Microvast Holdings, Inc.

Thank you for standing by. This is the conference operator. We welcome you to MicroVAS second quarter 2023 earnings call. As a reminder, all participants are in a listen-only mode and the conference is being recorded. After the presentation, investment community professionals have the opportunity to participate in a question and answer session. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Rodney Worthen, MicroVest Director of Investor Relations. Please go ahead.

Thank you, operator, and thank you, everyone, for joining us today. Joining me on today's call are Mr. Yang Wu, Founder, Chairman, President, and CEO, Mr. Sasha Keltiborn, Chief Revenue Officer, and Mr. Craig Webster, Chief Financial Officer. Ahead of this call, Microbus issued its second quarter 2023 earnings press release, which can be found on the investor relations section of the company's website at ir.microbus.com. In addition, we have posted a slide presentation to accompany management's prepared remarks. As a reminder, please note that we will be making forward-looking statements on this call. These statements are based on current expectations and assumptions, and reflect our views only as of today. They should not be relied upon as representative of views for subsequent dates, and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in the light of new information for future events. These statements are subject to a variety of risks and uncertainty that could cause the 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 of FEC, including our annual reports on Form 10-K, filed on March 16, 2023, and the 10-Q, filed earlier today. In addition, during today's call, we may discuss non-GAAP financial measures, including adjusted gross profit, adjusted net loss, and adjusted EBITDA, which we believe are useful as supplemental measures of micro-fast performance These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results. These non-GAAP measurements have been reconciled to their most comparable GAAP metric and the tables included at the end of our press release. A webcast replay of this call will also be available on the investor relations section of our company website. With that, I will turn the call over to Mr. Wu for opening remarks.

Thank you, Rodney. and thank you all for joining us today. I would like to start off with a high-level overview of the quarter. Before providing some operational highlights, I will then turn the call over to Sacha Cadabon, our Chief Revenue Officer, who will discuss some of our key wins in the quarter, followed by Craig Webster, our Chief Financial Officer, who will discuss the financials in more detail. I will then address our outlook for Q3 and the fall year 2023 before opening the call up to questions. Please turn to slide four as I cover a few highlights from the second quarter. We posted 16% revenue growth in Q2 2023, delivering a revenue of $75 million. This increase came from growth in our European business, along with a strong demand from customers in China. We once again achieved a double-digit growth margin with an adjusted growth margin of 17.3%, a seven percentage point increase year over year. We ended the second quarter with a record backlog of 675.9 million. driving by a strong order intake of $271.3 million from our commercial vehicle business. This growing backlog demonstrates the rapid adoption of our new 53-point amp-power cell technology across commercial vehicle and ESS applications. Turning to slide five, our most significant operational achievement in Q2 was our phase 3.1 expansion in Huzhou for our 53.5 amp power cell. This has now transitioned from trial production to shipping qualified products to our customers. Since Q1, our contract capacity for deliveries of our 53.5 amp 5M power cell from Huzhou through Q2 2024 has increased from 50% to 75%. We expect customer orders and deliveries to increase further as the year progresses, especially for deliveries to the United States and Europe. We would also like to provide an update on our ESS container assembly operations as you will see from slide six. Due to the rule change related to how domestic contents is valued as a part of the Inflation Reduction Act, we have decided to locate all ESS container assembly operations in the United States. Because this change could have adversely impacted our customers, We expanded our Colorado footprint and will no longer base any of those operations in Mexicali. This company-owned facility in Windsor, Colorado has the capacity to assemble 1,000 containers annually. We are preparing Windsor to start assembly operations and expect to begin shipments of finished 4.3 megawatt hour ESS containers in early Q4 to customer job sites. We had originally planned to start shipments in Q3 and therefore we expect some push out in recognizing revenues from our ESS business this year. The short-term impact on Booking revenues this year is far elevated by ensuring our assembly facility put our customers and the partners in the best position to claim the domestic content bonus credit. I would now like to turn the call over to our Chief Revenue Officer, Sacha Cadabon, who will discuss some of our key sales, partnerships, and achievements in the quarter.