in electric vehicles, an increase of 19.5 times year over year. Moreover, revenues from batteries used in light electric vehicles were $1.11 million, down 2.8% year over year.

其中，4,281萬美元來自儲能應用電池，年增73.5%；其中40萬美元來自電動車電池，年增19.5倍。此外，輕型電動車用電池收入為111萬美元，年減2.8%。

For the first nine months of 2023, our battery business generated revenues of $96.16 million, an increase of 44.43% year over year, while delivering an operating income of $6.15 million along with a net income of $6.75 million. The growth across our financial metrics was primarily attributed to our strong foundation of key clients, particularly high-value clients from Europe and the US. Orders from these clients have demonstrated exceptional stability and sustainability. We are confident in sustaining robust performance and profit growth in the upcoming reporting periods.

2023年前9個月，我們的電池業務營收收入9,616萬美元，年增44.43%，營業收入615萬美元，淨利675萬美元。我們財務指標的成長主要歸功於我們強大的關鍵客戶基礎，特別是來自歐洲和美國的高價值客戶。這些客戶的訂單表現出卓越的穩定性和可持續性。我們有信心在未來的報告期間內保持強勁的業績和利潤成長。

Today, the market still faces various external pressures and challenges, including the global economy slowdown. We are proud to stand out as one of the few Chinese battery manufacturers achieving rapid growth and profitability amidst the current macroeconomic environment. Our remarkable performance has garnered substantial interest from private equity investors who have reached out to us regarding our latest developments. (spoken in Chinese)

如今，市場仍面臨包括全球經濟放緩在內的各種外部壓力和挑戰。我們很自豪能夠成為少數在當前宏觀經濟環境下快速成長和獲利的中國電池製造商。我們卓越的業績引起了私募股權投資者的極大興趣，他們向我們詢問我們的最新發展。 (用中文說)

(spoken in Chinese)

(用中文說)

Let me share a more detailed update on our business initiatives during the third quarter. With our increased visibility and enhanced reputation worldwide, our order volume continues to rise. As of November 1, 2023, we have recorded approximately RMB900 million in the combined value of orders we have received but have yet to fulfill across our two main battery production facilities based in Dalian and Nanjing.

讓我分享有關我們第三季業務計劃的更詳細的最新情況。隨著我們在全球知名度的提高和聲譽的提高，我們的訂單量持續增加。截至2023年11月1日，我們位於大連和南京的兩個主要電池生產設施已收到但尚未履行的訂單總價值約為人民幣9億元。

Currently, orders for the Dalian facility have been scheduled toward the end of 2024, and our Nanjing facility is also overwhelmed. Incoming orders from new clients will be subject to further scheduling. In other words, both our revenue and profitability will maintain robust growth momentum over an extended horizon. (spoken in Chinese)

目前，大連工廠的訂單已排到 2024 年底，南京工廠也已不堪負荷。新客戶收到的訂單將進一步安排。換句話說，我們的收入和獲利能力將在較長時期內保持強勁的成長勢頭。 (用中文說)

(spoken in Chinese)

(用中文說)

Regarding client initiatives already announced, as of November 1, 2023, our collaboration with PowerOak, the world's leading portable power station manufacturer and parent company of top-rated portable power supply brand, BLUETTI, has provided us with orders totaling around [RMB43.2] million. We also made great strides in our partnership with the Jinpeng Group, the largest manufacturer of scooters and electric tricycles worldwide, generating orders amounting to roughly [RMB53.59] million.

關於已經公佈的客戶舉措，截至2023年11月1日，我們與全球領先的便攜式電站製造商、頂級便攜式電源品牌BLUETTI的母公司PowerOak合作，為我們提供了總計約[RMB43.2]的訂單。 ] 百萬。我們與全球最大的滑板車和電動三輪車製造商金鵬集團的合作也取得了長足進展，訂單金額約為[人民幣5,359萬元]。

In addition, I want to highlight our continued initiatives with Viessmann Group, a leading European manufacturer of heating and cooling systems. Our productive collaboration has translated into orders totaling up to EUR116.5 million from the beginning of 2023 to November 1.

此外，我想強調我們與歐洲領先的加熱和冷卻系統製造商菲斯曼集團的持續合作。從 2023 年初到 11 月 1 日，我們富有成效的合作已轉化為總額高達 1.165 億歐元的訂單。

Another major partner of ours is Anker Innovations, one of the largest third-party accessory suppliers globally for Apple Incorporated's products. Following our signing in September, we have received orders from Anker Innovations amounting to RMB58.35 million. It is understood that Anker Innovations will spur significant demand for our batteries and is expected place monthly orders on a continued basis.

我們的另一個主要合作夥伴是 Anker Innovations，它是蘋果產品全球最大的第三方配件供應商之一。自9月簽約以來，我們已收到Anker Innovations的訂單金額為人民幣5835萬元。據了解，Anker Innovations 將刺激對我們電池的巨大需求，預計將持續每月下訂單。

Furthermore, I want to highlight the fact that we have been in deep discussions regarding various cooperations, including providing product samples with several major customers from Europe and the US. We will keep our investors informed of any significant updates. (spoken in Chinese)

此外，我想強調的是，我們一直在深入討論各種合作，包括與歐洲和美國的幾家主要客戶提供產品樣品。我們將隨時向投資者通報任何重大更新。 (用中文說)

(spoken in Chinese)

(用中文說)

With our focus on meeting clients' demands, we scale up our investment in production capacity and R&D. In the third quarter of 2023, both our Dalian and Nanjing facilities have reached a production capacity of 1 gigawatt hour. Our subsidiary, Dalian CBAK Power, is currently engaged in the development of the model 46115 and model 46157 lithium batteries, which are new to the market and larger than the current market favorite, model 46800.

我們以滿足客戶需求為中心，增加產能和研發投入。 2023年第三季度，我們的大連和南京工廠產能都達到1吉瓦時。我們的子公司大連CBAK Power目前正在開發46115型和46157型鋰電池，這是市場上的新產品，比目前市場上最受歡迎的46800型鋰電池更大。

With higher energy density and an extended lifespan, these new models are ideal for large-scale energy storage scenarios. Our R&D team is diligently driving these initiatives forward and we expect to have the capacity to mass produce the model 46115 batteries next year. In the long-term plan, we will expand the production capacity for the series 46 batteries to 15 gigawatt hours at the Dalian facility, achieving further supply ramp-up.

這些新車型具有更高的能量密度和更長的使用壽命，非常適合大規模儲能場景。我們的研發團隊正在努力推動這些措施的發展，我們預計明年將有能力批量生產 46115 型電池。在長期計畫中，我們將把大連工廠46系電池的產能擴大到15吉瓦時，實現供應的進一步提升。

In the meantime, the construction of our Nanjing Phase 2 project has been in full swing. The factory roof has been completed, which enables 6 gigawatt hours of production capacity in the first stage. And we expect this production capability to be delivered, fully equipped, and operational soon.

同時，南京二期工程的建設也正在緊鑼密鼓地進行。工廠屋頂已完工，一期產能達6吉瓦時。我們預計這項生產能力將很快交付、裝備齊全並投入營運。

Hence, I wish to highlight that we will have greater overall capacity next year to address the current overwhelming client demand. We will elevate our production efficiency and further propel top-line growth. (spoken in Chinese)

因此，我想強調，明年我們將擁有更大的整體能力來滿足當前巨大的客戶需求。我們將提高生產效率並進一步推動營收成長。 (用中文說)

(spoken in Chinese)

(用中文說)

Finally and importantly, let me walk you through our mass production of sodium-ion batteries. As the only company in China capable of mass producing sodium-ion batteries, we have engaged in extensive discussions with multiple investors on building a sodium-ion battery plant. In the near future, we expect to finalize a substantial amount of private equity financing to expedite the development of our sodium-ion battery plant with a target production capacity of 10 gigawatt hours.

最後也是最重要的一點，讓我帶您了解我們鈉離子電池的大規模生產。作為中國唯一一家能夠大量生產鈉離子電池的公司，我們與多家投資者就建造鈉離子電池工廠進行了廣泛的討論。在不久的將來，我們預計將完成大量私募股權融資，以加快鈉離子電池工廠的發展，目標產能為10吉瓦時。

With the accelerated industrial adoption of sodium-ion batteries, we believe it will become a pivotal focus across various sectors, such as electric scooters, low-speed vehicles, energy storage power stations, and household energy storage solutions. Looking ahead, the company will be empowered by a twin-engine growth model, an impressive 36 gigawatt-hour production capacity of lithium batteries, and a remarkable 10 gigawatt-hour production capacity of sodium-ion batteries.

隨著鈉離子電池在工業上的加速應用，我們相信它將成為電動滑板車、低速汽車、儲能電站和家庭儲能解決方案等各個領域的關鍵焦點。展望未來，公司將以雙引擎成長模式為動力，鋰電池產能達到36吉瓦時，鈉離子電池產能達到10吉瓦時。

We look forward to collaborating with our investors and partners to advance the evolution of the new energy sector and environmental protection technologies. (spoken in Chinese)

我們期待與投資者和合作夥伴共同推動新能源領域和環保技術的發展。 (用中文說)

(spoken in Chinese)

(用中文說)

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

現在，讓我將電話轉給我們的財務長李先生，他將提供有關我們財務表現的詳細資訊。

Thank you, Mr. Li, and thank you everybody for joining our call today. I will now go over our key financial results for the third quarter of 2023. For the full details of our financial results, please refer to our earnings press release.

謝謝李先生，也謝謝大家今天加入我們的電話會議。我現在將回顧我們 2023 年第三季度的主要財務業績。有關我們財務業績的完整詳細信息，請參閱我們的收益新聞稿。

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

隨著第三季電池業務恢復年增，我們的毛利率和營業利潤率也持續改善。這是由於我們的高利潤電池業務的貢獻急劇增加，以及隨著我們進一步利用我們的技術提高生產效率而降低的收入成本。隨著電池產品訂單數量的不斷增加，我們將繼續在成長和獲利之間找到適當的平衡，同時投資研發和產能擴張，以增強我們可持續的長期競爭力。

Turning to our financial performance, our net revenue from the third quarter was $63.4 million, representing an increase of 9.9% compared to $57.7 million in the same period of 2022. This increase was primarily attributable to the growth in the company's battery business.

談到我們的財務業績，我們第三季的淨收入為6,340萬美元，比2022年同期的5,770萬美元成長9.9%。這一成長主要歸功於公司電池業務的成長。

In addition, our net revenue from batteries in the third quarter was $44.3 million, representing a strong growth of 71.5% from the same period in 2022. Our gross margin for the battery business in the third quarter was 26.4%, an increase of 17.7 percentage points from 8.7% in the same period of 2022.

此外，我們第三季來自電池的淨收入為4,430萬美元，較2022年同期強勁成長71.5%。我們第三季電池業務的毛利率為26.4%，成長了17.7個百分點較2022 年同期的8.7%有所提高。

The cost of revenues in the third quarter was $51.2 million, representing a decrease of 5.7% from $54.3 million in the same period of 2022. The decrease in the cost of revenues corresponds to the company's higher gross profit from the battery sector.

第三季的收入成本為5,120萬美元，較2022年同期的5,430萬美元下降5.7%。收入成本的下降與該公司電池部門毛利的較高相對應。

Gross profit in the third quarter was $12.2 million, representing an increase of 254% from $3.5 million in the same period of 2022. Gross margin in the third quarter was 19.3% compared to 6% in the same period of 2022.

第三季毛利為1,220萬美元，較2022年同期的350萬美元成長254%。第三季毛利率為19.3%，較2022年同期的6%成長。

Our total operating expenses in the third quarter rose by 40.8% to $7 million. Within that, our research and development expenses increased by 8.1% to $2.6 million in the third quarter. Sales and marketing expenses increased by 33.8% to $1.1 million in the third quarter. General administration expenses increased by 73.7% to $3.2 million.

第三季我們的總營運支出成長了 40.8%，達到 700 萬美元。其中，第三季我們的研發費用成長了8.1%，達到260萬美元。第三季銷售和行銷費用成長 33.8%，達到 110 萬美元。一般管理費用增加 73.7% 至 320 萬美元。

Our operating income in the third quarter amounted up to $5.3 million compared to an operating loss of $1.5 million in the same period of 2022.

我們第三季的營業收入達 530 萬美元，而 2022 年同期的營業虧損為 150 萬美元。

The change in the fair value of our warrants in the third quarter was $0.02 million compared to $0.94 million (sic - see press release, "$0.14 million") in the same period of 2022. As a result, net income attributable to shareholders of CBAK Energy in the third quarter was $6.3 million compared to net loss attributable to shareholders of CBAK Energy of $290 in the same period of 2022.

第三季我們的認股權證公允價值變動為 20 萬美元，而 2022 年同期為 94 萬美元（原文如此 - 請參閱新聞稿，「14 萬美元」）。因此，歸屬於 CBAK 股東的淨利潤第三季度能源業務虧損630 萬美元，而2022 年同期CBAK Energy 股東應佔淨虧損為290 美元。

That concludes our prepared remarks. Let's now open the call for questions. Operator, please go ahead.

我們準備好的演講到此結束。現在讓我們開始提問。接線員，請繼續。

Thank you. (Operator Instructions) Brian Lantier, Zacks Small Cap Research.

謝謝。 （操作說明）Brian Lantier，Zacks Small Cap Research。

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

下午好，先生們。在充滿挑戰的操作環境中，性能確實令人印象深刻。如果我可以更深入地了解電力—不間斷電源業務，您是否認為第三季的成長主要是由新客戶的贏得或現有客戶群的銷售增加所推動的？聽起來，展望未來，一些新客戶將為這一成長做出更大的貢獻。現在，我將接著提出另一個問題。

(spoken in Chinese)

(用中文說)

(spoken in Chinese)

(用中文說)

(spoken in Chinese)

(用中文說)

(spoken in Chinese)

(用中文說)

(spoken in Chinese)

(用中文說)

(spoken in Chinese) Okay.

（用中文發言）好的。

(spoken in Chinese)

(用中文說)

Okay. So in response to your first question, yes. Indeed, the growth in our third season -- third quarter, partly due to the existing customers that we have. For example, our customers of Dalian and Nanjing have substantially increased their orders. And that also lead to the growth of our sales volume. And because of that, we also have developed some new customers who also contribute to the growth of our sales.

好的。所以回答你的第一個問題，是的。事實上，我們第三季的成長，部分歸功於我們現有的客戶。例如，我們的大連和南京客戶的訂單大幅增加。這也導致了我們銷量的成長。正因為如此，我們也開發了一些新客戶，他們也為我們的銷售成長做出了貢獻。

So this is the situation that you can see in the third quarter. And because of that, for example, for our model 32140, we have already passed the certification. So in terms of our production, we have started from a small lot production and gradually transformed into official mass production. And we also believe that this will contribute to our further sales growth.

這就是你在第三季看到的情況。正因為如此，例如我們的32140型號，我們已經通過了認證。所以在我們的生產方面，我們是從小批量生產開始，逐漸轉變為正式的大量生產。我們也相信這將有助於我們進一步的銷售成長。

And in the meantime, we are also expanding our production lines as well as our production capacity for the 26 series projects. So we also believe that this will bring in more sales volumes in the future.

同時，我們也正在擴大26個系列項目的生產線和產能。所以我們也相信這會在未來帶來更多的銷售。

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

偉大的。非常感謝您所做的一切。如果我能問一個有關原物料業務的問題，我知道過去外部投資者對此有一些興趣。這是你仍在探索的事情嗎？或者我想只是對原材料業務及其現狀進行整體更新。

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Okay, good.

好的。

Brian, I will respond to your questions. As you can see, the industry -- the raw material industry is experiencing a slow down. Almost all the raw material producers are suffering declines in sales volume. Same applies to Hitrans raw material units. But Hitrans actually has a very, very decent and good client structure, such that the rates from CATL is also their kind. So we believe that once the industry recovers, Hitrans will improve their financial performance sharply.

布萊恩，我會回答你的問題。正如你所看到的，原料產業正在經歷放緩。幾乎所有原料生產商的銷售量都在下降。這同樣適用於 Hitrans 原料單位。但Hitrans其實有一個非常非常好的客戶結構，CATL的費率也是他們的。因此我們相信，一旦產業復甦，Hitrans 的財務表現將大幅改善。

Moreover, we didn't actually integrate Hitrans's business into our battery business. We act only as a financial investors. Their team is completely independent from our team. That's why in our Form 10-Q and in our press release, we always separate the financial performance from Hitrans from our battery business. That's much more reasonable.

而且，我們實際上並沒有把Hitrans的業務整合到我們的電池業務中。我們僅充當財務投資者。他們的團隊完全獨立於我們的團隊。這就是為什麼在我們的 10-Q 表格和新聞稿中，我們總是將 Hitrans 的財務表現與我們的電池業務分開。這樣就合理多了。

So as you just say, there are a lot of investors getting interested in Hitrans. And we believe that once the industry recovers, they will be good. So we encourage a lot of the private equity investors. We will also refer a lot of the private equity investors to Hitrans for the purpose of funding them to expand their capacity and also to see who will be able to get the deal with those investors.

正如你剛才所說，有很多投資者對 Hitrans 感興趣。我們相信，一旦產業復甦，它們就會好起來。所以我們鼓勵很多私募股權投資者。我們也將向 Hitrans 推薦許多私募股權投資者，以資助他們擴大產能，並看看誰能夠與這些投資者達成交易。

Great. Thank you so much.

偉大的。太感謝了。

Thank you. (Operator Instructions) [Feikou Wu], TPG.

謝謝。 （操作員說明）[Feikou Wu]，TPG。

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I would like to pose a question concerning the sodium-ion battery. I would like to know -- in your speech, you mentioned that you have been engaged in the preparation and the construction of sodium-ion battery. I would like to know if you can give us more updates about the technology the company have with the sodium-ion battery. If we talk about the project implementation stage, at what stage is this project getting progressed? Could you give me also another update?

我想問一個關於鈉離子電池的問題。我想知道—您在演講中提到您一直在從事鈉離子電池的製備和建造。我想知道您是否能為我們提供有關該公司鈉離子電池技術的更多最新資訊。如果我們談論專案實施階段，這個專案進展到什麼階段了？你能給我另一個更新嗎？

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(spoken in Chinese) Okay. (spoken in Chinese)

（用中文發言）好的。 (用中文說)

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Okay, okay. So in response to your first question, well, for sodium-ion battery, in June this year, we released the first sodium-ion battery product. And this is -- we can say that in China, we are the first company to realize the mass production of sodium-ion battery. Although in the market, some of the competitors also announced that they are doing the research or production of these sodium iron battery products, however, we are the company that really can realize a mass production.

好吧好吧。那麼針對你的第一個問題，那麼鈉離子電池方面，今年6月我們就發表了第一個鈉離子電池產品。這是——可以說，在中國，我們是第一家實現鈉離子電池量產的公司。雖然市場上也有一些競爭對手宣稱正在研究或生產這些鈉鐵電池產品，但我們是真正能夠實現量產的公司。

And this year, we also achieved the installation of this sodium iron battery in the vehicle and, in fact, turned out to be really satisfactory. And for our battery products, it can realize 2,000 to even more than 3,000 rounds. So we can say we have already have a stable product system in place.

今年，我們也實現了這種鈉鐵電池在車輛上的安裝，事實上，結果非常令人滿意。而我們的電池產品，可以實現2000發甚至3000多發。可以說我們已經有了一個穩定的產品體系。

And talking about the production line construction, well, we can say our company and our products is very popular. In the market, there are some other competitors, but they are only at a very early stage. For example, they only have their startup teams or they only have some samples. However, for us, for our company, CBAK have managed to come up with a product with 0.5 gigawatts, and the production capacity will be expanded in the future.

說到生產線建設，可以說我們的公司和我們的產品非常受歡迎。市場上還有一些其他競爭對手，但他們還處於非常早期的階段。例如，他們只有自己的新創團隊或只有一些樣本。但對我們來說，對於我們公司來說，CBAK已經拿出了0.5吉瓦的產品，而且未來產能還會擴大。

So at present, four partners have approached us, and we are trying to select one place. But we can say four local governments have approached us. We are trying to select one place for the construction of the production line, and we are trying to select the best from these four.

所以目前已經有四個合作夥伴找我們了，我們正在努力選擇一個地方。但可以說有四個地方政府已經與我們接洽。我們正在嘗試選擇一個地方來建造生產線，我們正在嘗試從這四個地方中選擇最好的。

And then in the next year, we are even going to expand our production capacity to be as high as 10 gigawatts. And in that case, it will put us in a better position to cater to the demand of our customers.

然後明年我們甚至要把產能擴大到10吉瓦。在這種情況下，這將使我們能夠更好地滿足客戶的需求。

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

在您的介紹中，您提到CBAK已成為安克創新的業務合作夥伴。我想知道Anker的訂單量有多大。您能否與我們分享您對與 Anker 合作的期望？

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(spoken in Chinese) So at present, Anker has already finished the opening of models here with our factory. Seven to eight products of Anker will use our battery. And actually, they started their pilot production here, and the results turned out to be great. That is why they decided to export the products to Europe, the States, Japan, and India.

（中文） 那麼目前Anker已經和我們工廠在這裡完成了開模工作。 Anker的七到八款產品將使用我們的電池。事實上，他們在這裡開始了試生產，結果非常好。這就是為什麼他們決定將產品出口到歐洲、美國、日本和印度。

And we already have in-depth communication with Anker, talking about future cooperation and talking about deepen our future cooperation. And besides that, if we have a look at the expectation for the order volume, at present, it's about 500,000 items with an order value of about RMB20 million. And in the future, it will be increased to -- it is expected to be increased to 800,000 to 1.2 million items. And that is within order value of about RMB40 million.

而且我們已經和Anker進行了深入的溝通，談論未來的合作，談論深化我們未來的合作。另外，如果我們看一下訂單量的預期，目前大概是50萬件左右，訂單金額約2000萬元。未來，預計將增加到80萬至120萬件。訂單價值約4000萬元人民幣。

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

謝謝。看到隊列中沒有更多問題，讓我將電話轉回給李雲飛先生進行總結發言。

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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.

謝謝接線員，也感謝大家參加今天的電話會議並給予支持。我們感謝您的關注，並期待下個季度再次向您報告我們的進展。

Thank you all again. This concludes the call. You may now disconnect.

再次感謝大家。通話就此結束。您現在可以斷開連線。