BAIYU Holdings, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing a mixed performance in revenue and profitability compared to the previous fiscal period. For the three months ended September 30, 2024, total revenue increased to $37.2 million, a 10% rise from $33.9 million in the same period of 2023. This growth was primarily driven by an expanded customer base in the commodities trading sector, which accounted for nearly all revenue. However, for the nine months ended September 30, 2024, total revenue decreased to $91.7 million, down 11% from $103.0 million in 2023, largely due to a decline in sales volume and average unit prices of non-ferrous metals.

The company reported a net income of $3.2 million for the three months ended September 30, 2024, a significant increase from $679,658 in the prior year, while for the nine months, net income was $7.8 million, recovering from a net loss of $3.7 million in 2023. This improvement in profitability was attributed to a reduction in selling, general, and administrative expenses, which fell by 47% to $7.5 million for the nine-month period, primarily due to the absence of stock-based compensation expenses.

Interest income also saw a notable increase, rising to $7.4 million for the three months ended September 30, 2024, up 44% from $5.1 million in 2023, and $20.1 million for the nine months, a 39% increase from $14.5 million in the previous year. This growth was linked to an increase in loans made to third-party vendors.

On the balance sheet, total current assets rose to $315.0 million as of September 30, 2024, compared to $252.3 million at the end of 2023. Total assets increased to $513.8 million, while total equity also improved to $433.5 million from $383.1 million at the end of the previous fiscal year. However, cash and cash equivalents decreased significantly from $1.5 million at the end of 2023 to $327,318 by September 30, 2024.

Strategically, BAIYU Holdings has been focusing on its commodities trading and supply chain management services, with a shift towards the electric vehicle industry impacting its supply chain revenue, which fell to $2,811 from $64,037 in the same period last year. The company is also facing challenges due to a slowdown in demand within the commodities trading sector, attributed to broader economic conditions in China.

Additionally, BAIYU Holdings received a notification from Nasdaq regarding the potential delisting of its common stock, prompting the company to file an appeal. The company is also addressing internal control deficiencies and plans to enhance its financial reporting processes.