CBAK Energy Technology Limited

Good day ladies and gentlemen. Thank you for standing by and welcome to CBAC Energy Technologies third quarter of 2025 earnings conference call. 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 are recording today's call. If you have any objections you may disconnect at this time. Now I will turn the call over to Yitian Tian, IR specialist of Seabank Energy. Ms. Tian, please proceed.

Thank you, operator, and hello, everyone. Welcome to Seabank Energy's earnings conference call for the third quarter of 2025. In joining us today are Mr. Zhiguang Hu, our Jason, Chief SQD Officer of Seabank Energy, Mr. Siri Li, Chief Financial Officer and Company Secretary, and Yvonne, who will help with our interpretation, will join us for the Q&A section. We released our results earlier today. The press release is available on the company's IR website at ir.cbak.com.cn. as well as from the Newswell Services. A replay 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 U.S. Private Secretary's 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 exemptions expressed today. Further information regarding this and other risks and uncertainties is included in the company's public filing with the SEC. The company does not assume any obligations to update any forward-looking statements, except as required under the applicable laws. Also, please note that unless otherwise stated, All figures mentioned during the conference call are in US dollars. With that, let me now turn the call over to our CEO. Please go ahead, Jason.

Hello, everyone. Thank you for joining our earnings conference call for the third quarter of 2025. Our consolidated revenue rose sharply this quarter, increasing 36.5% year-over-year to $16.9 million, compared with approximately $44.6 million in the same period last year. The strong growth was primarily driven by the recovery of high-trans, our better raw material segment. Since acquiring HITRON in 2021, the segment has been weighed down by industry-wide overcapacity and prolonged decline in raw material prices, resulting in several years of weak performance. Recently, however, we have been pleased to see clear signs of recovery. Raw material prices have rebounded steadily driving a meaningful turnaround at high trends. In the third quarter alone, high trends generate approximately $27.2 million in revenue, representing a 143.7% increase year-over-year. With the continued recovery in the raw material market We are confident that the HITRON team will build on this positive momentum to further expand sales and narrow losses in the coming quarters. Our battery business also began to stabilize in the third quarter after a short-term volume decline caused by our ongoing product portfolio upgrades Revenue in this segment grew 0.7% year-over-year, effectively returning to the same level as the prior year quarter. This improvement was mainly driven by robust demand for our Model 32-140 battery produced at Nanjing plant. where production capacity remains fully utilized and a significant backlog of orders persist. To address this supply shortage, we are expediting the launch of Nanjing Phase 2 facility, although slightly delayed. We now expect mass production to begin in mid-November 2025. Compared with the 1.3 GWh capacity of Phase 1, Phase 2 will add another 2 GWh of capacity. Given the current supply-demand imbalance in the market, we anticipate this expansion will make a substantial contribution to next year's sales. In October 2025, we officially commissioned a new product line at our Dalian facility. Historically, this plant has focused on producing model 26-600 and 26-700 battery model products with nearly two decades of market presence. In response to involving customer needs, we invested in a new line dedicated to manufacturing the larger, higher performance 4135 model. Over the past year, many of .NET's customers have been conducting testing and certification process for the model 4135, a necessary step that Temporarily impacted shipment volume and contribute to a brief slowdown in the battery segment revenue growth. Early market feedback, however, have been very encouraging. Previously, the Dalian plant had 1G watt-hour capacity for the model 26 series. The new line adds an additional 2.3 dBh capacity for the Model 4135, similar to the Nanjing expansion. This upgrade is expected to become a key growth driver for 2026. Now, let me turn the call to our CFO, Jiawei Li.