Lion Electric Co (LEV) 2024 Q2 法說會逐字稿

Good morning, ladies and gentlemen. Welcome to Lion Electric's second-quarter 2024 results conference call. (Operator instructions) As a reminder, this conference call is being recorded.

早安，女士們先生們。歡迎參加雄獅電氣 2024 年第二季業績電話會議。（操作員說明）謹此提醒，本次電話會議正在錄音中。

I would now like to turn the call over to Isabelle Adjahi, Vice President, Investor Relations and Sustainable Development. Please go ahead, Ms. Adjahi.

我現在想將電話轉給投資者關係和永續發展副總裁 Isabelle Adjahi。請繼續，阿賈希女士。

Good morning, everyone. Welcome to Lion's second-quarter 2024 results conference call. (speaking in foreign language)Today, I'm here with Marc Bedard, our CEO, Founder; Nicolas Brunet, our President; and Richard Coulombe, our Chief Financial Officer.

大家早安。歡迎參加 Lion 2024 年第二季業績電話會議。（用外語發言）今天，我和我們的執行長兼創辦人 Marc Bedard 在一起；尼古拉斯·布魯內特，我們的總統；和我們的財務長理查德·庫隆布。

Please note that our discussion may include estimates and other forward-looking information and that our actual results could differ materially from those implied in any such statements. We invite you to review the cautionary language in this morning's press release and in our MD&A, which contains important information regarding various factors, assumptions and risks that could impact our actual results.

請注意，我們的討論可能包括估計和其他前瞻性訊息，我們的實際結果可能與任何此類聲明中暗示的結果有重大差異。我們邀請您查看今天早上的新聞稿和 MD&A 中的警示性語言，其中包含有關可能影響我們實際結果的各種因素、假設和風險的重要資訊。

With that, let me turn it over to Marc to begin, Marc?

那麼，讓我把它交給馬克來開始吧，馬克？

Thank you, Isabelle. Good morning, everyone. Thank you for joining us today. The challenges that we had signaled at the beginning of the year persisted in the second quarter and continues to put pressure on the company from a cash flow management standpoint. These challenges stem from continued delays with the Canadian Federal DTF program as well as a slowdown in deliveries in the US EPA program as expected, given that we are currently in between funding runs.

謝謝你，伊莎貝爾。大家早安。感謝您今天加入我們。我們在年初表示的挑戰在第二季度仍然存在，並從現金流管理的角度繼續給公司帶來壓力。這些挑戰源自於加拿大聯邦 DTF 計畫的持續拖延，以及美國 EPA 計畫的交付速度如預期放緩，因為我們目前正處於融資期間。

Of course, these lower deliveries had an important impact on our revenue, profitability and liquidity position. Management and optimization of our liquidity, therefore, remains our top priority, and it is critical for Lion to have the right cost structure for today's demand environment. In this context, we are implementing several initiatives to streamline our operations, improve our liquidity and position us to achieve our goal of being profitable in a foreseeable future.

當然，交付量的下降對我們的收入、獲利能力和流動性狀況產生了重要影響。因此，管理和最佳化我們的流動性仍然是我們的首要任務，對於 Lion 而言，擁有適合當今需求環境的正確成本結構至關重要。在此背景下，我們正在實施多項舉措，以簡化我們的運營，提高我們的流動性，並使我們能夠在可預見的未來實現盈利的目標。

First, we are adjusting our approach to truck manufacturing to better align with the pace at which truck operators are transitioning to electric. Over the past years, we have built a leadership position in medium and heavy-duty electric trucks. We are one of the few companies having deployed a critical mass of vehicles in this space.

首先，我們正在調整卡車製造方法，以更好地適應卡車營運商向電動轉型的步伐。在過去的幾年裡，我們在中型和重型電動卡車領域建立了領導地位。我們是少數在這一領域部署足夠數量車輛的公司之一。

However, while the electric truck market continues to represent a very high potential opportunity for Lion, industry volumes in the near term have been significantly lower than expected. To address this, we are instating a batch size manufacturing approach for our electric trucks, thus directly aligning manufacturing with our order book. This approach aims at optimizing our liquidity profile, while maintaining lines leadership in electric trucks.

然而，雖然電動卡車市場仍然對 Lion 來說是一個非常高的潛在機會，但短期內的行業銷售量卻大大低於預期。為了解決這個問題，我們正在為我們的電動卡車制定批量製造方法，這直接使製造與我們的訂單保持一致。這種方法旨在優化我們的流動性狀況，同時保持電動卡車生產線的領先地位。

Second, we are transforming our battery operations into a product line, aiming to sell our battery packs to third parties. Since we believe our battery packs are well-suited for a lot of different markets. Battery sales are expected to start contributing to revenues and cash flows next year, ultimately better leveraging our current battery manufacturing capacity without any additional capital expenditures.

其次，我們正在將電池業務轉變為產品線，旨在將我們的電池組出售給第三方。因為我們相信我們的電池組非常適合許多不同的市場。電池銷售預計將於明年開始為收入和現金流做出貢獻，最終更好地利用我們當前的電池製造能力，而無需任何額外的資本支出。

Third, we are launching a process to maximize usage of all of our facilities since we have significantly more footprint than we need in the current market conditions. This footprint reduction also aligns with the changes to our truck manufacturing operations I just alluded to. Specifically, we are launching a process to sublease a significant portion of our Joliet plant. Our 900,000 square foot plant was initially designed and sized for 75% truck production and 25% school bus production.

第三，我們正在啟動一個流程，以最大限度地利用我們所有的設施，因為我們的佔地面積遠遠超過當前市場條件下的需要。這種佔地面積的減少也與我剛才提到的卡車製造業務的變化一致。具體來說，我們正在啟動一項轉租喬利埃特工廠很大一部分的流程。我們佔地 90 萬平方英尺的工廠最初設計和規模適合 75% 的卡車生產和 25% 的校車生產。

Given that all truck manufacturing will be performed in syndrome for the next few years, we currently have important access footprint capacity in Joliet. We are therefore aiming to significantly reduce the current rental expense of $5 million per year, while keeping the necessary footprint to maintain our production capacity of 2,500 school buses per year at the Joliet plant.

鑑於未來幾年所有卡車製造都將在綜合症中進行，我們目前在喬利埃特擁有重要的通道足跡能力。因此，我們的目標是大幅減少目前每年 500 萬美元的租賃費用，同時保留必要的佔地面積，以維持喬利埃特工廠每年 2,500 輛校車的生產能力。

Furthermore, we are looking to sublease certain of our 12 experienced centers and partner with additional service providers in specific regions, thus further reducing our rental expenses while expanding our service coverage. Additionally, we will reduce our total workforce by approximately 200 people across the entire organization to align with the action plan I just mentioned.

此外，我們正在尋求轉租我們 12 個經驗豐富的中心中的某些中心，並與特定地區的其他服務提供者合作，從而進一步減少我們的租賃費用，同時擴大我們的服務覆蓋範圍。此外，我們將在整個組織中減少約 200 名員工，以符合我剛才提到的行動計畫。

Many of the affected positions will be in product development, considering that the development of new platforms is now behind us. This workforce reduction should reduce our payroll cost by approximately $25 million on an annual basis. We are extremely thankful to all of our employees, and we deeply regret the impact that this measure will have on those affected. We are, of course, committed to assist them through this transition.

考慮到新平台的開發現已落後，許多受影響的職位將從事產品開發。此次裁員將使我們的工資成本每年減少約 2500 萬美元。我們非常感謝所有員工，並對這項措施給受影響的人帶來的影響深感遺憾。當然，我們致力於幫助他們完成這項過渡。

Finally, we are working to also significantly reduce our non-salary cost structure by decreasing our operational expenses in areas such as third-party logistics, consultants and selling and administrative costs. Our adjusted cost structure will be well aligned to support the increasing electric school bus demand and maintain our leadership position while allowing us to keep supporting truck operators and there are electric transition.

最後，我們也致力於透過減少第三方物流、顧問以及銷售和管理成本等領域的營運費用來大幅降低我們的非工資成本結構。我們調整後的成本結構將很好地支援不斷增長的電動校車需求並保持我們的領導地位，同時使我們能夠繼續支持卡車營運商和電動轉型。

In Q2, we also made a number of important operational and financial achievements, which I will now highlight. We certified our second model of battery packs, the Lion HD battery. With all our battery pack certifications behind us, we are now working on integrating these packs on all of our vehicles and selling our packs to third parties.

在第二季度，我們也取得了一些重要的營運和財務成就，我現在將重點介紹這些成就。我們認證了我們的第二款電池組，Lion HD 電池。憑藉我們所有的電池組認證，我們現在正致力於將這些電池組整合到我們所有的車輛上，並將我們的電池組出售給第三方。

We performed a commercial launch of our LionD tractor truck, a game changer with its GBP127,000 GCWR capacity. Equipped with our proprietary LionD batteries, the Lion A tractor truck at the pinnacle of heavy duty electric vehicles, tackling the largest addressable market in the truck space. Commercial production and customer deliveries are expected to take place later this year.

我們對 LionD 牽引車進行了商業發布，這是一款具有 127,000 英鎊 GCWR 容量的遊戲規則改變者。Lion A 牽引卡車配備了我們專有的 LionD 電池，是重型電動車的巔峰之作，佔據了卡車領域最大的潛在市場。商業生產和客戶交付預計將於今年稍後進行。

We reached an important milestone with the EPA clean school bus program, having just recently finalized the agreement, allowing us to execute formal purchase orders with customers for our EPA grant of 97 units, representing $38 million. Additionally, Lion clients were awarded 127 school bus rebates as part of the latest round of DPA program, representing $39 million.

我們在 EPA 清潔校車計劃方面實現了一個重要的里程碑，最近剛剛敲定了協議，使我們能夠與客戶一起執行 EPA 撥款 97 輛、價值 3800 萬美元的正式採購訂單。此外，作為最新一輪 DPA 計劃的一部分，Lion 客戶還獲得了 127 筆校車折扣，價值 3,900 萬美元。

For both of these rounds, we are actively working with customers to obtain formal purchase orders and fulfill other requirements to claim payments from the EPA. Those two rounds together represent a potential of approximately $77 million in upfront payments in the coming months. Additionally, both rounds represent important sources of additional potential purchase orders.

對於這兩輪，我們正在積極與客戶合作，以獲得正式採購訂單並滿足其他要求，以向 EPA 索取付款。這兩輪融資合計意味著未來幾個月可能獲得約 7,700 萬美元的預付款。此外，這兩輪都是額外潛在採購訂單的重要來源。

Since a number of school districts and contractors have been awarded directly and considering doing business with Lion, given our reputation of delivering a complete solution, including the charging infrastructure installation in a timely manner. We also continued to execute our inventory reduction plan with a $20 million year-to-date inventory reduction as of June 30. We reiterate our objective to reduce inventory by $50 to $75 million over 2024, and we are heading in the right direction, considering the significant decrease of $23 million of our raw material and WIP inventory in Q2.

鑑於我們在提供完整解決方案（包括及時安裝充電基礎設施）方面的聲譽，許多學區和承包商已直接獲得合約並考慮與 Lion 開展業務。我們也繼續執行庫存削減計劃，截至 6 月 30 日，年初至今已削減了 2,000 萬美元的庫存。我們重申我們的目標是在 2024 年將庫存減少 5,000 至 7,500 萬美元，考慮到第二季度我們的原材料和 WIP 庫存大幅減少 2,300 萬美元，我們正在朝著正確的方向前進。

Looking forward, our priorities for the rest of 2024 are, managing and optimizing liquidities, including through our cost reduction action plan I described earlier as well as opportunities to strengthen our financial position, growing our order book and increasing deliveries, integrating Lion batteries on our vehicles and advancing our new battery product line and working closely with the Canadian government to increase the approval of applications under the DTF program.

展望未來，我們2024 年剩餘時間的首要任務是管理和優化流動性，包括透過我之前描述的降低成本行動計劃以及加強我們財務狀況的機會、增加訂單量和增加交付量、將Lion 電池整合到我們的產品中。

I will note turning to Nicolas.

我會注意到轉向尼古拉斯。

Thank you, Marc. Let me start by discussing deliveries, then address the order book. During the quarter, we delivered 101 vehicles, comprising 95 buses and 6 trucks. 84 vehicles were delivered in Canada and 17 in the US.

謝謝你，馬克。讓我先討論交付，然後討論訂單簿。本季度，我們交付了 101 輛車輛，其中包括 95 輛巴士和 6 輛卡車。加拿大交付了 84 輛，美國交付了 17 輛。

The decline in deliveries was mostly the result of persistent delays with the ETF program, coupled with the timing of EPA related deliveries as we are in between funding rounds for the program. Deliveries were also impacted by a slowdown in our production cadence as we are starting the integration of our LionD batteries onto our vehicles.

交付量的下降主要是由於 ETF 計劃持續延遲，再加上 EPA 相關交付的時間安排，因為我們正處於該計劃的融資輪次之間。由於我們開始將 LionD 電池整合到我們的車輛上，因此生產節奏放緩也影響了交付。

Q2 deliveries include an additional 9 buses to our customer who obtain funding approval under the ZTF program for 200 school buses last quarter, bringing the total buses delivered for this client to 59. We expect the remaining units from this order to be delivered over the remainder of 2024 and over 2025. In terms of purchase orders as of July 30, 2024, Lion's vehicle order book stood at 1,994 vehicles consisting of 1,804 buses and 190 trucks, representing a combined total order value of approximately $475 million.

第二季交付的車輛包括向我們的客戶額外交付的 9 輛巴士，該客戶上季度獲得了 ZTF 計劃的 200 輛校車資金批准，使為該客戶交付的巴士總數達到 59 輛。我們預計該訂單的剩餘設備將在 2024 年剩餘時間和 2025 年交付。截至 2024 年 7 月 30 日的採購訂單方面，Lion 的車輛訂單量為 1,994 輛，其中包括 1,804 輛巴士和 190 輛卡車，訂單總價值約為 4.75 億美元。

The momentum in the purchase order book for the quarter was impacted by the timing of funding rounds and the EPA's clean school bus program. We, however, expect that purchase orders related to the EPA program to gain momentum as we have just recently finalized the agreement to be able to solicit formal purchase orders from customers for our grant of 97 units, representing $38 million.

本季度採購訂單的動能受到融資輪次時間和 EPA 清潔校車計畫的影響。然而，我們預計與 EPA 計劃相關的採購訂單將獲得動力，因為我們最近剛剛敲定了協議，能夠向客戶徵求正式採購訂單，以授予我們 97 個單位，價值 3800 萬美元。

Additionally, clients who filed applications through Lion in the latest rounds of the EPA program were awarded 127 school bus rebates, representing $39 million. For both rounds of the EPA program, we are working with customers to obtain formal purchase orders and planned deliveries. As of July 30, 66 units out of the 224 awards obtained to the Lion filed applications were included in the order book.

此外，在最新一輪 EPA 計劃中透過 Lion 提交申請的客戶獲得了 127 份校車折扣，價值 3,900 萬美元。對於兩輪 EPA 計劃，我們正在與客戶合作以獲得正式採購訂單和計劃交付。截至 7 月 30 日，Lion 提交的申請獲得的 224 份獎勵中，有 66 份已列入訂單。

These two rounds of the program together represent the potential of approximately $77 million in upfront payments from the EPA in the coming months. We are working diligently with customers to obtain formal purchase orders and fulfill other requirements to submit payments request with the EPA. Payment requests with the EPA relating to some of these orders have already been initiated.

這兩輪計畫總共代表 EPA 在未來幾個月內可能提供約 7,700 萬美元的預付款。我們正在與客戶努力合作，以獲得正式採購訂單並滿足向 EPA 提交付款請求的其他要求。已經向美國環保署提出了與其中一些訂單相關的付款請求。

Important to note, both rounds of the EPA program represent important sources of potential additional purchase orders over the 224 awards from Lion filed application given that a number of school districts and contractors have applied and been awarded directly. We expect deliveries related to these two rounds of the EPA program to start mostly towards the end of the year.

值得注意的是，鑑於許多學區和承包商已申請並直接授予，兩輪 EPA 計劃都是 Lion 提交的 224 份申請中潛在額外採購訂單的重要來源。我們預計與這兩輪 EPA 計劃相關的交付大部分將在今年年底開始。

In addition to the EPA clean school bus program, under which over $2 billion remain to be allocated by 2026, various other incentive programs targeting electric school buses are expected to further stimulate demand. These include programs such as the EPA clean heavy duty vehicles program, which allocates $932 million to replace class six and seven zero-emission vehicles, including over $650 million, specifically for school buses.

除了 EPA 清潔校車計畫（到 2026 年仍需撥款超過 20 億美元）之外，其他針對電動校車的各種激勵計畫預計將進一步刺激需求。其中包括 EPA 清潔重型車輛計劃等計劃，該計劃撥款 9.32 億美元用於更換六級和七級零排放車輛，其中超過 6.5 億美元專門用於校車。

The California's zero-emission school buses and infrastructure or ZB program, which allocates $500 million for the purchase of electric school buses and charging infrastructure. The new Canada public Transit Fund announced in July, which will allocate up to $3 billion annually starting in 2026 to respond to local public transit needs, including $500 million per year over 10 years to electrified public transit and school transportation. Altogether, this translate into over $6 billion of funding to be available for school bus and infrastructure purchases.

加州零排放校車和基礎設施或ZB計劃，該計劃撥款5億美元用於購買電動校車和充電基礎設施。7月宣布新的加拿大公共交通基金，從2026年開始每年撥款高達30億加元，以滿足當地公共交通需求，其中包括10年內每年撥款5億加元用於電氣化公共交通和學校交通。總之，這意味著超過 60 億美元的資金可用於購買校車和基礎設施。

On the truck side, the Lion5 and Lion8 tractor platforms, which are both available for orders continue to drive strong interest from potential customers as demonstrated by demand for ride and drives and vehicle demos, which we believe positions us well to serve truck operators when the shift to EV accelerates.

在卡車方面，可供訂購的Lion5 和Lion8 牽引車平台繼續引起潛在客戶的濃厚興趣，這從乘坐和駕駛以及車輛演示的需求中可以看出，我們相信這使我們能夠在以下情況下為卡車運營商提供服務：向電動車的轉變正在加速。

Last, a word on ZETF. We are pursuing an active dialogue with Canadian federal officials, and we are hopeful that a satisfactory resolution to allow for additional deliveries under this program can be reached. Finally, our Lion Energy order book currently stands at $9 million, a significant increase from prior quarters.

最後，談 ZETF。我們正在與加拿大聯邦官員進行積極對話，我們希望能夠達成令人滿意的解決方案，以便根據該計劃進行更多交付。最後，我們的 Lion Energy 訂單目前為 900 萬美元，比前幾季大幅增加。

I will now turn it over to Richard to discuss our financial results. Richard?

我現在將把它交給理查德討論我們的財務表現。理查德？

Thank you, Nicolas. I will start by commenting on Q2 results. I will then discuss our liquidity position and provide color for the rest of 2024. In Q2 we recorded quarterly revenues of $30 million, driven by lower unit sales due to factors already discussed by Marc and Nicolas. These lower revenues, coupled with increased manufacturing costs resulting both from the ramp-up of new LionD and Lion5 models and the integration of Lion MD, bad riddance to our vehicles, also impacted profitability.

謝謝你，尼古拉斯。我將首先評論第二季度的結果。然後我將討論我們的流動性狀況，並為 2024 年剩餘時間提供色彩。第二季度，我們的季度營收為 3,000 萬美元，這是由於 Marc 和 Nicolas 已經討論過的因素導致銷售下降所致。收入的下降，加上新的 LionD 和 Lion5 車型的增加以及 Lion MD 的整合導致的製造成本增加，以及我們車輛的不良擺脫，也影響了盈利能力。

For Q2, gross margin was negative $15 million and EBITDA negative $20 million. That said, our business model continues to show attractive unit-level economics. Our financial performance should therefore be positively impacted by increase in volumes. Until then, we will continue to tightly manage liquidity and control costs as we are starting to see the impact of previously announced cost-cutting measures.

第二季毛利率為負 1,500 萬美元，EBITDA 為負 2,000 萬美元。也就是說，我們的商業模式持續展現出有吸引力的單位層級經濟效益。因此，我們的財務表現應該會受到銷售增加的正面影響。在此之前，我們將繼續嚴格管理流動性並控製成本，因為我們開始看到先前宣布的成本削減措施的影響。

Q2 SG&A of $14.7 million was down over $1 million from prior year. We also saw a significant reduction of CapEx and R&D, which respectively, amounted to CapEx of $1.3 million, down approximately $18 million from last year and R&D of $9.4 million, down approximately $8 million from last year.

第二季 SG&A 為 1,470 萬美元，比去年同期減少 100 萬美元以上。我們也看到資本支出和研發費用大幅減少，資本支出分別為 130 萬美元，比去年減少約 1,800 萬美元，研發費用為 940 萬美元，比去年減少約 800 萬美元。

Now moving on to liquidity. Despite lower unit sales in Q2, we made good progress with our inventory reduction plan, decreasing inventory by $7 million in Q2 and $20 million for the first half of 2024. Just in Q2, we decreased our raw material and WIP inventory by $23 million. We, therefore, reiterate our objective of a $50 to $75 million inventory reduction for the year.

現在轉向流動性。儘管第二季的銷售量較低，但我們的庫存削減計畫取得了良好進展，第二季庫存減少了 700 萬美元，2024 年上半年減少了 2,000 萬美元。就在第二季度，我們的原料和 WIP 庫存減少了 2,300 萬美元。因此，我們重申今年庫存減少 5,000 至 7,500 萬美元的目標。

Separately, we announced on July 2, an amendment to various loan facilities. This agreement with our lenders provides relief for certain financial covenants from June 30 until September 30. It also provides for the capitalization of 50% of interest payments a delay of interest payments due under the revolver and the requirement to maintain a minimum liquidity of CAD15 million at all times.

另外，我們於 7 月 2 日宣布了多項貸款安排的修訂。與我們的貸方達成的這項協議為 6 月 30 日至 9 月 30 日期間的某些財務契約提供了救濟。它還規定將利息支付的 50% 資本化、循環到期利息支付延遲以及始終保持最低流動性 1500 萬加元的要求。

In parallel, we entered into a new CAD5 million loan facility with Investec notepad. As of June 30, we had available liquidity of approximately $25 million. As we look ahead, we will continue to actively evaluate different opportunities that may enable us to improve liquidity and strengthen our financial position, which remains our key priority.

同時，我們透過天達記事本簽訂了新的 500 萬加元貸款協議。截至 6 月 30 日，我們可用的流動資金約為 2,500 萬美元。展望未來，我們將繼續積極評估不同的機會，這些機會可能使我們能夠改善流動性並增強我們的財務狀況，這仍然是我們的首要任務。

I will now pass it over to Marc for concluding remarks. Marc?

現在我將把它交給馬克做總結發言。馬克？

Thank you, Richard. The electric vehicle market has been challenging in many regards in the last few years for EV manufacturers. But without a doubt, the EV market is here to stay. At Lion, we are very well equipped to support the operators in their transition to electric as demonstrated by the more than 28 million miles driven on our 2,100 vehicles on the road.

謝謝你，理查。過去幾年，電動車市場對電動車製造商來說在許多方面都面臨挑戰。但毫無疑問，電動車市場將持續存在。在 Lion，我們有能力支持營運商向電動轉型，我們的 2,100 輛汽車在路上行駛了超過 2800 萬英里就證明了這一點。

Since the pace of electrifying transportation depends on many factors, including the timing of government programs, we believe that all the changes we have made through the last year and the ones we are making today had to be done to successfully align our business model to this reality.

由於電氣化交通的步伐取決於許多因素，包括政府計劃的時間安排，我們相信，我們去年所做的所有改變以及我們今天所做的改變都必須完成，才能成功地將我們的業務模式與此相結合現實。

Our objective for the balance of 2024 is to materialize all the measures we announced to be fully prepared to attack 2025 with a very efficient cost structure, one that can position us to reach our profitability goals with our electric school bus business and can also allow us to grow our electric truck business at the same pace as the truck operators will transition to electric.

我們 2024 年剩餘時間的目標是落實我們宣布的所有措施，以非常有效的成本結構為迎接 2025 年做好充分準備，這一結構可以使我們透過電動校車業務實現盈利目標，也可以讓我們隨著卡車營運商向電動化轉型，我們的電動卡車業務將保持同樣的成長速度。

Thank you for your attention this morning. Let's now open the lines for questions.

感謝您今天早上的關注。現在讓我們開始提問。

Thank you. ci

謝謝。字

Mike Shlisky, D.A. Davidson.

麥克‧史利斯基 (Mike Shlisky)，D.A.戴維森。

Good morning and thanks for taking my question. I want to ask about your plans to sell batteries through the new division. Just a little more detail there, I guess what, types of batteries will you be selling as far as size is? Is there only going to be the things you already sell when you have the ability to make per vehicles or other sizes?

早安，感謝您提出我的問題。我想問一下你們透過新部門銷售電池的計畫。稍微詳細一點，我猜你們將銷售什麼類型的電池以及尺寸？當您有能力以車輛或其他尺寸生產時，是否只會銷售您已經銷售的產品？

And then do you intend to sell BMS software as part of that package? And is there any kind of subscription type of of sales attached to that?

那麼您是否打算將 BMS 軟體作為該軟體包的一部分進行銷售？是否有任何類型的訂閱類型的銷售與之相關？

Yes, good morning, Mike. This is Marc. We have two packs. We have the MD pack in the HD pack. One is a 70 kilowatt hour. The other one is 120 kilowatt hour. The chemistry is an NNMC chemistry, and it's coming with our own BMS and also the PCMS will be also available.

是的，早上好，麥克。這是馬克。我們有兩包。我們在 HD 包中包含 MD 包。一個是70千瓦時。另一台為120度。該化學物質是一種 NNMC 化學物質，它配備了我們自己的 BMS，而且 PCMS 也將可用。

We feel that it could be used in many different markets, including aerospace, like the HD pack is a very good fit for a lot of those users, for example.

我們認為它可以用於許多不同的市場，包括航空航天，例如，HD 包非常適​​合許多此類用戶。

Got it. My other question was, does there a tax benefit or any kind of subsidy that you received at Joliet that would be, that would change or be owned back if you reduce did your presence there?

知道了。我的另一個問題是，如果您減少在那裡的存在，您在喬利埃特獲得的稅收優惠或任何形式的補貼是否會改變或歸還？

Mike, Nick here. No, there is no subsidiary that we require a penalty in fact, all the subsidies are in the form of tax credits related to the number of employees we have there, and we haven't tapped into those data.

麥克、尼克在這裡。不，事實上我們沒有要求罰款的子公司，所有補貼都是與我們在那裡的員工人數相關的稅收抵免形式，而且我們還沒有利用這些數據。

Okay. Got it. Thanks so much. I'll pass it along.

好的。知道了。非常感謝。我會把它傳遞下去。

Thank you, Mike.

謝謝你，麥克。

Kevin Chang, CIBC.

凱文張，加拿大帝國商業銀行。

Hi, good morning, everyone. Thanks for taking my question. I'm just wondering, I understand and it's been a few quarters now you have talked about some of the challenges in converting, the large market opportunity into your order book, and you've spoken about some of the delays around these government programs. But I'm just wondering, do you think you need to change your sales tactic here?

嗨，大家早安。感謝您提出我的問題。我只是想知道，我理解，現在已經有幾個季度了，您已經談到了轉換方面的一些挑戰，將巨大的市場機會納入您的訂單，並且您已經談到了圍繞這些政府計劃的一些延誤。但我只是想知道，你認為你需要改變你的銷售策略嗎？

Or maybe you have and you can speak to that? Just, is there anything you can do to accelerate that conversion rate versus just being dependent on the pace interest government rolls out some of the subsidy programs? Because while it creates long-term demand, it seems like it's definitely been a short-term headwind for you. And I'm just wondering because I think we can do kind of hedge against this risk moving forward?

或者也許你有並且你可以談論這一點？只是，你能做些什麼來加快轉換率，而不是只依賴政府推出一些補貼計畫的速度嗎？因為雖然它創造了長期需求，但它似乎對你來說絕對是一個短期阻力。我只是想知道，因為我認為我們可以對未來的這種風險進行某種對沖？

Yes, I will take that one. Right now, the demand in the school bus sector is very much driven by the programs that are being put in place in some jurisdiction, it's through regulation as well. But obviously, when there's significant subsidy opportunities out there, as expected, the buyers of the products will wait to get those subsidies before purchasing the product.

是的，我會接受那個。目前，校車行業的需求很大程度上是由某些司法管轄區正在實施的計劃以及監管所推動的。但顯然，當存在大量補貼機會時，正如預期的那樣，產品的購買者會等待獲得這些補貼後再購買產品。

The challenge for us has been related at just the timing of the deployment. There is a lot of dollars out there, but it takes time for them to ultimately translate into purchase orders. We've been in between rounds for the EPA program is been some attractive announcements, including 234 units that were filed directly by Lion and a lot of free agents around those programs right now is the grand that we're starting to see the dollars being deployed and the latest rebate ground.

我們面臨的挑戰與部署的時間有關。那裡有很多美元，但它們最終轉化為採購訂單需要時間。我們已經在 EPA 計劃的各輪之間發布了一些有吸引力的公告，其中包括由 Lion 直接提交的 234 個單位，以及圍繞這些計劃的許多自由代理，現在我們開始看到美元正在上漲部署和最新的回扣地。

And so we have a dynamic sales approach. We sell directly, but ultimately, it is the timing of those programs that dictate the timing of purchases, and we're very focused not only converting the line application into purchase orders, which we just had the approval from the EPA to start doing in mid-July and as well as converting on the the latest rebate club.

所以我們有一個動態的銷售方法。我們直接銷售，但最終，這些計劃的時間決定了購買的時間，我們非常關注，不僅將生產線申請轉換為採購訂單，我們剛剛獲得 EPA 的批准，開始在七月中旬以及轉換最新的回扣俱樂部。

For both, we have Lion products applications, again, that's 234 units, but we also have a lot of free agents. So that's the focus right now. Unfortunately, the timing is what it is. But the good news is since the last quarter, again, we've had the approval to go and solicit formal purchase orders for the ground round and a lot of parties that applied directly also got that approval.

對於這兩者，我們都有 Lion 產品應用程序，同樣是 234 個單位，但我們也有很多免費代理。所以這就是現在的焦點。不幸的是，時機就是這樣。但好消息是，自上個季度以來，我們再次獲得批准去徵求第一輪的正式採購訂單，並且許多直接申請的各方也獲得了批准。

And then as well, there is the rebate round where there's not only the Lion applicants, but a number, a high number of free agents that we can solicit. So right now, we do feel, Kevin, that this is really the bulk of the demand in the market, and this is our focus.

然後，還有回扣回合，其中不僅有雄獅申請人，還有我們可以招募的大量自由球員。所以現在，凱文，我們確實覺得這確實是市場的大部分需求，也是我們的重點。

That's great color there. And just maybe my second question. Just wondering when you talk to customers, how potential changes in administration might impact their near term demand intentions, like this does a potential change to a Trump administration to, I guess, somewhat view as being less supportive of electric vehicle, is that is impeding some people's willingness to order trucks or even concerns around or questions around what the Chevron ruling might mean in terms of the EPA's zone legislation related to or regulations related to EV adoption? Just just wondering if customers are holding back here just on maybe those two question marks that are up in the year right now?

那裡的顏色真棒。也許只是我的第二個問題。只是想知道，當您與客戶交談時，政府的潛在變化可能會如何影響他們的近期需求意圖，就像川普政府的潛在變化一樣，我想，在某種程度上認為不太支持電動車，這正在阻礙有些人是否願意訂購卡車，甚至對雪佛龍的裁決對 EPA 與電動車採用相關的區域立法或法規意味著什麼表示擔憂或疑問？只是想知道客戶是否只是因為今年出現的這兩個問號而猶豫不決？

Yes, Kevin, it's a different story in the school bus and in the truck space. In the school bus space, I just talked about where the demand is coming from, and that $5 billion package from the EPA is approved by law today. There was over $2 billion that remains to be deployed. And on top of that, there's a number of programs at the state level by thinking of California, New York, Texas, Illinois, Colorado, and a number of other one.

是的，凱文，校車和卡車空間的情況不同。在校車領域，我剛剛談到了需求從何而來，EPA 的 50 億美元一攬子計劃今天已獲得法律批准。還有超過 20 億美元有待部署。除此之外，還有許多州一級的計劃，例如加利福尼亞州、紐約州、德克薩斯州、伊利諾伊州、科羅拉多州和其他一些州。

So we're not seeing that significantly, at least in the school bus sales. In the truck space, of course, the truck space, Marc talked about in his prepared remarks, electric truck demand has been slower than anticipated. The acceleration going forward is in great part related to regulation and incentive program. And certainly there's the potential change in administration, as you said, can have an impact on that demand here in some places, a more wait-and-see approach. We do feel that in the long term, because of the TCO, favorable TCO, the product, that it's a when, not if, but for sure, there's more impact on the truck space.

因此，我們並沒有看到明顯的變化，至少在校車銷售方面是如此。在卡車領域，當然是卡車領域，馬克在他準備的演講中談到，電動卡車的需求比預期要慢。未來的加速在很大程度上與監管和激勵計劃有關。當然，正如您所說，行政管理方面的潛在變化可能會對某些地方的需求產生影響，並採取更多的觀望態度。我們確實認為，從長遠來看，由於 TCO、有利的 TCO、產品，這只是“何時”，而不是“是否”，但可以肯定的是，這對卡車空間會產生更大的影響。

Perfect. That's it for me. Thank you for taking my questions.

完美的。對我來說就是這樣。感謝您回答我的問題。

Thank you.

謝謝。

Craig Irwin, Roth Capital Partners.

克雷格歐文，羅斯資本合夥人。

Hi, good morning. Thank you for taking my questions. So I was hoping you might be able to help us quantify the estimated savings from your different initiatives that you put in place, the ones that jump out to me, and I'll have to review the call right, but the ones that jump out are, obviously the reduction in force and the subleasing of the two different facilities or floor space at the two of our facilities.

嗨，早安。感謝您回答我的問題。因此，我希望您能夠幫助我們量化您實施的不同舉措的預計節省費用，那些跳出我的計劃，我必須正確審查通話，但那些跳出來的計劃顯然是減少兵力並轉租兩個不同的設施或我們兩個設施的佔地面積。

Can you maybe describe approximately what we should expect as far as savings from these different initiatives over the next couple of quarters?

您能否大致描述一下我們對未來幾季這些不同措施所節省的成本的預期？

I'll take that one. Thank you for the question, Craig. Previously to today's call, we had several rounds of the cost reduction measures that added up to $40 million of savings, and we were starting to see, let's say, the impact of all these measures this quarter. So let's call it $10 million of recurring savings starting this quarter.

我會接受那個。謝謝你的提問，克雷格。在今天的電話會議之前，我們採取了幾輪成本削減措施，總計節省了 4000 萬美元，並且我們在本季度開始看到所有這些措施的影響。因此，我們稱其為從本季開始的 1000 萬美元經常性儲蓄。

So, this is for what we done prior. This morning, the announcement, we made, obviously, $25 million, call it like $6 million a quarter or so. This, we will start seeing the impact of that practically immediately. Most of the layoffs will be made on a temporary basis. Also we will see the full impact of that at the time of starting today. So we're looking at $16 million combined savings that we see from it from a baseline of 2023.

所以，這是我們之前所做的。今天早上，我們宣布了 2500 萬美元的公告，我們稱之為每季約 600 萬美元。我們將立即開始看到其影響。大部分裁員將是臨時性的。從今天開始，我們也將看到其全面影響。因此，我們預計以 2023 年為基準，總共可節省 1,600 萬美元。

Okay, excellent. Well, I should say congratulations--

好的，非常好。好吧，我應該說恭喜——

And just to add, maybe this excludes the OpEx savings when we talked about the Joliet facility and so on. Obviously, this could potentially be additional savings right now that are not quantified so far. I think we've talked about the rental pipe $5 million for Joliet. So we're talking several million dollars of additional opportunities that we'll be working on in the next few weeks.

補充一下，也許這不包括我們談論喬利埃特設施等時節省的營運支出。顯然，這可能是目前尚未量化的額外節省。我想我們已經討論過喬利埃特 500 萬美元的管道租賃事宜。因此，我們正在談論數百萬美元的額外機會，我們將在接下來的幾週內工作。

Excellent. So my follow-up, I guess I should start by saying congratulations on the reduction in working capital. I know that's never easy, particularly when you're dealing with deliveries volatility. So that's a that's a big positive.

出色的。因此，我想我應該先對營運資金的減少表示祝賀。我知道這絕非易事，尤其是當您面臨交付波動的情況時。所以這是一個很大的正面因素。

Can you maybe help us understand what the commitments are for CapEx over the next couple of quarters? And you've been able to defer or restructure some of your interest. But what are the other major puts and takes on the liquidity front through the end of the year?

您能否幫助我們了解未來幾季的資本支出承諾是什麼？而你已經能夠推遲或重組你的一些興趣。但到今年年底，流動性方面的其他主要看跌期權和認購期權有哪些？

This is from a CapEx standpoint, the total spend for the first half of the year. We're talking about $1.7 million compared to $42 million last year. Obviously, a lot of like we mentioned in previous calls, our strategic CapEx is all behind us. So we expect CapEx for the year to be probably $5 million, so it should be in that range.

這是從資本支出的角度來看，今年上半年的總支出。我們談論的是 170 萬美元，而去年是 4200 萬美元。顯然，就像我們在之前的電話會議中提到的那樣，我們的戰略資本支出已經全部過去了。因此，我們預計今年的資本支出可能為 500 萬美元，因此應該在這個範圍內。

R&D, we know we have communicated previously that we're looking at 30% reduction. We're well on track to not to meet that commitment of 30%. And with today's announcement, I would expect the savings on the R&D front to be higher than 30%. So, those are the two, let's say, elements outside of our earnings that are cash element.

研發部門，我們知道我們之前已經溝通過，我們正在考慮減少 30%。我們有望實現 30% 的承諾。根據今天的公告，我預計研發方面的節省將高於 30%。因此，這些是我們收入以外的兩個要素，即現金要素。

On the inventory trust, you mentioned, yes, we did some good progress despite the overall context. We've achieved $20 million of savings for the first half from our inventory reduction plan. We had limited to $50 to $75 million. I believe we're well on track to hit those numbers.

關於庫存信託，您提到，是的，儘管總體情況不佳，但我們還是取得了一些良好進展。上半年我們透過庫存削減計畫節省了 2,000 萬美元。我們的資金限額為 50 至 7500 萬美元。我相信我們正在順利實現這些數字。

When you look at one leading indicator for me is really the raw material. And with just this quarter alone, we saw the raw material and WIP. Just this quarter alone, we saw the raw material in WIP this quarter. But for me, all the indicators are trending in the right direction, and we're really focused on continuing to achieve those objectives.

當你看一個領先指標時，對我來說確實是原料。僅在本季度，我們就看到了原料和在製品。僅在本季度，我們就看到了本季度 WIP 中的原材料。但對我來說，所有指標都朝著正確的方向發展，我們真正專注於繼續實現這些目標。

Okay, fantastic. And then last question, if I may, related to the subsidies and vouchers that EPA handed out to date. So we're hearing that a lot of the school districts out there that received funding are actually having a very hard time arranging necessary charging infrastructure to take delivery of the buses.

好吧，太棒了。最後一個問題，如果可以的話，與 EPA 迄今為止發放的補貼和優惠券有關。因此，我們聽說許多獲得資金的學區實際上很難安排必要的充電基礎設施來接收公車。

Do you see potential for some of those funding vouchers to maybe be reallocated? Or for this to maybe present an incremental opportunity as those vouchers and subsidies are handed off to potentially different school districts?

您認為其中一些資金券有可能被重新分配嗎？或者，隨著這些優惠券和補貼移交給可能不同的學區，這可能會帶來增量機會？

Craig, I'll take this. Look I mean, we haven't seen that happen, not the infrastructure challenge, but with the reallocation of funding. There has been, as you may know, in the first round, a pretty significant amount of funding that was returned, and we're certainly encouraging the EPA to redistribute those vouchers. We are equipped to deliver the vehicles and, of course, to plan the infrastructure. So, it's definitely an opportunity for us if it was to happen, but haven't seen it happen to us.

克雷格，我會接受這個。我的意思是，我們還沒有看到這種情況發生，不是基礎設施的挑戰，而是資金的重新分配。如您所知，在第一輪中，已經退回了大量資金，我們當然鼓勵美國環保署重新分配這些代金券。我們有能力交付車輛，當然也有能力規劃基礎建設。所以，如果它發生的話，這對我們來說絕對是一個機會，但我們還沒有看到它發生過。

Understood. Well, hey, congratulations on the progress. I'll hop back in the queue. Thank you.

明白了。嗯，嘿，恭喜你取得了進展。我會跳回到隊列中。謝謝。

Thank you.

謝謝。

George Gianarikas, Canaccord.

喬治·賈納里卡斯，Canaccord。

Hi, good morning. So I know we've gone over this a couple of times, but I'd just like to sort of understand the liquidity ladder between now and the end of the year. You mentioned in your presentation that you have $25 million of available immediate liquidity. You also talk about your progress around working capital reduction.

嗨，早安。所以我知道我們已經討論過這個問題好幾次了，但我只是想了解從現在到年底的流動性階梯。您在演示中提到您有 2500 萬美元的可用即時流動資金。您也談到了在減少營運資金方面取得的進展。

And it looks like you have around $50 million left. So can you just kind of walk us between June 30 and December 30 and what your approaches to maintaining cash in the balance sheet. I understand the cost reduction, but I am assuming there will be some severance involved in there as well. Just kind of step by step and how you plan to sort of continue in operations between now and the end of the year? Thank you.

看起來你還剩下大約 5000 萬美元。那麼，您能否在 6 月 30 日至 12 月 30 日期間向我們介紹您在資產負債表中維持現金的方法。我理解成本的降低，但我假設也會涉及一些遣散費。只是一步一步，您計劃如何從現在到年底繼續營運？謝謝。

Thanks for the question, George. Obviously, we're highly focused right now on our cost structure with the announcement this morning. We will see some savings with roughly $2 million a month of starting right away because as I said earlier, most of these lay offs are temporary. So, we will see the impact immediately.

謝謝你的提問，喬治。顯然，今天早上宣布的消息後，我們現在高度關注我們的成本結構。我們將立即開始每月節省約 200 萬美元，因為正如我之前所說，大部分裁員都是暫時的。因此，我們將立即看到影響。

We continue to be very focused, as I mentioned earlier, the inventory story for us is a good one. We achieved $20 million of savings so far and there's like $30 to $50 million to go. And again, I believe we have all the right processes in place to achieve those reduction collection remains still an opportunity for us. We still have quite a few, let's say, announced to collect and several of these civil are coming from governments that are taking a bit more time to collect. So we're very focused on that as well.

正如我之前提到的，我們仍然非常專注，庫存故事對我們來說是一個很好的故事。到目前為止，我們已經節省了 2000 萬美元，還有大約 3000 到 5000 萬美元的成本。再說一遍，我相信我們擁有所有正確的流程來實現這些減少收集對我們來說仍然是一個機會。比方說，我們仍然有相當多的人宣布要收集，其中一些民事來自需要更多時間收集的政府。所以我們也非常關注這一點。

And as mentioned earlier, the EP program, we talked about the potential of $77 million. So we expect to start seeing money flowing our way with those appeals that have been placed. And obviously, I would think probably 60 days before we start to see the money flowing, but this will be definitely a contributor in the second half of the year.

正如前面提到的，EP 計劃，我們談到了 7700 萬美元的潛力。因此，我們預計資金將隨著已提出的呼籲而流向我們。顯然，我認為可能需要 60 天才能看到資金流動，但這肯定會在今年下半年做出貢獻。

Obviously, we mentioned as well known in the meantime, we are looking at various financing opportunity both to our balance sheet, also we're actively, obviously focused on that in parallel. So I would say these are the two streams right now or the treating or the cost focus that we're pursuing to address our cash situation.

顯然，我們同時提到眾所周知，我們正在尋找資產負債表上的各種融資機會，而且我們也積極地、顯然地同時關注這一點。所以我想說，這是我們現在為解決現金狀況而尋求的兩個重點，即處理或成本重點。

Maybe just to change the topic for me. You mentioned, obviously this opportunity to sell battery tax modules on the merchant market. Can you please help us understand any initial indications of interest there? And whether or not those indications of interest could should will lead to sort of larger strategic discussions, meaning strategic investments into the company, et cetera? Thank you.

也許只是為了給我換個話題。您提到，顯然這是在商業市場上銷售電池稅模組的機會。您能幫助我們了解一些初步的興趣跡象嗎？這些興趣的跡像是否會引發更大規模的策略性討論，這意味著對公司進行策略性投資等等？謝謝。

Yes, George, the this market, we feel is a huge and there are very few battery OEMs out there that are providing a complete solution with the BMS and also with the BT&S. We've received many phone calls, many requests from potential buyers in this regard. So we feel this could become a pretty significant market and we will start selling those batteries sometimes in 2025.

是的，George，我們認為這個市場很大，而且很少電池 OEM 能夠提供包含 BMS 和 BT&S 的完整解決方案。我們接到了很多電話，也收到了很多來自潛在買家的這方面的請求。因此，我們認為這可能會成為一個非常重要的市場，我們有時會在 2025 年開始銷售這些電池。

So we're in discussion right now. So there will be no short-term result on this. But obviously, we were setting the foundation for this commercial success. We feel that also we are becoming like a strategic partner for many of those suppliers in for them in achieving their goals. So could that lead to anything else?

所以我們現在正在討論。所以短期內不會有結果。但顯然，我們正在為這項商業成功奠定基礎。我們認為，我們也正在成為許多供應商的策略夥伴，幫助他們實現目標。那麼這會導致其他什麼結果嗎？

I don't know. But I feel very strongly that we're offering a very state-of-the-art solution right now for those companies and many of them are very big companies to add to achieve their goals. Most of them are not looking to do full vertical integration of those technologies, but obviously, looking for a very strong technology and a very good partner in line, and that's what we're shooting for.

我不知道。但我強烈感覺到，我們現在正在為這些公司提供非常先進的解決方案，其中許多都是非常大的公司，需要透過添加來實現他們的目標。他們中的大多數人並不希望對這些技術進行完全垂直整合，但顯然，他們正在尋找非常強大的技術和非常好的合作夥伴，這就是我們的目標。

Thank you.

謝謝。

Thank you, George.

謝謝你，喬治。

Daniel, Barclays.

丹尼爾，巴克萊。

Hi, this is Daniel on for Dan. Thanks for taking our questions. So could you unpack your gross margin and cost dynamics in the quarter? I know you mentioned in the past that we should expect some margin volatility in the near term, but how should we think about your cost trajectory in the coming quarters given that there is still the ramp with your batteries and your LionD and 5 model?

大家好，我是丹尼爾（Dan）。感謝您回答我們的問題。那麼您能否分析一下本季的毛利率和成本動態呢？我知道您過去提到過，我們應該預期短期內會出現一些利潤率波動，但鑑於您的電池以及 LionD 和 5 型號仍然存在增長，我們應該如何考慮您未來幾季的成本軌跡？

Yes, good morning, Daniel. I will take that one. Listen, for sure, on the deferent volume level that we had in the quarter, obviously that had some impact on our margin. We had indicated previously that the introduction of our Lion5, MRP, the incorporation of our own batteries and to our different platforms would be kind of a headwind from a margin standpoint.

是的，早安，丹尼爾。我會接受那個。當然，聽聽我們在本季的不同銷量水平，顯然這對我們的利潤率產生了一些影響。我們之前曾表示，從利潤的角度來看，引入我們的 Lion5、MRP、將我們自己的電池併入我們的不同平台將是一種阻力。

So, this is what we have experienced added to the low volume where we had some under-absorption issue in the quarter with lower volumes like that. So obviously, we don't expect the kind of margins to be to repeat itself in the future as we see our various platforms maturing costs as well as continue, and that's evolving (inaudible) our learning curve for those new platforms.

因此，這就是我們在成交量較低的情況下所經歷的情況，本季我們遇到了一些吸收不足的問題，成交量較低。顯然，我們預計這種利潤率不會在未來重演，因為我們看到我們的各種平台的成本不斷成熟並持續下去，這正在不斷發展（聽不清楚）我們對這些新平台的學習曲線。

So we believe on a unit basis, we do have some good economics that we showed in the past that with the maturity of our platform versus volume that we can get a decent margins. So we expect to go back to profitable margins up in the foreseeable future. So that's what we're focused on. We're very focused on cost reduction and the initiatives that we announced this morning will also contribute to better margin going forward.

因此，我們相信，在單位基礎上，我們確實擁有一些良好的經濟效益，我們過去已經證明，隨著我們平台的成熟度和銷量，我們可以獲得可觀的利潤。因此，我們預計在可預見的未來，利潤率將恢復上升。這就是我們關注的重點。我們非常注重降低成本，今天早上宣布的措施也將有助於提高未來的利潤率。

Great. Thank you. That's my one.

偉大的。謝謝。那是我的。

(Operator instructions)

（操作員說明）

Rupert Merer, National Bank.

魯珀特·梅勒，國家銀行。

Hi, good morning, everyone. I'd like to ask a little about the Lion8 tractor. Can you give us a little more color on the rollout of that product? When do you expect the first sales? And who are the customers that you're anticipating?

嗨，大家早安。我想問一些有關 Lion8 拖拉機的資訊。您能否為我們介紹一下該產品的推出？您預計第一筆銷售何時？您期待的客戶是誰？

Hey, good morning, Rupert. It's doing well, but going well. We will start selling the Lion8 tractor before the end of the year. As you know, when we were at the actual we did the launch of this tractor and we're doing a lot of ride and drive with the customers, very good feedback. We are receiving so far. We don't disclose the names of the customers. We have the good order booking for the Lion8 tractor right now.

嘿，早安，魯伯特。它做得很好，但進展順利。我們將在今年年底前開始銷售Lion8拖拉機。如您所知，當我們實際推出這款拖拉機時，我們與客戶進行了大量的駕駛和駕駛，並獲得了非常好的回饋。到目前為止我們正在接收。我們不會透露客戶的姓名。我們現在有 Lion8 拖拉機的良好訂單預訂。

And we're discussing with the customers right now to make sure you know the at the right charging infrastructure in time, depending on obviously what's their own duty cycle. And as you know, each case is very different and we're very well equipped the clients to take care of all that. But all in all, it's going well.

我們現在正在與客戶討論，以確保您隨時了解正確的充電基礎設施，這顯然取決於他們自己的工作週期。如您所知，每個案例都非常不同，我們為客戶提供了很好的服務來處理所有這些問題。但總而言之，進展順利。

Great. And then on the competition, how are you finding that Lion A competes with other offerings? And maybe if you could comment on the competitive environment, how it's evolving? And how would your discussions with potential customers? And when you when you lose a customer, are you losing to other EV manufacturers? Or are you finding that you're losing to diesel truck manufacturers, for example.

偉大的。那麼在競賽方面，您如何看待 Lion A 與其他產品的競爭？也許您可以評論一下競爭環境，它是如何演變的？您與潛在客戶的討論如何？當你失去客戶時，你是否會輸給其他電動車製造商？或者您是否發現自己正在輸給柴油卡車製造商。

Hey, Rupert, Nick here. Look to address, well, let's say the first part of your question, we feel the product compares very well from a GCWR standpoint from the fit finish and most importantly from a powertrain integration standpoint, this goes to the good feedback that we've had from the customers that Marc alluded to.

嘿，魯珀特，尼克在這裡。期待解決，好吧，讓我們說一下你問題的第一部分，我們覺得從GCWR 的角度來看，從裝配的角度來看，該產品非常好，最重要的是從動力總成集成的角度來看，這歸功於我們得到的良好回饋來自馬克提到的客戶。

Now to your second point, I think is an important one. When we lose we, in the vast majority of cases, we lose the status flow in this those again to the electric truck volumes not being where they thought they (inaudible) would be a few years ago.

現在談談你的第二點，我認為這是很重要的一點。當我們失去我們時，在絕大多數情況下，我們再次失去了這些狀態流，因為電動卡車的數量沒有達到他們幾年前認為的（聽不清楚）的水平。

That said, of all of products within trucks, the Lion8 tractor or I should say, the Class 8 is the biggest class of the mall, as I'm sure, you know. The biggest market opportunity, and it's also where we see the most demand within the product suite for Lion8 electric trucks. So we're obviously very excited for the launch of that product.

也就是說，在卡車的所有產品中，Lion8 拖拉機或我應該說，8 級是商場中最大的一類，我確信，你知道。這是最大的市場機會，也是我們在 Lion8 電動卡車產品套件中看到最大需求的地方。因此，我們顯然對該產品的推出感到非常興奮。

Are you seeing any change in your potential customers or prospective customers? And how many of them are absolutely looking for an electric vehicle and how many are you think testing the market and still trying to determine when they're going to make that shift?

您發現您的潛在客戶或潛在客戶有任何變化嗎？其中有多少人絕對在尋找電動車？

I think the word, when is the important one in your question here. We are seeing a number of customers that are know that they will have to make that shift. They are not looking to make it tomorrow, but they want to plan to do it right in the medium to long term.

我認為「什麼時候」這個詞在你的問題中很重要。我們看到許多客戶知道他們必須做出這種轉變。他們不打算明天就成功，但他們希望計劃在中長期內做好這件事。

This has really resulted in us shifting our sales attention to those larger fleets that are well-equipped to go through this transition that are serious about it and that are looking now, yes, at smaller volumes in the short term, but that represent the very high potential in the longer term.

這確實導致我們將銷售注意力轉移到那些裝備精良的大型機隊上，這些機隊認真對待這一轉變，並且現在正在尋找短期內較小的銷量，但這代表了非常重要的目標。來看，潛力大。

Great. Thank you. I'll leave it there.

偉大的。謝謝。我會把它留在那裡。

Thank you.

謝謝。

Etienne Larochelle, Desjardin.

艾蒂安·拉羅謝爾，加丁。

Yes, good morning and thank you for taking my questions. My first one is on truck demand. You mentioned being lower than initially expected market demand for electric trucks in the press release. And also looking at the results, we calculate that the implied truck bookings were minus 15 units this quarter. What explains the negative booking in 2Q and what do you see going forward on market demand for trucks?

是的，早上好，感謝您回答我的問題。我的第一個是卡車需求。您在新聞稿中提到電動卡車的市場需求低於最初預期。同時查看結果，我們計算出本季隱含的卡車預訂量為負 15 輛。如何解釋第二季的負預訂？

Yes. So, we have had some cancellations in the order book, mostly related for trucks, specifically mostly related to the timing of the platform. But I would say we still continue to see strong interest in ride and drive customer demos, learning more about the product, the infrastructure, the transition to electric from large fleet owners.

是的。因此，我們的訂單中有一些取消，主要與卡車有關，特別是與平台的時間表有關。但我想說的是，我們仍然繼續看到客戶對乘坐和駕駛演示的濃厚興趣，並進一步了解產品、基礎設施以及大型車隊所有者向電動的過渡。

Obviously, Etienne, we've announced some changes to how we're manufacturing trucks to better align with demand because we see that the demand in the short term is not where we thought it would be. And that's industry wide. But as I just mentioned, our focus is to really work with the larger fleet owners, those that are serious about the transition to electric and have the means and the resources to go through it properly.

顯然，艾蒂安，我們已經宣布對卡車的製造方式進行一些改變，以更好地滿足需求，因為我們發現短期內的需求並未達到我們的預期。這是整個行業的情況。但正如我剛才提到的，我們的重點是真正與較大的車隊所有者合作，這些所有者認真對待向電動的過渡，並且擁有適當的手段和資源來完成它。

And so we still think that this is a very big market potential. As I said before, it's a when, not an if. And the objective is for us to be there alongside large fleet owners as they go through this transition at the same time, minimize the cost and working capital impact of the truck manufacturer.

所以我們仍然認為這是一個非常大的市場潛力。正如我之前所說，這是一個“何時”，而不是“如果”。我們的目標是在大型車隊所有者經歷這一轉變的同時與他們並肩作戰，最大限度地減少卡車製造商的成本和營運資金影響。

Got it. Thank you. And maybe as a follow-up, you announced also as part of your action plan that during the process to optimize the usage of facilities. I'm just curious on your, what are your views on this? Are you having discussions already? And maybe how quickly could this materialize?

知道了。謝謝。也許作為後續行動，您也宣布了在此過程中優化設施使用的行動計劃的一部分。我只是好奇你，你對此有何看法？你們已經在討論了嗎？也許這要多快才能實現？

I'm sorry, Etienne, we didn't get the question to optimise on what?

抱歉，艾蒂安，我們沒有得到優化什麼的問題？

Yes, so basically, you're in the process to optimize the usage of your facilities. So basically by listing your Joliet facility, I'm just curious what are your views on this? Are you having discussions already with the people? and maybe how quickly could materialize?

是的，基本上，您正在優化設施的使用。因此，基本上透過列出您的喬利埃特設施，我只是好奇您對此有何看法？您已經與人們討論了嗎？也許多快能實現？

Thank you, Etienne. Yes, we're having discussions. As you know, the Joliet plant, it's 900,000 square feet and 75% of that was for truck manufacturing and 25% for school bus manufacturing. So we are leaving the 25% of school bus manufacturing. But because of everything we discussed earlier, we are basically delaying the truck manufacturing in Joliet because we have a lot of manufacturing capacity in San Geron.

謝謝你，艾蒂安。是的，我們正在討論。如您所知，喬利埃特工廠佔地 90 萬平方英尺，其中 75% 用於卡車製造，25% 用於校車製造。因此，我們將保留 25% 的校車製造業務。但由於我們之前討論的一切，我們基本上推遲了喬利埃特的卡車製造，因為我們在聖傑隆擁有大量的製造能力。

And the, so basically, the efficiency of the square footage, I mean, it cost us about $5 million a year right now. And basically we're intending, you know what recouping this this amount or a lot of this amount on a short term basis. So the goal is to make this happen before the end of the year, but obviously need to find the right partner to do that in Joliet.

基本上，我的意思是，面積的效率現在每年花費我們約 500 萬美元。基本上我們的目的是，你知道如何在短期內收回這個金額或很多這個金額。因此，我們的目標是在年底前實現這一目標，但顯然需要在喬利埃特找到合適的合作夥伴來實現這一目標。

Sounds good. Thank you for the color on that.

聽起來不錯。謝謝你的顏色。

Ryan Thinks, B. Riley.

瑞安認為，B.萊利。

Hey, good morning. Thanks for taking my questions. (multiple speakers) Just just one for me. Actually, understanding there's a lot of uncertainty around timing. Could you just remind us what needs to happen? Maybe what are the steps between installing charging infrastructure and other pieces ahead of receiving the expected $77 million in upfront payments from the EPA programs?

嘿，早安。感謝您回答我的問題。（多個發言者）只有我一個。事實上，要了解時間方面存在著許多不確定性。您能提醒我們需要發生什麼嗎？也許在收到 EPA 專案預期的 7,700 萬美元預付款之前，安裝充電基礎設施和其他零件之間需要採取哪些步驟？

Hey, Ryan, Nick here. So the the payment methods immediate upfront payment. It varies between the ground and the rebate round. Recall, we have 97 direct Lion products allocation that were awarded in the grand round and 127 in the rebate ground.

嘿，瑞安，尼克在這裡。所以付款方式就是立即預付款。它在地面輪和回扣輪之間有所不同。回想一下，我們有 97 種直接獅子產品分配在大輪中獲得，127 種在回扣中獲得。

In the ground round, I mean, the big pacer there was the agreement with the EPA that allowed us to go in solicit formal purchase orders. That is now behind us and so we're working (inaudible) purchase orders with and the award and funding of the program. And then we will request the payments in terms of the voucher around.

我的意思是，在第一輪談判中，最重要的是與美國環保署達成協議，允許我們徵求正式採購訂單。現在這一切已經過去了，所以我們正在處理（聽不清楚）採購訂單以及該計劃的獎勵和資金。然後我們會要求以優惠券形式付款。

It's a little more of an administrative process, but it requires purchase orders and other aspects of the project by quotes from contractors and planning for the charging infrastructure or purchase orders. But the way the EPA works is that these payments occur prior to the charging and pay at the charging infrastructure installation. So there is no link between the installation itself and the timing of the payment. I will also point out that those payment requests have started. And obviously we're working to accelerate them in the near future.

這更像是一個管理流程，但它需要採購訂單和項目的其他方面，包括承包商的報價以及充電基礎設施或採購訂單的規劃。但 EPA 的工作方式是，這些付款發生在充電之前，並在充電基礎設施安裝時付款。因此，安裝本身和付款時間之間沒有任何關聯。我還要指出的是，這些付款請求已經開始。顯然，我們正在努力在不久的將來加速它們的發展。

Great. Thank you.

偉大的。謝謝。

Thank you. We have no further questions. I hand back to Isabelle for any closing comments.

謝謝。我們沒有其他問題了。我將把任何結束語交還給伊莎貝爾。

This concludes the call for today. Thank you all for joining, and we wish you a nice day. Thank you.

今天的電話會議到此結束。感謝大家的加入，祝您有個愉快的一天。謝謝。

Thank you. This now concludes today's call. Thank you all for joining. You may now disconnect your lines.

謝謝。今天的電話會議到此結束。感謝大家的加入。現在您可以斷開線路。