The allegations in the short seller J Capital Research Report (“Report”) are unfounded. The Report is based on errors of fact, misleading speculations, and malicious interpretations of events. It reflects a general misunderstanding of Microvast's (“the Company”) business model and the commercial success it has achieved with its innovative battery technologies.
Ordinarily, this type of Report would not warrant a response as the only intention is to damage the Company without any fundamental basis. On this occasion they have crossed a line with Microvast.
Microvast’s manufacturing plant in Huzhou, China has more than 2,500 employees working across three production facilities. These are all in full operation. We welcome the opportunity of any short seller who believes we are “fake” to meet the dedicated people behind our success in any of our facilities.
The Report’s statements regarding backlog using Microvast batteries are blatantly incorrect. Microvast, being a public company, must meet reporting requirements and our backlog is for numerous customer projects that are ongoing, and in many cases, have been publicly announced. Our backlog is well diversified by customer and geography and is demonstrating the industrialization of our latest 53.5Ah cell technology.
Microvast’s focus has always been on commercial vehicle platforms from 3.5 to 100 tons, not the mass market automotive segment. The Company has equipped more than 30,000 commercial vehicle applications since 2014.
Microvast stands by the accuracy of its financial and operating data and other information published by it and filed with the U.S. Securities and Exchange Commission. Microvast emphasizes its continued and unwavering commitment to maintaining high standards of corporate governance and internal controls, as well as transparent and timely disclosure in compliance with applicable rules and regulations.
Additionally, the Company strongly condemns the Report’s unfounded conclusions regarding Microvast’s successful commercialization of our battery technologies. Rather than repeating our most recent accomplishments, please read our latest 10-Q and also listen to our earnings call.
The Report overlooks the clear adoption of Microvast’s technologies across the globe and the many instances of customers reporting their positive feedback on our products.
It not only defames Microvast, but also misleads the public and the capital markets.
In light of J Capital’s grossly misinformed and unfounded statements, Microvast is considering the appropriate course of action to protect the interests of the Company and all of its stockholders.
Microvast is committed to building a long-term, sustainable business that creates value for all of our stakeholders. We will always be transparent and honest in how we do this.