Microvast (US:MVST)2021-11-16 06:03Financial Data and Key Metrics Changes - Revenue grew by 20% in Q3 2021 and 43% year-to-date compared to the same period in 2020, despite macroeconomic challenges such as supply chain disruptions and rising raw material prices [12][17] - Gross loss was $35.9 million in Q3 2021, compared to a gross profit of $3.7 million in Q3 2020, primarily due to warranty expenses and inventory write-downs [17][19] - Net loss increased to $116.4 million from $10.1 million in the same quarter last year, attributed to reduced gross profit and higher operating expenses [21] Business Line Data and Key Metrics Changes - The company reported a backlog growth of 65% to $52.7 million from $31.7 million in the same quarter of the previous year [22] - Forecasted contract revenue increased by 53% from $1.5 billion in February 2021 to $3.3 billion by the end of September 2021 [13][14] Market Data and Key Metrics Changes - The company is focusing on expanding its customer base in Europe and North America, with significant growth in forecasted contract revenue indicating strong market momentum [12][15] Company Strategy and Development Direction - Microvast is investing in R&D to maintain its competitive edge in battery technologies, with plans to announce two new products in Q1 2022 [11] - The company is expanding its manufacturing capacity in Huzhou, China, and Clarksville, Tennessee, with a new R&D facility in Orlando, Florida, to support growth initiatives [8][10][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in international shipping and supply chain but expressed confidence in meeting revenue guidance for 2021, expecting revenues between $145 million and $155 million [25] - The recent passage of the Infrastructure Investment and Jobs Act is expected to enhance the addressable market for electrification efforts in the U.S. [15] Other Important Information - The company ended Q3 2021 with approximately $612.5 million in cash and equivalents, bolstered by the business combination with Tuscan Holdings [21] - Capital expenditures for 2021 are expected to be in the range of $120 million to $150 million, with some expenditures potentially shifting to early 2022 [23] Q&A Session Summary Question: Updates on specific customers or contracts - Management noted that contracted revenue has grown significantly since the business combination, up 53% to $2.3 billion, indicating strong multiyear contracts with leading OEMs [29][30] Question: Plans for the new R&D facility in Florida - The R&D center will support the entire spectrum of battery technologies, from materials to management systems, aiming to create excellence in powering the world [31] Question: Ongoing capacity expansions - Capacity expansions are underway, with significant investments in Huzhou and Clarksville facilities to meet customer demand and increase production capabilities [32][33] Question: Plans in the passenger vehicle market - The company intends to focus on being a material and component supplier for passenger vehicles, as most car manufacturers are expected to develop their own battery manufacturing capabilities [36] Question: Communication and updates for investors - Management acknowledged the need for improved communication and expressed commitment to providing more visibility on new customer relationships and contract wins [39][41] Question: U.S. Postal Service contract with Oshkosh - Management expressed the importance of Oshkosh as a strategic partner but could not provide specific details due to confidentiality [42]