(MVST) 2022 Q1 法說會逐字稿

Thank you for standing by. This is the conference operator. Welcome to the Microvast first-quarter 2022 earnings call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. (Operator Instructions) I would now like to turn the conference over to Sarah Alexander, Microvast's General Counsel. Please go ahead.

謝謝你的支持。這是會議操作員。歡迎參加 Microvast 2022 年第一季財報電話會議。提醒一下，所有與會者都處於僅聽模式，並且正在錄製會議。 （操作員指示）我現在想將會議轉交給 Microvast 總法律顧問 Sarah Alexander。請繼續。

Thank you, operator, and thanks to the audience for joining us today. Mr. Yang Wu, Chief Executive Officer, will begin today's call with some opening remarks. Craig Webster, who was recently appointed as our Chief Financial Officer; and Sascha Kelterborn, who was recently promoted to the position of President will host today's call. Leon Zheng, our former Chief Financial Officer, who has transitioned into an advisory role with Microvast, is also on the line.

謝謝你，接線員，也謝謝觀眾今天加入我們。執行長楊武先生將在今天的電話會議上致開幕詞。 Craig Webster，最近被任命為我們的財務長；最近晉升為總裁的 Sascha Kelterborn 將主持今天的電話會議。我們的前財務長 Leon Cheng 也已轉任 Microvast 的顧問，他也在電話中。

Ahead of this call, Microvast issued its first-quarter 2022 earnings press release, which can be found on the Investor Relations section of our website, ir.microvast.com. In addition, we have posted tonight's accompanying slideshow presentation to our website.

在此次電話會議之前，Microvast 發布了 2022 年第一季財報新聞稿，您可以在我們網站 ir.microvast.com 的投資者關係部分找到新聞稿。此外，我們已將今晚隨附的幻燈片簡報發佈到我們的網站上。

As a reminder, please note that we will be making forward-looking statements on this call. These statements are based on current expectations and assumptions and reflect our views only as of today. They should not be relied upon as representative about views as of any subsequent date, and we undertake no obligation to revise or publicly release the results of any revisions to these forward-looking statements in light of new information or future events.

請注意，我們將在本次電話會議上發表前瞻性聲明。這些陳述是基於目前的預期和假設，僅反映我們截至目前為止的觀點。不應依賴它們作為任何後續日期的觀點代表，並且我們不承擔根據新資訊或未來事件修改或公開發布這些前瞻性聲明的任何修改結果的義務。

These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For further discussion of the material risks and other important factors that could affect our financial results, please refer to our filings with the SEC including our annual report on Form 10-K filed on March 29, 2022.

這些陳述受到各種風險和不確定性的影響，可能導致實際結果與預期有重大差異。有關可能影響我們財務表現的重大風險和其他重要因素的進一步討論，請參閱我們向 SEC 提交的文件，包括我們於 2022 年 3 月 29 日提交的 10-K 表格年度報告。

In addition, during today's call, we may discuss non-GAAP financial measures including adjusted gross profit, adjusted net loss, and adjusted EBITDA, which we believe are useful as supplemental measures of Microvast's performance. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results. These non-GAAP measures have been reconciled to their most comparable GAAP metric in the tables included at the earnings -- at the end of our earnings press release.

此外，在今天的電話會議中，我們可能會討論非 GAAP 財務指標，包括調整後毛利、調整後淨虧損和調整後 EBITDA，我們認為這些指標可作為 Microvast 業績的補充指標。這些非公認會計原則措施應作為公認會計原則結果的補充，而不是替代或孤立於公認會計原則結果。這些非公認會計準則指標已與收益新聞稿末尾的收益表中最具可比性的公認會計準則指標進行了調整。

A webcast replay of this call will also be available on the Investor Relations section of our company website. With that, I will turn the call over to Mr. Wu for some opening remarks.

本次電話會議的網路直播重播也將在我們公司網站的投資者關係部分提供。接下來，我會把電話轉給吳先生做開場白。

Thank you, Sarah. First, I would like to take a few minutes to address the leadership changes that we announced last month.

謝謝你，莎拉。首先，我想花幾分鐘時間談談我們上個月宣布的領導層變動。

Leon has been the CFO of Microvast for the last 12 years and has been an integral part of building this company. We would not be where we are today without his leadership, guidance, and a steady hand. I want to personally thank him for his years of loyal service and for his continued service as an Advisor and as a Director.

Leon 在過去 12 年中一直擔任 Microvast 的財務官，並且是該公司建設過程中不可或缺的一部分。沒有他的領導、指導和堅定的支持，我們就不會有今天的成就。我想親自感謝他多年來的忠誠服務以及他作為顧問和董事的持續服務。

Craig has been involved with Microvast for over 10 years, and he knows our business and industry very well. I'm confident that he has the skill set required to take Microvast to the next level. And I look forward to working with him in his new role as the CFO.

Craig 在 Microvast 工作了 10 多年，他非常了解我們的業務和行業。我相信他擁有將 Microvast 提升到新水平所需的技能。我期待在擔任財務長這一新職位上與他合作。

Sascha joined Microvast in 2016 and has been an integral part of our growth strategy in the Western Hemisphere. He will assume responsibility for the company's day-to-day operations in a new role as President.

Sascha 於 2016 年加入 Microvast，並一直是我們西半球成長策略不可或缺的一部分。他將擔任總裁的新職務，負責公司的日常營運。

I will continue to serve as the company's Chief Executive Officer. This new leadership structure will enable me to focus on Microvast's strategic direction. I'm confident that this team will best position Microvast to execute on the opportunities in front of us.

我將繼續擔任公司執行長。這個新的領導結構將使我能夠專注於微宏的策略方向。我相信這個團隊將為 Microvast 提供最佳定位，以抓住我們面前的機會。

Sascha will touch on our business results, and Craig will review the financial performance in more detail in a few moments. However, I would now like to turn the call over to Leon. Thank you, all.

薩沙將談到我們的業務成果，克雷格將稍後更詳細地審查財務表現。不過，我現在想把電話轉給萊昂。謝謝你們。

Thank you, Mr. Wu.

謝謝吳先生。

First, it has been an honor to serve Microvast as the Chief Financial Officer. I'm very proud of the business we have built, and I'm excited about the company's future. When I joined Microvast in 2010, the company had very few employees and no revenue. Only this would -- electrification region -- over the last 12 years, we built a strong team and worked together to execute that region.

首先，很榮幸能擔任微宏財務長。我對我們所建立的業務感到非常自豪，並對公司的未來感到興奮。當我2010年加入微宏時，公司員工很少，也沒有收入。只有這樣——電氣化領域——在過去12年裡，我們建立了一支強大的團隊，並共同努力執行該領域。

I'm blessed to have been a part of this journey, and I'm even more excited about the opportunities that remain in front of Microvast.

我很幸運能夠成為這段旅程的一部分，而且我對 Microvast 面前仍然存在的機會感到更加興奮。

Craig has been involved in Microvast as a member of our Board of Directors since 2012. He and I have developed a great working relationship over the last decade. He knows our business and the industry very well. And I'm confident he's the right person to step into the role of Chief Financial Officer and to help lead the Microvast into its next [goal phase].

Craig 自 2012 年起加入 Microvast，擔任董事會成員。在過去十年中，他和我建立了良好的工作關係。他非常了解我們的業務和行業。我相信他是擔任財務長並幫助帶領 Microvast 進入下一個[目標階段]的合適人選。

I look forward to working closely with him to ensure a smooth transition. I have utmost confidence in Microvast's future. I look forward to continuing to serve this company as a Director, working together with Craig [in my new and] wider role. And I will continue to support Microvast as a shareholder for many years to come.

我期待與他密切合作，以確保順利過渡。我對微宏的未來充滿信心。我期待著繼續以董事身份為該公司服務，與克雷格（在我新的、更廣泛的）角色中合作。在未來的許多年裡，我將繼續作為股東支持微宏。

Thank you to our shareholder for your confidence, support, and the patience. And thank you to the Microvast team around the globe. It has been a true pleasure to work with each and every of you. With that, I will turn the call over to Sascha, President of Microvast.

感謝股東的信任、支持與耐心。感謝全球的 Microvast 團隊。與你們每一個人一起工作真的很愉快。接下來，我將把電話轉給 Microvast 總裁 Sascha。

Thank you, Leon. On a personal note, I have very much enjoyed working with you the last few years. And I'm pleased that you have chosen to continue forward with Microvast as a Director and in an advisory capacity. Your historical knowledge of this business is vast.

謝謝你，萊昂。就我個人而言，過去幾年我非常享受與您的合作。我很高興您選擇繼續擔任 Microvast 的董事和顧問。您對這項業務的歷史知識非常豐富。

I'm excited to step into the role of President with renewed focus on executing our international growth strategy. I enjoy new challenges, and I'm ready to move the company to the next level.

我很高興能夠擔任總裁一職，重新專注於執行我們的國際成長策略。我喜歡新的挑戰，我已經準備好將公司提升到一個新的水平。

Everyone, please turn to slide number 4 of the PowerPoint presentation we have just published, as I cover a few highlights from the first quarter. We posted 145.5% revenue growth during the first quarter, delivered USD36.7 million in Q1 2022.

請大家翻看我們剛發布的 PowerPoint 簡報的第 4 張投影片，我將介紹第一季的一些亮點。我們第一季的營收成長了 145.5%，2022 年第一季實現了 3,670 萬美元的營收。

Our first-quarter performance exceeded expectations as our team [railed] together to get as much product solutions out of the door before the COVID lockdown situation in China worsened. This is a robust revenue growth despite many macro headwinds.

我們第一季的業績超出了預期，因為我們的團隊齊心協力，在中國新冠疫情封鎖情況惡化之前推出了盡可能多的產品解決方案。儘管存在許多宏觀阻力，但營收成長依然強勁。

A big part of our growth in the first quarter was Asia Pacific. We have seen our market share in India increasing with our partners, and this was one of the biggest contributors to ex-China growth in the first quarter. As an example, we received a USD10.1 million order for various e-bus solutions from Ashok Leyland.

我們第一季成長的很大一部分來自亞太地區。我們看到我們在印度的市場份額與我們的合作夥伴一起不斷增加，這是第一季中國以外市場成長的最大貢獻者之一。例如，我們收到了 Ashok Leyland 價值 1,010 萬美元的各種電動巴士解決方案訂單。

In addition, orders from our multiyear European projects were strong across the new battery solutions that we have recently announced. We ended the first quarter with a strong backlog of USD120.8 million, a result of a healthy order intake of USD62 million. We're very excited about the prospect of further increasing to our backlog in the coming quarters.

此外，我們最近宣布的新電池解決方案的多年歐洲項目訂單也很強勁。第一季結束時，我們的積壓訂單達 1.208 億美元，這得益於 6,200 萬美元的健康訂單量。我們對未來幾季積壓訂單進一步增加的前景感到非常興奮。

Our forecasted contract revenue remains at a healthy USD2.5 billion. Except backlog, our forecasted contract revenue is [compromised] entirely of customers located outside of China. We continue to make progress behind the scenes to advance our relationships with leading OEMs globally, and we'll continue our efforts to grow our forecasted contract revenue.

我們預計合約收入仍維持在 25 億美元的健康水準。除了積壓訂單外，我們預測的合約收入完全受到中國境外客戶的影響。我們繼續在幕後取得進展，以促進我們與全球領先原始設備製造商的關係，我們將繼續努力增加我們的預測合約收入。

When we refer to forecasted contract revenue, we are describing backlog plus management estimates for revenue we expect to realize from existing contractual relationships with customers. Most of these contracts include estimate volume requirements. However, they do not typically include a volume commitment. We expect to realize current forecasted contract revenues between 2022 and 2031.

當我們提到預測合約收入時，我們描述的是積壓訂單加上管理層對我們期望從與客戶的現有合約關係中實現的收入的估計。大多數這些合約都包括估計數量要求。然而，它們通常不包括數量承諾。我們預計在 2022 年至 2031 年間實現目前預測的合約收入。

The first quarter did come with some challenges. The most prominent one being rapidly increasing raw material prices, driven by supply chain disruptions as well as the worldwide inflation. We're actively monitoring these trends and doing what we can to mitigate this risk, including entering into long-term supply contract, identifying new and/or additional sources of supply, and increasing our selling prices wherever possible. However, this is a trend that we anticipate continuing well into 2022.

第一季確實遇到了一些挑戰。最突出的一個是在供應鏈中斷和全球通貨膨脹的推動下原物料價格迅速上漲。我們正在積極監控這些趨勢，並盡我們所能來降低這種風險，包括簽訂長期供應合約、確定新的和/或額外的供應來源，以及盡可能提高我們的銷售價格。然而，我們預計這一趨勢將持續到 2022 年。

In addition, I would also note that the semiconductor supply chain has not yet normalized. And there were further supply chain disruptions in the auto industry caused by the conflict in Eastern Europe. These challenges do not necessarily impact our business directly. However, they do impact the timing of the OEM demanding for our battery solutions, as many customers are unable to complete production of existing vehicles or finalizing the various vehicle testings in the development phase due to chip shortage or other supply chain issues, which in turn, delay demand for our products.

另外，我還要指出的是，半導體供應鏈尚未正常化。東歐衝突進一步導致汽車產業供應鏈中斷。這些挑戰不一定會直接影響我們的業務。然而，它們確實影響了原始設備製造商對我們電池解決方案的需求時間，因為許多客戶由於晶片短缺或其他供應鏈問題而無法完成現有車輛的生產或完成開發階段的各種車輛測試，進而導致，延遲對我們產品的需求。

I will touch on our capacity expansion projects more in a moment, but they are well underway. In addition, as was discussed during our last earnings call, we launched two new battery cells and a new battery pack during the first quarter, which will be a key driver of revenue growth going forward internationally.

我稍後將詳細討論我們的產能擴張項目，但它們正在順利進行中。此外，正如我們在上次財報電話會議上所討論的那樣，我們在第一季推出了兩種新的電池和一種新的電池組，這將成為未來國際收入成長的關鍵驅動力。

Please turn to slide number 5, which highlights some of our key partnerships in the commercial vehicle market, like Iveco Group, eVersum, and others. We are moving forward with our announced collaborations and preparing right now our global battery production lines for various vehicle SOPs within the next 12 months.

請參閱第 5 張投影片，其中重點介紹了我們在商用車市場的一些主要合作夥伴，例如依維柯集團、eVersum 等。我們正在推進已宣布的合作，並在未來 12 個月內為各種車輛 SOP 準備我們的全球電池生產線。

Next, please turn to slide number 6, which outlines some of our incoming order activity in Q1. In addition to the USD10.1 million order from Ashok Leyland mentioned earlier, we also have a stable business growth with our existing customer base and partners like, as an example, Oshkosh, Wrightbus, CNHTC, or King Long in serial and new development projects worth USD51.9 million order value.

接下來，請參閱第 6 張投影片，其中概述了我們在第一季的一些收到訂單活動。除了前面提到的Ashok Leyland 的1010 萬美元訂單外，我們還與現有客戶群和合作夥伴（例如奧什科甚、萊特客車、中國重汽或金龍客車）在系列和新開發項目中保持穩定的業務成長訂單價值 5,190 萬美元。

Slide 7 is an overview of the new power and energy battery cells and a battery pack we announced during Q1. These products enable our customers to optimize vehicle design in terms of energy density and cycle life, delivering overall improved performance and reducing the total cost of ownership by preserving fast-charging capabilities. Both cell solutions are rated over 5,000 cycles at 25 degrees. We expect these new-generation products to be critical drivers of our future revenue growth.

幻燈片 7 概述了我們在第一季推出的新動力和能源電池以及電池組。這些產品使我們的客戶能夠在能量密度和循環壽命方面優化車輛設計，提高整體性能，並透過保留快速充電功能降低總擁有成本。兩種電池解決方案在 25 度下的額定循環次數均超過 5,000 次。我們預計這些新一代產品將成為我們未來營收成長的關鍵驅動力。

Moving on to slide number 8. We have presented an overview of our engagement with TUV SUD that was announced last week. TUV SUD is a leader in the certification world, and we are pleased to partner with them on one of the first sustainable assessments in the battery industry world. TUV SUD has completed and analyzed -- of our operation which we'll use as a baseline to measure our progress towards sustainability goals going forward. This is very important.

繼續看第 8 張幻燈片。我們概述了上周宣布的與 TUV SUD 的合作。 TUV SUD 是認證領域的領導者，我們很高興與他們合作進行電池產業首批永續評估之一。 TUV SUD 已完成並分析了我們的營運情況，我們將以此為基準來衡量我們在實現永續發展目標方面取得的進展。這個非常重要。

The next phase of the project will include a deep dive into identifying areas where we can improve sustainability in our manufacturing processes and in our global supply chain. I will now turn the call over to Craig to review our financial performance.

該專案的下一階段將深入探討我們可以提高製造流程和全球供應鏈永續性的領域。我現在將把電話轉給克雷格，以審查我們的財務表現。

Thank you, Sascha. Before I take you through our Q1 financial performance, I would just like to personally thank Leon for all these years of hard work and devotion to Microvast. I'm fortunate to inherit from him a great finance team that has global reach and capabilities. Additionally, Leon leaves me with a very strong balance sheet and an orderly and clean capital structure.

謝謝你，薩沙。在向您介紹我們第一季的財務表現之前，我想親自感謝 Leon 這些年來的辛勤工作和對微宏的奉獻。我很幸運地從他那裡繼承了一支具有全球影響力和能力的優秀財務團隊。此外，萊昂給我留下了非常強大的資產負債表和有序、乾淨的資本結構。

As you know, we have exciting plans for our capital deployment over the next couple of years and beyond. And I'm excited about the opportunities that lay ahead for the company.

如您所知，我們對未來幾年及以後的資本部署制定了令人興奮的計劃。我對公司面臨的機會感到興奮。

Now, let me turn to our financials, and I'll spend the next few minutes discussing our Q1 2022 financial results. Please turn to slide 10, and I will summarize the main line items from our Q1 P&L.

現在，讓我談談我們的財務狀況，我將在接下來的幾分鐘內討論我們 2022 年第一季的財務表現。請翻到投影片 10，我將總結第一季損益表中的主要項目。

First off, revenue. I'm pleased to report strong revenue growth in the first quarter, which grew 145.5% to $36.7 million from $14.9 million in Q1 2021. As Sascha mentioned, this performance exceeded our expectations, and I will take you through the geographic breakdown in a later slide. We posted gross profit of $13,000 in Q1 2022, compared to gross loss of $1.2 million in the prior period.

首先，收入。我很高興地報告第一季的強勁收入增長，從2021 年第一季的1,490 萬美元增長145.5% 至3,670 萬美元。正如Sascha 提到的，這一業績超出了我們的預期，我將在稍後的內容中向您介紹地理細分情況滑動。我們公佈 2022 年第一季的毛利為 13,000 美元，而上一季的毛虧損為 120 萬美元。

After adjusting for non-cash settled share-based compensation expense, adjusted gross profit was $1.9 million in Q1 2022, compared to adjusted gross loss of $1.2 million in Q1 2021. This translates into an adjusted gross margin of 5.2% in Q1 2022, compared to negative 8.3% in Q1 2021, a 13.5 percentage point improvement.

對非現金結算的股份補償費用進行調整後，2022 年第一季調整後毛利為190 萬美元，而2021 年第一季調整後毛虧損為120 萬美元。這意味著2022 年第一季調整後毛利率為5.2%，相較之下2021 年第一季下降至負 8.3%，提高了 13.5 個百分點。

Operating expenses were $43.4 million in Q1 2022, compared to $11.5 million in the prior year period. The largest contributor to the increased operating expenses was share-based compensation expense, which totaled $26.2 million in the quarter. Of this SBC expense, $14.3 million is non-cash, and the balance is currently expected to be settled in cash this year. Operating expenses also increased as the company added headcounts to support the planned growth initiatives and also incurred additional expenses related to operating as a public company, compared to the prior year period.

2022 年第一季的營運費用為 4,340 萬美元，而去年同期為 1,150 萬美元。營運費用增加的最大貢獻者是股權激勵費用，本季總計 2,620 萬美元。在這筆 SBC 費用中，1,430 萬美元是非現金，目前預計今年將以現金結算餘額。與去年同期相比，由於公司增加了員工人數以支持計劃的成長計劃，營運費用也有所增加，並且還產生了與上市公司營運相關的額外費用。

Net loss was $43.8 million in Q1 2022, compared to net loss of $16.3 million in Q1 2021. After adjusting for non-cash settled share-based compensation expense and changes in fair value of our warrant liability and convertible notes, adjusted net loss was $29.1 million in Q1 2022, compared to $12.7 million in Q1 2021.

2022 年第一季的淨虧損為4,380 萬美元，而2021 年第一季的淨虧損為1,630 萬美元。在調整非現金結算的股份補償費用以及我們的認股權證負債和可轉換票據的公允價值變化後，調整後的淨虧損為29.1 美元2022 年第一季的營收為 1,270 萬美元，而 2021 年第一季為 1,270 萬美元。

Adjusted EBITDA was negative $23.1 million in Q1 2022, compared to negative $6 million in Q1 2021. Reconciliations of these non-GAAP metrics to the most comparable GAAP metrics are included in the table at the end of our earnings press release.

2022 年第一季調整後EBITDA 為負2,310 萬美元，而2021 年第一季為負600 萬美元。這些非GAAP 指標與最具可比性的GAAP 指標的調節結果包含在我們收益新聞稿末尾的表格中。

Slide 11 further illustrates the impact of these adjustments. As I just mentioned, we have substantial SBC expenses in Q1 of $26.2 million that is primarily related to stock option and capped RSU awards under a plan that pre-existed our de-SPAC merger. Because of the modification made to these awards, we are required under GAAP to expense it to our P&L over a three-year period starting from July 23, 2021. We have adopted a prudent approach of only adjusting for the non-cash settled portion of this SBC expense.

投影片 11 進一步說明了這些調整的影響。正如我剛才提到的，我們第一季的 SBC 支出為 2,620 萬美元，主要與股票選擇權有關，並且根據我們 de-SPAC 合併之前的一項計劃，限制了 RSU 獎勵。由於這些獎勵進行了修改，根據GAAP，我們需要在自2021 年7 月23 日起的三年期內將其計入損益表。我們採取了謹慎的方法，僅對獎勵的非現金結算部分進行調整此項 SBC 費用。

Slide 12 shows the geographic breakdown of our revenue in Q1 this year compared to last. As you can see, on a percentage basis, the biggest growth was in Asia Pacific, ex-China at a growth of 628% year over year. As Sascha mentioned, this was primarily driven by deliveries to leading OEM customers in India.

投影片 12 顯示了我們今年第一季與去年相比收入的地理分佈。如您所見，以百分比計算，成長最快的是亞太地區（中國除外），年增 628%。正如 Sascha 所提到的，這主要是由向印度領先 OEM 客戶的交付所推動的。

It is worth noting that our China business still posted an 86% year-over-year growth. And we expect that while this will remain a growing market for us, we currently expect the contributions from customers in Asia Pacific, Europe, and the US to grow at a faster rate.

值得注意的是，我們的中國業務仍較去年同期成長86%。我們預計，儘管這對我們來說仍將是一個不斷成長的市場，但我們目前預計亞太地區、歐洲和美國客戶的貢獻將以更快的速度成長。

I will now take you through our funding position and the cash movement in Q1 2022, which is on Slide 13. We started the quarter with $536 million in cash, cash equivalent, and restricted cash. Net cash used in operating activities during the quarter was $24.9 million, which was primarily due to increased notes receivable and inventory due to our higher sales, as well as the management decision to pay for certain raw materials earlier than usual in order to secure lower prices from our suppliers.

現在，我將向您介紹我們的資金狀況和 2022 年第一季的現金流動情況（投影片 13 所示）。本季開始時，我們擁有 5.36 億美元的現金、現金等價物和限制性現金。本季經營活動使用的現金淨額為 2,490 萬美元，這主要是由於我們的銷售額增加導致應收票據和庫存增加，以及管理層決定提前支付某些原材料以確保較低的價格來自我們的供應商。

Our CapEx spend on Huzhou 3.1 and Clarksville 1.1 was $38 million during the quarter. And we also invested a further $2 million into our existing facilities and R&D. This gives us approximately $470.7 million in cash, cash equivalents, and restricted cash at the end of Q1.

本季我們在湖州 3.1 和克拉克斯維爾 1.1 的資本支出為 3800 萬美元。我們也向現有設施和研發進一步投資 200 萬美元。這使我們在第一季末擁有約 4.707 億美元的現金、現金等價物和限制性現金。

Management estimates for our total capital expenditures in 2022 remain in the region of $300 million to $350 million, with most of this being allocated to our capacity expansion projects, which will bring online an additional 4 gigawatt hours of capacity per annum. These expansions, which are our growth drivers for the coming years, are fully funded from our current balance sheet capacity.

管理層預計我們 2022 年的總資本支出仍將在 3 億至 3.5 億美元之間，其中大部分分配給我們的產能擴張項目，該項目每年將新增 4 吉瓦時的產能。這些擴張是我們未來幾年的成長動力，完全由我們目前的資產負債表產能提供資金。

We will also be opportunistic to bring in bank financing. We have a growing fixed asset base that is unencumbered, and our current debt levels are very low. As regards to asset base, our capacity expansions are underpinned by our large and growing forecasted contracted revenues, which will bring incremental cash flows in the future.

我們還將抓住機會引入銀行融資。我們擁有不斷成長且不受阻礙的固定資產基礎，而且我們目前的債務水準非常低。就資產基礎而言，我們的產能擴張是由我們龐大且不斷增長的預測合約收入所支撐的，這將在未來帶來增量現金流。

To round off, we closed the quarter in a very strong cash position and with flexibility across our balance sheet and capital structure to raise more capital. That will be done at a time that best suits us and as it's needed to support future growth beyond our current 4 gigawatt-hour expansion. With that, I will turn it back over to Sascha to review the outlook.

最後，我們在本季結束時擁有非常強勁的現金狀況，並且在資產負債表和資本結構方面具有靈活性，可以籌集更多資金。這將在最適合我們的時間完成，因為它需要支援未來超出我們目前 4 吉瓦時擴張的成長。這樣，我會將其轉回 Sascha 來審查前景。

Thanks, Craig. Lastly, please turn to slide 15.

謝謝，克雷格。最後請翻到幻燈片15。

First, an update on the construction progress related to our ongoing manufacturing capacity expansions. Our manufacturing facility in Huzhou is located in a nearby -- neighboring province to Shanghai and thus far, has not been directly impacted by the COVID lockdowns in China. I'm pleased to report that the ongoing construction related to this project remains on schedule and is on track to continue production by the first quarter of 2023.

首先，介紹與我們正在進行的製造產能擴張相關的建設進度的最新情況。我們在湖州的製造工廠位於上海附近的鄰省，到目前為止，尚未受到中國新冠疫情封鎖的直接影響。我很高興地報告，與該項目相關的正在進行的建設仍在按計劃進行，並預計在 2023 年第一季繼續生產。

We expect production to begin to ramp up in Q4 2022. We posted an updated time-lapse to our social media accounts last week, which shows that the facility has reached 90% completion on the exterior side. This is an impressive feat against the backdrop of a difficult environment in China during the last few months.

我們預計產量將於 2022 年第四季度開始增加。上週，我們在社交媒體帳戶上發布了更新的延時視頻，顯示該設施的外部已完成 90%。在過去幾個月中國困難的環境下，這是一項令人印象深刻的壯舉。

In addition, our ability to produce battery solutions was not immediately impacted from the lockdown. And we have been able to continue production from our existing raw material inventory in Huzhou. However, logistics have created many challenges in getting product out of the door in Q2, both on the ground as well as by sea.

此外，我們生產電池解決方案的能力並未立即受到封鎖的影響。我們已經能夠利用湖州現有的原料庫存繼續生產。然而，物流在第二季度為產品發貨帶來了許多挑戰，無論是陸運還是海運。

In addition, as April progressed into May, it has also become increasingly challenging in a timely replenishment, production, and raw materials due to supply chain disruptions impacting our vendor as well as our tier network. We expect these challenges will be temporary in nature and as of, right now, we believe we can make up the [softness] experience during the first half of Q2 once logistics normalize.

此外，隨著四月進入五月，由於供應鏈中斷影響了我們的供應商以及我們的層級網絡，及時補充、生產和原材料也變得越來越具有挑戰性。我們預期這些挑戰本質上是暫時的，目前，我們相信一旦物流正常化，我們可以彌補第二季上半年的[疲軟]經驗。

We have finished goods in our warehouse, that are ready to be shipped as soon as transportation can be arranged. We will continue to monitor the situation closely.

我們的倉庫裡已經有成品，一旦安排運送就可以出貨。我們將繼續密切關注事態發展。

We expect Clarksville to begin serial production in Q3 2023. Clarksville is well on its way to meeting USMCA requirements, which will give us a competitive advantage in North America. These global expansions will add additionally 4 gigawatt hour of production capacity per year and will be mostly dedicated to our recent announced larger format battery cells.

我們預計 Clarksville 將於 2023 年第三季開始大量生產。Clarksville 正在順利滿足 USMCA 要求，這將為我們在北美帶來競爭優勢。這些全球擴張每年將額外增加 4 吉瓦時的產能，並將主要致力於我們最近宣布的大型電池。

Moving forward, the key part of our strategy is to continue to focus on our manufacturing capacity expansion efforts outside of China. A critical component of this strategy is diversification of our supply chain as we diversify our geographic presence and customer base. Once completed, these efforts will help insulate Microvast from regional disruptions in the future.

展望未來，我們策略的關鍵部分是繼續專注於中國以外的製造產能擴張工作。該策略的關鍵組成部分是我們供應鏈的多元化，因為我們的地理分佈和客戶群多樣化。一旦完成，這些努力將有助於使 Microvast 免受未來區域性幹擾的影響。

Moving to the 2022 outlook, please turn to slide number 16. We experienced some challenges early in 2022. However, we are maintaining our guidance of 35% to 45% revenue growth compared to 2021. We continue to be very optimistic about our opportunities to grow forecasted contract revenue this year and are looking forward to the full deployment of our newly launched product to further drive international sales growth.

轉向 2022 年展望，請轉到幻燈片 16。我們在 2022 年初經歷了一些挑戰。但是，與 2021 年相比，我們維持收入增長 35% 至 45% 的指導。我們仍然對我們的機會非常樂觀今年預計合約收入將成長，並期待全面部署我們新推出的產品，以進一步推動國際銷售成長。

At the same time, we will further explore the market for energy storage solutions. This market was valued in 2020 at $10.37 billion and is projected to globally reach $37 billion in 2027. We will also take advantage with our high-performance battery solutions in the upcoming and growing fuel cell market. The market for fuel cell applications is projected to grow to $9.1 billion by 2027 versus $2.9 billion in 2022.

同時，我們將進一步開拓儲能解決方案市場。該市場 2020 年估值為 103.7 億美元，預計到 2027 年全球將達到 370 億美元。我們還將在即將到來且不斷增長的燃料電池市場中利用我們的高性能電池解決方案。燃料電池應用市場預計到 2027 年將成長至 91 億美元，而 2022 年將成長至 29 億美元。

Our fuel cell battery cell solutions have been already tested in very harsh desert conditions, beginning of this year. Long term, we look towards a positive future with political leaders across the global coming together to reduce their country's carbon footprint and signing off Paris Agreement or releasing the new Fit for 55 European legislation package that has given the boost to green and renewable technologies.

今年年初，我們的燃料電池解決方案已經在非常惡劣的沙漠條件下進行了測試。從長遠來看，我們期待著一個積極的未來，全球政治領導人齊心協力減少本國的碳足跡，簽署《巴黎協定》或發布新的“適合55 國”歐洲立法計劃，推動綠色和可再生技術的發展。

By the way, we are also exploring opportunities to participate in some of the recently announced governmental funded electrification projects in the United States as well as in Europe. With that positive outlook, I will turn the call back over to Sarah.

順便說一句，我們也正在探索參與美國和歐洲最近宣布的一些政府資助的電氣化計畫的機會。帶著這種積極的態度，我會將電話轉回給莎拉。

Thank you, Sascha. I would now like to ask the operator to open up the line for question and answers.

謝謝你，薩沙。我現在想請接線生開通問答線。

(Operator Instructions) Adam Jonas, Morgan Stanley.

（操作指示）Adam Jonas，摩根士丹利。

Hi, everybody. Thanks for the call. Thanks for the details. I got your full-year CapEx outlook, but could you also provide any magnitude or cadence of OpEx as well, particularly, what would consume cash? Any visibility you could provide there would be very helpful. Thank you.

大家好。感謝您的來電。感謝您提供詳細資訊。我得到了您的全年資本支出展望，但您能否也提供營運支出的規模或節奏，特別是哪些方面會消耗現金？您可以在那裡提供的任何可見性都會非常有幫助。謝謝。

Sure, Adam. Craig here. Not a problem. I think -- and it will come as a surprise to you that we'll run some cash outflow this year. I think our best estimates for that is that cash outflow from operations would be in the region of about $50 million. Q1 was slightly higher than we had anticipated because we took the decision to buy a lot more raw materials. And you saw that from the inventory going up and now notes receivable. That is an indicator for you that it will be like that for the rest of year. That was a tactical management decision to go into the market earlier on raw materials.

當然，亞當。克雷格在這裡。不是問題。我認為，今年我們將出現一些現金流出，這會讓你感到驚訝。我認為我們對此的最佳估計是營運現金流出約為 5000 萬美元。第一季略高於我們的預期，因為我們決定購買更多原料。您從庫存上升和現在的應收票據中看到了這一點。這對你來說是一個指標，表明今年剩餘時間都會如此。這是一項戰術管理決定，即儘早進入原料市場。

Okay. I appreciate that. And obviously given the cash projections and the cost of the expansion in Huzhou and Clarksville, with your cash position, I imagine you'd be getting down to what you would define as minimum cash levels within a couple of quarters.

好的。我很感激。顯然，考慮到湖州和克拉克斯維爾的現金預測和擴張成本，以及您的現金狀況，我想您將在幾個季度內達到您定義的最低現金水平。

I didn't know if you wanted to -- obviously, you're exploring lots of different options there. There's all sorts of exciting opportunities to get low-cost financing from grants and the DOE and others -- but for another time perhaps. But can you remind us what you would say would be your comfortable range of minimum cash to run the business before you bring in some new outside funds?

我不知道你是否願意——顯然，你正在探索很多不同的選擇。有各種令人興奮的機會可以從贈款、能源部和其他機構獲得低成本融資——但也許是另一次。但您能否提醒我們，在引進一些新的外部資金之前，您認為經營業務所需的最低現金範圍是多少？

Yeah. I think it's very similar to what Leon mentioned last time, that we're looking to always have minimum cash around $150 million, $200 million.

是的。我認為這與 Leon 上次提到的非常相似，我們希望永遠擁有 1.5 億美元、2 億美元左右的最低現金。

Just so you know what we're doing with the balance sheet, Adam, is this, right? So we've got cash, and then we're converting that cash into productive assets -- fixed assets, right? So once we do that, our fixed asset basis goes up; it's unlevered. And our fixed assets are backed by cash flows because we've already got the technology. But as we do that, we then got the flexibility to add debt financing.

只是為了讓你知道我們在資產負債表上做什麼，亞當，是這樣的，對吧？所以我們有現金，然後我們將這些現金轉化為生產性資產——固定資產，對嗎？因此，一旦我們這樣做了，我們的固定資產基礎就會上升；它是無槓桿的。我們的固定資產有現金流支持，因為我們已經掌握了技術。但當我們這樣做時，我們就可以靈活地增加債務融資。

And that's a lot easier for banks to do because you've done what you promised to do. You build the building. You put the equipments in there. They see the customers come. And they're not just looking at a LTV on a building. They're looking at like, what's the cash flows associated with it. And that's the nice position that we're in.

這對銀行來說要容易得多，因為你已經做到了你承諾的事情。你建造大樓。你把設備放在那裡。他們看到顧客來了。他們不僅僅關注建築物的 LTV。他們關注的是與之相關的現金流量是多少。這就是我們所處的有利位置。

Makes a lot of sense. I look forward to meeting you, and thanks for the details.

很有道理。我期待與您會面，並感謝您提供詳細資訊。

Yeah, I look forward -- you come to Houston anytime. We'll see you in New York next time as well.

是的，我期待著——你隨時來休士頓。我們下次也在紐約見。

You got it. Thanks.

你說對了。謝謝。

Thanks.

謝謝。

Thanks, Adam.

謝謝，亞當。

As there are no further questions, I will turn the conference back over to Sascha Kelterborn for any closing remarks.

由於沒有其他問題，我將把會議轉回薩沙·凱爾特伯恩 (Sascha Kelterborn) 進行閉幕致辭。

Thank you all for joining today, and we wish you a great and a pleasant evening. Thanks a lot.

感謝大家今天的加入，祝您有個美好而愉快的夜晚。多謝。

This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

今天的電話會議到此結束。您可以斷開線路。感謝您的參與並祝您有個愉快的一天。