Microvast Holdings, Inc. (NASDAQ:MVST) Q3 2023 Earnings Call Transcript

Yang Wu: You mean that commercial vehicle customers?

Colin Rusch: For both, right. What I’m — the question is as you proven out the [indiscernible] of the manufacturing operation, is that improving your leverage with customers to close deals and potentially start driving some price increases?

Yang Wu: Every customer they were [indiscernible] very detail, the factory inspection and audit. You have to get a high score, you have to get a A or over 90 the score, over 90, then you can tack the inspection. You can be qualified for [indiscernible]. Not only for production lines [indiscernible] your quality control, your — the — your deliverability. Can your delivery, or your consistency to deliver and all kinds of factors come via [indiscernible]. It’s very strict. Automotive is most shifting the process.

Colin Rusch: Excellent. And I guess the last one is, with the stationary power product that you’ve gotten into, kind of the fabrication of that. Are there any surprises that have come up in terms of performance or fabrication that we should be attending to?

Yang Wu: Zach, can you answer that question?

A – Zach Ward: Yes, yes. We’ve been really pleased, Colin, with the performance of 53.5 hour cells. It continues to be a dramatic performance improvement over the competition with energy retention as well as round trip efficiency. The round trip efficiency is just so critical because these stationary projects continue to cycle every day for 20 to 27.5 years. So if you’re losing 1% or 2% efficiency, you can amortize that over the life of the power plant. So that value proposition continues to resonate with the market really strong.

Colin Rusch: Thanks so much guys.

Operator: This concludes the question-and-answer session. I would like to turn the conference back over to Mr. Wu for any closing remarks. Please go ahead.

Yang Wu: Yes, thank you, everybody for joining us. Thank you.

Operator: This concludes today’s conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.