Microvast Holdings, Inc. Q1 FY2025 earnings call

• Product milestones: Introduction of ME6, a pioneering overhaulable LFP-based energy storage system; progress in silicon-based cell technologies and all-solid-state batteries. • Financial results: Record first-quarter revenue with 43% Y/Y growth, gross margin improved to 36.9%, achieved profitability with net profit of $61.8 million. • Expansion: Phase 3.2 expansion at Huzhou facility near completion, on track to add up to 2 gigawatt-hours of annual production capacity. • Commercial vehicle sector: Significant traction in EMEA with over 100% Y/Y growth; new business developments with customers like King Long, Blackbuck, VDL, Lovol, Tonly Heavy, Irimoly. • Next-gen battery tech: Advancements in 3D-printing capabilities for all-solid-state batteries; promising results from bipolar stack cell architecture preliminary testing.

Microvast achieved record first-quarter revenue of $116.5 million, representing a 43% year-over-year growth. The gross margin was 36.9%, a 15.7 point improvement year-over-year. EMEA saw triple-digit percentage growth of 108% year-over-year and accounted for 52% of the quarterly revenue. The U.S. increased from 2% to 5% of revenue share compared to Q1 2024, while the APAC region saw a decrease of less than 1% year-over-year. The company booked a net profit of $61.8 million, with adjusted net profit of $19.3 million and adjusted EBITDA of $28.5 million.

• Anticipated year-over-year revenue increase of 18% to 25% for 2025, target range $450 million to $475 million. • Aim for full-year gross margin of approximately 30%. • APAC operations focused on bringing Phase 3.2 expansion at Huzhou facility online later in 2025. • EMEA business to maintain strong momentum; America to see continued revenue growth.

• Headwinds from global supply chain uncertainties and trade disruptions impacting rollout timelines for certain light commercial vehicle platforms.