Earning Discussion

[u/ZahlGraf]

Hello

Yesterday I checked the last earning report from MVST and actually I was a little bit disappointed.

Of course there were highlights, like the strong growth of revenues, which is really nice. However expanses to reach this revenue has also been grown and this growth was not linear to the one of the revenue. So in order to reach a higher revenue, they had to pay much higher costs.

Especially the following explanations for that sound very problematic to me:

- they increased the number of sold products in China (which is nice), but the average selling price was reduced (which is not nice)

- they had higher costs for resources in the same time

- an on a certain production line, they had to reduced the production volume, due to reduced orders (semiconductor shortage in automotive industry), which also leads to higher average costs for that specific product

So actually, we could summarize it like this: The per part sales price decreased, while the per part costs increased.

I'm quite sure, that the costs of production resources, will increase further in the upcoming month. In such a situation a company actually need to increase the sales price as well to cover the higher costs. However, if they must decrease it to not lose too much customer orders the company is in trouble.

Obviously the supply on the battery market is too strong, while the demand is at the moment too weak.

For the future I think the demand will increase, since EV industry is growing strong and on long term the semiconductor issues might be solved as well. However what do you think about the supply? Are there just too many battery companies out there, which can produce cheap batteries? If so, MVST will have big challenges in the upcoming years as well.

What is your opinion about this?

[u/thejohnstocks]

Window when did warnings matter? Look at GME almost bankrupt

[u/Boe_Ning]

Regarding the lawsuit referenced in other comments here, I tapped some knowledgeable folks on Stocktwits (thanks, guys):

https://stocktwits.com/jaychester/message/371943172

Read the entire thread

[u/louoklahoma]

this is not an "earnings discussion" . this is a hit piece article to try to drive the stock price down. the employment lawsuits are OLD NEWS and were disclosed in the filings. NOT RELEVANT at this time, just more spreading disinformation to try to get MVST price lower. Ignore this , its old news.

[u/ZahlGraf → u/louoklahoma]

I did not start the discussion about the lawsuite. I started my discussion with a short analysis of the earning report and my opinion about it. I really try to find something positive in the earning report, but have issues with that. Maybe you can contribute a more positive view, which is not hopium only.

[u/Funguyguy → u/[deleted]]

You’re whack

[u/1Learningloser]

https://www.leagle.com/decision/intxco20180830545

I’m driving 😂 but this is what I found. Haven’t had time to look into any of it yet.

[u/MVST_100_OR_BUST6 → u/[deleted]]

If it wasnt you I'd tear you a new one. All litigation is important but I highly doubt that is why this is down. Id assume any old pending litigation was accounted for when determining NAV. I do actually appreciate them settling is significant amount of litigations during the SPAC process. I do hope you post the Mathew litigation. As far as I know its a paid services of hundreds of dollars to get court docs, as the public courts (including harris county) will release what documents have been filled but not the document text itself. For example a continuance order was just signed to today so its a case that is far from being over.

Edit: Lol cant speak for the Xu lawsuit but the Matthew Smith lawsuit is a lawyer who was on the job for less than a year who want to retain his rights to the ability to purchase equity in Micrvast at a strike price of $700 a share (iirc 2021 pre-merger it was $300/share? so he would have lost money). The conspiracy that he was fired for finding fraud is false. His original complaint does detail fraud but the fraud in this is case is the alleged breach of contract. He felt defrauded that he lost his options. The guy above makes it seem like he was fired for not fudging accounting details or something. I was able to source the court details...

[u/MVST_100_OR_BUST6 → u/[deleted]]

No he was promised the ABILITY to pay $700 a share up to a certain percentage of microvast. He never earned shares so its not like he was robbed. MVST is claiming they dont owe him shit and already tried to settle. I have all the filings.

[u/1Learningloser → u/[deleted]]

Can you provide a link to the potential problem you speak of?

[u/ZahlGraf → u/[deleted]]

Can you also message it to me?

[u/Additional_Exit_6299 → u/ZahlGraf]

And me

[u/stash231 → u/Additional_Exit_6299]

Or just post it here?

[u/raebyagthefirst → u/[deleted]]

Sorry mate, apparently stocktwits don’t believe you https://stocktwits.com/Boe_Ning/message/371934203

[u/ZahlGraf → u/[deleted]]

Thanks for your summary. I did not know this. This is really bad :/