CBAK Energy Technology Limited

Currently, all participants are in listen-only mode. Later, we will conduct a question and answer session, 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 will turn the call over to Yaqian Tian, IR Specialist of CBARC Energy. Ms. Tian, please proceed.

Let me do this section. Thank you, operator, and hello, everyone. Welcome to CBAG Energy's earnings conference call for the first quarter of 2025. Joining us today are Mr. Zhiguang Hu, or Jason, Chief Executive Officer of CBAG Energy, Mr. Terry Lee, Chief Financial Officer and Company Secretary, and Ivan, who will help with our interpretation, will join us for the Q&A session. We released our results earlier today. The press release is available on the company's IR website at ir.cba.com.cn, as well as from Newswire Services. A relay of this call will also be available in a few hours on our IR website. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the US 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 firings 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 US dollars. With that, let me now turn the call over to our CEO, Mr. Chi-Guang Hu. Please go ahead, Jason.

Hello, everyone. Thank you for joining our earning conference call for the first quarter of 2025. As is expected, we were unable to sustain our previous growth momentum this quarter, reporting an year-over-year decline of 41% in net revenues to 2021. $34.9 million compared to the same period last year. Subsequently, our battery business recorded net revenue of $20.36 million, representing a 54.6% decrease from $44.84 million in the prior year. segment, our electric vehicle business achieved an 11.9% increase, while our light electric vehicle segment is bearing significant growth of 88.4%. However, this gain was offset by a 60.4% decline in our home energy storage. business. As we have previously emphasized, this outcome was fully anticipated. Our Dalian facilities are currently undergoing a strategy product portfolio upgrade, transitioning from the older model, 26650, originally developed around 2006 and now considered considered somewhat outdated to the Model 4135, a highly promising product with strong market potential. We are in the process of establishing the manufacturing line for Model 4135 with construction expected to be completed in the second half of this year. As announced last quarter, In the meantime, our existing and prospective customers are actively testing and validating samples of Model 4135. Early feedback has been very encouraging, reinforcing our confidence that we are well-positioned to regain growth momentum with the upcoming launch of these products. While our Dalian facilities are currently upgrading their manufacturing lines, our Nanjing operations continue to maintain strong growth momentum. In contrast to Dalian, where the primary product, model 26, has become outdated, the Nanjing facility focuses on producing this large cylindrical cell model 32-140, which remains highly competitive and has emerged as our flagship product. To meet robust market demand, the Model 32-140 production line in Nanjing are running at full capacity. Looking ahead, once the production of Model 41-35 is underway, The combined strength of these two product lines, Model 4135 and Model 32140, expected to drive a significant boost in our overall business performance. Regarding the current tariff challenge, as previously announced, we are actively evaluating the establishment of an overseas manufacturing facility in one of the Southeast Asian countries as an initial step. In parallel, we are also exploring the feasibility of expanding our production capacity to the United States if the manufacturing costs are justified. As disclosed last quarter, our decision to expand into Southeast Asia is entirely customer driven. We have now reached an agreement in principle with the customer on key commercial terms. Specifically, they have committed to a four year high volume purchase agreement that includes substantial prepayment We expect to finalize and assign the formal agreement in the near future and we'll share further details once we have the customer consent. Share all agreements be executed and be proceed with Southeast Asia project. We anticipate the new facility will begin mass production by mid-next year. The production line is thought to be designed for flexible manufacturing capable of producing both model 32140 and model 4135 cells. Now, let me turn the call to our CFO, Jiawei Li.