Disclaimer Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. All information set forth herein speaks only as of the date hereof and we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication. Forecasts and estimates regarding Microvast's industry ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to________________ Microvast Holdings, Inc. (Exact name of registrant as specified in its charter) | Delaware | 001-38826 | 83-2530757 | | --- | -- ...

Microvast (MVST) FY 2023 Annual General Meeting September 27, 2023 10:00 AM ET Speaker0Good morning, ladies and gentlemen, and welcome to the twenty twenty three Annual Meeting of Stockholders of Microvias Holdings Inc. I am Young Wu, Founder, Chief Executive Officer and Chairman of the Board of Directors of MicroRust. I will act as a Chairman and preside over this meeting. I would also like to welcome the other members, our executive leadership team, who are with me on the call today. Before we begin, I wo ...

E-bus Vehicle MpCO-21Ah MV-B/C Gen 3 pack HpCO-53.5Ah MV-B/C Gen 4 pack Highlights Start hybrid truck development with Gen 4 high power battery Partnership reinforced with over 100-unit delivery in Q2 Q2 FINANCIALS 10 | --- | --- | --- | --- | --- | |-------------------------------------------|-----------------------------------|----------|---------------------------------|-----------| | | Three-Months Ended June 30 \n2022 | 2023 | Six-Months Ended June 30 \n2022 | 2023 | | Revenue | 64,414 | 74,953 | 101,0 ...

Table of Contents (Exact name of registrant as specified in its charter) | Delaware | 001-38826 | 83-2530757 | | --- | --- | --- | | (State or other jurisdiction | (Commission File Number) | (IRS Employer | | of incorporation or organization) | | Identification No.) | | 12603 Southwest Freeway, Suite 300 | | | | Stafford, Texas | | 77477 | | (Address Of Principal Executive Offices) | | (Zip Code) | (281) 491-9505 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY R ...

Microvast Holdings, Inc. (NASDAQ:MVST) Q1 2023 Earnings Conference Call May 9, 2023 6:00 PM ET Company Participants Monica Gould - Investor Relations Yang Wu - Founder, Chairman, President and Chief Executive Officer Sascha Kelterborn - Chief Revenue Officer Craig Webster - Chief Financial Officer Cassidy Fuller - Investor Relations Conference Call Participants Colin Rusch - Oppenheimer Amit Dayal - H.C. Wainwright Operator Thank you for standing by. This is the conference operator. Welcome to the Microvast ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to________________ Microvast Holdings, Inc. Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 ...

Microvast Holdings, Inc. (NASDAQ:MVST) Q4 2022 Earnings Conference Call March 16, 2023 5:00 PM ET Company Participants Cassidy Fuller - Investor Relations Yang Wu - Founder, Chairman, President and Chief Executive Officer Sascha Kelterborn - Chief Revenue Officer Craig Webster - Chief Financial Officer Monica Gould - Investor Relations Conference Call Participants Colin Rusch - Oppenheimer George Gianarikas - Canaccord Genuity Operator Greetings and welcome to the Microvast Holdings’ Fourth Quarter 2022 Ear ...

>3.5x increase in backlog position = 35% revenue growth year over year to $204.5M | --- | --- | --- | |-----------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------| ...

PART I [Business](index=9&type=section&id=Item%201.%20Business) Microvast is a vertically integrated battery technology company specializing in battery components and systems for electric commercial vehicles and utility-scale energy storage - Microvast is a vertically integrated battery technology company designing, developing, and manufacturing battery components and systems for electric commercial vehicles and utility-scale energy storage systems (ESS)[27](index=27&type=chunk)[30](index=30&type=chunk) Key Financial and Operational Metrics (FY 2022) | Metric | Value | | :--- | :--- | | Revenue | $204.5 million | | Revenue Growth (YoY) | 35% | | Total Battery Systems Delivered (since 2009) | ~3,347.9 MWh | | Order Backlog (as of Dec 31, 2022) | $410.5 million (~1,599.7 MWh) | - The company's strategic focus includes expanding ESS solutions, shifting operations towards Europe and the U.S., and increasing manufacturing capacity to a target of **11 GWh per year by 2025**[61](index=61&type=chunk)[62](index=62&type=chunk) - In October 2022, Microvast received a **$200 million grant** from the U.S. Department of Energy (DOE) in collaboration with General Motors for a new polyaramid separator manufacturing facility in the U.S[55](index=55&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) The company faces substantial risks across its business, operations in China, intellectual property, and stock ownership, including market adoption, regulatory compliance, and stock volatility - Business and Industry Risks: Growth is highly dependent on electric vehicle market adoption, with risks from battery safety incidents, a limited customer base (top five customers were **36.1% of 2022 revenue**), a history of net losses (**$158.2 million in 2022**), and intense competition[115](index=115&type=chunk)[119](index=119&type=chunk)[124](index=124&type=chunk)[129](index=129&type=chunk) - Risks of Doing Business in China: Operations are subject to extensive PRC government regulation, including cybersecurity and data laws, with a risk of securities delisting under the Holding Foreign Companies Accountable Act (HFCAA) if PCAOB cannot inspect auditors[112](index=112&type=chunk)[252](index=252&type=chunk)[267](index=267&type=chunk) - Intellectual Property Risks: A significant portion of the company's technology relies on unpatented trade secrets and know-how, which may be difficult to protect, alongside the risk of costly litigation for intellectual property infringement claims[275](index=275&type=chunk)[285](index=285&type=chunk) - Ownership and General Risks: Stock price may be volatile, future stock issuances could cause dilution, and the company is exposed to risks from health epidemics and geopolitical events[289](index=289&type=chunk)[306](index=306&type=chunk)[313](index=313&type=chunk) [Unresolved Staff Comments](index=57&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - Not applicable[325](index=325&type=chunk) [Properties](index=58&type=section&id=Item%202.%20Properties) Microvast's physical properties include owned and leased facilities across the U.S., Germany, the U.K., and China, supporting various operations Key Company Facilities | Location | Country | Function | Ownership | | :--- | :--- | :--- | :--- | | Stafford, TX | United States | Corporate HQ | Leased | | Lake Mary, FL | United States | R&D | Owned | | Clarksville, TN | United States | Manufacturing (cell, module, pack) | Owned | | Denver, CO | United States | ESS HQ | Owned | | Berlin | Germany | European HQ, Manufacturing (module, pack) | Leased | | Huzhou | China | Asia Pacific HQ, Manufacturing (full scope) | Owned | [Legal Proceedings](index=59&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business or financial condition - As of the filing date, Microvast is not involved in any legal proceedings anticipated to have a material adverse impact on the company[329](index=329&type=chunk) [Mine Safety Disclosures](index=59&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations - Not applicable[330](index=330&type=chunk) PART II [Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=60&type=section&id=Item%205.%20Market%20for%20the%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Microvast's common stock and warrants trade on NASDAQ, with the company intending to retain earnings for growth rather than paying dividends - The company's common stock and warrants trade on NASDAQ under the symbols **MVST** and **MVSTW**[333](index=333&type=chunk) - The company intends to retain all available funds for business development and does not anticipate paying cash dividends in the foreseeable future[335](index=335&type=chunk) Securities Authorized for Issuance Under Equity Compensation Plans (as of Dec 31, 2022) | Plan Category | Securities to be issued upon exercise | Weighted-average exercise price | Securities remaining available for future issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 60,466,526 | $6.08 | 16,490,228 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=61&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In FY2022, Microvast's revenue grew **35% to $204.5 million**, with gross margin improving to **4.4%** due to non-recurring warranty costs, maintaining strong liquidity Comparison of Results of Operations (FY 2022 vs. FY 2021) | Metric (in thousands) | 2021 | 2022 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | **$151,976** | **$204,495** | **$52,519** | **34.6%** | | Cost of revenues | ($194,719) | ($195,422) | ($703) | 0.4% | | **Gross (Loss) Profit** | **($42,743)** | **$9,073** | **$51,816** | **121.2%** | | *Gross Margin* | *-28.1%* | *4.4%* | - | - | | Total operating expenses | ($157,448) | ($170,691) | ($13,243) | 8.4% | | **Operating Loss** | **($194,064)** | **($159,946)** | **$34,118** | **-17.6%** | | **Net Loss** | **($206,483)** | **($158,200)** | **$48,283** | **-23.4%** | - Revenue growth was driven by an increase in sales volume from **489.2 MWh in 2021 to 694.2 MWh in 2022**[383](index=383&type=chunk) - The significant improvement in gross margin was primarily due to the non-recurrence of a **$46.5 million warranty cost accrual** for a legacy product recorded in 2021, combined with better economies of scale[385](index=385&type=chunk)[387](index=387&type=chunk) - As of December 31, 2022, the company had **$327.7 million** in cash, cash equivalents, restricted cash, and short-term investments, with capital expenditures for 2022 at **$150.9 million** mainly for facility expansions[395](index=395&type=chunk)[406](index=406&type=chunk)[412](index=412&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=73&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to interest rate risk on China loans, significant foreign currency risk from RMB fluctuations, and credit risk on trade receivables - The company's project finance loans in China are exposed to interest rate risk as they are tied to the Loan Prime Rate[431](index=431&type=chunk) - Significant foreign currency risk exists due to operations in China; a hypothetical **10% adverse change in the RMB exchange rate** would result in a **$2.8 million loss** as of December 31, 2022[433](index=433&type=chunk) - Credit risk is primarily related to trade receivables, with the company actively monitoring customer creditworthiness and overdue debts to mitigate this risk[434](index=434&type=chunk) [Financial Statements and Supplementary Data](index=75&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal years 2020-2022, including balance sheets, income statements, and cash flow statements Consolidated Balance Sheet Highlights (as of Dec 31, 2022) | Account (in thousands) | 2021 | 2022 | | :--- | :--- | :--- | | **Total Current Assets** | **$706,606** | **$545,067** | | Cash and cash equivalents | $480,931 | $231,420 | | Inventories, net | $53,424 | $84,252 | | **Total Assets** | **$995,291** | **$984,957** | | **Total Current Liabilities** | **$175,594** | **$252,409** | | **Total Liabilities** | **$308,593** | **$371,980** | | **Total Shareholders' Equity** | **$686,698** | **$612,977** | Consolidated Statement of Operations Highlights (Year ended Dec 31, 2022) | Account (in thousands) | 2021 | 2022 | | :--- | :--- | :--- | | Revenues | $151,976 | $204,495 | | Gross (loss)/profit | ($42,743) | $9,073 | | Loss from operations | ($194,064) | ($159,946) | | **Net loss** | **($206,483)** | **($158,200)** | | Net loss per share (Basic and diluted) | ($1.26) | ($0.52) | - In 2021, the company recorded an additional **$46.5 million warranty accrual** for a legacy product due to a faulty component, which was a major driver of the gross loss[420](index=420&type=chunk)[572](index=572&type=chunk) - The company adopted new accounting standards for leases (ASC 842) and credit losses (Topic 326) on January 1, 2022, with ASC 842 adoption resulting in **$18.8 million** in operating lease right-of-use assets and liabilities[523](index=523&type=chunk)[545](index=545&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=125&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[696](index=696&type=chunk) [Controls and Procedures](index=125&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of December 31, 2022, with a previously identified material weakness remediated - Management concluded that as of December 31, 2022, the company's disclosure controls and procedures were effective[697](index=697&type=chunk) - A material weakness identified in 2021, related to a lack of sufficient skilled staff with U.S. GAAP and SEC reporting knowledge, was remediated as of December 31, 2022[700](index=700&type=chunk)[701](index=701&type=chunk)[702](index=702&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=127&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section details the company's executive officers and board of directors, including their biographical information, board structure, and committee compositions - The company's leadership includes founder Yang Wu as President and CEO, Craig Webster as CFO, Shane Smith as COO, and Dr. Wenjuan Mattis as CTO[710](index=710&type=chunk) - The Board of Directors is divided into three classes and includes notable members such as Nobel Prize winner Stanley Whittingham, an expert in lithium-ion batteries[741](index=741&type=chunk)[747](index=747&type=chunk) - The Board has three standing committees: Audit, Nominating & Corporate Governance, and Compensation, with the Audit Committee chaired by Arthur Wong, designated as the audit committee financial expert[755](index=755&type=chunk)[757](index=757&type=chunk) [Executive Compensation](index=132&type=section&id=Item%2011.%20Executive%20Compensation) The company's 2022 executive compensation for NEOs included base salary and equity awards, with no short-term cash incentives paid out, and non-employee directors receiving cash and RSU awards 2022 Summary Compensation for Named Executive Officers (NEOs) | Name and Principal Position | Salary ($) | Stock Awards ($) | Option Awards ($) | All other compensation ($) | Total Compensation ($) | | :--- | :--- | :--- | :--- | :--- | :--- | | Yang Wu, President and CEO | 542,895 | 439,997 | — | — | 982,892 | | Sascha Rene Kelterborn, Chief Revenue Officer | 384,772 | 159,993 | 2,552,000 | 68,653 | 3,165,418 | | Craig Webster, Chief Financial Officer | 309,908 | 159,993 | 3,190,000 | 13,330 | 3,673,231 | - The 2022 short-term incentive (STI) cash bonus did not pay out to NEOs because the pre-determined revenue performance threshold was not achieved[766](index=766&type=chunk) - Non-employee directors receive an annual cash retainer of **$70,000**, with additional retainers for committee chairs, and an annual RSU award valued at **$80,000**[798](index=798&type=chunk)[801](index=801&type=chunk) [Security Ownership of Certain Beneficial Owners and Management](index=139&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management) As of March 10, 2023, founder Yang Wu is the largest individual beneficial owner with **27.5%** of common stock, while all directors and executive officers collectively own **30.1%** Beneficial Ownership as of March 10, 2023 | Beneficial Owner | Percent Beneficially Owned | | :--- | :--- | | Yang Wu (President & CEO) | 27.5% | | All directors and executive officers as a group (13 persons) | 30.1% | | Cede & Co (>5% Holder) | 35.1% | | Evergreen Ever Limited (>5% Holder) | 10.2% (based on last filing) | [Certain Relationships and Related Transactions, and Director Independence](index=140&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) The company has key related party agreements, including a Stockholders Agreement and Registration Rights, with five of its seven directors determined to be independent - A Stockholders Agreement provides founder Yang Wu the right to nominate directors proportional to his beneficial ownership of common stock[808](index=808&type=chunk)[809](index=809&type=chunk) - The company entered into a Registration Rights and Lock-Up Agreement with pre-merger stockholders and insiders, including a **two-year lock-up for 75% of Mr. Wu's shares**[811](index=811&type=chunk)[812](index=812&type=chunk) - The Board has determined that **five of its seven directors** are independent under NASDAQ listing rules[818](index=818&type=chunk) [Principal Accountant Fees and Services](index=143&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) The company's principal auditor is Deloitte Touche Tohmatsu, with aggregate fees of **$1.6 million** in FY2022, primarily for audit services, all pre-approved by the Audit Committee Accountant Fees (in millions) | Fee Category | 2021 | 2022 | | :--- | :--- | :--- | | Audit fees | $1.3 | $1.6 | | Audit-related fees | $0.1 | - | | Tax fees | — | — | | All other fees | — | — | | **Total** | **$1.4** | **$1.6** | - All audit and non-audit services provided by the principal accountant were pre-approved by the Audit Committee in accordance with its policies[823](index=823&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=144&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section provides an index of all financial statements, schedules, and exhibits filed with the Form 10-K, including corporate governance documents and material contracts - This section contains the index to financial statements and lists all exhibits filed with the annual report, including corporate governance documents, material contracts, and required certifications[827](index=827&type=chunk)[828](index=828&type=chunk)[829](index=829&type=chunk) [Form 10-K Summary](index=146&type=section&id=Item%2016.%20Form%2010-K%20Summary) No summary is provided under this item - None[833](index=833&type=chunk)