Microvast Holdings, Inc. reported significant financial developments for the three and nine months ended September 30, 2024, reflecting a strategic shift and operational adjustments. The company generated revenues of $101.4 million for Q3 2024, a 27% increase from $80.1 million in Q3 2023. For the nine-month period, revenues rose to $266.4 million, up 31.9% from $202.0 million in the prior year. The gross profit for Q3 2024 was $33.6 million, compared to $17.9 million in Q3 2023, marking an 87.9% increase. However, the net loss for the nine months was $90.0 million, slightly higher than the $81.8 million loss reported in the same period of 2023.

The company achieved a net profit of $13.2 million in Q3 2024, a turnaround from a net loss of $26.2 million in Q3 2023. This improvement was attributed to increased sales volume, which rose from approximately 319.2 MWh in Q3 2023 to 434.0 MWh in Q3 2024, and a gross margin increase from 22.3% to 33.2%. Operating expenses decreased significantly, with general and administrative expenses dropping by 52.6% to $11.8 million, primarily due to reduced share-based compensation and expenditure control measures.

Strategically, Microvast is transitioning its production focus from 53.5Ah NMC cells to lithium iron phosphate (LFP) cells, particularly for energy storage solutions in the U.S. This shift is driven by market demand and cost efficiency. The company has paused the expansion of its Tennessee facility pending additional funding, while the Huzhou Phase 3.1 expansion has begun contributing to revenue following its completion in Q3 2023.

As of September 30, 2024, Microvast's total assets were $1.02 billion, down from $1.10 billion at the end of 2023. Total liabilities decreased to $511.8 million from $532.5 million, with current liabilities also declining. The company reported cash and cash equivalents of $63.6 million, an increase from $44.5 million at the end of 2023.

Management has implemented workforce reductions in the U.S. to enhance cash flow and is actively pursuing the sale of non-core U.S. real estate assets to improve liquidity. The company is also exploring further funding options to support its operations and expansion plans. Despite these efforts, there remains substantial doubt about the company's ability to continue as a going concern within the next year, primarily due to liquidity uncertainties.

About Microvast Holdings, Inc.

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