CBAK Energy Technology, Inc. (CBAT) Earnings Call Transcript & Summary

Distinguished leaders, guests, ladies and gentlemen, friends from the media and audience, good morning. Welcome to today's event and this is morning 9:00 and also for this -- 9 p.m. at the U.S.A., and this is about the launching event of [indiscernible] and this is the host for today. My name is [indiscernible] and it is my honor to have this event and we will [indiscernible] and for this important day. Sodium powered future of this, even the mass production today, China, Belgium and the CBAK hold a grand event and this sodium-ion batteries announcing that it will take -- their advancing the mass production in the strongest and largest thing called sodium batteries as an enterprise and dedicated R&D interpretation of it. The CBAK has always been selling the batteries in this industry more than 20 years and the CBAK came, took the lead in this phosphorous acid in this industry, the industrialization of the [indiscernible] and also for this event will be a milestone consult. This launching ceremony will introduce about our new technologies about this event. And also we will just cooperate with our some of partners about our updates and will share you about the development and this new energy development. And before this event, let me just introduce the leaders and guests who are present at the meeting today. They are -- and [indiscernible], welcome. Standing members of the [indiscernible] industry and also the committee members of the development zones, [indiscernible], welcome and also the [indiscernible] Economic Development Deputy Director from Shandong, welcome. President of the [indiscernible], welcome. [indiscernible] coming from the Nankai University, welcome. Professor [indiscernible] coming from the HiNa Battery, welcome. [indiscernible], welcome. Mr. Li, President of the CBAK, welcome. [indiscernible] general manager of the CBAK, welcome. And Mr. [indiscernible], general engineer of the CBAK, welcome. Thank you once again for joining us and for attending the press conference in person despite the busy schedule. This press conference, and we'll broadcast the live streaming on the Internet. And here I would like to express my gratitude to the partners in North America and Europe for watching the live streaming as well as guests from all over the world, and who care about the development of it. And especially about the CBAK, I'd like to extend my best wishes and highest respect to all of the parties and the partners. Thank you once again. I'd like to also take this opportunity to thank you all and all the past, and before the launching ceremony of this event, I just want to invite our President of the CBAK, Mr. Li to give us the speech. Now let's welcome, Mr. Li Yunfei.

[indiscernible] and General Manager and all of the friends coming from the media and the financial sectors, good morning. First of all, thank you once again and to share your schedule to join us as this cutting edge and also about our launching ceremonies in this regard and your CBAK Energy is launching cutting edge sodium-ion battery products, your coming will give us a lot of momentum. On behalf of the CBAK, I'd like to extend my warm gratitude and welcome to all of the friends coming from a far. Thank you once again. CBAK, as established in the year 2001, we are a global leading the enterprises in terms of the lithium batteries production and the selling and the marketing of in this regard. Since our establishment, the CBAK is following the cutting edge technology of the global industry, and we hold high of the technological innovation, industry innovation and product innovation, bear in mind the principles that technology will change the life. And we have been put forward the R&D of this industry, and we have contributed to the green and low-carbon development to the mankind. In recent years and with the global community are embracing about the environmental pollution. The fossil cells has been overburdened and the new energy development has gained our great momentum. The Chinese in the process has been leading this industry. And at this defining moment, the CBAK, with this advanced excellent technological capacity and innovation capacities riding the lithium batteries with the 20 years commitment and responsibility and professional development, we have gained great achievements. And we are the first lithium battery in the process, which has been going -- listed right in NASDAQ market. Operators and the services have been hardly recognized by this industry. Today as a moment for our celebration, and we will witness about the important breakthroughs of CBAK Energy's launching cutting-edge sodium-ion battery breeders, and we have realized about the mass production of the sodium-ion batteries, and we will introduce some of the best quality in the process, the products and which conform to the marketing needs. And this is the efforts and also the support from our partners. Today is also the moment for celebration. Our second phase project and with 1.5 years construction and with all of the support coming from the Gaochun district and our Phase 2 construction project has been finished at this defining moment, and we sincerely thank you for our management committee and related authorities for your talent and also for your effective and the softness, the support. And with that, we can just do it very effectively, and we have implemented in this regard. And we -- our development will contribute more to the government and the society and to all of the people coming from the Gaochun district. CBAK is very much the entrepreneurship with the honesty, innovation and cooperation, and we will hold high, the banner as the one corporation and with a logical progress, and we will just focus on this competitiveness of these products and pioneer with this global market, and we'll continuously make innovation and also to provide and catering for the global customers and with the best products and the services in the future. And we're committed to these new energies of the environmental-friendly products and promote the low carbon economy, create the great future and also to contribute to the global community with the better future for mankind. Finally, I want to thank you all of the leaders and also the friends coming from the financial industries and also the business partners and friends from the media. And we're looking forward to this mass production and utilization of this sodium-ion battery and to embrace about the bright future of it. Thank you all.

Thank you, President Li. Thank you once again for your wonderful remarks, and we have sensed about the CBAK's future commitment. The chairman in this position given us a deep understanding of the determination of the CBAK continue serving the new energy environment protection technologies, and we were serving the technology changing life. And in the process, we've been firmly committed to the research and R&D production of this batteries and the CBAK will carry out with the technological innovation and constantly open up to the new fields and promote the transformation upgrading the new energy industry to meet the market demand, the CBAK, first on the China, well, finally into the world. CBAK, the sodium-ion battery as these new materials and the development work in a strong support coming from the Gaochun district, the government, and we have been listed as the high-tech industry running this in Nanjing, and this is important, the flag for Nanjing to go forward. The new energy development, today, it is honor to invite the deputy [indiscernible] Gaochun district at the launching ceremony to giving us the stage. Now let's welcome.

President Li, dear leaders and the guests, good morning. The June of the long season, with offering us so we're at this building. We're gathering here to celebrate about this launching ceremony of the CBAK and Energy's launching ceremony of cutting-edge sodium-ion battery products and the Phase 2 project, welcome exchanges and also to you appointing about the product factory in the lane, and I'd like to welcome all of our guests. CBAK Energy is about the latching and the process in terms of the DCM battery and also for this new energy in the process, and this is important to be leading in the process and which you point in the end -- introduced about this the Gaochun district. And since the year 2001, this has contributed to the development Gaochun district. And from the 2 gigawatts and from the Phase 1 mass production to the 2023, the 60 gigawatts with the sodium-ion battery products and also, the Phase 2 project, CBAK has contributed the Gaochun district for the new energy development in this regard. And in today's launching ceremony the CBAK Energy will introduce about the sodium-ion batteries, and this is the first -- the enterprise, which has realized mass production of the sodium-ion battery products. And we know that CBAK has a strong business right for the sodium-ion. And later on, we'll witness about the cooperation between CBAK and the upstream and the downstream corporation and which all of our partners will give for plan to realize the mechanization of the sodium-ion battery. Dear guests, friends, the new energy batteries important in the emerging industries, which provided by this industry. And this will confirm to our dual carbon strategy and with the development of it. And we need to have the more cooperation and also to have the strong support and the efforts from each other, will bear in mind with the willing cooperation with our best honesty and the sincerity, and we will just have the strongest support from the CBAK for all of our developments, we currently enabling environment for our business entrepreneurships. And we hope that for the sodium battery products releasing and also for our Phase 2 projects will just innovate ourselves and also benchmark for the greater development. And meanwhile, and we sincerely hope that for all of our experts, and also for the elite and for our friends coming from foreign, we will promote with the Gaochun district and for more CBAK like enterprises and investing right in this Gaochun district. And with that, we can just have a bright future of this new energy development. And finally with this launching ceremony, it will be kind of success. Thank you so much.

Many thanks go to director [indiscernible] and to Gaochun and all of our guests for your -- and also the support of our government to the CBAK, we are further geared up the development of CBAK and also both parties -- so we are reaching new operations in new sectors and also new introductions to the green development across the globe. The sodium battery is also a new technology. And this is also a pioneering technology from this sort of material compared with the traditional material has managed advantages in terms of the environment, usability, shifting and also with high cost effectiveness. And what are the benefits and the advantages of this sodium battery. I'd like to talk about -- introduce the technical director of CBAK to elaborate more on the technical effect of the sodium battery. Welcome.

Highly esteemed guests, leaders, friends, ladies and gentlemen, good morning, everyone. I'm very glad that we could gather here in this new product launch event of CBAK. And I am Mr.[ Chen ], the Technical Director with CBAK. And then I will help you to understand more about the sodium battery. First, let's have a retrospective outlook about the battery storage released by the Ministry of the science and technology and in the future decades, the energy storage battery will be improved from the MWh to GWh where in all the batteries, the li-ion batteries are still playing a predominant role. And from this chart, you will see the lithium resources are distributed as follows: especially in such 3 countries in the South American countries. And the content has reached up to 70 percentage and China only accounted for 7 percentage and the production of the lithium-ion batteries are still in China. And we have employee, the 70 percentage of the lithium where we have accounted only for 7 percentage by ourselves. And there is still a big gap in this respect. And to get rid of the fossil fuel, our dependency, we have get rid of the dependency on the fossil fuel with the replacement of following the trap of the lithium and also the price of the lithium has hiked from RMB 600,000. And it has been increased by more than 20x. So here, at the beginning of this year, the price of lithium have dropped to RMB 150,000, and then bounced back to RMB 350,000. And now it's standing at RMB 300,000 to RMB 350,000. And such fluctuations in the lithium has led to also some shocks in this respect. And the lithium resources will also be challenged and also a timely bump in this respect. Therefore, we have paying more attention to another element, the sodium, because we are clear that the sodium content is thousand times than that of the lithium. And also, it's widely distributed across the globe with easy access. And as a big commodity, the pricing is standing at 3,000. And the pricing of lithium compared with the sodium that is 1 in 100 percentage. And no country or no team in the world could master sodium. Therefore, sodium will become a new necessary supplementary benefits for the new energy. And also in the elements, in the chemical elements, sodium and lithium are of the same family. And also, they have the same properties. And in the initial period, for sodium started from 1970s. And also, it is the same product compared with the lithium resources where after the initiation of such resources due to the high density of lithium and in response to the demands of the people, we have paid more attention to sodium and overlook the properties of sodium, where with the discovery of the sodium mandate application in battery, we have kept our R&D of the sodium. And many institutions and universities have also been dedicated to the technology revolutions in sodium. And the industrialization breakdown the sodium may also taught us a lot about the industrialization and the application of the sodium. As a result, the sodium application have witnessed its initial year. And the easy access to such acid and sodium have also witnessed the evolution over hundreds of years. And due to the high density of the lithium battery, it's also favored by the dynamic batteries. However, for the sodium batteries, the performance is in line between the lithium and the acid and the lead. And from this chart, the life cycle of the sodium is 3x of the lead and acid batteries and also the density is 3x of the lead and acid. And the lead will harm people's health. Even very few use of the lead may toxicate people's health. And even endanger your life, that is why a decade ago, we were trying to use the lithium and the sodium to replace the lead. However, due to the pricing and the challenges that hasn't been commercialized on the larger scale and also the pricing of the sodium will also be going higher and higher. However, it will replace the lead and also such replacement is just on the horizon. And also the higher rates and the charging and discharging rate of the sodium were also bringing many benefits and also the higher rate properties, especially in the cold weather and the cold environment may have -- may indulge with more uniqueness, especially in those respects in terms of the use with the sodium. So let's get some different understanding about the sodium. First generation of the sodium battery using with the steel shell. And also, we are using the most fully fledged oxidized system. And the capacity of the battery is around 140 kWh, and this is the battery with the highest density and the life cycle is also at the 3,000. And at the minus 20 degrees, it will have -- it will maintain the capacity up to 90 percentage. And also, it has a faster rate for both charging and discharging. And also the cylindrical is the best solution because in the sodium battery in the first charging, it will form some membrane, however, the ethylene membrane for sodium is likely to be decomposed and in the 3 systems in such cylindrical and square and also the softer package, the softer package batteries, they have the lowest density. And also it will go puff and expanded and fail for work and for the scale. The asymmetrical forms may also lead to some failure. And also, the puffing will lead to the cyclical drop and for the cylindrical batteries, it has a stable performance with high density that we inhibit the generation of gas in this respect. That is why all the sodium batteries are in the form of the cylindrical form. And also the sodium batteries, they have low density. And the based on this shortage, the small cylindrical will further expand or magnify the shortage. That is why we have developed the big cylindrical forms with a high rate and also in such big cylindrical forms, we have improved the current density and strengths to give full play to the sodium batteries with the higher rate output. And therefore, the -- with CBAK also, we have used the steel shell for the big cylindrical forms. And also, it will have the 140 kWh kilograms and also using the low temperature, actually low temperature with the faster charging performance. This is also due to the OTAP service technologies and also the fully fledged technology of the big cylindrical forms and also such technologies that have been put for massive production. And thanks to the ultra-low temperature, actually minus 40 degrees, it may work with the 85 percentage of the charging rate. And also in the northern part at colder temperature, it will have a better performance for the sodium batteries. The fast charging and the discharging performance, especially for the LEV, we have such a claim that when the charging rate could be closer to the speed of fueling and the sodium batteries will help to fulfill our objective in this respect. And also for the faster charging, especially in UPS and the -- with the use of some EV tours and also the batteries, the -- our batteries, the sodium battery will have better performance. And based on our technologies, they could enable and realize the reduction in the cost of sodium battery compared with the lithium battery by 24 percentage. And also, will further improve the energy density. And the next generation of the product, the cost of the sodium battery will have another 30 percentage of the advantage compared with the lithium battery and also compared with other competitors. In the current stage, all the sodium batteries underway with the CBAK have the best performance. And however, we haven't searched out any commercialization, commercialize the products about the sodium batteries with the big cylindrical forms. That is why we have applied our products in the small cylindrical products. And also, we have tested the electrical chemical performance and the properties from this chart, the battery energy dissipates and also the resistance, the internal resistance, they have better performance. Next to the big cylindrical development, especially for the multi-surface welding and also optimization of the injected liquid. In such optimization in those technologies, they have enabled the better performance with 99 percentage of the achievements across all these factors -- across all the spectrums in each sector. And also, we have got to know that our batteries in the uniformity and the stability and the performance of our products, we have better achievements and the performance. And also good products is inseparable from the smooth upper stream and the lower stream suppliers. And also, we have signed our competitive agreements with the HiNa Battery and the HiNa Battery, thanks to the CBAK sodium batteries commercialization the industrialization, will have also have better performance. And also CBAK will benefit from the stable supply of the raw material from, say, as HiNa Battery. And also together with the top enterprise, the Karbon New Energy. This is something we have introduced about our next-generation products. We have a focus on this prototyping this product and for testing the data essential to Karbon New Energy, which has been highly praised by our customer. And due to our cooperation partnership, and we are committing that for, our product will be provided between the Karbon New Energy directly. We know that we still need more and more technological innovation and advances. And from the CBAK in terms of the sodium-ion battery, and we have a lot of the support and the technological progress. And currently, there are 23 phases, which has been put forward. And also we have gained for our authorization of our 2 patents and with 2 innovative patents. One out of them has been authorized. Our patent has been introduced more and more to this market. This is something which has been summarized by the sodium-ion battery and about our capacity. And according to our current issues, and we believe that right in the 2022 and for the sodium, and it's around the 2 gigawatts, but up until now for the CBAK, and we had this 0.5 gigawatts the capacity. And also -- and for our capacity will be fastly replicated and in the next phases, and we just released about the 10 gigawatts and about our capacity of it. So let's just summarize it. For CBAK, in the past 20 years, we have sold the lithium battery to over half of this globe stepping forward. And we just want to regard the sodium as one of the new momentum. And when this is super temperature and also for this endurance and the competitiveness of it, at the price, and we believe that for our sodium-ion battery will be sold to every corner of this globe. And this is something about this sodium-ion battery. Thank you once again. And hopefully, and with our products, and we are driven by the sodium-ion, we get started about the sodium and also to have a bright future. Thank you.

Thank you, Mr. Tim once again. Thank you so much, and we have known that for the sodium and about the future, 24% to 30% compared with the lithium battery. And for our cost of it, and we have the huge -- the competitiveness in terms of the safety and also for all of the support and for the sodium and we will have introduced about this more and more surprises from the CBAK for our purchase, and we'll have the sales competitiveness, and we will just have a strong support of it. And congratulations once again, CBAK. Thank you. The CBAK for our sodium=ion batteries, and we were created about this new momentum and the new eras and for our different storage and for it, we're going to have good starting point and this is a strong movement of this industry. Ladies and gentlemen, we're going to have the launch ceremony of this product. I'm going to invite our guests and we have the General Manager [indiscernible] the CBAK, please come onto the stage and also [indiscernible] and President Li, CBAK and also [indiscernible] of economic development committee and Professor [indiscernible] CBAK general manager, please step on to the stage, and we will have the launching ceremony of it. Thank you. Please step on to the stage, and we will invite all of our guests and to witness the party. Thank you so much, and please put right hand right under something. Thank you so much, and we were joining once again, and we'll have the countdown, 5, 4, 3, 2, 1. Congratulations. And let's take a picture. And let's just have a group picture together. And may I ask our leaders to be seated. Dear audience and from the global live streaming for watching us by video link, thank you once again and for mass production and with the sodium-ion batteries and riding this new energy and we'll just rise for the great event. And for a lot of the people, we will just concern that what is about the strong competencies of it? And what about the development of it? Well, actually, and we just want to give the floor to the investment and also for the CFO and Mr. [indiscernible] to introduce about our product.

Distinct leaders, guests, ladies and gentlemen, friends from the media, good morning, I'm the head of the investment at the CBAK. Thank you once again for sharing your schedule coming to the Gaochun and to join us at the lithium battery, the part and the sodium-ion and to witness about first, the launching ceremony of it. Today, I'm going to share with you about the emphasis of it and what is going to be the development of it, for example, like our environmental protection, et cetera. Well, we have established right in this 2001 and since our establishment, we focus on this R&D and the marketing of it and the selling of it, we have over 20 years' development. Well, actually, and we will hold high in this respect and -- well, actually, and thank you for all our partners once again, and we are becoming the leader of it. In the year 2006, we have finished about our listed company of it, and we are the first and of our clean energy and also lithium battery of it. Lithium does not mean that point for internationalization of it. And also for our company's development, we have a very strong basis. We just introduced in this listed company right in America. Well, actually -- and we have been listed about this, our FCs right for industry card, and we have been the pioneer of it, and this is very important. And we are very lucky to announce that we have introduced and replicated about our 20-year development. And right in this industry, we have realized about the mass production of it. Well, actually, and we have the 2 production business right in this in Nanjing, et cetera. And currently, and we have been gained a lot of the support from it, therefore, and we have the 26 gigawatts for our planning. Meanwhile, and we have just introduced about these large spaces for it. And today, and we have introduced about the sodium. Well, as for our industries and a lot of the people believe that for the sodium and for its endurance and for everyone of it, will be quite good. CBAK as the very good solutions of it and for this 32104 and for lithium battery and the sodium-ion battery and the one we just entered into this market and with the fast development, and we will highly recognize about this market and enter the 2022, and we have this 2 gigawatts, this sodium of it in the continent, we had 0.5 and for this mass production of it. And also, we have just introduced about the 16 gigawatts of it, just like Mr. [indiscernible] introduction. And we have known that for our different parts, for example, like our low temperature and also the fast charging and also endurance of it. Well, actually, for the 200,000 gigawatts and for this 4% and also for the 3% in this regard. So we believe that for this kind of the issues and this will -- a lot of this is support of it. Our product is about the different parts, and we have a lot of the communications of it and -- which refer to the extraordinary, et cetera. We sincerely hope that for our different parts and with the best of it, and we will have a lot of the communications, et cetera, and with the best solutions, and this will give us a lot of the support of it. And if we have been permitted by, and we sincerely welcome all of our people and maybe we can just pay a visit to our Phase 2 and also for our Phase 1 production business and also to watching about production lines without current issues and also for different parts. And also for our further development of this industry and for our company, we sincerely hope that there are more and more people out and new investment and the friends from the media and also to know about the background of the CBAK. In the past 2 years, from the CBAK Battery self-sustained to the fast development and from the 2021 and the 2022, our selling has gained the 5x the increase from our first quarter's increase, and we have reached a record high. And with this 100%, the selling in this regard and for our several reporting, we have a lot of this support, and we have many, many supporter from your side. So I'd like to thank you once again on behalf of the CBAK. Meanwhile, the fast development will give us about our expectations about the future this year, especially about the battery and for our sodium. And we hope that based on the lithium batteries and for our sodium-ion battery, and we will just realized about this super and high development. And in terms of our development of it and for our sodium arm of it, and we believe that this was going to be the direct momentum of it. And with that, we believe that for our further development of it, to become this first production in the sodium, and we are just thinking the lead of it, we just want to think in the -- think HiNa as one of the lithium and unicorn, we have this strategic cooperation in terms of these materials, they've given us a strong support. Well, we believe that we just want to thank you, the [indiscernible]. And currently, we have a strategic cooperation for the carbon energy. This has given us a lot of financial support for our R&D of the sodium battery. And in the next phases, and we just reached about this 100 million of our production business. And then finally, I want to thank you all of our leaders and the guests and partners once again. And with that from our sodium-ion, we just have a lot of orders in this regard. And thank you once again. And we're super excited about it in the future. And with our capacity of it, and we will have a lot of these new IPO. We sincerely hope that for all of these people and also for our financial support of it, and we will have more and more communications. And finally, I want to say that for development of it and as one of this American-listed company, and we believe that from the lithium. And this is a very good one event. We hope that this will just replace us and with some of the different parts and especially for this sodium. This will confirm to the different parts of it and especially about our environmental protection of it. Currently, there are more and more in the domestic and also for the future development. They have been just focused on the treatment of the environmental protection. ESG as an important technology of it. And also for our different parts and for the ESG and this is some of -- our support of it. We sincerely believe that for our sustainable development as our core concept and in the future, we will just merge into our strategic planning of it in the future. And for this China, the CBAK, and we just focus on the different parts and the push forward of it. And we believe that we would just have more and more communications of it, we just focus on different parts of it. And finally, on behalf of the CBAK, I want to thank once again for all of our parts and also for a lot of the people. Thank you so much as a sustainable development, which is bearing in mind with this innovation. And for all of the support will contribute to our development and thank you once again.

Well, thank you. Well, we believe that with the strong support of it, and we just want to have a better development from this industry, et cetera. Well, actually, this is a very important. Well, as the first in NASDAQ-listed companies and also we have mass production of it. We have gained a strong support from all of our people. We're actually in -- for our distinction guests, we have a lot of financial investors and also securities and then all listening we hope that -- personally, and we would just want to know more about the development awaiting also for the ESG, well, in the future. And with that, and we can just have more and more communications. Well, as for the CBAK, we sincerely welcome all of the support and will just have willing cooperations. Ladies and gentlemen, as the global development and for the vertical development, Karbon New Energy with the many, they have just concerned about the development of it. Well actually, today, we have invited with us representing [indiscernible]. And actually we just invited for our [indiscernible]. And to witness about this -- between the CBAK and actually for the Karbon Energy now let's welcome [indiscernible] please step on to the stage and to witness the moment. Thank you. And for our people, expanding your name but for our people of course and this will represent for our development of it. Thank you so much and the way this has changed about our cooperation. Actually invite the CBAK and Karbon New Energy, which is -- operation and we hope that this is winning cooperation and also about the transformation of the energy industry, and will take one more pictures. Thank you so much.

Thank you. Distinguished leaders, guests and President Li Yunfei, I'm coming from Karbon New Energy and my name is [indiscernible]. It is my honor on behalf of the Karbon New Energy to join you at our strategic partners and for the CBAK and for our sodium-ion battery, the press conference. It is a great pleasure to reach our strategic and perceive strategic cooperation. CBAK is one of the company with a strong business since its establishment, they have 20 years development history and also the leading enterprises in terms of this cylinders battery. Since the year 2006, CBAK just establishing the first production lines right in China, when there's a mass production of the cylinder battery. And they have just realized that this [indiscernible] and for the industrialization of it. And also, they are the earliest in the process and about this new energy development of it. In the year 2002, for the CBAK has reached agreement with Karbon Energy, et cetera. This is very important -- and without development. This is very good in this regard. Well, we have highly recognized by the CBAK, and we have mentioned that for the CBAK for the strong technological basis and right down here and they have a lot of development of it. And therefore, we just want to give them more and more support of it. Well, actually, in terms of the sodium-ion battery, and we just want to have a lot of the development. And we know that with the lower basis and also this low temperature, faster charging and with the strong basis riding this new energy and for the battery of it, and we just want to have a strong basis of it. And with that, we just want to help with the capable and also the penetration of it. And with the best qualities, we just provide with the solutions for this market in the future. And for our different parts, we have a strong basis and strong potentials in this regard. And according to our Chinese Association for the petrochemicals and also for the batteries. And for the global market, right in the year 2026, we reached the record high, which will be 88 billion. The annual compound increase rate will be 51%. Based on our industry chain and based on the strong support of the CBAK's New energies and the strong support, Karbon Energy, also bearing to the global users, the 4 scenarios and the green solutions of it. And we highly focus on this R&D and innovation of it, and we have to get skinned a lot of the during the patents, and we have become one initiators with this industrial standards. Meanwhile, Karbon New Energy has realized rate in this market and with the 30 countries in the regions has been sold, and we have 6,000, the offline selling point. The accumulated this selling are over 3 million. We have just introduced with over 200 mainstream medias concerns, and we constructed about this double first right in this battery and also the market share. We are gradually and with the leading this industry and just implemented with the Karbon New Energies with the green energy are everywhere. We often said just in that direction will be better than our commitment and hard efforts. Looking back, and we just focus on the new energy and also the portable, the energy storage industry. And this is something benchmark with this marketing with a strategic vision in the recent years. The CBAK has a strong momentum in the distributed to the energy and also for the portable energy storage and they have strong support. According to our knowledge, in the future, and they were just introduced about this 46, that is huge cylinder battery. Well, when there's 26 and also 36 products and it is very stable, the products and this will have a lot of the communications, et cetera. Well, actually, and for our further development, and we are looking further into the development. Well, actually we have selected about the different parts, and we have strong confidence for our further cooperation. We just want to give our cooperation and writing this strategic cooperation, and we have a lot of the communications and right here, and we have a lot of the willing cooperation. I congratulate that for the CBAK to realize the mass production for this huge development, and we just want to express our sincere wishes for it. Congratulations, and we hope that you are just creating a new record high and have the back of the government. Thank you.

Thank you so much, thank you for Karbon Energy for your belief and also support and for our -- we have a signing about the agreement and the cooperation ceremonies, and we have more and more cooperations in terms of the technological support. And for this Karbon New Energy, we have a lot of the production emphasis and the high-quality services. Our 2 companies and will have another more changes in operations in terms of technology and also the finances, and we look forward to the R&D event and running this global market, and we'll just have a new wave of it. Well, actually and for our corporation, and we will just have a strong and close relationship of each other, which has tells us that for the Chinese new energies, we have the more cooperation, we're just focused on the grand era, and we are quite confident of it. We hope that for our size, we'll make joint efforts and also to focus on this market and also to create new values, with that we can just contribute to it. Meanwhile, for all of today, people listening focused on the sodium ion and we have the unicorn from the sodium-ion batteries and about this clinical high, et cetera, ladies and gentlemen, I'm going to invite our people and also to witness our strategist in between the CBAK and people. Next, I would like to give the floor to the President Li Yunfei and also for our general manager from the [indiscernible]. Please step on to the stage, and we will signing the cooperation ceremony. We believe that this is the best moment for development. We all know that for the HiNa and for all the support and right in the sodium-ions and we have been one of the leaders in terms of this industry. Thank you. Let's exchange our agreement. Thank you so much. Please let's just take a picture of it. And with this best moment. We will invite the General Manager, [indiscernible] and please give us opening remarks of it.

Distinguished [indiscernible] and President Yunfei Li, leaders, guests, good morning. I'm [indiscernible], coming from HiNa, the General Manager of it as a strong partner of the CBAK, and we'll witness the mass production and the sampling line as the sodium-ion battery of the CBAK, it gives me good pleasure. And we think that we have the joint efforts in the past 1 year. For the HiNa and also for the CBAK, and we just get started right in this journey, and we have a lot in the cooperation. And this is a hard journey. Well, actually, we do not know the clear direction of it and due to that time the sodium-ion battery, we do not know about this clear technological direction of it. We'll get started writing this [indiscernible] And then we just moved to the Nanjing and from this 26700 and from this 32 and also for our production and for mass production. And we know that this is not so easy. And we have gained a strong support of it. And for the CBAK, as industry leaders right in this cylinders battery in the year 2006, when I just joined this industry, when I was engaged into this part and for this, they have just listed right in NASDAQ and for this [indiscernible] and we have a strong reputation from the China market and to the international company, the HiNa is one of the pioneer in terms of this sodium-ion, and we have large technological support and we'll summarize and we know that right in our cylinders, we just gave the floor to it. And we know that from our low temperature and also for the faster development, this will conform to it, and we do not know that this is the best of it. Well, actually, and we know that we have a very good development. Therefore, last year, when we have our corporation, we just got into a launch, and we had the large cooperation of it, therefore, that's why we just have a very smooth transition of it. We just want to thank you the President Li Yunfei once again. We just have this kind of this development, and we just push forward on that. Well, actually -- and we have launched this investment more of it. Well, actually, we have a lot of this visions of it. Without the strategic visions and we cannot have a very good development. And therefore, a lot of the people are doing about the lithium actually and sometimes they will have different parts. And they won't have a lot of fluctuation, therefore, and we have a very smooth transition in the cooperation of it. I want to thank you, the General Manager of [indiscernible], we have a very good cooperation. Well, actually, without it, we cannot have today's, the launching ceremony. Well, actually for the 321 for -- and for our strategic cooperation for our different parts and which has been surprised about our expectations of it and for all the support, and we think that sometimes, and we have a lot of the communications of it. Well, we believe that we'll have a lot of the communications. Well, for this low temperature and also for this fast development, we know that in the -- not long ago, we're still struggling with it. But for this 3 seasons, we know that this is pretty simple. Well, actually, we have for the different portion for a lot of the people. And we believe that -- and currently, and this is not realistic. Well, actually, for the sodium-ion battery, and we have been focused for over 1 year's efforts, but we believe that we have a lot of the achievements of it. So we believe that for rating for this kind of battery and just like the RFPs from the CBAK, which will be highly recognized by our industry. This industry has gained a lot in the development, and we have a lot in the cooperation in the past 1 year, and we have focused on the further development and we have indeed strategic operation. In terms of this mass production of these cells and for different parts, and we have launched the basis of it, and we'll just have an in-depth cooperation. And also for the HiNa, and we're just getting the [indiscernible] of our materials for these industries, and we believe that we'll just support about this new energy of it with the strong support, and we will just push forward about each other. And with that, we can just push forward about our competitiveness. I believe that maybe next year, and maybe we can just have a strong support of it. Well, we know that this is not a very simple development phases of it, and we have a lot of the implementation of it. And we're gathering a lot from the sodium of it, and we just have a strong support. To some extent, we believe that this will just highly surprised about it. Well, actually, this is around this 50% in country, and we're going to have a lot in the communications. With that, we believe that we have a lot of this performance and also for the competitiveness of it. Therefore, we finally hope that for our corporation, we'll have a better development, and we hope that for this CBAK, we'll have a bright future. Thank you all.

And then we can go to the thank the HiNa technology for their support to CBAK, and we could say that you were so brilliant and many more partners so we also go towards the brilliant and also in the sodium batteries, when we are 2 together always the advantage and the benefit and experience in the HiNa technologies in the sodium batteries it have complemented each other in terms of the R&D and also have contributed to the fast development in the new energy enhancement in China and we believe that thanks to the efforts by both studies. CBAK together with HiNa technology, we always further completion in the sodium battery in the future cost of market so we are joint together and also regulated by the market to foster the new energy products with better quality and also to promote the high quality achieved development in China. And the brilliant future between CBAK and the HiNa technology in terms of -- and our partners across the globe and thus our audience who are watching the live streaming and today we are here to congratulate and celebrate here another great news with CBAK and the grand completion of the second phase project CBAK and the completion ceremony is also -- and also the completion of the second phase is also the significance and then we will give floor to Mr. [indiscernible] of the CBAK to present the second phase project. Welcome.

Hello, esteemed leaders, investors, suppliers, friends and dear guests and the clients, good morning, everyone. The recognition of our solid foundation will enable us to go further and go longer, welcome to Gaochun, it's the great mothers and the rivers and witness together with CBAK about the completion ceremony of the second phase production base with CBAK and also to participate into this important moment of CBAK. Hereby, on behalf of CBAK, I'd like to extend our thanks to all our clients, to media friends, suppliers, investors and leaders with our brilliant stuff and for your brilliance. It's important moment currently, CBAK post 2 production bases, respectively, in Dalian and Nanjing and in 2013 Dalian, CBAK was established for the production of the 26650 and the 26700 type of the [indiscernible] batteries. After years of combination, the first development Dalian has also witnessed a hike in their orders. And they have been overburdened with the demand in the future. We will further extend the productivity. Meanwhile, the productivity cannot meet our demand. That is why we have signed the investment agreement with the Gaochun government in 2020 and decided to invite projects with the 20 GWh capacity. And in the first phase, the productivity is up to 2 GWh and for the second phase, it's planning to reach 18 GWh by 2021. The first project with 90 CBAK has already been put into operation. And it's equipped with the assembly lines of the cell and their pack. And also the second phase project has been started in September 2022. And the first stage has been completed today. In the product planning, CBAK has developed the 26 and 30 second series of the cylindrical batteries. And also, we have realized diversified metrics for different products. And also in terms of the technology, storage and breakthroughs made in innovation, we are continuing with the R&D of the first 6 series of the big cylindrical batteries and also we're adhering to develop the vehicle scale, big capacity cylindrical battery products. And also we have finished the design and architecture for the 6 services of cylindrical batteries and samples design. And we are continuing with its performance testing and also the product completion. And also, we have disclosed in the part of listed companies that by April 30 this year, the on hand delivered order with the CBAK has already reached USD 187 million, equivalent to RMB 1.3 billion. Of course, this is inseparable from your utmost support. And this figure will go higher and higher in the future. And also with the advice and the collaboration of municipal district governments and also pulling efforts to further advance the construction of the second phase production base, our higher productivity will respond to the increasingly higher on hand orders. In the productivity planning, the 2 phase projects in Nanjing, for the first phase, the productivity is 2 GWh and 18 GWh for the second phase projects. And the second 2 phases of projects will be completed in 3 stages. And in each stage, the planned annual productivity is 6 GWh. And after completion, the full capacity will be up to 18 GWh. And also, it will help us to realize our productivity objectives. And in the product layout, we will stabilize the production of the 26 and 32 series of products to meet the demands of our clients and also to go towards the realization of our annual productivity of the 10 GWh. And also, we were continuing with the advancement in the 46 series of batteries and also further extend our market and also the -- in June 2023, the second phase, the first stage in Nanjing already been smoothly finished and completed. And according to our estimation, the annual output, we are at RMB 5.5 billion. And also after the putting into operation the second phase, it will reach in total 18 GWh and the annual output is up to RMB 15 billion. This is a signal of new landmark and a new chapter with CBAK. And also, we are -- for all of our efforts for the green era and also to put our efforts in constraint. There's also a demonstration of our attitude with such a strong objective and goal and the attitude and the utmost efforts we believe that we will realize every objective with ourselves and also the completion of the second phase project make a milestone achieved with CBAK and also, this is a testament to our market competitiveness and also the technical milestones in this sector. And also this will further contribute to the local economic development and also our -- to all of our peers and the products and our leaders for their utmost efforts and the decision to the projects and hereby I like to applause -- suggested to applause to our engineers who are engaged for this project. Thank you for your hard work and the greater contributions and then, we will witness another important moment of the CBAK -- we will witness together. That is the spotlight of the completion ceremony of the CBAK Phase 2 plant. And also applaud to the leaders and also the CBAK secretary [indiscernible] so let's applaud to all of our aforementioned leaders to witness this spotlight moment of the completion ceremony of CBAK Phase 2 plant. And also we have presented to our leaders, yellow glowing set and [indiscernible] also a signal of the harvest and let's hold the -- so the yellow set to witness the important moment and also so record with the completion ceremony. Let's countdown 5, 4, 3, 2, 1. [indiscernible] and directly the successful launch of the CBAK Phase 2 plant. And next have our leaders to return this produce to our employees and also like to countdown before the completion ceremony of the Phase 2 plant. I'd like to come up and applaud together. And the many thanks go to all of our leaders for the gentlemen and the participants and also our thanks go to all of our guests here for being with us and for working together for this important moment and also many thanks go to all of our distinguished guests to witness this important moment in the completion ceremony. And also our gratitude go to all of our peers and nears, staff and partners and participants and contributors who have a made contributions to the completion of the CBAK second plant in Nanjing, Gaochun. And also, this is inseparable from this part, are our clients from our contractors, leaders. And in the future, CBAK will further enhance our alliance in line with the market in terms of product quality and promote the sodium battery and lithium battery and the idea of the new energy technologies and also drive the progress in new energy technology and make a constant contribution with remitting effort for the low carbon business at the grand cost in this world. And also, we will have our voice and core part investment, we hope that we could leave the time for -- your minutes to this CBAK count. And then gather together, at the lobby and also our bus will start at 2:00 p.m. this afternoon. So let's gather together at the lobby and take the bus together to have our night and finally our thanks go to all my guests and friends. So being with us in this morning for the completion ceremony and also the [indiscernible] and tomorrow is a highly anticipated with your support and also advice and also really have the breakout for all of us and the bus will start at 2:00 and you are welcome to visit all of the products at the floor. And witness the [indiscernible] CBAK across the globe and also for CBAK for the introduction in new technology and will witness the glorious moment with CBAK will be taking place very soon together with your and let's welcome all of our leaders to the stage. So witness the moment. So let's have our group photo together with our CBAK and our leaders, please go to the stage to have group photo to record this important moment in Nanjing of China on June 28, 2023. Let's take a group photo together. [Statements in English on this transcript were spoken by an interpreter present on the live call.]