Late yesterday afternoon, ultra-fast charging EV battery maker Microvast Holdings Inc. (MVST:NASDAQ), which is focused on designing, developing, and manufacturing innovative lithium-ion battery solutions, announced unaudited financial results for the first quarter of 2022 ended March 31, 2022.
The company's CFO, Craig Webster, led off the report by stating, "Our first-quarter revenue performance exceeded our expectations, and our order book looks very strong…Looking forward, we are focused on sales growth throughout the year, growing our multi-year order book, and executing on our capacity expansion plans, which are well underway and fully funded from our cash on hand."
Microvast's President and Chief Revenue Officer Sascha Kelterborn commented, "Overall, I'm pleased with the strong 145.5% revenue growth we posted in Q1/22 and the progress we continue to make on the expansion of our international business."
"We had an excellent revenue quarter in the Asia Pacific region (excluding China), fueled by significant growth in India, and orders from our multi-year European projects were strong across our new recently-announced battery solutions specifically designed for the commercial vehicle market," Kelterborn added.
The company reported that during Q1/22, total revenue increased by 145.5% to $36.7 million, compared to $14.9 million in Q1/21.
The firm stated that in Q1/22, gross profit improved significantly to $13.0 thousand, compared to a gross loss of $1.2 million in Q1/21, and added that during Q1/22, adjusted gross profit rose to $1.9 million, versus an adjusted gross loss of $1.2 million in Q1/21, which represented a 13.5% year-over-year improvement.
The company advised that for Q1/22, it recorded a net loss of $43.8 million versus a net loss of $16.3 million in Q1/21.
The company confirmed its prior revenue estimates for FY/22, which call for year-over-year revenue growth of 35-45%. The company noted that the firm's ability to reach these levels could be adversely impacted if overall macro conditions such as inflation, supply chain disruptions, China COVID restrictions, and the Ukraine situation worsens.
Microvast listed that its backlog as of the end of Q1/22 grew by 85.6% to $120.8 million, compared to $65.1 million at the end of Q1/21. The firm noted that it remains greatly optimistic regarding prospects for additional incoming orders over the rest of FY/22.
The firm noted that it expects to make capital expenditures of $300-350 million in FY/22. The company advised that the investment will be used to continue the expansion of manufacturing capacity at its operations in Huzhou, China, and Clarksville, Tenn. Microvast stated that these expenditures will result in adding 4 GWh of annual capacity and will target higher production of larger format battery cells.
Microvast Holdings is a designer, developer, and manufacturer of ultra-fast charging lithium-ion batterie for use in electric vehicles (EVs) and energy storage systems. The company claims that "it is renowned for its cutting-edge cell technology and its vertical integration capabilities which extend from core battery chemistry (cathode, anode, electrolyte, and separator) to modules and packs." Microvast is headquartered in Stafford, Tex. and since it was first established in 2006, its Li-ion batteries have been integrated into over 30,000 vehicles in 19 countries and have racked up more than 3.8 billion traveled miles.
Microvast Holdings started the day with a market cap of around $1.0 billion with approximately 300.5 million shares outstanding and a short interest of about 5.8%. MVST shares opened 17.5% higher today at $3.95 (+$0.59, +17.56%) over yesterday's $3.36 closing price. The stock has traded today between $3.78 and $4.31 per share and is currently trading at $3.89 (+$0.53, +15.77%).
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