Microvast Holdings, Inc.

Thank you for standing by. This is the conference operator. Welcome to the MicroVast third quarter 2021 earnings call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Sarah Alexander, MicroVASP General Counsel. Please go ahead.

Thank you, Charisse, and thank you, everyone, for joining us today. Hosting the call with me are Mr. Yang Wu, President and Chief Executive Officer, and Leon Zeng, Chief Financial Officer. Shane Smith, our Chief Operating Officer, is also on the line to help out Q&A. Ahead of this call, MicroVast issued its third quarter press release, which can be found on the investor relations section of our website at ir.microvast.com. Please note that on this call, we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views only as of today and should not be relied upon as representative about views as of any subsequent date. And we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For further discussion of the material risks and other important factors that could affect our financial results, please refer to our filings with the SEC, including the quarterly report on Form 10-Q filed this afternoon. In addition, during today's call, we may discuss non-GAAP financial measures, which we believe are useful as supplemental measures of microVAS performance. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results. A webcast replay of this call will also be available on the Investor Relations section of our company website. With that, I'd like to turn the call over to Mr. Wu.

Thank you, Sarah, and good afternoon, everyone. I would like to start out by thanking our employees for their outstanding contributions to Merva's success. I would also like to thank our shareholders for their commitment and our customers for their support. The third quarter of 2021 was eventful. We successfully completed our business combination with Custom Holdings in July. The transaction raised $708 million in net cash proceeds to help fund our growth initiatives. Including our ongoing capacity expansion in Classville, Tennessee, and Huzhou, China. In addition, we've already moved into our new R&D facility in Orlando, Florida. We are pleased with the progress of the three of those sites. This is a difficult time for construction projects given labor shortages, infection, and other challenges. We've recently posted to our social media accounts showing the progress of the construction of a few buildings on our campus in Huzhou, which we refer to as Safe 3. Once completed, this building will future approximately 700,000 square feet of manufacturing space designed for low gigawatt hour per year production capacity in total. The two gigawatt hour per year fully automated production line is under construction and planning to be completed in end of 2022 to first quarter of 2023. I am proud of the progress they have made in just a few months since this transaction closed. In Clarksville, we purchased a existing building earlier this year and renovations to make the building and the utilities ready so our manufacturers are underway. And in Orlando, our existing employees are moving into the new facility and we are actively recruiting to expand our R&D team. We will continue to invest in R&D to ensure that our battery technologies remain on the forefront and we expect to launch 10 new products in the first quarter of 2022. We will have more information about those developments in our next earnings call. Before turning the call over to Leon to review our financial results, I'd like to highlight a few key takeaways about MicroVast. We are now with you to the public markets. We have been in business since 2006. We are an established battery manufacturer and an innovator. We achieved a revenue growth of 20% during the quarter and 43% year-to-date, each as compared to the same period in 2020. This growth was achieved in the face of many macroeconomic and industry-level challenges, including global supply chain disruptions, logistic challenges, increasing raw material prices, infection, and ongoing COVID-19 pandemic. Historically, our business was concentrated in Asia Pacific. However, we are focused on gaining momentum with our customer base in Europe and in North America. This momentum is evidenced by 53% growth in our forecasted contract revenue, which grew from $1.5 billion in February 2021 when the merger was announced to $3.3 billion at the end of September. When we refer to forecasted contract revenue, we are describing backlog plus management estimates for revenue we expect to realize from existing contractual relationships with customers. To be included, it must have signed a contract in place purely in the form of framework or supply agreements. In addition, we have had advanced discussions with customers about future volume requirements for particular projects or vehicle models. These contracts often include pricing and other terms and conditions. However, they do not adequately include volume commitments. We expect to realize carrying forecasted contract revenue between 2021 to 2031. We also saw backlog growth of 65% to $53 million from $32 million in September 2021. We are pleased to see the global change toward electrification continue in the United States. With the recent passage of the Infrastructure Investment and Jobs Act, the bill provides solid support for electrification efforts in the United States, which we expect to increase our addressable market and accelerate our progress and opportunities in North America. I am now turning it over to Leon to discuss third quarter financial results.