Planet Green Holdings Corp. (PLAG) reported significant financial changes in its 10-Q filing for the third quarter of 2024, reflecting a challenging market environment and strategic adjustments. For the three months ended September 30, 2024, the company generated net revenues of $1.81 million, a decrease of 49% from $3.52 million in the same period of 2023. The decline was primarily attributed to reduced sales in high-grade synthetic fuel products and beef products, which fell from $2.57 million to $1.43 million and from $0.84 million to $0.34 million, respectively.

Despite the drop in revenues, the cost of revenues also decreased by 50% to $1.70 million, leading to a gross profit of $0.12 million, down slightly from $0.13 million in Q3 2023. Operating expenses for the quarter were reduced to $1.21 million from $1.47 million, resulting in an operating loss of $1.10 million, an improvement of 18% compared to the previous year. The loss before tax for the quarter was $1.19 million, a 19% improvement from $1.46 million in Q3 2023.

For the nine months ended September 30, 2024, net revenues totaled $5.29 million, a significant decline of 66% from $15.44 million in the same period in 2023. However, the company reported a net loss of $3.99 million, a substantial improvement of 73% compared to the $14.76 million loss in the prior year. This improvement was driven by a decrease in operating expenses, particularly a notable reduction in selling and marketing expenses, which fell by 85% to $0.11 million.

As of September 30, 2024, total assets were reported at $41.91 million, down from $42.63 million at the end of 2023. Total liabilities increased to $26.40 million from $23.19 million, resulting in total stockholders’ equity of $15.51 million, a decrease from $19.44 million. The accumulated deficit grew to $144.71 million, with a working capital deficit of $8.94 million.

The company has been actively managing its financial position, including reliance on private placements for funding. Additionally, it has identified a material weakness in internal control over financial reporting, prompting a commitment to enhance its accounting practices and procedures. The company is also involved in various legal actions, including a breach of contract claim from a former employee.

Overall, Planet Green Holdings Corp. is navigating a period of financial restructuring and operational adjustments, with a focus on improving profitability and addressing internal control weaknesses.