CBAK Energy Technology Limited

Ladies and gentlemen, thank you for standing by and welcome to CBAC Energy Technologies' fourth quarter and full year 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 Irina 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 fourth quarter and the full year of 2025. Joining us today are Mr. Zhiguang Hu, Chief Executive Officer of Seabank Energy, Mr. Jie Wei Li, Chief Financial Officer and Company Secretary, and Evan who will help with our interpretation during the Q&A session. We released our results earlier today. The press release is available on the company's IR website at ir.cpac.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 Liquidation 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 expectation expressed today. Further information regarding this and other risks and uncertainties is included in the company's public filings with the SEC. The company does not assume any obligations to update any forward-looking statements except as required on the applicable laws. Also, please note that unless otherwise stated, all figures mentioned during the conference call are in U.S. dollars. With that, let me now turn the call over to our CEO, Mr. Zhiguang Hu. Please go ahead, Jason.

Hello, everyone. Thank you for joining our early conference call for the fourth quarter and the full year of 2025. The fiscal year 2025 was a definitive transitional period for CBK Energy, characterized by a comprehensive structural upgrade of our product portfolio. Aggressive capacity expansion and deliberate peer work towards next-generation form factors. Despite the short-term, bottom-line pressure inherent to submissive capacity transitions, our top-line growth demonstrated explosive momentum in the fourth quarter. consolidated net revenue surged by 131.80% year-over-year to 58.80 million dollars. For the full year consolidated net revenue reached 100.19 million dollars representing an 11 increased 11% increase over 2024. Let me detail the structural transition driving our corn business. At our Dalian facility, our customer are actively transitioning away from our legacy 26 series factory, our product line with over a decade of history and the one GWh of capacity to our newly introduced highly advanced model 4135 cells to support these per shift. We successfully commissioned a new 4135 production line with 2.3 kWh capacity at the end of 2025. so market reception has been truly unprecedented. Demand for the 4135 cells currently far exceeds our available supply, meaning we are selling every single unit we can produce, and our order book heavily outpays our current ramp-up trajectory. Similarly, at our 19 facility, to alleviate the severe supply for our highly sought after model, 32-140 cells, we successfully added two new production lines at our phase two facility at the end of 2025. This expansion at 3.0 GWh of much needed capacity to complement the 1.5 GWh already operational in phase one. And we expect these two new high-speed lines to reach full capacity by early 2027. Both our Dalian and Nanjing expansion are currently in an intensive capacity ramp-up phase While this initial phase carries higher unit costs that have temporarily surprised our growth margin and the short-term profitability, we view this as a necessary and highly strategic investment. As our customers complete their transition to the Model 4135 and our Phase 2 facility completes is ramped up by early 2017. We anticipate a dramatic and sustained resurgence in our top-line revenue. Furthermore, to ascend the value chain starting in 2025, our wholly-owned service-serving 19 BSD initiated dedicated dedicated battery pack integration operation by assembling individual cells into complete plug-and-play battery system. We bypass intermediate integrators to serve end-user directly. Currently, these manufactured pack units are predominantly engineered for the light electric vehicle battery swapping infrastructure throughout the african market in 2025 we officially forged a deep strategic partnership with spiral one of africa's largest two ruler battery swapping enterprises i'm thrilled to report that spiral has rapidly scaled to become one of our top file customers We are incredibly proud that our advanced battery cell technology is providing the essential momentum for Africa's new energy transition. To deepen this relationship, we are actually exploring further collaborative models, including the potential establishment of a dedicated cooperative entity We see the African region to directly assist and accelerate Spiros' localized business expansion. This African success is mirrored across other key international markets, driving our explosive global growth via revenue from LEVs skyrocket by 252% year-over-year to $36.36 million for the full year. In India and a broader global market, our institutional client base has expanded significantly. We have established deep collaborations with a highly prestigious roster international blue-chip customer, including Anker Innovation, Scania, which became our direct ordering entity following its acquisition of North World Business Unit that originally procured our products, now operating under Bucida, as well as Acer Energy, Shenzhen ACE Battery, and Inverted Energy, The endorsement from these global tier one enterprises provides the strongest possible validation of our product reliability and safety. Similarly, in Vietnam, we have a tight-knit partnership with a key client, DAT. As DAT business volume has scaled, our shipment volume in the Vietnamese to rural sector has experienced exponential growth. As the investor may be aware, the PRC government has initiated a phase-out policy for export tax rebates, reducing the rate for lithium ion battery from 13% to 9%. with further reductions to 6% by April 2026 and a complete elimination by January 2027. To proactively establish a dialectical couch against this microeconomic headwind and protect our international margins, we moved decisively to localize our global supply chain. We have already incorporated our Malaysian subsidiary on April 30, 2025, and are actively pushing forward with physical construction of manufacturing facilities there. We've seen this year to offer diversified tariff-insulated sourcing opinion for our top-tier international clients. We also anticipate signing and announcing additional contracts with major international clients soon, which we believe will serve as a strong catalyst for our shareholders. Our raw material segment High trunks delivered a power turnaround benefiting from an ongoing upward cycle in raw material price. High trunks experienced a sharp operational rebound beginning in the third quarter of 2025. Full year revenue for this segment surged 123% year over year to $89.21 million. As the raw material pricing cycle continues its robust upward trajectory, we confidently anticipate HITRONs will reach new performance highs. To structurally capture this moment term, HITRON is aggressively expanding its proprietary infrastructure, including the ongoing construction of new 10,000 metric ton tensile manufacturing plants slated for full operation in the fourth half of 2027. Alongside a massive 37,000 metric ton This strategy propensity injection will decisively elevate high-trans revenue selling in 2026 and beyond. Strategically, we are also advancing our cooperative structure. Our stockholders have approved radar missile merger to change our place in cooperation from Nevada to Cayman Islands. This move will allow us to streamline operational and administrative efficiency while similarly aligning our cooperative structure with our aggressive international expansion strategy. driven by the insatiable demand for our new 4135 and the 32140 battery cell, the impending completion of our capacity ramp-ups, the continuing strength of HITRON and our expanding footprint across global LEV market. We project with absolute confidence that our consolidated sales will hit a record high in 2026, delivering explosive growth. Now let me turn the call to our CFO, Jay Wei Li, for a deeper dive into our financials.