Group 1 - CBAK Energy and Kandi Technologies have formed a strategic partnership to establish two lithium battery production facilities in the United States, focusing on battery pack assembly and battery cell manufacturing [1][2][4] - The partnership aims to enhance supply chain resilience and align with U.S. clean energy incentives, particularly in response to the growing demand in North America's off-road and recreational vehicle markets [3][6] - CBAK will supply battery cells to Kandi's facility at market rates, initially from overseas production and later from a U.S.-based facility, creating an integrated supply chain [5] Group 2 - The North American market for UTVs, golf carts, and other off-road vehicles was valued at $16.7 billion in 2024 and is projected to reach approximately $25.0 billion by 2030, indicating significant growth potential for the partnership [6] - CBAK Energy is actively evaluating locations outside of China for new battery manufacturing capabilities, including plans for small-scale production in Southeast Asia [2] - Both companies will establish separate joint ventures for the battery pack and cell facilities, with Kandi holding a 90% equity stake in the pack assembly venture and CBAK holding a 90% stake in the cell manufacturing venture [4]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was RMB 2,070 million, up 1.7% sequentially, with a gross margin of 22.6%, an increase of 2.1 percentage points sequentially [5][11] - Full year 2024 revenue reached RMB 8,300 million, a 27% year-over-year increase, while gross margin was 18%, down 1.3 percentage points year-over-year [6][12] - Profit attributable to the company for 2024 was RMB 493 million, with capital expenditure of RMB 7,330 million [6][16] - The company generated RMB 176 million in cash from operating activities in 2024, with total assets of RMB 49,200 million and total liabilities of RMB 17,300 million [8][7] Business Line Data and Key Metrics Changes - Revenue from Chinese customers increased by 34% year-over-year, driven by the reshuffling of the industry chain and increased market share [13] - Revenue from 12-inch wafers increased by 35% year-over-year, attributed to capacity expansion and quick ramp-up of new capacity [14] - The product mix included significant contributions from consumer electronics, smartphones, and automotive applications, with respective revenue shares of 28%, 16%, and 8% [14][15] Market Data and Key Metrics Changes - Revenue distribution by region showed China at 85%, America at 12%, and Eurasia at 3% [13] - The overall semiconductor market showed a recovery trend in 2024, with inventory levels returning to a healthy state [12] Company Strategy and Development Direction - The company aims to strengthen its management on supply chain security and resilience, focusing on localization to meet growing market demand [21] - Capital expenditure is expected to remain flat compared to the previous year, with a focus on building capacity and supporting customer market expansion [20] - The company plans to maintain a consistent pricing strategy while addressing competitive pressures through product innovation [22] Management's Comments on Operating Environment and Future Outlook - Management noted that while the first quarter of 2025 shows an uptick, uncertainties in the external environment and intensified industry competition are concerns for the second half of the year [19] - The company anticipates revenue growth in 2025 to exceed the industry average, despite expected increases in depreciation [20][21] Other Important Information - The company achieved a total shipment of over 8 million wafers in 2024, with an annualized capacity utilization rate of 85.6% [17] - The company is actively engaging in high-performance automotive electronics technologies to meet increasing demands in the automotive market [16] Q&A Session Summary Question: What is the outlook for the semiconductor market in 2025? - Management indicated that demand is expected to be flat or grow moderately across various fields, with AI expected to continue growing rapidly [19] Question: How is the company addressing competitive pressures? - The company is focusing on enhancing core competitiveness through technology advantages and will engage in price competition when necessary to maintain market share [22]