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| Statement |
|---|
| We are seeing strong demand trajectory for Microvast battery solutions worldwide |
| We expect to see further positive impacts across margin as Huzhou Phase 3.1 approaches full utilization in Q4, and on Clarksville Phase 1A start qualify deliveries from Q2 of next year |
| We continue to expand our gross margins, achieving significant double-digit improvement and adjusted gross margin of 24.2%, a 14 percentage point increase year-over-year |
| We closed the third quarter with a record backlog of $678.7 million, driven by a strong order intake of $67.5 million from our commercial vehicle business |
| Our current backlog is made up of more than 84% 53.5 amp hour cell driven by strong demand in both U.S and the European market |
| So that value proposition continues to resonate with the market really strong |
| It continues to be a dramatic performance improvement over the competition with energy retention as well as round trip efficiency |
| We've been really pleased, Colin, with the performance of 53.5 hour cells |
| And it provides us the substantial capacity increase in order to meet our highest sales demand |
| So we continue to see strong demand, a strong pipeline build up and great results from that market |
| Yes, we continue to see really strong demand in the energy storage sector |
| We're also in good position with our production equipment, where we're using the same equipment that is now running with great success on our Huzhou 3.1 line |
| So what we'll also get into next year again is a really solid contribution from Asia Pacific customers |
| Europe is going to have a really solid Q4 to the point where probably European revenues are going to grow like 5x this year, and then they're going to carry on accelerating into next year |
| If utilization that was not really achieved before Phase 1, Phase 2, the actual yield better than we thought it would be at this stage of the year |
| So the utilization is really good |
| The facility has successfully produced the first of our ME-4300 energy storage containers and has completed a successful customer factory acceptance test |
| Despite facing challenges, such as customer project delays, we achieved an order intake of 67.5 million and continued our year-over-year upward trajectory in revenue growth |
| Good to see gross margin improvements beyond what you're targeting |
| We're very pleased to report that we've delivered approximately 100 megawatt hours to JBM Group during the quarter |
| We had another excellent quarter in expanding our [indiscernible] business |
| The excellent operational results we are seeing out of our newest Huzhou Phase 3.1 automated production line, gives us the confidence to expand the capacity and a focus on accelerated ramp at our upcoming Clarksville Phase 1A production facility |
| We recorded a really solid quarter with Q3 revenue of $80.1 million, an increase of 107% from $38.6 million in Q3 2022 |
| This growth was driven primarily by strong sales demand in both our European and Asia Pacific markets for commercial vehicles, as OEMs continue to increase their vehicle rounds |
| You have all risen to the occasion and exceeded expectations, continued to innovate, deliver for our customers and support each other [indiscernible] |
| Our gross margin improved to 22.3% in Q3 2023 compared to 5.2% in Q3 2022 |
| We are improving gross margins and approaching [ph] gross margin levels that our mature scale competitors achieve |
| We have record backlog, supporting another high growth year in 2024 |
| With the continuous yield and utilization improvements on the Phase 3.1 line, we expect to maintain and possibly improve these margin levels |
| And anticipate our substantial momentum in the first 9 months of 2023 to carry forward as customer orders remain robust throughout the remainder of this year and into next |
| Statement |
|---|
| Negative free cash flow in the quarter of $89.3 million resulted from this net operating cash outflow as well as our capital investment program |
| This last item, it's difficult for me to fully convey the challenges in bridging battery technologies to the point of scale advanced manufacturing |
| The overall market in the U.S has, I think dissipated a little bit of headwinds with the rise in interest rates and the appetite for tax equity |
| Due to customer project delays, some revenue [indiscernible] is being pushed into early 2024 |
| We intentionally delay [indiscernible] tax because the equipment moved from China across the border to United States that's much harder to fix a problem |
| On a year-to-date basis, operating expenses were $119.9 million, a decrease of 10% from $133.4 million in the prior year 9-month period |
| Net cash used in operating activities during the quarter was $29.3 million, which was primarily due to operating loss and working capital |
| That's why you see they did a bit postponed |
| These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations |
| On the Clarksville sort of a little bit of a push out, are there any factors that stood out for the delay? Or was it just regular delays that you expect in a plant [indiscernible] facility |
| GAAP net loss was $26.2 million in Q3 2023 compared to a net loss of $36.5 million in Q3 2022 |
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