Microvast Holdings, Inc.

Thank you for standing by. This is the conference operator. Welcome to MicroVAS's full year 2025 earnings call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. I would now like to turn the conference over to MicroVAS Investor Relations. Please go ahead.

Thank you, operator, and thank you, everyone, for joining our update today. This is Rodney Worthen, Chief Financial Officer of MicroVAS, and with me on today's call is Mr. Wu, Founder, Chairman, and Chief Executive Officer of MicroVAS. Mr. Wu will start off with a high-level overview of our 2025 results before providing some operational and business updates. I will then discuss our financials in more detail before handing it back to Mr. Wu to wrap up with our outlook for 2026 and closing remarks. Ahead of this call, Microbast issued its 2025 full-year earnings press release, which can be found on the investor relations section of our website, ir.microbast.com. We have also posted a slide presentation to accompany management's prepared remarks for today's call. As a reminder, please note that this call may include forward-looking statements. These statements are based on current expectations and assumptions and should not be relied upon as representative of views for subsequent dates. We undertake no obligation to revise or release the results of any revision to these forward-looking statements due to new information or future events. Actual results may differ materially from expectations due to a variety of risks and uncertainties. For more information on material risks and other important factors that could affect our financial results, please refer to our filings with the SEC. We may also discuss non-GAAP financial measures during this call. These measures should be considered in addition to and not as a substitute for or in isolation from GAAP results. These non-GAAP measures have been reconciled to their most comparable GAAP metrics in the tables included at the end of our press release and our slide presentation. After the conclusion of this call, a webcast replay will be available on the investor relations section of Microvast's website. Now, I will turn the call over to Mr. Wu to kick things off.

Hello, everyone, and welcome. Thank you for joining us today. As always, I want to start by reminding you of our core mission. Founded in Texas in 2006, MicroVax has grown into a global leader in advanced battery technologies, with over 890 patents granted or pending, and our electrified solutions successfully deployed worldwide. We are proud to be a driving force in the global energy transition, building a more sustainable future, one battery at a time. We are excited about our upcoming product launches. The 55A cell combines the high power performance of our 48A cell with the high energy output of our 53.5A cell, converging into a very exciting platform. We are also launching our next generation LTO cell, which provides high power output and also fast charging capability. It's particularly well suited for rail and tram, specialty vehicles, high torque applications, and AGVs. Join me on slide four, and I will provide a brief overview of our 2025 results. We are thrilled to achieve another year of record annual revenue of $427.5 million, representing a 12.6% year-over-year increase. While we navigated a shifting landscape we delivered an annual gross margin of 28.6%. This change was primarily attributable to an inventory impairment charge, which negatively impacted our gross margin by 7.6 percentage point. Our GAAP net loss for the year was 29.2 million. On a non-GAAP basis, we achieved an adjusted net profit of 13 million. In 2025, We recorded a non-GAAP adjustment EBITDA of $44.7 million. This demonstrates that we are not only able to grow our top line, but also that we are making the necessary adjustments to leverage our operations as we continue to scale. While our four-year revenue landed just below guidance due to both involving regulatory shifts in career market and customer platform ramp-up delays, our underlying fundamentals remained strong. We delivered 2025 revenue growth at the industry-leading growth margin, demonstrating the high value our customers place on microvast technology. The momentum in EMEA is encouraging as we continue into 2026, particularly as the previous vehicle platform delays in the region began to resolve the rich SOP. In APAC, while we navigated the regulatory environment in Korea, we have focused on a long-term via our Huzhou Phase 3.2 expansion, which is expected to bring additional capacity online in 2026. We anticipate achieving serial production after the ramp-up period. Our focus on efficiency and profitability is a long-term commitment. The growth we have seen from 2022 through 2025, where our revenue has more than doubled, our GAAP growth profit has gone up approximately 13 times, and we achieved Positive adjusted EBITDA is a testament to the increasing market demand for our high-performance products. We believe this trajectory continues to validate our ability to successfully commercialize our innovative technology and operate effectively in a mature industry. Let's turn to slide five for an operational update on our Huzhou 3.2 expansion. I'm pleased to report that our Huzhou Phase 3.2 project is progressing well, with clean rooms and utility equipment already in operation. Prior production for our 55-ampere cell has begun on the electrode section assembly and formation, and no load tests have started. This expansion is a critical component of our growth strategy, as Phase 3.2 is expected to add up to two gigawatt hour of annual production capacity and anticipated to be modular across our LBC platform. Please turn to slide six for a look at how our technology translates into mock leading applications. Whether our customers need a maximum energy for long haul duty cycles or also a high power for rapid charging, Microwas has a high performance solution. On the left, our HPTO 55 ampere cell is a workhorse for high energy needs. It is purpose-built for segments where range and longevity are key. From city buses and heavy-duty trucks to maritime vessels, it delivers the energy density required to keep those fleets running longer between charges. On the right, our HPTO 37 ampere cell leads in ultra-fast charging and high power performance combined with long cycle life. This is the ideal solution for rail and tram systems, AGVs, and high torque robotics. These are environments where power must be delivered instantly and recharged rapidly to maintain 24-7 operations. By offering this specialized duality, we show that a microbus isn't just a battery supplier. but a strategic partner capable of electrifying the most demanding industry and commercial segments globally. On slide 7, let's look at the progress in our all solid-state battery milestones. Building upon our Q3 updates, we are entering an exciting new phase of development focused on high-voltage bipolar integration. As shown in Figure 1, our 12-layer monolithic stack has now surpassed 200 cycles while maintaining a 99.97% acclimatic efficiency. This indicates minimal energy loss and validates the durability of our full solid-state design. Even more significant is our new milestone, a 72-volt monolithic stack by using a proprietary internal series-connected bipolar architecture, we have achieved our highest stable voltage density to date. As illustrated in Figure 2, voltage capacity profile, this stack has successfully completed 100 cycles. The cross-section analysis in Figure 3 confirms a uniform layer construction, which is essential for long-term power stability by eliminating liquid electrolytes. and external wiring. This architecture reduces weight and system complexity, making it ideal for direct integration into next-generation robotics and high-power systems. This milestone shows the potential to scale our high-voltage all-state platform, one that maintains structural integrity under stress. Now I will turn this call over to Rani to discuss our 2025 financials.