Microvast Holdings, Inc.

Thank you for standing by. This is the conference operator. Welcome to the MicroVast fourth quarter and full fiscal year 2021 earnings call. As a reminder, all participants are in the 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 may press star, then one on your telephone keypad. Should you need any assistance during the conference call, you may signal an operator by pressing star, then zero. I would now like to turn the conference over to Sarah Alexander, MicroVAS General Counsel. Please go ahead.

Thank you, Operator. Welcome and thanks, everyone, for joining us today. Mr. Yang Wu, President and Chief Executive Officer, and Leon Zeng, Chief Financial Officer, are hosting today's call. Sasha Kelterborn, our Chief Revenue Officer, is also on the line to discuss the product launch we announced last week. Dr. Wenjuan Mattis, Chief Technology Officer, and Shane Smith will also be available to participate in Q&A. Ahead of this call, MicroVast issued its fourth quarter and full fiscal year 2021 earnings press release, which can be found on the Investor Relations section of our website, ir.microvast.com. As a reminder, 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. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements. 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 our annual report on Form 10-K filed earlier today. In addition, during today's call, we may discuss non-GAAP financial measures, which we believe are useful as supplemental measures of microvast 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'll turn the call over to Mr. Wu.

Thank you, Sarah, and good afternoon, everyone. 2021 was a challenging year with an anticipated headwind. Despite those headwinds, our team rallied together to grow revenue 41% compared to 2020. I'm proud of the accomplishments of our team. Global supply chain disruptions were a major challenge in 2021. For microbus, the impact was largely indirect. The global semiconductor shortage caused many of our OEM customers to delay certain projects, which in turn also shifted demand for certain of our products to the right. The delayed projects remain in our focus on contractor revenue, and we expect to begin seeing more revenue from those large contracts later this year and further ramping up in 2023. The timing of those projects It's lining up with our ongoing manufacturing capacity expansions. In addition to supply chain challenges, we also face increasing raw material price throughout 2021. Unfortunately, this is a problem that we expect to continue into 2022. We are taking steps to mitigate the impact of raising raw material prices where possible. including entering into long-term supply contracts and seeking additional sources of raw materials in some instances. At the same time, we are discussing the possibility of price adjustments with our customers as a direct result of those inflationary pressures. Leon will review our financial performance in more detail in a few moments, however, I would like to touch on a few highlights. In the first quarter, we challenged our production team to meet demand, which included a seasonal influx of quick turn orders. It was not easy, but the team executed and it turned in a solid Q4 revenue performance of 6.8 million, which represents 39% growth over the same quarter of prior year. It is worth noting that our revenue grows substantially in each of the four physical quarters in 2021 compared to 2020. On a four-year basis, this achievement translated to 152 million in revenue, representing 41% growth comparing to the prior physical year. and achieving the guidance range we established in August 2021, following our business combination. We ended the year with a strong backlog of $114.5 million, representing 161% growth, over $43.8 million in backlog at December 31, 2020. and a sequential growth of 117% over $52.7 billion in backlog at September 30, 2021. This backlog creates a solid foundation going into 2022. Our business development team has done an excellent job of generating long-term, multi-year sales contracts with new customers and expanding existing relationships. This is evidence by growth in our forecasted contract revenue from $1.5 billion in February 2021, the date when we, you know, the merge launched, and to $2.5 billion at year end. 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. Most of those contracts include estimated volume requirements. However, they do not typically include a volume commitment. We expect to realize current forecast contract revenue between 2022 to 2031. We continue to have success with large OEMs in the commercial vehicle sector and are excited for the journey ahead. Next, I will provide an update on the construction progress at our various manufacturing operations. We are pleased with the progress. So the environment is certainly tough to execute construction projects given labor shortage, inflation, logistic hurdles, and other challenges. As you know, we are in the process of constructing a new building on our existing campus in Huzhou, China, which we refer to as the Phase 3. The progress at this site has been impressive, from a greenfield site in July 2021 to finishing the roof installation in less than six months. We posted an updated time-lapse video to our social media accounts. in later January. Once completed, this building will feature approximately 700,000 square feet of manufacturing space. The manufacturing equipment has been ordered, and we will be ready to begin serial production by the first quarter of 2023. Completion of this initial phase will bring our total capacity in China up to five gigawatt hours per year. In addition, we have space for more growth as the new facility is large enough to expand our total manufacturing capacity in China to approximately 12 gigawatt hours per year. We are also making progress in Clarksville. The focus of the project has been renovating and remodeling the internal of the existing building. We expected the delivery and installation requirements in Crutsville to last our Huzhou project by approximately six months. We expect to begin serial production in mid-2023 at this site. In Orlando, we have been activating recruiting personnel for the research and development facility. We have also begun the detailed planning process to convert the existing space into laboratories suitable for future global R&D projects. Our module and a pack facility in Berlin, Germany is complete and is in production as projects with European OEM begin to ramp up. This facility received ISO and IATF certifications. We distributed a press release along with the two new lithium battery cells as well as our Gen 4 battery pack last week. We are excited about our customers' response to the performance of those cells and expect those solutions to become important revenue drivers in future years. Before turning the call over to Liang to discuss our financial results, I would like to invite our Chief Revenue Officer, Sasha Calabon, to discuss those new solutions in more detail.