UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 31, 2025
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||
(Address of principal executive offices) | (Zip Code) | ||||||||||
Registrant’s telephone number, including area code: (281 ) 491-9505
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
The | ||||||||||||||
The | ||||||||||||||
Item 2.02 Results of Operations and Financial Condition.
On March 31, 2025, Microvast Holdings, Inc. issued a press release announcing its consolidated financial results for the fourth quarter and year ended December 31, 2024. A copy of the press release and the slideshow is furnished herewith as Exhibit 99.1 and 99.2, respectively to this Current Report on Form 8-K and each is incorporated herein by reference.
The information furnished in this Current Report on Form 8-K and the accompanying Exhibit 99.1 and 99.2 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by reference in such a filing.
Item 9.01 Financial Statements and Exhibits
(d)Exhibits
Exhibit No. | Description | |||||||
| 99.1 | ||||||||
| 99.2 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: March 31, 2025 | MICROVAST HOLDINGS, INC. | |||||||
| By: | /s/ Isida Tushe | |||||||
| Name: | Isida Tushe | |||||||
| Title: | President, General Counsel and Corporate Secretary | |||||||
2
Exhibit 99.1
Microvast Reports 2024 Financial Results
•Revenue increased 23.9% year over year to $379.8 million in FY 2024
•Record quarterly revenue of $113.4 million, up 8.4% year over year in Q4 2024
•Gross margin increased from 18.7% to 31.5%, a 12.8 percentage point improvement year over year, with Q4 2024 gross margin of 36.6% compared to 22.0% in Q4 2023
STAFFORD, Texas, USA, March 31, 2025 – Microvast Holdings, Inc. (NASDAQ:MVST) (“Microvast” or the “Company”), a global leader in advanced battery technologies, announced today its consolidated financial results for the fourth quarter and full fiscal year ended December 31, 2024 (“Q4 2024” and “FY 2024,” respectively).
“We achieved record quarterly revenue in the fourth quarter of 2024, beating revenue guidance. This brings our full year revenue growth to 23.9% and we delivered these revenues at a gross margin also above guidance. The revenue growth achieved in EMEA is encouraging and we would expect to continue this growth into 2025,” said Yang Wu, Microvast’s Founder, Chairman, and Chief Executive Officer. “In APAC, we are underway with our Huzhou Phase 3.2 expansion and anticipate to have this additional capacity online in the fourth quarter of 2025 to meet increasing customer demand as we prioritize uncovering new opportunities and market segments. Our backlog has grown to $401.3 million as regional demand for our technology continues to rapidly grow. We have realized great successes in the global heavy industrials segment and the maturing Korean market. The significant strides we’ve made in operational efficiencies in the second half of 2024 will continue into 2025 as our core focus remains on achieving sustainable profitability.”
Full Year 2024 Highlights
•Record yearly revenue of $379.8 million, compared to $306.6 million in 2023, an increase of 23.9%
•Gross margin increased to 31.5% from 18.7% in 2023; Non-GAAP adjusted gross margin increased to 32.4%, up from 20.7% in 2023
•Operating expenses of $238.3 million, compared to $165.9 million in 2023; Non-GAAP adjusted operating expenses of $210.9 million, compared to $107.1 million in 2023
•Net loss of $195.5 million, compared to net loss of $106.4 million in 2023; Non-GAAP adjusted net loss of $84.6 million, compared to non-GAAP adjusted net loss of $41.6 million in 2023
•Net loss per share of $0.61 compared to net loss per share of $0.34 in 2023; Non-GAAP adjusted net loss per share of $0.27, compared to non-GAAP adjusted net loss per share of $0.13 in 2023
•Adjusted EBITDA of negative $44.8 million, compared to adjusted EBITDA of negative $19.6 million in 2023
•Capital expenditures of $49.9 million, compared to $186.8 million in 2023, and were driven by investments in manufacturing capacity expansions in Huzhou, China.
•Cash, cash equivalents, restricted cash and short-term investment of $109.6 million as of December 31, 2024, compared to $93.8 million as of December 31, 2023
Fourth Quarter 2024 Highlights
•Record quarterly revenue of $113.4 million, compared to $104.6 million in the fourth quarter of 2023, an increase of 8.4%
•Gross margin increased to 36.6% from 22.0% in Q4 2023; Non-GAAP adjusted gross margin increased to 36.7%, up from 23.5% in Q4 2023
•Generated $2.8 million cash from operations due to operational efficiency gains and non-cash adjustments
•Operating expenses of $43.2 million, compared to $46.0 million in Q4 2023; Non-GAAP adjusted operating expenses of $42.8 million, compared to $34.3 million in Q4 2023
•Net loss of $82.3 million, compared to net loss of $24.6 million in Q4 2023; Non-GAAP adjusted net loss of $0.6 million, compared to non-GAAP adjusted net loss of $11.4 million in Q4 2023
•Net loss per share of $0.26 compared to net loss per share of $0.08 in Q4 2023; Non-GAAP adjusted net loss per share of $0.01, compared to non-GAAP adjusted net loss per share of $0.04 in Q4 2023
•Adjusted EBITDA of $8.6 million, compared to adjusted EBITDA of negative $2.6 million in Q4 2023
Please refer to the tables at the end of this press release for reconciliations of gross profit to non-GAAP adjusted gross profit, net loss to non-GAAP adjusted net loss, non-GAAP EBITDA to non-GAAP adjusted EBITDA.
2025 Outlook
•For 2025, the Company is targeting a revenue growth of 18% to 25% year over year and revenue guidance of $450 million to $475 million
•Continued regional efficiencies and utilization increases, providing a Company gross margin target of 30%
•Targeting Huzhou Phase 3.2 production in Q4 2025, increasing our production capacity to meet strong customer demand
•Focus on new customer wins that will continue to expand our presence in differentiated commercial vehicle markets as OEM product lines and segments continue to electrify
Webcast Information
Company management will host a conference call and webcast on March 31, 2025, at 4:00 p.m. Central Time, to discuss the Company's financial results. The live webcast and accompanying slide presentation will be accessible from the Events & Presentations section of Microvast’s investor relations website (https://ir.microvast.com/events-presentations/events). A replay will be available following the conclusion of the event.
2
About Microvast
Microvast is a global leader in providing battery technologies for electric vehicles and energy storage solutions. With a legacy of over 18 years, Microvast has consistently delivered cutting-edge battery systems that empower a cleaner and more sustainable future. The company's innovative approach and dedication to excellence have positioned it as a trusted partner for customers around the world. Founded in 2006 in Stafford, Texas, Microvast holds more than 775 patents that enable solutions for today’s electrification needs.
For more information, please visit www.microvast.com or follow us on LinkedIn (@microvast).
Contact:
Investor Relations
ir@microvast.com
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 our future results of operations and financial position, our operational performance, our anticipated growth and business strategy, our future capital expenditures and debt service obligations, the projected costs, prospects and plans and objectives of management for future operations, including regarding expected growth and demand for our batteries and energy storage solutions and introduction of new batteries and energy storage solutions, the adoption of such offerings by customers, our expectations relating to backlog, pipeline and contracted backlog, our ability to implement our remediation plan in connection with the material weakness in our internal control over financial reporting, current expectations relating to legal proceedings and anticipated impacts and benefits from the Inflation Reduction Act of 2022 as well as any other proposed or recently enacted legislation. In some cases, you may also identify forward-looking statements by words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “objective,” “plan,” “project,” “predict,” “outlook” “should,” “will,” “would,” or the negative of these terms, or other comparable terminology intended to identify statements about the future. Such forward-looking statements are based upon the current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements.
Many factors 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, including, among others: (1) our ability to remain a going concern; (2) risk that we may not be able to execute our growth strategies or achieve profitability; (3) risk that we will be unable to raise additional capital to execute our business plan or pay our debts as they come due, which may not be available on acceptable terms or at all; (4) potential difficulties in maintaining manufacturing capacity and establishing expected mass manufacturing capacity in the future; (5) risks relating to delays, disruptions and quality control problems in our manufacturing operations; (6) restrictions in our existing and any future credit facilities; (7) risks of operations in China; (8) the effects of mechanics liens filed by contractors that we do not have sufficient funds to pay; (9) the effects of existing and future litigation; (10) changes in general economic conditions, including increases in interest rates and associated Federal Reserve policies, a potential economic recession, and the impact of inflation on our business; (11) changes in the highly competitive market in which we compete, including with respect to our competitive landscape, technology evolution or regulatory changes; (12) changes in availability and price of raw materials; (13) labor relations, including the ability to attract, hire and
3
retain key employees and contract personnel; (14) heightened awareness of environmental issues and concern about global warming and climate change; (15) risk that we are unable to secure or protect our intellectual property; (16) risk that our customers or third-party suppliers are unable to meet their obligations fully or in a timely manner; (17) risks related to possible future reductions in pricing or order volume or loss of one or more of our significant customers; (18) risks relating to our status as a relatively low-volume purchaser as well as from supplier concentration and limited supplier capacity; (19) risk that our customers will adjust, cancel or suspend their orders for our products; (20) risk of product liability or regulatory lawsuits or proceedings relating to our products or services; (21) our ability to maintain and enhance our reputation and brand recognition; (22) the effectiveness of our information technology and operational technology systems and practices to detect and defend against evolving cyberattacks; (23) changing laws regarding cybersecurity and data privacy, and any cybersecurity threat or event; (24) the effects and associated cost of compliance with existing and future laws and governmental regulations, such as the Inflation Reduction Act; (25) risks relating to whether renewable energy technologies are suitable for widespread adoption or if sufficient demand for our offerings does not develop or takes longer to develop than we anticipate; (26) economic, financial and other impacts such as a pandemic, including global supply chain disruptions; and (27) the impacts of geopolitical events, including the ongoing conflicts between Russia and Ukraine and between Israel and Hamas. Microvast’s annual, quarterly and other filings with the U.S. Securities and Exchange Commission identify, address and discuss these and other factors in the sections entitled “Risk Factors.”
Actual results, performance or achievements may differ materially, and potentially adversely, from any 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 forward-looking statements 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, and we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date hereof except as may be required under applicable securities laws. Forecasts and estimates regarding our industry and end markets are based on sources we believe to be reliable, however, there can be no assurance these forecasts and estimates will prove accurate in whole or in part.
All references to the “Company,” “we,” “us” or “our” refer to Microvast Holdings, Inc. and its consolidated subsidiaries other than certain historical information which refers to the business of Microvast prior to the consummation of the Business Combination.
Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, Microvast has disclosed in this earnings release non-GAAP financial measures, including non-GAAP adjusted gross profit (loss), non-GAAP adjusted EBITDA, non-GAAP adjusted operating expenses and non-GAAP adjusted net loss, which are non-GAAP financial measures as defined under the rules of the SEC. These are intended as supplemental measures of our financial performance that are not required by, or presented in accordance with U.S. generally accepted accounting principles (“GAAP”).
Reconciliations to the most comparable GAAP measures, gross profit and net income (loss), are contained in tabular form in the unaudited financial statements below. Non-GAAP adjusted gross profit is GAAP gross profit as adjusted for non-cash stock-based compensation expense included in cost of revenues. Non-GAAP adjusted net loss is GAAP net loss as adjusted for non-cash stock-based compensation expense and change in valuation of warrant and Convertible loan. Non-GAAP
4
adjusted net loss per common share is GAAP net loss per common share as adjusted for non-cash stock-based compensation expense and change in valuation of warrant and Convertible loan per common share. Non-GAAP adjusted EBITDA is defined as net loss excluding depreciation and amortization, non-cash settled share-based compensation expense, interest expense, interest income, changes in fair value of our warrant and Convertible loan and income tax expense or benefit. Non-GAAP adjusted operating expenses is defined as operating expenses excluding non-cash stock-based compensation expense.
We use non-GAAP adjusted gross profit, non-GAAP adjusted EBITDA, non-GAAP adjusted operating expenses and non-GAAP adjusted net loss for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We consider them to be important measures because they help illustrate underlying trends in our business and our historical operating performance on a more consistent basis. We believe that these non-GAAP financial measures, when taken together with their most directly comparable GAAP measures, gross profit and net income (loss), provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results.
We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors.
Non-GAAP financial measures have limitations as an analytical tool, and you should not consider them in isolation, or as a substitute for, financial information prepared in accordance with GAAP. For example, our calculation of non-GAAP adjusted EBITDA may differ from similarly titled non-GAAP measures, if any, reported by our peer companies, or our peer companies may use other measures to calculate their financial performance, and therefore our use of non-GAAP adjusted EBITDA may not be directly comparable to similarly titled measures of other companies. The principal limitation of non-GAAP adjusted EBITDA is that it excludes significant expenses and income that are required by GAAP to be recorded in our financial statements. In addition, it is subject to inherent limitations as it reflects the exercise of judgments by management about which expense and income are excluded or included in determining this non-GAAP financial measure. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. In addition, such financial information is unaudited and does not conform to SEC Regulation S-X and as a result, such information may be presented differently in our future filings with the SEC. For example, with respect to the warrant liability resulting from the merger, we now exclude changes in fair value from net loss in our non-GAAP adjusted EBITDA and non-GAAP adjusted net loss calculation, which had not been done in prior periods.
5
MICROVAST HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except share and per share data, or as otherwise noted)
| December 31, 2024 | December 31, 2023 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 73,007 | $ | 44,541 | |||||||
| Restricted cash, current | 36,572 | 37,477 | |||||||||
| Short-term investments | — | 5,634 | |||||||||
Accounts receivable (net of allowance for credit losses of $5,090 and $4,571as of December 31, 2024 and 2023, respectively) | 120,626 | 138,717 | |||||||||
| Notes receivable | 7,579 | 23,736 | |||||||||
| Inventories, net | 143,327 | 149,749 | |||||||||
| Prepaid expenses and other current assets | 27,019 | 25,752 | |||||||||
| Assets held for sale | 19,896 | — | |||||||||
| Total Current Assets | 428,026 | 425,606 | |||||||||
| Restricted cash, non-current | 22 | 6,171 | |||||||||
| Property, plant and equipment, net | 478,189 | 620,667 | |||||||||
| Land use rights, net | 11,371 | 11,984 | |||||||||
| Acquired intangible assets, net | 2,607 | 3,136 | |||||||||
| Operating lease right-of-use assets | 17,628 | 19,507 | |||||||||
| Other non-current assets | 14,024 | 9,661 | |||||||||
| Total Assets | $ | 951,867 | $ | 1,096,732 | |||||||
| Liabilities | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 64,940 | $ | 112,618 | |||||||
| Advance from customers | 43,678 | 43,087 | |||||||||
| Accrued expenses and other current liabilities | 98,456 | 148,284 | |||||||||
| Amounts due to related parties | 5 | — | |||||||||
| Income tax payables | 652 | 655 | |||||||||
| Short-term bank borrowings | 70,666 | 35,392 | |||||||||
| Notes payable | 51,756 | 63,374 | |||||||||
| Total Current Liabilities | 330,153 | 403,410 | |||||||||
| Long-term bank borrowings | 41,062 | 43,761 | |||||||||
| Long-term bonds payable | 43,157 | 43,157 | |||||||||
| Warrant liability | 290 | 67 | |||||||||
| Share-based compensation liability | 98 | 199 | |||||||||
| Operating lease liabilities | 14,596 | 17,087 | |||||||||
| Convertible loan with shareholder measured at fair value | 104,613 | — | |||||||||
| Other non-current liabilities | 30,003 | 24,861 | |||||||||
| Total Liabilities | $ | 563,972 | $ | 532,542 | |||||||
| Total Equity | $ | 387,895 | $ | 564,190 | |||||||
| Total Liabilities and Equity | $ | 951,867 | $ | 1,096,732 | |||||||
6
MICROVAST HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except share and per share data, or as otherwise noted)
| Year Ended December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Revenues | $ | 379,801 | $ | 306,617 | |||||||
| Cost of revenues | (260,249) | (249,390) | |||||||||
| Gross profit | 119,552 | 57,227 | |||||||||
| Operating expenses: | |||||||||||
| General and administrative expenses | (81,486) | (96,787) | |||||||||
| Research and development expenses | (41,065) | (45,004) | |||||||||
| Selling and marketing expenses | (22,576) | (23,614) | |||||||||
| Impairment loss of long-lived assets | (93,173) | (504) | |||||||||
| Total operating expenses | (238,300) | (165,909) | |||||||||
| Subsidy income | 2,658 | 1,953 | |||||||||
| Loss from operations | (116,090) | (106,729) | |||||||||
| Other income and expenses: | |||||||||||
| Interest income | 742 | 3,609 | |||||||||
| Interest expense | (9,711) | (2,628) | |||||||||
| Changes in fair value of warrant liability and convertible loan | (79,960) | 59 | |||||||||
| Gain on debt restructuring | 9,406 | — | |||||||||
| Other income (expense), net | 156 | (713) | |||||||||
| Loss before provision for income tax | (195,457) | (106,402) | |||||||||
| Income tax expense | — | (10) | |||||||||
| Net loss | $ | (195,457) | $ | (106,412) | |||||||
| Less: net loss attributable to noncontrolling interests | — | (76) | |||||||||
| Net loss attributable to Microvast Holdings, Inc.'s shareholders | (195,457) | (106,336) | |||||||||
Net loss per common share | |||||||||||
| Basic and diluted | $ | (0.61) | $ | (0.34) | |||||||
| Weighted average shares used in calculating net loss per share of common stock: | |||||||||||
| Basic and diluted | 318,462,843 | 310,909,379 | |||||||||
7
MICROVAST HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands of U.S. dollars, except share and per share data, or as otherwise noted)
| Three Months Ended December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Revenues | $ | 113,387 | $ | 104,575 | |||||||
| Cost of revenues | (71,867) | (81,551) | |||||||||
| Gross profit | 41,520 | 23,024 | |||||||||
| Operating expenses: | |||||||||||
| General and administrative expenses | (22,340) | (27,913) | |||||||||
| Research and development expenses | (8,774) | (11,395) | |||||||||
| Selling and marketing expenses | (6,996) | (6,698) | |||||||||
| Impairment loss of long-lived assets | (5,134) | (31) | |||||||||
| Total operating expenses | (43,244) | (46,037) | |||||||||
| Subsidy income | 307 | 797 | |||||||||
| Loss from operations | (1,417) | (22,216) | |||||||||
| Other income and expenses: | |||||||||||
| Interest income | 191 | 128 | |||||||||
| Interest expense | (1,595) | (1,191) | |||||||||
| Changes in fair value of warrant liability and convertible loan | (81,200) | 84 | |||||||||
| Gain on debt restructuring | 1,249 | — | |||||||||
| Other income (expense), net | 449 | (1,386) | |||||||||
| Loss before provision for income tax | (82,323) | (24,581) | |||||||||
Income tax expense | — | (10) | |||||||||
| Net loss | $ | (82,323) | $ | (24,591) | |||||||
| Less: Net loss attributable to noncontrolling interest | — | (55) | |||||||||
| Net loss attributable to Microvast Holdings, Inc.'s shareholders | $ | (82,323) | $ | (24,536) | |||||||
| Net loss per common share | |||||||||||
| Basic and diluted | $ | (0.26) | $ | (0.08) | |||||||
| Weighted average shares used in calculating net loss per share of common stock | |||||||||||
| Basic and diluted | 322,327,294 | 314,966,888 | |||||||||
8
MICROVAST HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars, except share and per share data, or as otherwise noted)
Year Ended December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Cash flows from operating activities | |||||||||||
| Net loss | $ | (195,457) | $ | (106,412) | |||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
| Loss on disposal of property, plant and equipment | 844 | 1,947 | |||||||||
| Gain on debt restructuring | (9,406) | — | |||||||||
| Interest expense | 2,248 | — | |||||||||
| Depreciation of property, plant and equipment | 30,057 | 22,141 | |||||||||
| Amortization of land use rights and intangible assets | 775 | 787 | |||||||||
| Noncash lease expenses | 2,686 | 2,764 | |||||||||
| Share-based compensation | 30,840 | 64,971 | |||||||||
| Changes in fair value of warrant liability and convertible loan | 79,960 | (59) | |||||||||
| Allowance of credit losses | 3,743 | 236 | |||||||||
| Write-down for obsolete inventories | 3,286 | 3,613 | |||||||||
| Impairment loss from long-lived assets | 93,173 | 504 | |||||||||
| Product warranty | 12,826 | 12,688 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Notes receivable | 6,488 | (25,338) | |||||||||
| Accounts receivable | 8,791 | (21,759) | |||||||||
| Inventories | (546) | (74,406) | |||||||||
| Prepaid expenses and other current assets | 3,289 | (14,291) | |||||||||
| Amounts due from/to related parties | 5 | — | |||||||||
| Operating lease right-of-use assets | (1,780) | (5,446) | |||||||||
| Other non-current assets | (973) | (547) | |||||||||
| Notes payable | (9,911) | (3,507) | |||||||||
| Accounts payable | (44,523) | 68,576 | |||||||||
| Advance from customers | 836 | (10,949) | |||||||||
| Accrued expenses and other liabilities | (16,486) | 6,602 | |||||||||
| Operating lease liabilities | (1,607) | 2,266 | |||||||||
| Other non-current liabilities | 3,656 | 316 | |||||||||
| Net cash generated from (used in) operating activities | 2,814 | (75,303) | |||||||||
| Cash flows from investing activities | |||||||||||
| Purchases of property, plant and equipment | (27,721) | (186,788) | |||||||||
| Proceeds on disposal of property, plant and equipment | 10,005 | 1,649 | |||||||||
| Purchase of short-term investments | — | (5,966) | |||||||||
| Proceeds from maturity of short-term investments | 5,564 | 25,500 | |||||||||
| Net cash used in investing activities | (12,152) | (165,605) | |||||||||
| Cash flows from financing activities | |||||||||||
| Proceeds from bank borrowings | 101,517 | 47,852 | |||||||||
| Repayment of bonds payable | — | (692) | |||||||||
| Repayment of bank borrowings | (66,248) | (14,119) | |||||||||
| Convertible loan borrowed from a shareholder | 25,000 | — | |||||||||
| Payment for debt issue costs | (525) | — | |||||||||
| Deferred payment related to purchases of property, plant and equipment | (22,155) | — | |||||||||
Net cash generated from financing activities | 37,589 | 33,041 | |||||||||
| Effect of exchange rate changes | (6,839) | (6,561) | |||||||||
| Increase/ (decrease) in cash, cash equivalents and restricted cash | 21,412 | (214,428) | |||||||||
| Cash, cash equivalents and restricted cash at beginning of the year | 88,189 | 302,617 | |||||||||
| Cash, cash equivalents and restricted cash at end of the year | $ | 109,601 | $ | 88,189 | |||||||
9
MICROVAST HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS - continued
(In thousands of U.S. dollars, except share and per share data, or as otherwise noted)
| Year Ended December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Reconciliation to amounts on consolidated balance sheets | |||||||||||
| Cash and cash equivalents | $ | 73,007 | $ | 44,541 | |||||||
| Restricted cash | 36,594 | 43,648 | |||||||||
| Total cash, cash equivalents and restricted cash | $ | 109,601 | $ | 88,189 | |||||||
10
MICROVAST HOLDINGS, INC.
RECONCILIATION OF GROSS PROFIT (LOSS) TO ADJUSTED GROSS PROFIT (LOSS)
(In thousands of U.S. dollars, except share and per share data, or as otherwise noted)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Revenues | $ | 113,387 | $ | 104,575 | $ | 379,801 | $ | 306,617 | |||||||||||||||
| Cost of revenues | (71,867) | (81,551) | (260,249) | (249,390) | |||||||||||||||||||
| Gross profit (GAAP) | $ | 41,520 | $ | 23,024 | $ | 119,552 | $ | 57,227 | |||||||||||||||
| Gross margin | 36.6 | % | 22.0 | % | 31.5 | % | 18.7 | % | |||||||||||||||
| Non-cash settled share-based compensation (included in cost of revenues) | 89 | 1,532 | 3,479 | 6,091 | |||||||||||||||||||
| Adjusted gross profit (non-GAAP) | $ | 41,609 | $ | 24,556 | $ | 123,031 | $ | 63,318 | |||||||||||||||
| Adjusted gross margin (non-GAAP) | 36.7 | % | 23.5 | % | 32.4 | % | 20.7 | % | |||||||||||||||
11
MICROVAST HOLDINGS, INC.
RECONCILIATION OF NET LOSS TO ADJUSTED NET LOSS
(In thousands of U.S. dollars, except share and per share data, or as otherwise noted)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net loss (GAAP) | $ | (82,323) | $ | (24,591) | $ | (195,457) | $ | (106,412) | |||||||||||||||
| Changes in fair value of warrant and convertible loan* | 81,200 | (84) | 79,960 | (59) | |||||||||||||||||||
| Non-cash settled share-based compensation* | 551 | 13,318 | 30,849 | 64,920 | |||||||||||||||||||
| Adjusted Net Loss (non-GAAP) | $ | (572) | $ | (11,357) | $ | (84,648) | $ | (41,551) | |||||||||||||||
*The tax effect of the adjustments was nil.
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net loss per common share-Basic and diluted (GAAP) | $ | (0.26) | $ | (0.08) | $ | (0.61) | $ | (0.34) | |||||||||||||||
| Changes in fair value of warrant and convertible loan per common share | 0.25 | — | 0.25 | — | |||||||||||||||||||
| Non-cash settled share-based compensation per common share | — | 0.04 | 0.09 | 0.21 | |||||||||||||||||||
| Adjusted net loss per common share-Basic and diluted (non-GAAP) | $ | (0.01) | $ | (0.04) | $ | (0.27) | $ | (0.13) | |||||||||||||||
12
MICROVAST HOLDINGS, INC.
RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA
(In thousands of U.S. dollars, except share and per share data, or as otherwise noted)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net loss (GAAP) | $ | (82,323) | $ | (24,591) | $ | (195,457) | $ | (106,412) | |||||||||||||||
| Interest expense, net | 1,404 | 1,063 | 8,969 | (981) | |||||||||||||||||||
| Income tax expense | — | 10 | — | 10 | |||||||||||||||||||
| Depreciation and amortization | 7,809 | 7,692 | 30,832 | 22,928 | |||||||||||||||||||
| EBITDA (non-GAAP) | $ | (73,110) | $ | (15,826) | $ | (155,656) | $ | (84,455) | |||||||||||||||
| Changes in fair value of warrant and convertible loan | 81,200 | (84) | 79,960 | (59) | |||||||||||||||||||
| Non-cash settled share-based compensation | 551 | 13,318 | 30,849 | 64,920 | |||||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 8,641 | $ | (2,592) | $ | (44,847) | $ | (19,594) | |||||||||||||||
13
2 0 2 4
2 Disclaimer 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 our future results of operations and financial position, our operational performance, our anticipated growth and business strategy, our future capital expenditures and debt service obligations, the projected costs, prospects and plans and objectives of management for future operations, including regarding expected growth and demand for our batteries and energy storage solutions and introduction of new batteries and energy storage solutions, the adoption of such offerings by customers, our expectations relating to backlog, pipeline and contracted backlog, our ability to implement our remediation plan in connection with the material weakness in our internal control over financial reporting, current expectations relating to legal proceedings and anticipated impacts and benefits from the Inflation Reduction Act of 2022 as well as any other proposed or recently enacted legislation. In some cases, you may also identify forward-looking statements by words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “objective,” “plan,” “project,” “predict,” “outlook” “should,” “will,” “would,” or the negative of these terms, or other comparable terminology intended to identify statements about the future. Such forward-looking statements are based upon the current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements. Actual results, performance or achievements may differ materially, and potentially adversely, from any 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 forward-looking statements 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, and we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date hereof except as may be required under applicable securities laws. Forecasts and estimates regarding our industry and end markets are based on sources we believe to be reliable, however, there can be no assurance these forecasts and estimates will prove accurate in whole or in part. Microvast’s annual, quarterly and other filings with the U.S. Securities and Exchange Commission identify, address and discuss these and other factors in the sections entitled “Risk Factors.” Non-GAAP Financial Measures This presentation contains adjusted EBITDA and adjusted net loss, which are non-GAAP financial measures. Non-GAAP adjusted EBITDA is defined as net loss excluding depreciation and amortization, non-cash settled share-based compensation (“SBC”) expense, interest expense, interest income, changes in fair value of our warrant and convertible loan and income tax expense or benefit. Adjusted net loss is GAAP net loss as adjusted for non-cash stock-based compensation expense and change in on valuation of warrant liabilities and convertible notes. In addition to Microvast's results determined in accordance with GAAP, Microvast's management uses these non-GAAP financial metrics to evaluate the company’s ongoing operations and for internal planning and forecasting purposes. We believe that this non-GAAP financial information, when taken collectively, may be helpful to investors in assessing Microvast's operating performance. We believe that the use of these non-GAAP metrics provides an additional tool for investors to use in evaluating ongoing operating results and trends because it eliminates the effect of financing, non-recurring items, capital expenditures, and non-cash expenses. In addition, our presentation of adjusted EBITDA and adjusted net loss should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of non-GAAP financial metrics may not be comparable to other similarly titled measures computed by other companies because not all companies calculate these measures in the same fashion. Because of these limitations, these non-GAAP financial metrics should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using non-GAAP financial metrics on a supplemental basis. Investors should review the reconciliations in this presentation and not rely on any single financial measure to evaluate our business.
3 Click to edit text Microvast Snapshot 18 Years of Innovation in Electrification We strive to be a trusted global leader in sustainable energy technologies and solutions. We aspire to be the company with continued groundbreaking battery innovation across the technology stack. We aim to become a steward of electric mobility and the shift towards a cleaner, greener, and more resilient planet. 775+ Patents Granted or Pending ~1,900 Employees Globally Founded in 2006 Headquartered in Stafford, Texas NASDAQ: MVST Electrifying Products Worldwide Recent Technology Announcements Silicon Enhanced Cells Improved energy density for high performance applications. All-Solid-State Batteries Next generation development. ME6 - Overhaulable ESS Containers Optimized TCO with a robust design allowing for overhauls. Increased capacity and stability with Microvast's high-performance LFP cells.
4 Overview Realizing Results Revenue Gross Profit $204 $307 $380 2022 2023 2024 M IL LI O N S U SD $9 $57 $120 4. 4% 18 .7 % 31 .5 % 0% 20% 40% 60% 80% 100% $0 $20 $40 $60 $80 $100 $120 $140 2022 2023 2024 M IL LI O N S U SD Revenue is up 24% Y/Y - Since 2022, we have almost doubled our revenue, which is a strong indicator of market demand for our high-performance products. Gross Profit has increased more than 100% Y/Y, with Gross Margin up 12.8 pp - Since 2022, our gross profit has improved more than 12x as we progress towards maturity within our industry, with a focus on profitability and the ability to leverage operations at scale. Q4 Revenue $113.4M Exceeds Guidance Backlog $401M Market Capture Q4 Gross Margin 36.6% Exceeds Guidance Q4 Adj. EBITDA $8.6M Strategic Execution
5 Innovate: Future Focus Capture: Significant Market Share Expand: Supporting Growth Remain focused on production innovations and exciting upcoming R&D developments. Deepen participation in the constantly developing battery supply chain economy. Win entry into new segments with new high- performance products and diversify revenue streams through products and services that support global energy transformation. Invest in commercialization of high demand and key future technologies. Grow sales and maintain a sustainable gross margin. Leverage operating efficiencies and adapt to new markets. Add production capacity to meet growing customer demand. Continue optimization of core business as we strive to achieve sustained profitability. Drive excellence in our sales pipeline and regional footprints, growing through geographical and market expansion. Business Strategy For 2025 our core focus remains: Becoming cashflow positive. Maintaining our strong gross margin profile as we expand to meet customer demands. Continue our high sales growth as we release new products and enter new market segments. We strive to achieve this through continued innovation, developing and capturing new markets, and expanding our capacity and global footprint.
6 Operations & Development Expanding Capacity, Continuing Innovation We are expanding our Huzhou facility with Phase 3.2, which will allow us to deliver more products to more customers to meet increasing demand: Expansion is well under way, with production anticipated in Q4 2025. Expected to provide up to an additional 2GWh of capacity annually. Anticipated capability of producing both current and upcoming advanced cells such as HpCO-53.5Ah and HpCO-55Ah. Progress on recent announcements such as our ME6 system, all-solid-state batteries (ASSB) and silicon enhanced cells: Work continues towards bringing the ME6 to customers. Exploration of further progression for our ASSB pilot line is ongoing.
7 HIGHLIGHTS 31.5% Gross Margin Strong 2024 Revenue Growth Expanding Commercial Vehicle Reach $380M Revenue 24% Y/Y Revenue Growth $401M Backlog Successes Customer nomination for next generation battery products by one of the leading European CV OEMs. Strong EMEA market demand for Microvast battery products grew backlog, covering a steady product supply in the short term. Shift towards CVs in the heavy machinery segment among various OEMs and partners such as LGMG, Propel, Zoomlion. Held 100% supply share of hybrid truck batteries to LGMG for 2024. Established cooperation with Zoomlion for 520T hybrid truck, and now all hybrid mining trucks, signed annual framework contracts. Deepened cooperation with Propel with plans to gradually add more vehicle models and areas. Challenges Meeting the high demand for capacity from customers. The battery market remains price sensitive fueled by aggressive pricing strategies of competitors. The overflow of cheaper LFP batteries from Asian battery manufacturers. 2024 Key Stats
8 Business Developments High Performance Cells Driving Demand OEM Vehicle Battery Type Highlights Market leader for mining trucks, a rapidly expanding market segment. Hybrid Mining Trucks HpCO-53.5Ah Gen 4 MV-B & C Pack HpCO-53.5Ah Gen 4 MV-B & C Pack Anticipate whole line of hybrid vehicles to be supplied exclusively by Microvast. Hybrid Mining Trucks MpCO-17.5Ah Gen 3 MV-B & C Pack Range-extender vehicle serves as a significant project in 2025. Commercial Trucks
9 Business Developments High Performance Cells Driving Demand OEM Vehicle Battery Type Highlights Cooperating to bring mass production to market. Commercial Trucks MpCO-21Ah / MpCO-17.5Ah Gen 3 MV-B & C Pack MpCO-48Ah Gen 4 MV-B & C Pack HEV truck battery pack targeting the one million units/yr. truck market. Hybrid Trucks MpCO-48Ah Gen 4 MV-B & C Pack The world's largest extended range heavy- duty tractor; future development trend of agricultural machinery. Agricultural Machinery BAIC Heavy Duty
10 Business Developments High Performance Cells Driving Demand OEM Vehicle Battery Type Highlights Australian heavy-duty truck. Commercial Trucks MpCO-48Ah Gen 4 MV-B & C Pack MpCO-19Ah Gen 3 MV-B & C Pack India‘s leading company in battery swapping projects, large market potential due to low TCO. Commercial Trucks (fast charge battery swapping) HpCO-53.5Ah Gen 4 MV-B & C Pack Cooperation achieving a breakthrough in the electric truck field. Commercial Trucks APAC Leading Truck OEM Confidential
11 Business Developments High Performance Cells Driving Demand OEM Vehicle Battery Type Highlights XCMG's first hybrid truck with a crane arm using our batteries. Construction Machinery MpCO-21Ah-C Gen 3 MV-B & C Pack HpCO-53.5Ah Gen 4 MV-B & C Pack Preferred battery supplier for hydrogen fuel cell hybrid road vehicles. Commercial Trucks MpCO-48Ah Gen 4 MV-B & C Pack Nomination for refurbishment received. 18m Articulated e-Bus European Leading Bus OEM ConfidentialDongfeng Liuzhou Motor
2 0 2 4 F I N A N C I A L S
13 2024 P&L ($ in thousands) Twelve-Months Ended Dec. 31GAAP Income Statement 20232024 306,617 379,801 Revenue (249,390)(260,249)Cost of revenues 57,227 119,552 Gross Profit 18.7%31.5%Gross Margin (96,787)(81,486)General and administrative expenses (45,004)(41,065)Research and development expenses (23,614)(22,576)Selling and marketing expenses (504)(93,173)Impairment loss of long-lived assets (165,909)(238,300)Operating expense 1,953 2,658 Subsidy Income (106,729)(116,090)Profit/(loss) from operations 59 (79,960)Change in fair value of warrants and convertible loan 268 593 Others (106,402)(195,457)Net profit/(loss) before income tax (10)-Income tax (106,412)(195,457)Net profit/(loss) (76)-Less: net income attributable to noncontrolling interests (106,336)(195,457)Net profit/(loss) attributable shareholders Revenue vs. Prior Year Period Revenue rose 24% year-over-year, with EMEA contributing almost half of twelve-month revenue. Gross margin improved by 12.8 pp over the twelve-month period. Operating Expenses vs. Prior Year Period G&A: Decrease primarily due to reduction in non-cash settled share-based compensation (SBC), consolidations, and operational efficiencies. R&D: Decrease primarily due to a reduction in SBC expense. S&M: Decrease primarily due to a reduction in SBC expense. Impairment: Stemming from business consolidations and steps taken in Q2, non-cash expense that impacts GAAP operating expense and profit from operations. Performance After accounting for changes in fair value of warrant liability and convertible loan and SBC, adjusted net loss in Q4 of $0.6M. Adjusted EBITDA for the quarter was $8.6 million compared to a negative $2.6 million in the prior year period. Going concern: Based on current performance, available resources, and expectations for the next 12 months, conclusion is that there is not substantial doubt about our ability to continue as a going concern.
14 2024 Revenue by Region ($ in thousands) Twelve-Months Ended Dec. 31Revenue by region Y/Y %20232024 -19%62,65350,558APAC (Ex. China) -19%156,480127,138China 123%84,358187,718EMEA 360%3,12614,387USA 24%306,617379,801Total Twelve-Months Ended Dec. 31 Revenue Breakout More than doubled EMEA revenue Y/Y, with EMEA full year 2024 making up nearly half of our revenue split. We anticipate another strong year of revenue growth in 2025 for the EMEA region. We continue to gain ground in the US market; while the region served as a small portion of total revenue contribution for 2024, we expect this growth to continue and to make meaningful contributions in 2025. In APAC we focused on smaller volume and higher margin products and markets vs. the prior year, with lower priced LFP products competing in certain segments. APAC (Ex. China), 13% China, 33% EMEA, 50% USA, 4% 2024 APAC (Ex. China), 21% China, 51% EMEA, 27% USA, 1% 2023
15 Cash Flow Statement ($ in thousands) Net Loss $195.5M partially offset by non-cash adjustments, including $30.8M in SBC, $30.8M in DD&A, $97.3M from impairments, write downs, and disposals, and $80M in changes in fair value of warrant liability and convertible loan. Operating Cash Flow Net inflow of $2.8M, supported by positive adjustments in net receivables of $15.3M, offset by net changes in liabilities and expenses of $64.7M. Investing Activities Net outflow of $12.2M, primarily due to $17.7M in net PP&E, partially offset by $5.6M from short-term investments. Financing Activities $37.6M net inflow, enhancing cash reserves and providing liquidity. Foreign Exchange Impact $6.8M negative impact from exchange rate changes, reflecting global business and international exposure. Cash Position Ended the period with $109.6M in cash (including restricted cash), a $21.4M increase, showing improved financial stability despite ongoing investments. Twelve-Months Ended Dec. 31Condensed & Consolidated Cashflow 2024 (195,457)Net income/(loss) Operating activities: 97,303 Impairment, disposal, write downs 79,960 Changes in fair value of warrant liability and convertible loan 9,349 Other operating activities 30,832 DD&A 30,840 Non-cash settled share-based compensation 15,279 Net Receivables (546)Inventory (64,746)Net Liabilities & expenses 2,814 Net cash from operating activities Investing activities: (17,716)Net PP&E 5,564 Short-term investments (12,152)Net cash from investing activities Financing activities: 126,517 Proceeds (88,928)Repayments 37,589 Net cash from financing activities (6,839)Exchange rate changes 21,412 Increase (decrease) in cash, cash equivalents and restricted cash 88,189 Cash, cash equivalents and restricted cash at beginning of the period 109,601 Cash, cash equivalents and restricted cash at end of the period
O U T L O O K
17 Global Maintain revenue growth and margin profile as catalysts to improved liquidity and profitability. 2025 Outlook $450-475M Revenue Guidance 18-25% Target Revenue Growth APAC 30% Target Gross Margin Targeting Phase 3.2 production in Q4 2025. Progress towards R&D new product pipeline. EMEA Expected >20% Y/Y revenue growth for 2025. Emphasis on securing new strategic partners and next generation product sales. Americas Targeting positive quarterly EBITDA and operating profits. Profitability focus driving regional efficiency and growth. Anticipate 50% Y/Y revenue growth for 2025. Continue assessing financing needs and options available.
A P P E N D I X
19 Non-GAAP Reconciliations ($ in thousands) Twelve-Months Ended Dec. 31 20232024 306,617 379,801 Revenues (249,390)(260,249)Cost of revenues 57,227 119,552 Gross profit (GAAP) 18.7%31.5%Gross margin 6,091 3,479 Non-cash settled share-based compensation (included in cost of revenues) 63,318 123,031 Adjusted gross profit (non-GAAP) 20.7% 32.4%Adjusted gross margin (non-GAAP) Twelve-Months Ended Dec. 31 20232024 (106,412)(195,457)Net loss (GAAP) (59)79,960 Changes in fair value of warrant and convertible loan* 64,920 30,849 Non-cash settled share-based compensation* (41,551)(84,648)Adjusted Net Loss (non-GAAP) *The tax effect of the adjustments was nil. Twelve-Months Ended Dec. 31 20232024 (106,412)(195,457)Net loss (GAAP) (981)8,969 Interest expense, net 10 -Income tax expense 22,928 30,832 Depreciation and amortization (84,455)(155,656)EBITDA (non-GAAP) (59)79,960 Changes in fair value of warrant and convertible loan 64,920 30,849 Non-cash settled share-based compensation (19,594)(44,847)Adjusted EBITDA (non-GAAP)