This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about our future results of operations and financial position, our operational performance, our anticipated growth and business strategy, our future capital expenditures and debt service obligations, the projected costs, prospects and plans and objectives of management for future operations, including regarding expect ...

Financial Data and Key Metrics Changes - The company achieved record annual revenue of $380 million, a 24% increase year-over-year, with fourth quarter revenue reaching $113.4 million, reflecting a strong growth margin of 36.6% [11][28] - Gross profit for Q4 2024 was $41.5 million, an 80% improvement from $23 million in Q4 2023, resulting in a gross margin of 36.6%, up from 22% in the prior year [28][29] - The adjusted EBITDA for Q4 2024 was $8.6 million, compared to a negative $2.6 million in the prior year period, indicating effective strategic execution [35] Business Line Data and Key Metrics Changes - The company reported a significant increase in backlog, growing to $401.3 million, driven by regional demand for technology [19] - The ME6 energy storage system and advancements in silicon-based cell technologies were highlighted as key product innovations [10][18] Market Data and Key Metrics Changes - In the EMEA region, revenue grew by 123% year-over-year to $187.7 million, accounting for nearly half of total revenue [37] - The U.S. market saw a 360% increase in revenue, rising from $3.1 million in 2023 to $14.4 million in 2024, reflecting early adoption by commercial vehicle OEMs [38] - Revenue in the Asia Pacific region declined by 19% year-over-year, from $219.1 million in 2023 to $177.7 million in 2024, due to strategic repositioning away from low-margin segments [39] Company Strategy and Development Direction - The company is focused on improving efficiency and profitability, with a goal of becoming cash flow positive and maintaining strong gross margins while expanding to meet customer demand [15][44] - The Huzhou State 3.2% expansion project is expected to add up to 2 gigawatt hours of production capacity, anticipated to come online in Q1 2025 [16][45] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue as a going concern, citing improved operating results and stronger cash positioning [36] - The revenue guidance for 2025 is projected to increase by 18% to 25%, with a target range of $450 million to $475 million [44][46] Other Important Information - The company faced challenges in 2024, including a difficult financing environment and supply constraints, but responded with strategic cost control and operational adjustments [22][48] - The company has made substantial strides in technology innovation, including the unveiling of the ME6 Energy Storage System and advancements in battery technologies [48] Q&A Session Summary Question: What are the expectations for revenue growth in 2025? - The company expects revenue to increase by 18% to 25% year-over-year, with a target range of $450 million to $475 million [44] Question: How is the company addressing challenges in the APAC region? - The company is strategically repositioning away from low-margin segments in China and India, focusing on more profitable opportunities [39] Question: What is the outlook for the EMEA market? - The EMEA market is expected to continue driving significant revenue increases year-over-year, supported by strong commercial traction [46]

STAFFORD, Texas, March 31, 2025 (GLOBE NEWSWIRE) -- Microvast Holdings, Inc. (NASDAQ:MVST) ("Microvast" or the "Company"), a global leader in advanced battery technologies, announced today its consolidated financial results for the fourth quarter and full fiscal year ended December 31, 2024 ("Q4 2024" and "FY 2024," respectively). "We achieved record quarterly revenue in the fourth quarter of 2024, beating revenue guidance. This brings our full year revenue growth to 23.9% and we delivered these revenues at ...

Financial Data and Key Metrics Changes - The company achieved record annual revenue of $380 million, a 24% increase year-over-year, with fourth quarter revenue reaching $113.4 million, reflecting a strong growth margin of 36.6% [11][27] - Gross profit for Q4 2024 was $41.5 million, an 80% improvement from $23 million in Q4 2023, resulting in a gross margin of 36.6%, up from 22% year-over-year [28][29] - The adjusted EBITDA for Q4 2024 was $8.6 million, compared to a negative $2.6 million in the prior year period, indicating effective strategic execution [35] Business Line Data and Key Metrics Changes - The company reported a significant increase in email revenue, with a 123% year-over-year growth [11] - The backlog grew to $401.3 million, driven by regional demand for technology [19] - The company maintained a focus on improving efficiency and profitability, executing strategies in EMEA and AIPAC while implementing cost-cutting measures in the U.S. [14][15] Market Data and Key Metrics Changes - In the EMEA region, revenue increased by 123% year-over-year to $187.7 million, accounting for almost half of total revenue [37] - U.S. revenues rose 360% year-over-year from $3.1 million in 2023 to $14.4 million in 2024, contributing 4% of total revenue [38] - Revenue in the Asia Pacific region declined by 19% year-over-year, from $219.1 million in 2023 to $177.7 million in 2024, due to strategic repositioning away from low-margin segments [39] Company Strategy and Development Direction - The company aims to achieve sustainable profitability by focusing on cash flow positivity and maintaining strong gross margins while expanding to meet customer demand [15][46] - The Huzhou State 3.2% expansion project is expected to add up to 2 gigawatt hours of production capacity, enhancing the company's ability to meet high demand [16][45] - The company is committed to innovation, with advancements in silicon-based cell technologies and all solid-state batteries [10][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue as a going concern, citing improved operating results and stronger cash positioning [36] - The company expects 2025 revenue to increase by 18% to 25%, with a target range of $450 million to $475 million [44] - Management highlighted the importance of strategic partnerships and technology innovation to capitalize on the growing electrification trend [48] Other Important Information - The company faced challenges in 2024, including a difficult financing environment and supply constraints, but responded with strategic cost control [22] - The company reported a GAAP net loss of $82.3 million for Q4 2024, compared to a net loss of $24.6 million in Q4 2023 [31] Q&A Session Summary Question: What are the expectations for revenue growth in 2025? - The company expects revenue to increase by 18% to 25% year-over-year, with guidance in the range of $450 million to $475 million [44] Question: How is the company addressing challenges in the APAC region? - The company is strategically repositioning away from low-margin segments in China and India, focusing on more profitable opportunities [39] Question: What are the key drivers for growth in the EMEA market? - Strong commercial traction in Italy, Germany, and other Western European markets is driving growth, reflecting continued demand for high-performance battery systems [37]

Revenue and Sales Performance - Revenue increased from $306.6 million in 2023 to $379.8 million in 2024, reflecting a 23.9% year-over-year growth[429]. - Sales volume rose by 41.6%, from 1,139.6 MWh in 2023 to 1,613.6 MWh in 2024, driven by strong demand in Asia-Pacific and European markets[429][430]. - The order backlog as of December 31, 2024, was $401.3 million, with expectations for fulfillment primarily in 2025 and 2026, indicating future revenue growth[450]. Profitability and Expenses - Gross profit margin improved from 18.7% in 2023 to 31.5% in 2024, attributed to higher production utilization and a favorable product mix[432]. - Operating expenses increased by 43.6% from $165.9 million in 2023 to $238.3 million in 2024, primarily due to a $93.2 million impairment loss on long-lived assets[428][436]. - General and administrative expenses decreased by $15.3 million (15.8%) compared to 2023, mainly due to a reduction in share-based compensation[434]. - Research and development expenses decreased by $3.9 million (8.8%) compared to 2023, despite an increase in personnel-related costs[435]. - The company reported a net loss of $195.5 million for the year ended December 31, 2024, offset by $251.0 million in non-cash charges[463]. Cash Flow and Financing - The company generated cash flow of $2.8 million from operating activities for the year ended December 31, 2024, a significant improvement compared to a cash outflow of $75.3 million in 2023[462]. - Cash generated from financing activities totaled $37.6 million in 2024, driven by $101.5 million in proceeds from bank borrowings[468]. - As of December 31, 2024, the company had a consolidated net cash position of $109.6 million, with plans to retain funds for ongoing operations and expansion efforts[441]. - As of December 31, 2024, the company had bank borrowings of $111.7 million with interest rates ranging from 3.25% to 4.85% per annum, and convertible bonds of $43.2 million due in 2027[449]. Capital Expenditures and Investments - Capital expenditures for the year ended December 31, 2024, amounted to $49.9 million, a decrease from $186.8 million in 2023, reflecting a more measured approach to investments[455][467]. - The company is seeking additional capital to complete the Clarksville expansion and meet working capital needs, as proceeds from the Business Combination are insufficient[457][458]. - As of December 31, 2024, the company had purchase commitments amounting to $48.2 million, primarily related to inventory purchases[460]. Foreign Exchange and Risk Management - A hypothetical 10% adverse change in foreign exchange rates for RMB-denominated accounts would have resulted in a foreign currency loss of approximately $15.2 million[488]. - A hypothetical 100-basis-point increase in the expected loss rate on the financing receivables portfolio would have resulted in an increase in the allowance for credit losses of approximately $0.6 million as of December 31, 2024[491]. - The company's project finance loans in China include an interest rate spread of 115 basis points over the Loan Prime Rate, making them sensitive to market interest rate changes[484]. - The company has experienced fluctuations in operating results due to foreign exchange gains and losses, primarily from RMB-denominated transactions[487]. - The company does not currently utilize foreign exchange hedging instruments but may consider implementing them in the future[489]. Operational Insights - The company has observed higher sales volumes in the third and fourth fiscal quarters compared to the first and second quarters, although the exact nature of seasonality remains difficult to determine[494]. - The company actively monitors overdue accounts to minimize default risk and has a dedicated credit management team to establish credit limits and collection strategies[490]. - Changes in the probability assessment of performance conditions for stock-based compensation may lead to significant fluctuations in expense each quarter[478]. Other Notable Items - Subsidy income rose from $2.0 million in 2023 to $2.7 million in 2024, reflecting one-time awards from local governments[437]. - The company recorded a gain of $9.4 million on debt restructuring during 2024[438]. - A non-cash loss of $80.0 million was recorded due to changes in the fair value of a convertible loan, significantly impacting reported net income[439]. - The company plans to utilize the Tennessee facility to produce LFP cells instead of 53.5Ah cells, aligning production with market demand[457]. - As of December 31, 2024, the company no longer qualifies as an emerging growth company and must comply with new accounting standards on the same timeline as public companies[480].

Revenue Performance - Full year revenue increased by 23.9% year over year to $379.8 million in FY 2024, compared to $306.6 million in 2023[4] - Record quarterly revenue of $113.4 million in Q4 2024, up 8.4% year over year from $104.6 million in Q4 2023[10] - Revenues for the year ended December 31, 2024, increased to $379,801 thousand, up 24% from $306,617 thousand in 2023[26] Profitability and Loss - Net loss for FY 2024 was $195.5 million, compared to a net loss of $106.4 million in 2023, with a net loss per share of $0.61[5] - Gross margin improved significantly from 18.7% in 2023 to 31.5% in FY 2024, with Q4 2024 gross margin at 36.6% compared to 22.0% in Q4 2023[5] - The company reported a gross profit of $41,520 thousand for Q4 2024, with a gross margin of 36.6%, compared to $23,024 thousand and 22.0% in Q4 2023[27][33] - Adjusted gross profit for the year ended December 31, 2024, was $123,031 thousand, compared to $63,318 thousand in 2023, with an adjusted gross margin of 32.4%[33] - For the three months ended December 31, 2024, Microvast reported a net loss of $82,323 thousand, compared to a net loss of $24,591 thousand for the same period in 2023, representing an increase of 234%[34] - The adjusted net loss for the twelve months ended December 31, 2024, was $84,648 thousand, which is a 103% increase from the adjusted net loss of $41,551 thousand in 2023[34] - The total net loss for the twelve months ended December 31, 2024, was $195,457 thousand, which is an 84% increase from the net loss of $106,412 thousand in 2023[34] Cash Flow and Assets - Cash and cash equivalents at the end of 2024 were $73,007 thousand, up from $44,541 thousand at the end of 2023[30] - The company generated net cash from operating activities of $2,814 thousand in 2024, compared to a cash used of $75,303 thousand in 2023[30] - Total current assets as of December 31, 2024, were $428,026 thousand, slightly up from $425,606 thousand in 2023[25] Liabilities and Expenses - Total liabilities increased to $563,972 thousand as of December 31, 2024, compared to $532,542 thousand in 2023[25] - Operating expenses for the year ended December 31, 2024, totaled $238,300 thousand, an increase from $165,909 thousand in 2023[26] - Non-cash settled share-based compensation for the twelve months ended December 31, 2024, amounted to $30,849 thousand, down from $64,920 thousand in 2023, reflecting a reduction of 52%[34] - The company incurred interest expenses of $1,404 thousand for the three months ended December 31, 2024, compared to $1,063 thousand in the same period of 2023, marking an increase of 32%[36] - Depreciation and amortization expenses for the twelve months ended December 31, 2024, were $30,832 thousand, up from $22,928 thousand in 2023, representing a 34% increase[36] Future Outlook - The company anticipates revenue growth of 18% to 25% year over year for 2025, targeting revenue between $450 million and $475 million[10] - Backlog has grown to $401.3 million, indicating strong regional demand for the company's technology[2] - Huzhou Phase 3.2 production is expected to come online in Q4 2025 to meet increasing customer demand[10] Adjusted Performance Metrics - Adjusted EBITDA improved to negative $44.8 million in FY 2024 from negative $19.6 million in 2023[5] - The company’s adjusted EBITDA for the three months ended December 31, 2024, was $8,641 thousand, a significant improvement from an adjusted EBITDA of $(2,592) thousand in the same period of 2023[36] - The adjusted net loss per common share for the twelve months ended December 31, 2024, was $(0.27), compared to $(0.13) for the same period in 2023, indicating a worsening in per-share adjusted performance[35] - The net loss per common share for the three months ended December 31, 2024, was $(0.26), compared to $(0.08) for the same period in 2023, indicating a deterioration in per-share performance[35] Changes in Fair Value - Changes in the fair value of warrants and convertible loans contributed $81,200 thousand to the net loss for the three months ended December 31, 2024, compared to $(84) thousand in the same period of 2023[36]

Core Viewpoint - Microvast Holdings, Inc. will release its consolidated financial results for the full year and fourth quarter of 2024 on March 31, 2025, after market close [1] Group 1: Financial Results Announcement - The earnings press release will be followed by a webcast and earnings conference call at 4:00 p.m. Central Time to discuss business results and outlook [2] - The webcast will be accessible from the Events & Presentations tab of Microvast's investor relations website, with a replay available after the event [2] Group 2: Company Overview - Microvast is a global leader in battery technologies for electric vehicles and energy storage solutions, with over 18 years of experience [3] - The company has a legacy of delivering cutting-edge battery systems aimed at promoting a cleaner and more sustainable future [3] - Founded in 2006 in Stafford, Texas, Microvast holds more than 775 patents related to electrification solutions [3]

Financial Data and Key Metrics - The company achieved a net profit of $13.2 million and adjusted EBITDA of $29 million in Q3 2024, marking a historic milestone [8] - Revenue for Q3 2024 reached $101.4 million, a 27% year-over-year increase from $80.1 million in Q3 2023 [21] - Gross margin improved to 33.2%, up 10.9 percentage points year-over-year [21] - Adjusted gross margin rose to 33.9%, a 9.7 percentage point increase compared to the prior year period [22] - Operating expenses decreased by 38% to $27.5 million in Q3 2024 from $44.7 million in Q3 2023 [24] - Adjusted operating expenses were $22 million in Q3 2024, down $8.4 million from $30.3 million in Q3 2023 [25] Business Line Data and Key Metrics - The EMEA region saw a 212% year-over-year revenue growth, accounting for 59% of total revenue in Q3 2024 [26] - The company secured new business developments in the Commercial Vehicle segment, including partnerships with Propel, XCMG, and LGMG [16][17][18] - The Heavy Industrials segment increasingly adopted high-performance cells, with success in hybrid and fuel cell OEMs as well as the Agricultural segment [18] Market Data and Key Metrics - The company faced challenges in the U.S. due to policy shifts, which decelerated the rollout of certain light commercial vehicle platforms [14] - Rapidly growing markets like India and Thailand prioritized LFP chemistries for affordability over high performance [14] - The EMEA business is expected to achieve an 80% revenue increase year-over-year for the full year 2024 [33] Company Strategy and Industry Competition - The company is focused on improving efficiency and profitability, with strategic cost-cutting measures in the U.S. and solid business execution in EMEA and APAC [7] - Microvast is a vertically integrated battery technology company, with innovation as the core driver of its business [10] - The company is investing in the commercialization of current and future high-demand advanced products to capture market share [12] - New products include the overhaulable ME6 LFP ESS containers and Silicon Enhanced Cell technologies, with progress on all solid-state batteries [11][38] Management Commentary on Operating Environment and Future Outlook - The company expects Q4 2024 revenue to be in the range of $90 million to $95 million, with full-year revenue growth anticipated at 15% to 18% [32] - The company is targeting sustained positive adjusted EBITDA contributions from its established business in EMEA and APAC [34] - Microvast is focused on product development, operational efficiencies, key customer growth, reducing liabilities, and strategic cost-cutting [35] Other Important Information - The company holds more than 775 patents, either granted or pending, with products powering equipment worldwide [37] - Microvast unveiled new cell technologies leveraging silicon at IAA 2024 in Germany, providing improved energy density for high-performance applications [39] Q&A Session - No Q&A session was recorded in the provided document [39]

Q3 2024 Disclaimer 2 Forward-Looking Statements This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as "will likely result," "are expected to," "will continue," "is antic ...

Financial Performance - Q3 2024 revenue reached $101.4 million, a 26.6% increase from $80.1 million in Q3 2023[2] - Net profit for Q3 2024 was $13.2 million, compared to a net loss of $26.2 million in Q3 2023[2] - Adjusted EBITDA for Q3 2024 was positive $28.6 million, a significant improvement from negative $5.3 million in Q3 2023[2] - Year-to-date revenue for 2024 was $266.4 million, a 31.9% increase from $202.0 million in the same period of 2023[3] - Revenues for the nine months ended September 2024 reached $266,414,000, a 32% increase from $202,042,000 in the same period of 2023[32] - Adjusted net profit for the three months ended September 2024 was $16,782,000, compared to a loss of $10,268,000 in the same period of 2023[34] - The company reported a net profit of $13,247,000 for the three months ended September 2024, a significant improvement from a loss of $26,172,000 in the same period of 2023[34] Profitability and Margins - Gross margin improved to 33.2%, up from 22.3% in Q3 2023, marking a 10.9 percentage point increase[2] - Gross profit for the three months ended September 30, 2024, was $33,612 thousand, compared to $17,884 thousand in the same period of 2023, representing an increase of 87.8%[24] - Gross profit for the nine months ended September 2024 was $78,032,000, representing a gross margin of 29.3%, compared to $34,203,000 and a gross margin of 16.9% in the prior year[32] - The adjusted gross margin for the nine months ended September 2024 was 30.6%, up from 19.2% in the same period of 2023[31] Expenses and Cost Management - Operating expenses decreased to $27.5 million in Q3 2024 from $44.7 million in Q3 2023[2] - Total operating expenses decreased to $27,508 thousand for the three months ended September 30, 2024, down from $44,674 thousand in the same period of 2023, a reduction of 38.5%[24] - Research and development expenses for the three months ended September 30, 2024, were $10,692 thousand, down from $13,241 thousand in the same period of 2023, a decrease of 19.2%[24] Cash Flow and Liquidity - As of September 30, 2024, cash and cash equivalents totaled $115.0 million, compared to $93.8 million at the end of 2023[2] - Cash and cash equivalents increased to $63,585 thousand as of September 30, 2024, compared to $44,541 thousand as of December 31, 2023, an increase of 42.7%[23] - The company reported a net cash used in operating activities of $3,287 thousand for the nine months ended September 30, 2024, compared to $70,350 thousand in the same period of 2023, indicating improved cash flow management[26] - Cash, cash equivalents, and restricted cash at the end of the period totaled $114,967,000, an increase from $89,212,000 at the end of September 2023[29] Capital Expenditures and Investments - Capital expenditures in Q3 2024 were $30.6 million, down from $59.9 million in Q3 2023[2] - The company is focusing on R&D for new products, including the ME6 ESS container solution and solid-state batteries[5] Balance Sheet and Liabilities - Total current assets increased to $437,571 thousand as of September 30, 2024, from $425,606 thousand as of December 31, 2023, a growth of 2.3%[23] - Total liabilities decreased to $511,797 thousand as of September 30, 2024, from $532,542 thousand as of December 31, 2023, a decline of 3.9%[23] Borrowings and Financial Activities - The company generated $70,373,000 from borrowings in the nine months ended September 2024, significantly up from $18,439,000 in the same period of 2023[28] - The company incurred a loss on disposal of property, plant, and equipment amounting to $810 thousand for the nine months ended September 30, 2024[26] - Non-cash settled share-based compensation for the nine months ended September 2024 amounted to $30,298,000, compared to $51,602,000 in the same period of 2023[34] - The company experienced an effect of exchange rate changes resulting in a decrease of $4,598,000 in cash flows[28]