Release Details
Microvast Reports Third Quarter 2021 Results
– Revenue Growth of 20% over Q3 2020 –
– Reaffirms 2021 Revenue Outlook –
– Completed Public Listing in
“As an established battery technology company with proven products and a robust pipeline of new technologies, we are excited by the industry demand and validation of our battery solutions. I am pleased to report that we have won several new multi-year contracts with leading OEMs, driving substantial growth in forecasted contracted revenue since the business combination was announced in
“The successful business combination was an important milestone, accelerating our ability to develop and commercialize disruptive battery technologies that we believe will revolutionize transportation. Localized production near our current and prospective customers across
Results for Q3 2021
Revenue was
Gross loss was
Operating expenses in Q3 2021 were
Net loss was
As a result of the successful business combination,
The Company’s backlog on
Full Year 2021 Outlook
Based on current business conditions, business trends and other factors,
Based on equipment delivery schedules and scheduling during the upcoming holiday season, the Company expects some of its previously planned 2021 capital expenditures to move into early 2022. Total capital expenditures for the year ending
Webcast Information
Company management will host a webcast on
About
Cautionary Statement Regarding Forward-Looking Statements
This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “believe,” “intend,” “plan,” “projection,” “guidance,” “outlook” or words of similar meaning. These forward-looking statements include, but are not limited to, statements regarding Microvast’s industry and market sizes, future opportunities for
In addition to factors identified elsewhere in this communication, the following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) a delay or failure to realize the expected benefits from the business combination; (2) the impact of the ongoing COVID-19 pandemic; (3) changes in the highly competitive market in which
Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the data contained herein is reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance as projected financial information and other information are based on estimates and assumptions that are inherently subject to various significant risks, uncertainties and other factors, many of which are beyond our control. All information set forth herein speaks only as of the date hereof in the case of information about
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||||||||
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SELECTED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
|
(In thousands of |
||||||||
|
|
|
|
|
|
|
|
||
|
Assets |
|
|
|
|
|
|
||
|
Current assets: |
|
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
21,496 |
|
|
$ |
572,609 |
|
|
Restricted cash |
|
|
19,700 |
|
|
|
39,900 |
|
|
Accounts receivable (net of allowance for doubtful accounts of |
|
|
76,298 |
|
|
|
67,243 |
|
|
Notes receivable |
|
|
20,839 |
|
|
|
10,260 |
|
|
Inventories, net |
|
|
44,968 |
|
|
|
47,820 |
|
|
Prepaid expenses and other current assets |
|
|
6,022 |
|
|
|
12,964 |
|
|
Amount due from related parties |
|
|
- |
|
|
|
128 |
|
|
Total Current Assets |
|
|
189,323 |
|
|
|
750,924 |
|
|
Property, plant and equipment, net |
|
|
198,017 |
|
|
|
222,771 |
|
|
Land use rights, net |
|
|
14,001 |
|
|
|
13,935 |
|
|
Acquired intangible assets, net |
|
|
2,279 |
|
|
|
2,024 |
|
|
Other non-current assets |
|
|
890 |
|
|
|
702 |
|
|
Total Assets |
|
$ |
404,510 |
|
|
$ |
990,356 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
42,007 |
|
|
$ |
36,557 |
|
|
Advance from customers |
|
|
2,446 |
|
|
|
2,343 |
|
|
Accrued expenses and other current liabilities |
|
|
60,628 |
|
|
|
48,065 |
|
|
Income tax payables |
|
|
664 |
|
|
|
665 |
|
|
Short-term bank borrowings |
|
|
12,184 |
|
|
|
22,851 |
|
|
Notes payable |
|
|
35,782 |
|
|
|
43,131 |
|
|
Bonds payable |
|
|
29,915 |
|
|
|
- |
|
|
Total Current Liabilities |
|
|
183,626 |
|
|
|
153,612 |
|
|
Deposit liability for series B2 convertible preferred shares (“Series B2 Preferred”) |
|
|
21,792 |
|
|
|
- |
|
|
Long-term bonds payable |
|
|
73,147 |
|
|
|
73,147 |
|
|
Warrant liability |
|
|
- |
|
|
|
2,461 |
|
|
Share-based compensation liability |
|
|
- |
|
|
|
8,841 |
|
|
Other non-current liabilities |
|
|
110,597 |
|
|
|
35,511 |
|
|
Total Liabilities |
|
$ |
389,162 |
|
|
$ |
273,572 |
|
|
Total Mezzanine Equity |
|
$ |
399,950 |
|
|
$ |
- |
|
|
Total Shareholders’ (Deficit)/Equity |
|
|
(384,602 |
) |
|
|
716,784 |
|
|
Total Liabilities, Mezzanine Equity and Shareholders’ Equity |
|
$ |
404,510 |
|
|
$ |
990,356 |
|
|
|
||||||||||||||||
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SELECTED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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|
(In thousands of |
||||||||||||||||
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
||||
|
Revenues |
|
$ |
30,753 |
|
|
$ |
36,894 |
|
|
$ |
59,400 |
|
|
$ |
85,204 |
|
|
Cost of revenues |
|
|
(27,075 |
) |
|
|
(72,779 |
) |
|
|
(50,950 |
) |
|
|
(129,100 |
) |
|
Gross profit/(loss) |
|
|
3,678 |
|
|
|
(35,885 |
) |
|
|
8,450 |
|
|
|
(43,896 |
) |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
|
(4,721 |
) |
|
|
(57,058 |
) |
|
|
(12,670 |
) |
|
|
(67,810 |
) |
|
Research and development expenses |
|
|
(4,558 |
) |
|
|
(13,518 |
) |
|
|
(12,518 |
) |
|
|
(23,199 |
) |
|
Selling and marketing expenses |
|
|
(3,456 |
) |
|
|
(7,380 |
) |
|
|
(9,464 |
) |
|
|
(14,242 |
) |
|
Total operating expenses |
|
|
(12,735 |
) |
|
|
(77,956 |
) |
|
|
(34,652 |
) |
|
|
(105,251 |
) |
|
Subsidy income |
|
|
(39 |
) |
|
|
545 |
|
|
|
802 |
|
|
|
2,676 |
|
|
Loss from operations |
|
|
(9,096 |
) |
|
|
(113,296 |
) |
|
|
(25,400 |
) |
|
|
(146,471 |
) |
|
Other income and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
66 |
|
|
|
97 |
|
|
|
502 |
|
|
|
304 |
|
|
Interest expense |
|
|
(1,397 |
) |
|
|
(1,247 |
) |
|
|
(4,234 |
) |
|
|
(4,630 |
) |
|
Loss on changes in fair value of convertible notes |
|
|
- |
|
|
|
(3,018 |
) |
|
|
- |
|
|
|
(9,861 |
) |
|
Gain on change in fair value of warrant liability |
|
|
- |
|
|
|
1,113 |
|
|
|
- |
|
|
|
1,113 |
|
|
Other income (expense), net |
|
|
68 |
|
|
|
(19 |
) |
|
|
63 |
|
|
|
25 |
|
|
Loss before provision for income taxes |
|
|
(10,359 |
) |
|
|
(116,370 |
) |
|
|
(29,069 |
) |
|
|
(159,520 |
) |
|
Income tax benefit (expense) |
|
|
270 |
|
|
|
(106 |
) |
|
|
(5 |
) |
|
|
(324 |
) |
|
Net loss |
|
$ |
(10,089 |
) |
|
$ |
(116,476 |
) |
|
$ |
(29,074 |
) |
|
$ |
(159,844 |
) |
|
Less: Accretion of Series C1 Preferred |
|
|
975 |
|
|
|
251 |
|
|
|
2,923 |
|
|
|
2,257 |
|
|
Less: Accretion of Series C2 Preferred |
|
|
2,216 |
|
|
|
570 |
|
|
|
6,650 |
|
|
|
5,132 |
|
|
Less: Accretion of Series D1 Preferred |
|
|
4,662 |
|
|
|
1,190 |
|
|
|
13,986 |
|
|
|
10,708 |
|
|
Less: Accretion for noncontrolling interests |
|
|
4,002 |
|
|
|
1,516 |
|
|
|
11,924 |
|
|
|
9,523 |
|
|
Net loss attributable to ordinary shareholders of |
|
$ |
(21,944 |
) |
|
$ |
(120,003 |
) |
|
$ |
(64,557 |
) |
|
$ |
(187,464 |
) |
|
Net loss per share attributable to ordinary shareholders of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.22 |
) |
|
$ |
(0.49 |
) |
|
$ |
(0.65 |
) |
|
$ |
(1.27 |
) |
|
Weighted average shares used in calculating net loss per ordinary share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
99,028,297 |
|
|
|
243,861,780 |
|
|
|
99,028,297 |
|
|
|
147,836,650 |
|
|
|
||||||||
|
SELECTED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
(In thousands of |
||||||||
|
|
|
Nine Months Ended
|
||||||
|
|
|
2020 |
|
|
2021 |
|
||
|
Cash flows from operating activities |
|
|
|
|
|
|||
|
Net loss |
|
$ |
(29,074 |
) |
|
$ |
(159,844 |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
Loss on disposal of property, plant and equipment |
|
|
205 |
|
|
|
6 |
|
|
Depreciation of property, plant and equipment |
|
|
11,384 |
|
|
|
14,398 |
|
|
Amortization of land use right and intangible assets |
|
|
529 |
|
|
|
499 |
|
|
Share-based compensation |
|
|
- |
|
|
|
58,290 |
|
|
Changes in fair value of warrant liability |
|
|
- |
|
|
|
(1,113 |
) |
|
Changes in fair value of convertible notes |
|
|
- |
|
|
|
9,861 |
|
|
(Reversal) allowance of doubtful accounts |
|
|
(861 |
) |
|
|
261 |
|
|
Provision for obsolete inventories |
|
|
1,326 |
|
|
|
12,667 |
|
|
Impairment loss from property, plant and equipment |
|
|
645 |
|
|
|
867 |
|
|
Product warranty |
|
|
2,468 |
|
|
|
44,610 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Notes receivable |
|
|
10,630 |
|
|
|
10,782 |
|
|
Accounts receivable |
|
|
11,782 |
|
|
|
9,425 |
|
|
Inventories |
|
|
6,021 |
|
|
|
(15,127 |
) |
|
Prepaid expenses and other current assets |
|
|
(625 |
) |
|
|
(6,874 |
) |
|
Amount due from/to related parties |
|
|
1,859 |
|
|
|
(128 |
) |
|
Other non-current assets |
|
|
(154 |
) |
|
|
52 |
|
|
Notes payable |
|
|
(8,612 |
) |
|
|
6,868 |
|
|
Accounts payable |
|
|
(2,545 |
) |
|
|
(5,944 |
) |
|
Advance from customers |
|
|
(1,165 |
) |
|
|
(130 |
) |
|
Accrued expenses and other liabilities |
|
|
1,981 |
|
|
|
(6,371 |
) |
|
Other non-current liabilities |
|
|
- |
|
|
|
2,292 |
|
|
Income tax payables |
|
|
5 |
|
|
|
- |
|
|
Net cash generated from/(used in) operating activities |
|
|
5,799 |
|
|
|
(24,653 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
(15,375 |
) |
|
|
(40,718 |
) |
|
Proceeds on disposal of property, plant and equipment |
|
|
6 |
|
|
|
- |
|
|
Purchase of short-term investments |
|
|
(2,002 |
) |
|
|
- |
|
|
Proceeds from maturity of short-term investments |
|
|
2,946 |
|
|
|
- |
|
|
Net cash used in investing activities |
|
|
(14,425 |
) |
|
|
(40,718 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
Proceeds from borrowings |
|
|
15,230 |
|
|
|
26,603 |
|
|
Repayment of bank borrowings |
|
|
(17,590 |
) |
|
|
(15,665 |
) |
|
Loans borrowing from related parties |
|
|
18,063 |
|
|
|
8,426 |
|
|
Repayment of related party loans |
|
|
(18,063 |
) |
|
|
(8,426 |
) |
|
Merger and |
|
|
- |
|
|
|
747,791 |
|
|
Payment for transaction fee in connection with the merger transaction |
|
|
- |
|
|
|
(42,821 |
) |
|
Repurchase shares from exited noncontrolling interests |
|
|
- |
|
|
|
(139,038 |
) |
|
Issuance of convertible notes |
|
|
- |
|
|
|
57,500 |
|
|
Net cash (used in)/generated from financing activities |
|
|
(2,360 |
) |
|
|
634,370 |
|
|
Effect of exchange rate changes |
|
|
534 |
|
|
|
2,314 |
|
|
(Decrease) Increase in cash, cash equivalents and restricted cash |
|
|
(10,452 |
) |
|
|
571,313 |
|
|
Cash, cash equivalents and restricted cash at beginning of the period |
|
|
41,784 |
|
|
|
41,196 |
|
|
Cash, cash equivalents and restricted cash at end of the period |
|
$ |
31,332 |
|
|
$ |
612,509 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20211115006225/en/
ir@microvast.com
(346) 309-2562
Source:
