Dear ladies and gentlemen, thank you for standing by. Welcome to CBAK Energy Technology's fourth quarter and full year of 2023 earnings conference call. Currently, all participants are in listen-only mode. Later, we'll conduct question-and-answer sessions, and instructions will follow at that time. As a reminder, we're recording today's call. If you have any objections, you may disconnect at this time. Now I'll turn the call over to Jiewei Tian, CFO and Secretary of the Board of CBAK Energy. Mr. Li, please proceed. Thank you, Operator, and hello everyone. Welcome to CBAK Energy's fourth quarter and full year of 2023 earnings conference call. Joining us today are Mr. Yunfei Li, Chief Executive Officer of CBAK Energy; myself, Chief Financial Officer and Secretary of the Board; and Jennifer, our interpreter. Our international interpreter is speaking English and Japanese just to make sure that you understand. We release our reports on the company's financial statements as well as on the services. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today. Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC. The company doesn't assume any obligations to update any forward-looking statements except as required under applicable laws. Also, please note that unless otherwise stated, all figures mentioned during the conference call are in U.S. dollars. With that, let me now turn the call over to our CEO, Mr. Yunfei Li. Mr. Li will speak in Chinese and our Chief Executive's comments in English. Go ahead, Mr. Li. Please don't take pressure. 大家好，感谢大家参加我们的2023年第四季度及全年的业绩电话会议。 Hello everyone. Thank you for joining our fourth quarter and full year 2023 earnings conference call. 我们很高兴在第四季度再次实现了稳健的业绩增长，圆满收工2023财年。在飞斯曼集团、安克、华宝、新能等多位重要客户持续订单的支持下，我们的电池业务延续了上一个季度的增长势头。四季度营收同比增长30.9%，达到3,683万美元。具体从收入细分来看，应用于储能领域的电池收入达到3,493万美元，同比增长84.3%。应用于乘用车的领域的电池收入达到52万美元，较去年同期下降了88.8%。应用于轻型电动车领域的电池收入达到了138万美元，同比下降69.5%。主要原因在于当前动力市场的竞争非常激烈，价格水平相对较低。在当前情况下，我们会战略性地观望这两个市场，同时继续扩大我们在储能领域方面的销售。在利润方面，我们电池业务毛利率创历史新高，在四季度达到36%，较2022年同期增长了27.7个百分点。另外，我们连续两个季度实现净利润，本季度达到662万美元，相较于去年同期的净亏损得到显著提升。从全年数据来看，2023年的电池业务营收同比增长40.4%至1.3亿美元，经营利润达到1,044万美元，实现净利润1,337万美元。哎，各位。 Sorry, I mute myself. Right? We are pleased to announce another quarter of solid growth, rounding off fiscal year 2023 on a high note. We sustain orders from key clients including Viessmann Group, Anker Innovations, and Hello Tech. Our battery business maintains its growth momentum from the previous quarter, with fourth quarter revenues up 30.9% year-over-year to reach $36.83 million. Of these revenues, $34.93 million came from batteries used in energy storage applications, a surge of 84.3% year-over-year, while $0.52 million came from batteries used in electric vehicles, down 88.8% year-over-year. Moreover, revenues from batteries used in light electric vehicles were $1.38 million, a decline of 69.5% year-over-year, primarily attributable to intense production and relatively low pricing across the power market. Accordingly, we will strategically monitor both sectors while further expanding our sales in the energy storage sector. In terms of profitability, our battery business's growth margin rose to a historic high of 36% in the fourth quarter of 2023, up 27.7 percentage points year-over-year. Moreover, we achieved a second consecutive quarter of net income from battery business, recording a net income of $6.62 million in the fourth quarter of 2023, a notable improvement compared to a net loss in the same period last year. In full year 2023, our battery business generated revenues of $133 million, soaring by 40.4% year-over-year. We delivered a full year operating income of $10.44 million, with a net income of $13.37 million from the battery business. Please don't interrupt. 2023年，我们的业务在各方面取得了不同阶段的进展。随着我们不断精进电池技术，加大规模流水线生产电池，以满足客户需求，我们积累了稳定的客户群体。目前，我们与欧洲前三的家庭储能供应商、世界最大的供冷供热设备供应商之一飞斯曼、最大的苹果第三方配件厂安克、世界最大的户外移动供应商储能供应商电小二杰克瑞的母公司华宝新能、世界知名的户外移动储能供应商便携式储能品牌铂陆帝的母公司德兰明海，以及印度的知名企业开展了深入的合作。同时，我们还和欧洲最大的电池供应商进行了相关合作，但基于保密协议，我们暂不能披露其公司名字。在此基础上，我们正在和加拿大电动汽车相关领域巨头洽谈商务合作，希望能够顺利达成协议，并在客户同意的前提下，向股东及投资人公布相关进展。嗯，不止如此，我们还有望与印度头部车的两轮车企业在2024年达成合作。这一系列的合作和潜在的合作机会，证明了我们的电池技术和产品质量获得了世界最前沿电池企业的认可。未来，我们将继续致力于技术创新，提升我们的产品竞争力，为客户提供安全可靠的产品。 In 2023, we made significant strides in our business operations on all fronts, achieving progress at various stages. Through consistent refinement of battery technologies and production ramp-up, we effectively fulfill customer orders and have nurtured a loyal, stable client base. We have fostered deep and robust partnerships with industry leaders worldwide, including Viessmann Group, a leading provider of residential energy storage applications in Europe and one of the world's largest manufacturers of heating and cooling systems, Anker Innovations, the largest third-party accessory supplier for Apple Incorporated's products, Halotech, the largest supplier of outdoor portable energy storage globally and parent company of Jackery, PowerOak, the world's leading portable power station manufacturer and parent company of top-rated portable power supply brand BLUETTI, and India-based Enser, among others. We have also forged a partnership with the largest battery manufacturer in Europe. However, due to confidentiality obligations, we cannot disclose their identity for now. In addition, we have been negotiating with key stakeholders in Canada's electric vehicle industry, exploring potential collaborations with the intention of formalizing agreements. We will keep our shareholders and investors informed of these developments after securing consent from our clients. Furthermore, we expect to establish a partnership with a leading India-based scooter manufacturer in 2024. These partnerships and potential alliances demonstrate the broad recognition of our battery technologies and product excellence by top-tier players in the global battery sector. Moving forward, we will remain committed to technological innovation to bolster our product competitiveness, delighting customers with safe and reliable products. Please don't interrupt me. 从订单需求量来看，截止至2024年3月8日，我们大连和南京两个主要生产基地，以及子公司锂电池材料供应商海创，已经达到了但还未交付的订单总额，已达到7.7亿元人民币，约1.07亿美元。另外，我们在过去已披露的客户订单方面，也取得了不错的进展。截止至2024年3月8日，我们和德兰明海的合作订单金额，已经达到约6,160万元人民币，约857万美元；与飞斯曼集团的订单金额达到2.13亿欧元，约1.95亿美元。此外，我们与全球最大的两轮车、三轮车制造商金鹏集团的合作订单金额，已经约6,069万元人民币，约845万美元。除了与德兰明海、飞斯曼集团和金鹏的合作订单外，我们还陆续获得了和安克的一系列订单，目前订单金额已经达到7,355万人民币，约1,024万美元。这些持续增长的订单，不仅展示了我们在全球市场的影响力，也为公司未来的发展奠定了坚实的基础。 Turning to our order demand, as of March the 8th, 2024, we have recorded CNY 771 million, or approximately $107 million, in the combined value of orders we have received but have yet to fulfill across our two main production facilities in Dalian and Nanjing, and Hitrans, our subsidiary in raw materials production. Additionally, we have made substantial strides in our previous disclosed client initiatives. As of March the 8th, 2024, our collaboration with PowerOak has brought us orders amounting to roughly CNY 61.6 million, or approximately $8.57 million. Our partnership with Viessmann Group has generated orders totaling EUR 213 million, or approximately $195 million. Furthermore, our collaboration with Jinpeng Group, the world's largest scooter and electric tricycle manufacturer, has brought us orders amounting to roughly CNY 60.69 million, or approximately $8.45 million. In addition to orders from these collaborations, we have progressively secured substantial orders from Anker Innovations, amounting to CNY 73.55 million, or approximately $10.54 million. The consistent growth in our order volume not only reflects our global market influence, but also lays a firm foundation for the company's future advancement. 下面我来介绍一下公司在研发方面的进展。在2023年第三季度，我们公司成功实现了大原铸钠电池的生产，成为全球为数不多的几家具备钠电池大规模生产能力的企业之一。我们钠离子电池生产线目前设立于南京生产基地，拥有0.5GWh的产能。自从启动量产以来，我们的钠电池供不应求。目前我们正积极与私募投资者洽谈，以扩大生产钠电池的生产产能。与此同时，我们也在研发更大型号的原铸型锂电池，其中包括40140和46120型号的电池。目前40140型号电池正处于A样阶段，而46120型号电池处于B样阶段。我们预计在2024年下半年，46120型号的电池能够通过B样阶段，具备量产的条件。届时我们想根据市场需求情况对型号进行调整，因此上述型号可能会有所变化。 Next, let me walk you through our latest R&D developments. In the second quarter of 2023, we successfully commenced mass production of large cylindrical sodium-ion batteries, emerging as one of the few companies worldwide with the capacity to mass produce sodium-ion batteries. Our sodium-ion battery production lines are currently located at our Nanjing facility, which features a 0.5 GWh capacity. Since we commenced mass production, demand for our sodium-ion batteries has outstripped supply. As a result, we have been actively engaging with PE investors to ramp up sodium-ion battery production capacity. In the meantime, we have also been developing larger cylindrical lithium-ion battery models, including model 40140 and 46120. Model 40140 is in prototype A-sample stage, and model 46120 is already in prototype B-sample stage. We expect model 46120 to complete prototype B-sample stage and become ready for mass production by the latter half of 2024. We will continue to fine-tune these models in response to market demand dynamics, potentially leading to modifications before the start of production. 除此之外，我们还在产能方面做出了相应的布局和规划。目前我们在大连生产的基地拥有三条生产线，主要生产26650型号的磷酸铁锂电池，总年产能可达到1GWh。为了满足客户需求和缓解大连工厂供不应求的局势，我们于2023年租赁了一座位于河南商丘的电池工厂，用于生产26700型号的电池。目前商丘工厂的产能为0.5GWh，能够满足我们部分客户的需求。这一举措进一步增加了我们的产能，并为客户提供更加稳定可靠的产品供应。在南京工厂方面，我们南京一汽工厂拥有两条生产线，一条固定生产32140型号的圆柱形锂电池，另一条具备生产钠离子圆柱形电池的能力。当两条产线同时生产锂电池时，南京一汽工厂的产能将达到2GWh。当两条产线其中一条生产钠电池时，该工厂的产能可达到1.5GWh。此外，南京二期项目正在建设阶段，共规划建设三个大厂房，预计全部完工投入使用后，总产能达到18GWh。目前该项目的第一个厂房已经封顶，正在进行内部装修。我们将根据客户需求决定在该厂房内增设钠离子或锂离子电池的产线。未来我们将继续优化生产布局，提升生产效率，以确保我们能够灵活地应对市场变化和客户订单量的波动。 We have also strategically optimized our production capacity with a well-coordinated production line layout. Currently, at our Dalian facility, we operate three production lines primarily manufacturing model 26650 lithium iron phosphate batteries, with a total annual production capacity of 1 GWh. To better address customer needs and mitigate supply shortages at our Dalian facility caused by excessive demand, in 2023, we leased a battery plant located in Shangqiu, Henan, for producing model 26700 batteries. Today, our Shangqiu facility is equipped with a production capacity of 0.5 GWh, sufficient to fulfill part of our customer demand. This strategic move further boosted our production capacity, ensuring a more stable and reliable supply of products to clients. Regarding our Nanjing facility, the Nanjing Phase One project consists of two production lines: one dedicated to production product model 32140 cylindrical lithium-ion batteries, and the other outfit should produce either cylindrical lithium batteries or cylindrical sodium-ion batteries. The project capacity is up to 2 GWh when both lines are producing lithium-ion batteries, or up to 1.5 GWh when one production line is dedicated to sodium-ion battery production. Furthermore, construction of our Nanjing Phase Two project is in full swing, with three large factories in the pipeline. Once all three are completed and operational, the total capacity of the Nanjing Phase Two project is expected to be up to 18 GWh. Thus far, the first factory has been roofed, and interior decoration is underway. We will determine whether to outfit this factory with production lines for sodium-ion or lithium-ion batteries based on customer demand. Moving forward, we will further optimize our production line layout to enhance production efficiency, ensuring that we can respond swiftly to market shifts and order fluctuations. 不好意思，我刚才我静音了。总的来说，在整个大环境收缩、电池业务下行的背景下，我们的电池业务依然呈现出强劲的增长态势和韧性。这一增长不仅体现在财务数据上，还反映在我们公司稳固的客户结构和丰富的在手订单。更重要的是，我们公司在行业内领先地位和技术优势得到了充分的肯定，其中包括欧洲最先进的电池厂纷纷成为我们的客户。作为最早具备生产钠离子电池生产能力的企业之一，我们在新兴能源领域拥有巨大的潜力和竞争优势。展望2024年，我们将继续加大在研发和产能方面的投入，并计划与更多世界级大客户展开合作，进一步扩大我们的市场份额，提升公司在全球的影响力和知名度。我们坚信这些举措将为我们在未来的市场竞争中保持领先的地位奠定良好的基础. In summary, despite the accepted macroeconomic environment and downward pressures across the battery sector, our battery business consistently demonstrated robust growth momentum and resilience in the full year of 2023. The vitality was reflected both in our strong financial metrics and in the stability of our client base and the wealth of orders in our pipeline. More importantly, the company's industry leadership and technological edge have been fully acknowledged across the industry, evidenced by the adoption of our products by the most advanced battery facility in Europe. As a pioneer in the sodium-ion battery production, we possess the immense potential and competitive advantages in the renewable energy field. Looking ahead to 2024, we will further increase our investments in research, development, and production capacity. Also, by fostering more and deeper collaborations with globally renowned clients, we will further augment our market share and elevate the company's global influence and visibility. We are confident that these synchronized endeavors will cement our position as front-runner in the competitive industry for years to come. 接下来请有请我们的CFO Jiewei先生给投资者介绍一下公司的财务表现。 Now let me turn the call over to our CEO, Mr. Li, who will provide details on our financial performance. Thank you, everyone, for making the time to join our earnings conference call today. As our CEO mentioned earlier, we concluded the year with a robust fourth-quarter financial performance from our battery business, where we achieved a double-digit increase in net revenues and positive income for the second consecutive quarter. We are pleased to see continued growth momentum in our battery business. Building on our solid fundamentals, we remain confident in our growth trajectory through 2024 and anticipate a full-year net profit for our battery business. We will provide more details on our net income guidance at the appropriate time. Turning now to Hitrans, our current battery material unit, which we strategically acquired in 2021. At the time of the acquisition, Hitrans boosted a strong client base and a higher level of revenue. Following the acquisition, we retained Hitrans's core management team and refrained from interfering in its day-to-day operations. We have no additional financial obligations to Hitrans, and its financial health will not materially affect the financial standing of our battery, as it's only reflected in our consolidated financial statements. That's why we have focused on reporting financial results solely from our battery business in our earnings release and earnings conference call, to provide investors and shareholders with a clear understanding of our performance. We are currently talking with private equity investors for Hitrans and sodium-ion battery business, and we hope to complete a private placement financing to support the development of our business. These investors, whether they are interested in Hitrans or the sodium-ion battery business, are consistently valuing the individual businesses' materials and/or sodium-ion batteries at more than the current market capitalization of our entire public company. Notably, their valuations do not take into account our core lithium battery business, indicating that our market value is currently significantly underestimated. I will now provide an overview of our 2023 fourth-quarter financial results. In the interest of time, I will be presenting abbreviated highlights only. We encourage you to refer to our press release issued earlier today for complete details. In the fourth quarter, our total net revenues increased by 3.2% year-over-year to $56.2 million. Net revenues from sales of batteries reached $36.8 million, a year-over-year increase of 30.9%. Our total gross profit grew 235.3% year-over-year to $12.7 million, resulting in a gross margin of 22.6% compared to 7% in the prior year period. Gross profit for the battery business increased by 470.8% year-over-year to $13.2 million, with gross margin climbing to 36% from 8.3% in the prior year period. Our total operating loss amounted to $5.9 million compared to an operating loss of $8.8 million in the prior year period. Net loss attributable to shareholders of CBAK Energy after deducting the change in the fair value of warrants was $4.8 million compared to a net loss of $11.7 million in the prior year period. Net income from the battery business was $6.6 million compared to a net loss of $6.4 million in the same period of 2022. As we mentioned earlier, we have a large number of prestigious clients around the world. However, due to confidential agreements, we cannot disclose their names without their consent. Going forward, we will actively communicate with them as part of our customer disclosure. We hope to be able to disclose more client names to our shareholders in 2024. In conclusion, our solid fundamentals will continue to provide a solid foundation for our business going forward, enabling us to strike a healthy balance between growth and profitability. That concludes our prepared remarks. Let's now open the call for questions. Operator, go ahead. Thank you. We will now begin the question-and-answer session. To ask a question, please press star one one on your telephone and wait for our name to be announced. If you would like to cancel your request, please press the star one one again. As a reminder, to ask questions, please press star one one. There will be a short silence while questions are being collected. First question comes from Brian Denyeau from Zacks Small-Cap Research. Please go ahead. Good evening, gentlemen. I just wanted to hone in a little bit on the gross margin. Do you feel like the gross margin in the fourth quarter, is that going to be a sustainable gross margin going forward? And was it principally driven by pricing on your products and some of the new contracts, or was it more on the input side as costs have come down for some of your inputs? 好，那我第一个问题是关于我们的毛利率的。我们知道第四季度公司的毛利率是取得了可喜的增长。我想知道这个毛利率是可持续的吗？它这个上升的原因是因为我们的这个因为获取了一些新的合同而导致我们的毛利率上升，还是因为其他的一些因素，像是比如说成本下降？ Let me respond to your question, Brian. I think, as you may be aware, the current competition in the battery market is very intense, and key players in this industry keep lowering down their price to gain much more orders and customers. We are completely different. Our batteries boast a feature of highly stable and highly safe characteristics, and our biggest clients, up to three years testing, are completely satisfied by the performance of our battery products. That's why they're willing to give us a high price at this market condition. Coming back to your question, we believe that being affected by the current market condition, the price will also go down in the long term, but we are still confident that the gross margin that we will present to you in the coming reporting period will still be higher than the market average. Thanks. Great. Thank you. And I know we've talked in the past about long-term capacity goals, and I know that's a little bit in flux right now because it will be based upon whether you're producing lithium batteries or sodium batteries. But do you have any long-term capacity goals for 2024, 2025 that you can share with us at this point? 好，那我们过去有谈到关于长期产能的提升。我们目前也注意到可能在产能方面出现了一些波动，因为我们既是在生产锂离子电池，又在生产钠离子电池。所以我想问一下，在这个2024到2025年，对于长期产能提升这一块，我们有什么新的信息可以跟他们分享的吗？ 田总来回答一下关于产能的今年投入的问题吧。 好的。我们这边的产能提升的话都是基于跟客户的一个合作，根据客户的一个需求的话不提升的。像我们之前布局的产能的话，是把厂房基础设施的话都已经搭建。完了，基于2023年与2024年的客户新导入，这里头我们在之前的报告中也已经阐述了，就是今年有新的很多大客户的一个导入。为了满足大客户的要求的话，所以说我们会陆续的话把我们的产能进一步的提升。另外一个的话就关于钠离子电池这一块，这一块的话是我们的一个新的业态。因为现在对于新的锂电，包括它的低温和倍率性能的不足，我们推出了新的产品钠离子电池，在客户端表现也是非常好的。所以说这块的话，我们提升产能这块的一个预期也是非常大的。以上。 Well, so in terms of capacity growth, well, we have steadily increased our capacity based on our cooperation with our clients, and also we increased it according to the needs of our clients. So that is why in the past years, we have steadily ramped up our capacity in different production facilities. And as you can see from our 2024 to 2025 reports, we have introduced lots of big customers in the past year, and the introduction of the big customers will require us to boost our production capacity so that we can well meet their demand. So in the future, we are going to continue to increase our production capacity. And when it comes to the sodium battery, well, I have to say this is a battery that enjoys a great future. For sodium-ion battery, it has some good features that lithium-ion battery cannot compete. For example, it is suitable to be used in low-temperature conditions, etc. So in the future, we believe that we will also steadily increase and expand the production capacity of sodium-ion battery, and we have a good expectation for that. Let me add one point. As we mentioned in our report, we have three major factories under construction for Nanjing Phase Two, and the first factory has been routed. So we are doing interior construction at this moment. If everything goes well, we will have one production line for this factory in 2024. But we cannot determine if it will be producing sodium-ion batteries or lithium-ion batteries. It's up to client demand. And we are also talking to private equity investors about financing on the sodium-ion project, so that would also affect our decision-making. So it's a decision that we will make in this year, and a lot of the factors will affect this decision-making. Great. Thank you very much. I appreciate that. The last question that I have is, I guess, on outside investment. If you could give us some sort of idea as to how advanced these negotiations are, do you think this is a we could hear something the first half of 2024 or the back half of 2024, either regarding Hitrans or a sodium investment? 好，那关于外部投资的话，就是能不能跟我们分享一下目前跟潜在的投资者的谈判，我们目前到了什么样的阶段。比如说像是对海创或者对钠离子电池这方面的投资，我们是不是比如说在24年的上半年或者是下半年能够达成相应的谈判呢？ Well, let me respond to this question. We hope that we can announce something really positive in the first half of 2024, but it's really depending on the private equity investors. The information I can share is that a lot of the investors from China are very interested in our sodium-ion batteries because we are almost the only one that can mass-produce the large cylindrical sodium-ion batteries. But we're also doing a lot of the math with them right now because investing in a new battery plant is very expensive, and we need to discuss with them about how much financing we need from them and what structure would suit the best need from us and also doable for them. I just don't know how to go into negotiation, but everyone is very interested. Great. Thank you. Thank you for the questions. Once again, to ask questions, please press star one one on your telephone. Seeing no more questions in the queue, let me turn the call back to Mr. Yunfei Li for closing remarks. 最终结束语说一下。 感谢各位参加今天的电话会。我们期待下一季度再和各位汇报新的进展。 Thank you all. Thank you, operator, and thank you all for participating in today's call and for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress. Thank you all again. This concludes the call. You may now disconnect the line.