(MVST) 2022 Q2 法說會逐字稿

Thank you for standing by. This is the conference operator. Welcome to the Microvast Second Quarter 2022 Earnings Call. (Operator Instructions) The conference is being recorded.

謝謝你的支持。這是會議接線員。歡迎參加 Microvast 2022 年第二季度財報電話會議。 （操作員說明）正在錄製會議。

(Operator Instructions) I would now like to turn the conference over to Sarah Alexander, Microvast General Counsel. Thank you. Please go ahead.

（操作員說明）我現在想將會議轉交給 Microvast 總法律顧問 Sarah Alexander。謝謝你。請繼續。

Thank you, John, and thanks to the audience for joining us today. Sascha Kelterborn, our President and Chief Revenue Officer; and Craig Webster, Chief Financial Officer, will host today's call.

謝謝你，約翰，也感謝今天加入我們的觀眾。 Sascha Kelterborn，我們的總裁兼首席營收官；首席財務官 Craig Webster 將主持今天的電話會議。

Ahead of this call, Microvast issued its second quarter 2022 earnings press release, which can be found on the Investor Relations section of our website at ir.microvast.com. In addition, we have posted a slide show to our website to accompany tonight's call. 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 revision to these forward-looking statements in light of new information or future events. 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 in March and the 10-Q filed earlier today.

在本次電話會議之前，Microvast 發布了 2022 年第二季度收益新聞稿，該新聞稿可在我們網站 ir.microvast.com 的投資者關係部分找到。此外，我們還在我們的網站上發布了幻燈片，以配合今晚的電話會議。提醒一下，請注意，我們將在此次電話會議上做出前瞻性陳述。這些陳述基於當前的預期和假設，僅反映我們截至今天的觀點。在任何後續日期，不應依賴它們作為代表觀點的代表，我們不承擔根據新信息或未來事件修改或公開發布對這些前瞻性陳述的任何修改結果的義務。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存在重大差異。有關可能影響我們財務業績的重大風險和其他重要因素的進一步討論，請參閱我們向美國證券交易委員會提交的文件，包括我們在 3 月份提交的 10-K 表格年度報告和今天早些時候提交的 10-Q 表格。

In addition, during today's call, we may discuss non-GAAP financial measures, including adjusted gross profit, adjusted net loss and adjusted EBITDA, and 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 end of our 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，包括調整後的毛利潤、調整後的淨虧損和調整後的 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非替代或孤立考慮。這些非 GAAP 指標已與我們新聞稿末尾的表格中最具可比性的 GAAP 指標進行了核對。

A webcast replay of this call will also be available on the Investor Relations section of our company website.

本次電話會議的網絡重播也將在我們公司網站的投資者關係部分提供。

With that, I'll turn the call over to Sascha for some opening remarks.

有了這個，我將把電話轉給 Sascha 做一些開場白。

Thank you, Sarah. Everyone, please turn to Slide 4 of our presentation as I cover a few highlights from the second quarter.

謝謝你，莎拉。大家，請轉到我們演示文稿的幻燈片 4，因為我將介紹第二季度的一些亮點。

We posted 93% revenue growth during the quarter, delivered USD 64.4 million in Q2 2022. This revenue performance exceeded expectations, especially considering that our shipments, they were very slow in April and the first half of May as a result of the COVID lockdowns in Shanghai and the surrounding region.

我們在本季度公佈了 93% 的收入增長，在 2022 年第二季度實現了 6440 萬美元。這一收入表現超出了預期，特別是考慮到我們的出貨量，由於 COVID 鎖定在 4 月和 5 月上半月非常緩慢上海及周邊地區。

I want to thank our global team and especially our local team in China this quarter, faced with many external challenges and situations that were out of their control they rose to the occasion, maintaining production throughout the lockdown and put us in a position to deliver strong quarterly results after the pace of shipments begin to pick up -- pick back up in the second half of May when the lockdown restrictions were eased. We had an outstanding month in June, and we were able to make up the shortfall from the first half of the quarter.

我要感謝本季度我們的全球團隊，尤其是我們在中國的本地團隊，他們面臨許多無法控制的外部挑戰和情況，他們挺身而出，在整個封鎖期間保持生產，使我們能夠提供強大的出貨速度開始回升後的季度業績——在 5 月下半月解除鎖定限制後回升。我們在 6 月份度過了一個出色的月份，我們能夠彌補本季度上半年的不足。

On a regional note, I would highlight that our market share in India continues to increase, and it was again a key region for our revenue growth this quarter. We ended the second quarter with a strong backlog of USD 105.3 million, driven by a healthy order intake of USD 47.8 million. Our forecasted contracted revenue remained at a solid USD 2.5 billion. Except backlog, our forecasted contract revenue is compromised (sic) [comprised] entirely of customers located outside of China.

在區域方面，我要強調我們在印度的市場份額繼續增加，這再次成為我們本季度收入增長的關鍵區域。在 4780 萬美元的健康訂單量的推動下，我們在第二季度結束時積壓了 1.053 億美元。我們預測的合同收入保持在穩定的 25 億美元。除積壓訂單外，我們預測的合同收入完全受到中國以外客戶的影響（原文如此）[包括]。

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

當我們提到預測合同收入時，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同關係中實現的收入的估計。這些合同中的大多數都包括估計量要求。但是，它們通常不包括數量承諾。我們預計將在 2022 年至 2031 年之間實現當前預測的合同收入數字。

The most prominent challenge in the second quarter continued to be raw material prices, which remain at elevated levels as a result of supply chain disruptions as well as worldwide inflation. Our unit costs across the board are tracking significantly higher than we anticipated at the beginning of the year.

第二季度最突出的挑戰仍然是原材料價格，由於供應鏈中斷和全球通貨膨脹，原材料價格仍處於高位。我們全面跟踪的單位成本遠高於我們在年初的預期。

We are actively monitoring these trends and implementing mitigation strategies where possible, including optimizing longer-term supply contracts, identifying new or additional sources of supply and increasing our selling prices where possible. However, we expect raw material prices, especially for certain key materials like lithium and cobalt to remain elevated through 2022 and possibly into 2023.

我們正在積極監測這些趨勢並在可能的情況下實施緩解策略，包括優化長期供應合同、確定新的或額外的供應來源以及在可能的情況下提高我們的銷售價格。然而，我們預計原材料價格，尤其是鋰和鈷等某些關鍵材料的價格將在 2022 年甚至到 2023 年保持高位。

Looking forward into 2023, we expect our order volume to increase after we bring the new manufacturing capacities online in Huzhou, and we expect this additional volume to increase our production visibility, enabling us to lock in higher volume commitments.

展望 2023 年，我們預計湖州新產能上線後訂單量將增加，我們預計這一額外數量將提高我們的生產可見度，使我們能夠鎖定更高的產量承諾。

Please turn to Slide #5, which highlights some of our key partnerships in the commercial vehicle market. SAFRA is a French bus OEM, which has a dedicated unit specializing in the renovation of passenger transport equipment and active in propelling clean and sustainable mobility.

請轉至幻燈片 #5，其中重點介紹了我們在商用車市場上的一些重要合作夥伴關係。 SAFRA 是一家法國巴士 OEM，擁有專門從事客運設備改造的專門部門，並積極推動清潔和可持續的出行。

One of SAFRA's core strategy centers on the construction and marketing of hydrogen buses under the Businova and HYCITY brand. It is the retrofitting of buses with hydrogen, the renovation and maintaining of passenger transport vehicles as well as customer service. Microvast is nominated as exclusive battery supplier and has signed a framework agreement up to 10 years with SAFRA with a revenue forecast of over USD 150 million.

SAFRA 的核心戰略之一是建設和營銷 Businova 和 HYCITY 品牌的氫動力巴士。它是氫燃料公交車的改造，客運車輛的改造和維護以及客戶服務。 Microvast 被提名為獨家電池供應商，並與 SAFRA 簽署了長達 10 年的框架協議，收入預測超過 1.5 億美元。

Clean Logistics is a transport leader in the mobility revolution within commercial vehicle transport. Microvast has already delivered prototype systems for hydrogen buses and trucks for Clean Logistics. The expected volume forecast from 2023 to 2027 is approximately 1,300 to 5,000 vehicles.

清潔物流是商用車輛運輸中移動革命的運輸領導者。 Microvast 已經為 Clean Logistics 交付了氫氣巴士和卡車的原型系統。預計 2023 年至 2027 年的銷量約為 1,300 至 5,000 輛。

Weichai Power Group is an international company with business segments such as power system, commercial vehicles, aquaculture equipment, construction machinery, smart logistics and marine transportation equipment. Its products are exported to more than 110 countries and regions. Microvast is in the process of delivering battery systems to Weichai Power for its heavy tractor project with a $4 million order volume only in Q2.

濰柴動力集團是一家國際化公司，業務板塊包括電力系統、商用車、水產養殖設備、工程機械、智慧物流、海洋運輸裝備等。其產品遠銷110多個國家和地區。 Microvast 正在為濰柴動力的重型拖拉機項目提供電池系統，僅在第二季度就有 400 萬美元的訂單量。

XCMG is one of the most influential large-scale enterprises in China construction machinery industry. Its product portfolio includes various heavy-duty construction equipment truck trains, asphalt, concrete table, graders, cold miling (sic) [milling] machines, fire trucks and Microvast expects to deliver 50 sets to their 49-ton hydrogen heavy-duty trucks with a total revenue of USD 1.4 million in 2022.

徐工是中國工程機械行業最具影響力的大型企業之一。其產品組合包括各種重型建築設備卡車列車、瀝青、混凝土工作台、平地機、冷銑 (sic) [銑削] 機器、消防車和 Microvast 預計將為其 49 噸氫重型卡車交付 50 台2022 年的總收入為 140 萬美元。

Please turn to Slide 6, which highlights some key wins during the second quarter, including an order from JBM Group for over USD 11 million and another order from SWTCH in excess of USD 8 million. We also continue to benefit from ongoing customer relationships. As an example, Oshkosh, Wright Bus, ZF, King Long and others. In total, the order intake for Q2 was USD 47.8 million.

請轉到幻燈片 6，其中突出顯示了第二季度的一些關鍵勝利，包括 JBM Group 的超過 1100 萬美元的訂單和 SWTCH 的另一筆超過 800 萬美元的訂單。我們還繼續受益於持續的客戶關係。比如豪士科、萊特巴士、採埃孚、金龍等。第二季度的訂單總額為 4780 萬美元。

I will now turn the call over to Craig to review our financial performance of Q2.

我現在將把電話轉給克雷格，以審查我們第二季度的財務表現。

Thank you, Sascha. I'll spend the next few minutes discussing our Q2 2022 financial results.

謝謝你，薩沙。我將在接下來的幾分鐘內討論我們 2022 年第二季度的財務業績。

Please turn to Slide 8, and I will summarize the main line items from our Q2 P&L. First off, revenue. I am pleased to report strong revenue growth in the second quarter, which grew 93% to $64.4 million from $33.4 million in Q2 2021. I will take you through the geographic breakdown in a later slide, but I would like to highlight that this marks the sixth quarter in a row that we have shown substantial revenue growth over the same quarter in the prior year. In fact, on a percentage basis, revenue has grown double or triple digits for each quarter since Q1 2021.

請轉到幻燈片 8，我將總結我們第二季度損益表的主要項目。首先，收入。我很高興地報告第二季度的強勁收入增長，從 2021 年第二季度的 3340 萬美元增長 93% 至 6440 萬美元。我將在稍後的幻燈片中向您介紹地理細分，但我想強調的是，這標誌著連續第六個季度，我們的收入比去年同期大幅增長。事實上，按百分比計算，自 2021 年第一季度以來，每個季度的收入都增長了兩位數或三位數。

On a year-to-date basis, revenue was $101.1 million, up 109.2% from $48.3 million in the prior 6-month period. We posted gross profit of $4.8 million in Q2 2022 compared to gross loss of $6.8 million in the prior period, an improvement of 171.5%. After adjusting for noncash settled share-based compensation expense in our cost of sales, adjusted gross profit was $6.7 million in Q2 2022 compared to adjusted gross loss of $6.8 million in Q2 2021. This translates into an adjusted gross margin of 10.4% in Q2 2022 compared to negative 20.3% in Q2 2021, a 30.7 percentage point improvement.

年初至今，收入為 1.011 億美元，比前 6 個月的 4830 萬美元增長 109.2%。我們在 2022 年第二季度公佈的毛利潤為 480 萬美元，而上一季度的毛虧損為 680 萬美元，增長了 171.5%。在對我們的銷售成本中的非現金結算的股權補償費用進行調整後，2022 年第二季度的調整後毛利潤為 670 萬美元，而 2021 年第二季度的調整後毛虧損為 680 萬美元。這意味著 2022 年第二季度的調整後毛利率為 10.4%與 2021 年第二季度的負 20.3% 相比，提高了 30.7 個百分點。

I was pleased to see gross margin improve at a faster rate than revenues during the quarter despite higher raw material prices. This result underpins our efforts to improve our gross margin performance long term, and it will continue to be an area of focus for us going forward, especially as we plan for significantly higher customer deliveries in 2023.

儘管原材料價格上漲，但我很高興看到本季度毛利率的增長速度快於收入。這一結果鞏固了我們長期改善毛利率表現的努力，並將繼續成為我們未來的重點領域，尤其是在我們計劃在 2023 年顯著提高客戶交付量的情況下。

Operating expenses were $50.4 million in Q2 2022 compared to $15.8 million in Q2 2021. The largest contributor to the increased operating expenses was share-based compensation expense, which totaled $28.5 million in the quarter. Operating expenses also increased as the company continues to add headcount to support planned growth initiatives and also incurred additional expenses related to operating as a public company compared to the prior year period.

2022 年第二季度的運營費用為 5,040 萬美元，而 2021 年第二季度為 1,580 萬美元。運營費用增加的最大因素是股權激勵費用，本季度總計 2,850 萬美元。隨著公司繼續增加員工人數以支持計劃中的增長計劃，運營費用也有所增加，並且與去年同期相比，還產生了與作為上市公司運營相關的額外費用。

As I mentioned previously, noncash share-based compensation expenses were a significant contributor to both the increase in GAAP operating expenses and operating losses. The large majority of share-based compensation expense relates to equity awards made in the years preceding our business combination last summer. Accounting rules require that those awards be expensed to our P&L over a 3-year period following the merger.

正如我之前提到的，非現金股票補償費用是導致 GAAP 運營費用和運營虧損增加的重要因素。大部分股權補償費用與去年夏天我們業務合併前幾年的股權獎勵有關。會計規則要求這些獎勵在合併後的 3 年內計入我們的損益。

We believe a more accurate representation of our financial performance especially as relating to cash operating expenses and operating loss is as illustrated in Slide 9. After adjusting for noncash stock-based compensation in SG&A, our adjusted operating expense in Q2 2022 was $21.7 million compared to $15.8 million in Q2 2021.

我們認為，幻燈片 9 更準確地反映了我們的財務業績，尤其是與現金運營費用和運營虧損相關的財務業績。在調整了 SG&A 中基於非現金股票的薪酬後，我們在 2022 年第二季度調整後的運營費用為 2170 萬美元，相比之下2021 年第二季度為 1580 萬美元。

GAAP net loss was $44.2 million in Q2 2022 compared to a net loss of $27.1 million in Q2 2021. After adjusting for noncash share-based compensation expense and changes in fair value of warrant liability and convertible notes, adjusted net loss was $14.9 million in Q2 2022 compared to $23.8 million in Q2 2021. Reconciliations of these non-GAAP metrics to the most comparable GAAP metrics are included in the tables at the end of our earnings press release.

2022 年第二季度的 GAAP 淨虧損為 4420 萬美元，而 2021 年第二季度的淨虧損為 2710 萬美元。在調整了基於非現金股票的薪酬費用以及認股權證負債和可轉換票據的公允價值變化後，第二季度調整後的淨虧損為 1490 萬美元2022 年，而 2021 年第二季度為 2380 萬美元。這些非 GAAP 指標與最具可比性的 GAAP 指標的對賬包含在我們收益新聞稿末尾的表格中。

Slide 10 shows the geographic breakdown of our revenue for the 3- and 6-month periods ended June 30, 2022, compared to the prior year period. I am pleased to report that all 4 of our key geographies posted growth in Q2 2022 compared to Q2 2021. As you can see, the largest growth in revenues came from the Asia Pacific region ex China, equivalent to 231% growth compared to Q2 2021 and 310% growth for the first 6 months.

幻燈片 10 顯示了與去年同期相比，截至 2022 年 6 月 30 日的 3 個月和 6 個月期間我們的收入地理分佈。我很高興地報告，與 2021 年第二季度相比，我們所有 4 個主要地區在 2022 年第二季度均實現了增長。如您所見，收入增長最大的是中國以外的亞太地區，與 2021 年第二季度相比增長了 231%前 6 個月增長 310%。

India continues to be the biggest driver of growth for us in the Asia Pacific region. In addition, our China business continues to perform well, posting 57% growth during the quarter. Europe also posted a healthy 15% growth rate. Even though Europe's growth is currently lagging the other geographies, given the impacts from the war in Ukraine, we have some exciting projects coming up in the region, and we expect the growth rate to increase beginning in the second half of 2022 and with a very significant pickup starting in 2023.

印度仍然是我們在亞太地區的最大增長動力。此外，我們的中國業務繼續表現良好，在本季度錄得 57% 的增長。歐洲也實現了 15% 的健康增長率。儘管歐洲的增長目前落後於其他地區，但鑑於烏克蘭戰爭的影響，我們在該地區有一些令人興奮的項目，我們預計從 2022 年下半年開始，增長率將增加，並且非常從 2023 年開始顯著回升。

I will now take you through our funding position and the cash movement in Q2 2022, which is on Slide 11. We started the quarter with $471 million in cash, cash equivalents and restricted cash. Net cash used in operating activities during the quarter was $39 million, which is primarily due to increased accounts receivables, notes receivables and inventory due to our higher sales. In particular, April and May was slow months for shipments due to Shanghai port operations being restricted with COVID lockdown measures. This meant the majority of our shipments occurred in June, which pushed many payment and collection dates into future quarters.

現在，我將帶您了解我們的資金狀況和 2022 年第二季度的現金流動情況，即幻燈片 11。我們在本季度開始時擁有 4.71 億美元的現金、現金等價物和受限現金。本季度用於經營活動的淨現金為 3900 萬美元，這主要是由於我們的銷售額增加導致應收賬款、應收票據和庫存增加。特別是 4 月和 5 月，由於上海港口的運營受到 COVID 封鎖措施的限制，出貨量緩慢。這意味著我們的大部分發貨都發生在 6 月，這將許多付款和收款日期推到了未來幾個季度。

Our CapEx spend on Huzhou 3.1 and Clarksville 1A in Q2 2022 totaled $23 million, and we also had capital expenditures totaling $4 million, that mainly relate to improvements to our existing facilities and R&D projects.

2022 年第二季度，我們在湖州 3.1 和克拉克斯維爾 1A 上的資本支出總額為 2300 萬美元，資本支出總額為 400 萬美元，主要與現有設施和研發項目的改進有關。

Our current estimates are that capital expenditure for the second half will be in the range of $180 million to $220 million and will primarily be used for our capacity expansion projects. As our payments are determined by construction and equipment delivery milestones, it may be the case that some of these payments are brought forward or pushed out into 2023. We closed the quarter in a very strong cash position of approximately $396.9 million in cash, cash equivalents and restricted cash. We expect to add modest levels of debt given the low leverage on our balance sheet and as our fixed asset base grows. For example, with 99% of the Huzhou building complete and this facility already backed by very strong cash flows from our customers, we have been in discussions with a syndicate of local banks to arrange a project finance facility. We expect this will -- we expect it to be available for drawdown from late August. With the benefit of this debt financing, we expect to close the year with at least $250 million in cash.

我們目前的估計是，下半年的資本支出將在 1.8 億美元至 2.2 億美元之間，主要用於我們的產能擴張項目。由於我們的付款是由建築和設備交付里程碑決定的，其中一些付款可能會提前或推遲到 2023 年。我們在本季度結束時的現金狀況非常強勁，現金、現金等價物約為 3.969 億美元和受限現金。鑑於我們資產負債表上的低杠桿率以及隨著我們固定資產基礎的增長，我們預計將增加適度的債務水平。例如，由於湖州大樓的 99% 已完成，並且該設施已經得到我們客戶非常強勁的現金流的支持，我們一直在與當地銀行財團討論安排項目融資設施。我們預計這將 - 我們預計它可以從 8 月下旬開始提取。憑藉這種債務融資的好處，我們預計今年將以至少 2.5 億美元的現金結束。

As the Clarksville construction progresses and receives equipment, it too will also support debt financing along the lines we're putting in place for the Huzhou expansion. Accordingly, all our capacity expansion projects are fully funded and the business is in a very solid balance sheet position to execute on its aggressive sales plan for 2023.

隨著克拉克斯維爾建設的進展和設備的接收，它也將支持我們為湖州擴建而實施的債務融資。因此，我們所有的產能擴張項目都獲得了充足的資金，並且該業務的資產負債表狀況非常穩固，可以執行其 2023 年的積極銷售計劃。

Lastly, please see Slide 12 for an overview of our Huzhou 3.1 expansion project. The new capacity this brings online for our new high-power and high-energy cells supports our 2023 growth targets with over half of the available capacity already allocated to customers across Europe, Asia Pacific and China, who have entered into multiyear framework agreements with us. Huzhou remains on schedule with the exterior of the building at 99% completion. We posted drone footage to our social media accounts earlier this week with aerial views of the facilities. We expect equipment to start being delivered this month with production ramp-up beginning in Q4 2022. We currently expect Clarksville to begin serial production in late Q3 2023 and be well positioned to take advantage of the recently announced initiatives under the Inflation Reduction Act.

最後，請參閱幻燈片 12，了解我們湖州 3.1 擴建項目的概況。這為我們新的高功率和高能電池帶來的新產能支持我們的 2023 年增長目標，超過一半的可用產能已分配給與我們簽訂多年框架協議的歐洲、亞太地區和中國的客戶.湖州仍按計劃進行，建築外部已完成 99%。本週早些時候，我們在社交媒體賬戶上發布了無人機鏡頭，其中包含設施的鳥瞰圖。我們預計設備將於本月開始交付，並於 2022 年第四季度開始增加產量。我們目前預計克拉克斯維爾將在 2023 年第三季度末開始批量生產，並做好充分準備利用最近宣布的《減通脹法案》舉措。

With that, I'll turn it back to Sascha to review the outlook.

有了這個，我將把它轉回 Sascha 來回顧一下前景。

Thanks, Craig. Please turn to Slide 13. We are reaffirming our guidance of 35% to 45% revenue growth compared to 2021. We continue to be optimistic about opportunities to grow forecasted contracted revenue this year from its current level of $2.5 billion, and are looking forward to the full deployment of our newly launched products to further drive global sales growth, including nearby markets. Accordingly, we have a good visibility on 2023 as a result of 2 large SOP projects for deliveries to our customers in Europe, which we currently estimate at $80 million in revenue with potential upside. We are, therefore, planning for a sustainable increase in customer volumes next year and which truly sets the platform for future years of growth.

謝謝，克雷格。請轉到幻燈片 13。我們重申與 2021 年相比收入增長 35% 至 45% 的指導。我們繼續看好今年預測合同收入從目前的 25 億美元水平增長的機會，並期待全面部署我們新推出的產品，以進一步推動包括附近市場在內的全球銷售增長。因此，我們對 2023 年有很好的可見性，因為有 2 個大型 SOP 項目向我們的歐洲客戶交付，我們目前估計收入為 8000 萬美元，具有潛在的上行空間。因此，我們計劃在明年實現客戶數量的可持續增長，這將為未來幾年的增長奠定真正的平台。

Executing is critical and to achieve our targets, we will continue to focus our efforts on revenue growth through new multiyear supply contracts with existing as well as new customers to fill the new capacity coming online in 2023, completing the capacity expansion projects to serve increasing customer demands and throughput, driving margin improvements as we scale the business model. We recently established a new subsidiary in Denver, Colorado, called Microvast Energy, Inc. and have begun building a dedicated team to focus on energy storage solutions, which we see as a huge growth opportunity, especially in the U.S. market. We believe energy storage is an attractive end market for our new 53.5 ampere-hour cells. Energy storage was valued at over EUR 10 billion in 2020 and is projected to globally reach over EUR 37 billion in 2027.

執行至關重要，為了實現我們的目標，我們將繼續通過與現有客戶和新客戶簽訂新的多年供應合同來填補收入增長，以填補 2023 年上線的新產能，完成產能擴張項目以服務於不斷增長的客戶需求和吞吐量，隨著我們擴展業務模式，推動利潤率提高。我們最近在科羅拉多州丹佛市成立了一家名為 Microvast Energy, Inc. 的新子公司，並開始組建專門的團隊來專注於儲能解決方案，我們認為這是一個巨大的增長機會，尤其是在美國市場。我們相信對於我們的新型 53.5 安培小時電池來說，儲能是一個有吸引力的終端市場。到 2020 年，儲能價值超過 100 億歐元，預計到 2027 年全球將超過 370 億歐元。

Further, we expect the U.S. Inflation Reduction Act of 2022 to be important legislation advancing clean energy initiatives and helping to reduce carbon emissions in the U.S., helping to create even more exciting direct and indirect business opportunities for Microvast going forward.

此外，我們預計 2022 年美國《降低通脹法案》將成為推動清潔能源計劃和幫助減少美國碳排放的重要立法，有助於為 Microvast 的未來創造更多令人興奮的直接和間接商機。

In addition, I'm pleased to report that we have signed an LOI with a NASDAQ listed innovative e-mobility, commercial vehicle platform provider and are finalizing right now a strategic cooperation agreement with them. You will hear more about it.

此外，我很高興地報告，我們已經與納斯達克上市的創新電動汽車、商用車平台提供商簽署了意向書，目前正在與他們敲定戰略合作協議。你會聽到更多關於它的信息。

Finally, as many of you are aware, our annual stock meeting will help tomorrow at 9:00 a.m. central time. If you have not done so already, please vote your shares. The polls are open until midnight Eastern time tonight. And if you would like to meet some of us in person, please come to our booth at the IAA conference in Hanover, Germany in calendar week 38. Full details are on the IAA website.

最後，正如你們中的許多人所知，我們的年度股票會議將在明天上午 9:00（中部時間）提供幫助。如果您還沒有這樣做，請投票您的股份。投票將開放至東部時間今晚午夜。如果您想親自會見我們中的一些人，請在第 38 日曆週在德國漢諾威舉行的 IAA 會議上來到我們的展位。詳細信息請訪問 IAA 網站。

I will now turn the call back to Sarah.

我現在將電話轉回給莎拉。

Thank you, Sascha. The operator will now tune in to moderate the question-and-answer session.

謝謝你，薩沙。接線員現在將收聽以調節問答環節。

(Operator Instructions) Our first question comes from the line of Colin Rusch with Oppenheimer.

（操作員說明）我們的第一個問題來自 Colin Rusch 和 Oppenheimer。

Can you talk a little bit about how involved your customers are in helping source some of their raw materials? Obviously, there's a very dynamic environment. It's very competitive. I'm curious about how active they are in leveraging some of their purchasing power to help you guys with the supply chain?

你能談談你的客戶在幫助採購他們的一些原材料方面的參與程度嗎？顯然，這是一個非常動態的環境。這是非常有競爭力的。我很好奇他們在利用他們的一些購買力來幫助你們供應鏈方面有多積極？

Colin, thanks a lot for that question. It's a very valid question. Yes, we are involved in our -- with our customers together in our strategic partnerships. As you know, we have a strategic partnership with FPT and the [vehicle group]. We are involved in finding solutions, joint solutions in acquiring raw materials, other materials on the market jointly together in order to have a better bargain power. This is what we do as an example. We do that also with other strategic customers in order really to narrow down the risk of having further increasing raw material prices.

科林，非常感謝這個問題。這是一個非常有效的問題。是的，我們與我們的客戶一起參與我們的戰略合作夥伴關係。如您所知，我們與 FPT 和 [車輛集團] 建立了戰略合作夥伴關係。我們共同參與尋找解決方案，在採購原材料和市場上的其他材料方面的聯合解決方案，以便共同擁有更好的議價能力。這就是我們做的一個例子。我們也與其他戰略客戶一起這樣做，以真正縮小原材料價格進一步上漲的風險。

Excellent. And if you look across the potential customer landscape and you guys did a nice job of booking some new business this quarter. How many new folks are working through qualification right now that you might be able to convert over the next, call it, 3 to 6 months?

出色的。如果你看看潛在的客戶環境，你們本季度在預訂一些新業務方面做得很好。現在有多少新人正在通過資格認證，您可能能夠在接下來的 3 到 6 個月內轉換？

We have various customers or potential customers we are working on right now. We're in -- a quick turnover in 3 to 6 months is always difficult to say because we are an automotive industry. This means we have normally a summer and the winter test, an A sample, a B sample and the C sample in case it is a dedicated solution for customers. Otherwise, if it's in already existing solutions, this goes quicker. So this means we have already, I would say, at least 10 customers in alignment, which will -- where we will see revenue upcoming within the next 3 to 6 months.

我們現在正在處理各種客戶或潛在客戶。我們在 - 3 到 6 個月的快速周轉總是很難說，因為我們是汽車行業。這意味著我們通常有一個夏季和冬季測試，一個 A 樣品，一個 B 樣品和一個 C 樣品，以防它是客戶專用的解決方案。否則，如果它在現有的解決方案中，這會更快。所以這意味著我們已經，我會說，至少有 10 個客戶，這將 - 我們將在未來 3 到 6 個月內看到收入。

Great. And then one of the things that we're seeing pretty substantially as we move away from fossil fuels into electrification of a variety of applications, there's an enormous amount of demand coming around energy storage and certainly a variety of supply constraints. Can you talk a little bit about the variety of applications you guys are considering right now from end markets and the inbounds that you're getting from potentially new customers?

偉大的。然後，隨著我們從化石燃料轉向各種應用的電氣化，我們看到的一件事情是，圍繞儲能的大量需求，當然還有各種供應限制。您能否談談你們目前正在考慮的終端市場的各種應用程序以及您從潛在新客戶那裡獲得的入站信息？

We will stay with our strategy. So one of our most important markets you see commercial vehicle applications, which means everything from 3.5 tons all the way to 100 tons.

我們將堅持我們的戰略。因此，我們最重要的市場之一是商用車應用，這意味著從 3.5 噸一直到 100 噸。

And then on the energy storage side, we will further go, do further deep dives into that topic. We have the technology on hand, so we do not need to develop anything new. We are in deep discussions right now with a couple of customers in regards to energy storage solutions, and we will further later, do have a further rollout in that market as well. So we are happy that it's now supported by the government, and we will further deep dive into these different markets. Not only in the U.S. but also in Europe and other regions in Asia because everywhere you we see big potential on the energy storage as well as in the commercial vehicle field.

然後在儲能方面，我們將進一步深入研究該主題。我們手頭有技術，所以我們不需要開發任何新東西。我們目前正在與幾個客戶就儲能解決方案進行深入討論，我們將在稍後進一步推出該市場。所以我們很高興它現在得到了政府的支持，我們將進一步深入這些不同的市場。不僅在美國，而且在歐洲和亞洲其他地區，因為我們在任何地方都看到了儲能以及商用車領域的巨大潛力。

And our next question comes from the line of Mike Shlisky from D.A. Davidson.

我們的下一個問題來自 D.A. 的 Mike Shlisky。戴維森。

I wanted to ask about the mechanisms regarding your raw material costs. When you look -- go with companies like away of some of those larger companies that you've been talking about. They often have contractual clauses, which will allow you to raise your prices if raw materials hit certain levels. Oftentimes, there's a 30- to 90-day lag, but there is a way to pass it along, and it's pretty much in writing. Is that what you're experiencing in your current contracts? Can you tell us a little bit about how you'll be able to pass along pricing that's not in your contract?

我想問一下你們原材料成本的機制。當你看的時候——去一些你一直在談論的大公司。他們通常有合同條款，如果原材料達到一定水平，您可以提高價格。通常會有 30 到 90 天的延遲，但有一種方法可以將它傳遞下去，而且幾乎是書面形式。這就是你在當前合同中所經歷的嗎？你能告訴我們一些關於你將如何傳遞合同中沒有的定價的信息嗎？

Mike, it has to be contractual. So if we're in an existing program with a customer, we can only pass that on if it's per the contract. Now in a number of our multiyear contracts, that provision is in there. What we're faced with next year is that we're starting new production for new cells. So at this point, we don't know if we are in a price increase position. What we need to do is deliver per those contracts for at least a quarter. And then we see whether unit costs come out versus what was in the -- what's in our pricing terms.

邁克，它必須是契約性的。因此，如果我們在與客戶的現有計劃中，我們只能根據合同將其傳遞。現在，在我們的許多多年合同中，都有該條款。明年我們面臨的是我們正在開始新電池的新生產。所以在這一點上，我們不知道我們是否處於價格上漲的位置。我們需要做的是按照這些合同交付至少四分之一。然後我們看看單位成本是否與我們定價條款中的內容相比。

And if there's an escalation event, then we'll talk through that with a customer. But we have to remember these are long-term partnerships, and it's got to work for everybody that we're making money and also they're making money.

如果有升級事件，那麼我們將與客戶討論。但我們必須記住，這些是長期的合作夥伴關係，我們賺錢，他們也賺錢，這對每個人都有效。

Got it. Yes. That makes sense. And I wanted to just touch also on the mix you have between hydrogen and battery power, I guess, just in general, but hydrogen trucks and battery-powered trucks. Do any of those vehicles in the hydrogen space have a different mix as far as how much you can make per vehicle? They're often using a smaller battery because of the hydrogen system. Will there be any kind of mix issue as you start to ship one contract versus or another? Or do you feel like you'll have pretty consistent gross margins quarter-over-quarter and it doesn't matter whether a hydrogen or a BEV is what you're shipping to?

知道了。是的。那講得通。我還想談談氫和電池動力之間的混合，我猜，只是一般來說，但氫卡車和電池驅動的卡車。就每輛車能賺多少而言，氫空間中的這些車輛中是否有不同的組合？由於氫系統，他們經常使用較小的電池。當您開始交付一份合同或另一份合同時，是否會有任何類型的混合問題？或者您是否覺得您的季度毛利率將保持一致，而您要運送的是氫氣還是 BEV 並不重要？

Mike, to give you an answer, I think hydrogen is a technology which is upcoming right now. It started in Europe. It will -- it is quickly picking up. It's also now picking up in the U.S. market. So -- but it's in the start-up phase. So you have various mixtures, you have hybrid trucks, you have full electric trucks, you have hydrogen trucks. So at the end of the day, we have a good mixture in-between. So when we deliver -- and hydrogen is mainly used for long distance. And yes, you can -- you have a smaller battery in there, but you need a special battery in there which is fast-charging capable. So with high C rates. So then you can use a smaller battery compared to other suppliers.

邁克，給你一個答案，我認為氫是一項即將到來的技術。它始於歐洲。它會——它正在迅速回升。它現在也在美國市場上回升。所以 - 但它處於啟動階段。所以你有各種各樣的混合物，你有混合動力卡車，你有全電動卡車，你有氫卡車。所以在一天結束的時候，我們有一個很好的混合。因此，當我們交付時——氫氣主要用於長距離運輸。是的，你可以——你有一個較小的電池，但你需要一個可以快速充電的特殊電池。因此，具有高 C 率。因此，與其他供應商相比，您可以使用更小的電池。

We tested our battery solution on a hydrogen truck just recently. It went through the desert. We made that announcement and everything was fine. We performed perfectly. So this gives us also a solid base for our technology, battery technology for hydrogen trucks. And I think all 3 technologies, if it's a hybrid, if it's a hydrogen or battery -- full [blast] you will see them in the market long run. So hydrogen, for sure, until 2035 as an example, because you can reach longer distances as long as you have not enough fast-acting stations available for commercial vehicle applications as an example.

我們最近在一輛氫燃料卡車上測試了我們的電池解決方案。它穿過了沙漠。我們宣布了這一消息，一切都很好。我們表現得很完美。因此，這也為我們的技術、氫燃料卡車的電池技術奠定了堅實的基礎。而且我認為所有 3 種技術，如果是混合動力，如果是氫或電池——從長遠來看，你會在市場上看到它們。所以氫，當然，直到 2035 年，因為你可以到達更遠的距離，只要你沒有足夠的快速反應站可用於商用車應用作為一個例子。

At this time, we have reached the end of the question-and-answer session. And I would now like to turn the call back over to Sascha for any closing remarks.

此時，我們已經到了問答環節的尾聲。我現在想將電話轉回給 Sascha 以聽取任何結束語。

Thanks a lot. Thanks for your time, everybody. I wish everybody a peaceful, relaxing evening and thanks a lot again for participating in our Q2 call. Thanks.

非常感謝。謝謝大家的時間。我祝大家度過一個平靜、輕鬆的夜晚，並再次非常感謝您參加我們的 Q2 電話會議。謝謝。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與，祝您有美好的一天。