Revenue Growth and Geographic Expansion - Revenue for the quarter ended September 30, 2024 increased by 27% to $101.4 million compared to $80.1 million in the same period in 2023[164] - Revenue from Europe increased significantly to $59.5 million (59% of total revenue) in 2024, up from $19.0 million (24%) in 2023, reflecting geographic expansion[187] - Revenue from the U.S. grew to $2.6 million (3% of total revenue) in 2024, up from $0.2 million in 2023, indicating early market penetration[187] - Total revenues increased from $202.0 million in 2023 to $266.4 million in 2024, with Europe contributing 51% ($135.1 million) and Asia & Pacific contributing 47% ($125.4 million)[188] - Revenues for the three months ended September 30, 2024, increased by 26.6% to $101.4 million, driven by a sales volume increase from 319.2 MWh to 434.0 MWh[205] - Revenues increased by 31.9% to $266.4 million for the nine months ended September 30, 2024, driven by a sales volume increase from 722.0 MWh to 1,088.9 MWh[214] Profitability and Cost Efficiency - Gross profit margin improved from 22.3% in 2023 to 33.2% in 2024 due to better economies of scale, favorable product mix, and lower raw material prices[207] - Gross margin improved significantly from 16.9% to 29.3% due to better economies of scale, favorable product mix, and lower raw material prices[216] - Net profit attributable to shareholders improved significantly from a loss of $26.1 million in 2023 to a profit of $13.2 million in 2024[204] - LFP batteries are generally 20-40% less expensive per kilowatt-hour compared to NMC batteries, offering cost efficiency and reduced reliance on scarce minerals like cobalt[167] Operational and Strategic Shifts - The company completed a 2 GWh cell, module, and tray capacity expansion for its 53.5Ah cell technology in Huzhou, China, which is now operational and generating revenue[179] - The company plans to shift production at its Tennessee facility from 53.5Ah NMC cells to LFP cells for energy storage solutions, leveraging cost benefits and regulatory compliance[166][180] - The company's ESS products previously assembled in Colorado are now planned to be assembled at the Tennessee facility, pending financing for capital expenditures[180] - Operating expenses increased by 43.4% to $171.9 million, primarily due to a $64.9 million impairment loss related to the strategic shift towards LFP technology in the U.S.[218] - The company recorded a $64.9 million impairment loss on long-lived assets for the nine months ended September 30, 2024, compared to $0.5 million in the same period of 2023[244] Financial Health and Liquidity - The company faces substantial doubt about its ability to continue as a going concern due to liquidity uncertainties, as per ASC Topic 205-40[174] - The company faces substantial doubt about its ability to continue as a going concern due to insufficient cash to fund operations and capital expenditures over the next twelve months[223][224] - The company secured a $29.9 million bank loan in Q3 2024, with an additional $9.9 million received in October 2024[225] - The company is actively pursuing the sale of non-core U.S. real estate assets to increase liquidity without affecting core operations[226] - The company has $119.6 million in bank borrowings and $43.2 million in convertible bonds outstanding as of September 30, 2024[228] - Purchase commitments as of September 30, 2024, amount to $52.3 million, mostly short-term[235] - Net cash used in operating activities for the nine months ended September 30, 2024 was $3.3 million, a significant improvement from $70.4 million in the same period of 2023[237][238] - Net cash used in investing activities for the nine months ended September 30, 2024 was $12.0 million, primarily for capital expenditures related to manufacturing facility expansion[240] - Net cash generated from financing activities for the nine months ended September 30, 2024 was $46.6 million, driven by $70.4 million in bank borrowings and $25.0 million from a convertible loan[241] Expense Management - General and administrative expenses decreased by 52.6% ($13.1 million) in 2024, primarily due to reduced share-based compensation and expenditure control[209] - Research and development expenses decreased by 19.3% ($2.5 million) in 2024, driven by reduced share-based compensation and cost control measures[209] - Selling and marketing expenses decreased by 17.7% ($1.1 million) in 2024, mainly due to reduced share-based compensation and expenditure control[208] - Cost of revenues increased by 8.9% ($5.5 million) in 2024, primarily due to higher sales volume, partially offset by reduced share-based compensation[206] Other Financial Highlights - Other income for the three months ended September 30, 2024, included a $7.7 million gain on payable concession, contributing to a total of $7.4 million in other income[210] - The company recorded a $2.8 million gain from changes in the fair value of warrants and convertible loans in 2024[211] - Net loss increased by 10.0% to $90.0 million, with a $7.0 million increase in operating loss[213] - A 10% adverse change in foreign exchange rates on RMB-denominated accounts as of September 30, 2024 would result in a $15.6 million foreign currency loss[248] - A hypothetical 100 basis points increase in the expected loss rate on the financing receivables portfolio would increase the allowance for credit losses by approximately $0.5 million as of September 30, 2024[250] Order Backlog and Market Demand - Order backlog as of September 30, 2024 stands at $277.7 million for EV battery systems, representing approximately 1,144.1 MWh, with over 58% of orders from Europe and U.S. markets[164] Regulatory and Incentive Compliance - The company's ESS solutions are expected to qualify for U.S. domestic content requirements and Inflation Reduction Act Section 45X energy efficiency incentives[170] Capital Expenditures and Investments - Capital expenditures for 2022 and 2023 were $150.9 million and $186.8 million, respectively, primarily for manufacturing facilities in Huzhou, China, and Clarksville, Tennessee[230]

Financial Performance - Microvast Holdings, Inc. reported a quarterly loss of $0.21 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.05, representing an earnings surprise of -320% [1] - The company posted revenues of $83.68 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 7.76%, compared to year-ago revenues of $74.95 million [2] - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $94.62 million, and for the current fiscal year, it is -$0.11 on revenues of $365.08 million [7] Stock Performance - Microvast shares have declined approximately 71.7% since the beginning of the year, contrasting with the S&P 500's gain of 11.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Industry Outlook - The Technology Services industry, to which Microvast belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]

Financial Data and Key Metrics - Q2 2024 revenue reached a record $83.7 million, a 12% YoY increase from $75 million in Q2 2023 [5][8] - Gross margin improved to 32.5% in Q2 2024, up from 15.3% in Q2 2023, with adjusted gross margin at 34.3%, a 17 percentage point increase YoY [5][8] - Operating expenses surged to $103.6 million in Q2 2024, primarily due to a $64.9 million impairment loss related to long-lived assets in the US [9] - GAAP net loss was $78.4 million in Q2 2024, compared to a net loss of $26.1 million in Q2 2023, with adjusted net loss at $64.7 million [10] Business Line Data and Key Metrics - EMEA business saw a 401% YoY growth, accounting for 55% of total revenue, up from 13% a year ago [5][10] - The company secured a $40 million order from a Korean e-Bus customer and entered a strategic partnership with Evoy for electric boat motor systems [5][6] - Backlog at the end of Q2 2024 stood at $278.6 million [5] Market Data and Key Metrics - EMEA market drove significant revenue growth, with triple-digit percentage growth in commercial vehicle sales [5][8] - The company began tapping into the Korean market and expects continued growth in APAC and EMEA regions [5][11] Company Strategy and Industry Competition - The company is focusing on operational efficiency and expanding its commercial vehicle footprint, including partnerships and new market entries [5][6] - A strategic shift towards LFP technology in the US led to the impairment of certain assets [9] - New battery technology, including the 565 amp-hour LFP cell and ME6 energy storage solution, is being developed to meet renewable energy customer needs [12] Management Commentary on Operating Environment and Future Outlook - Management highlighted challenges, including delays in light commercial vehicle platform rollouts in Europe and customer delivery delays [6] - For Q3 2024, revenue is expected to be between $85 million and $90 million, with a target gross margin of 25% [11] - EMEA revenue is anticipated to grow over 100% YoY in Q3 2024, driven by increased deliveries to commercial vehicle OEMs [11] Other Important Information - The company is exploring new commercial vehicle markets in the Americas and focusing on financing solutions for the Clarksville facility [11] - The new LFP-based ME6 energy storage solution offers a 30-year lifespan and high energy density, targeting optimized total cost of ownership [12] Q&A Session - No specific questions or answers were provided in the transcript [13]

Q2 2024 Disclaimer 2 Forward-Looking Statements This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as "will likely result," "are expected to," "will continue," "is antic ...

Financial Data and Key Metrics Changes - The company reported record first quarter revenue of $81.4 million, representing a 73% increase year-over-year from $47 million in Q1 2023 [20] - Gross margin improved to 21.2% in Q1 2024, up from 10.3% in Q1 2023, with adjusted gross margin increasing to 22.6% from 13.5% [8] - GAAP net loss was $24.8 million in Q1 2024, compared to a net loss of $29.6 million in Q1 2023; adjusted net loss was $13 million in Q1 2024, compared to $11.7 million in Q1 2023 [9] Business Line Data and Key Metrics Changes - The company achieved significant sales increases in the APAC and EMEA regions, with APAC sales up 640% year-over-year and EMEA sales up 184% [10][17] - Operating expenses rose to $40.9 million in Q1 2024, a 13% increase from $36.2 million in Q1 2023, primarily due to increased headcount costs [21] Market Data and Key Metrics Changes - APAC accounted for 29% of total revenue in Q1 2024, up from 7% a year ago, while EMEA accounted for 36% of revenue, up from 22% [10] - The company closed the first quarter with a backlog of $348.3 million, indicating strong demand and operational efficiency [18] Company Strategy and Development Direction - The company is focusing on expanding its commercial vehicle footprint in the Americas and Europe, with plans to enter the Canadian market [5][19] - For Q2 2024, the company expects revenue to be in the range of $90 million to $98 million, driven by increased deliveries to APAC and EMEA commercial vehicle customers [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the cleantech industry and U.S. financing hurdles but expressed optimism for continued growth and success [6] - The company aims to maintain target gross margins in the range of 20% to 25% while striving for operational efficiencies [24] Other Important Information - The company is working with new customers in the U.S. specialty vehicle market and European e-trailer market, utilizing advanced cell technology [19] - Significant progress has been made on prototype development for a fuel cell truck to be showcased at IAA 2024 [19] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating the conclusion of the conference call [28]

Disclaimer Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. All information set forth herein speaks only as of the date hereof and we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication. Forecasts and estimates regarding Microvast's industry ...

Microvast Holdings, Inc. (MVST) came out with a quarterly loss of $0.04 per share versus the Zacks Consensus Estimate of a loss of $0.05. This compares to loss of $0.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 20%. A quarter ago, it was expected that this company would post a loss of $0.03 per share when it actually produced a loss of $0.04, delivering a surprise of -33.33%.Over the last four quarters, the company has s ...

OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to________________ Microvast Holdings, Inc. Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 (Exact name of registrant as specified in its charter) | Delaware | 001-38826 | 83-2530757 | | --- | --- | ...

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) This section summarizes the company's financial performance for 2023, including management insights, key results, and the Q1 2024 outlook [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted record Q4 2023 revenue, driving 49.9% full-year growth, with strategic focus on EMEA, APAC, and Clarksville facility financing - The company achieved **record revenue in Q4 2023**, leading to **49.9% full-year revenue growth**[3](index=3&type=chunk) - Strong revenue growth is expected to continue in the EMEA region in 2024, with the possibility of **reaching breakeven**[3](index=3&type=chunk) - The APAC region is operating **profitably** and is **self-funding** following the completion of the Huzhou Phase 3.1 expansion[3](index=3&type=chunk) - A key priority is securing financing to complete the **Clarksville Phase 1A facility** in the U.S[3](index=3&type=chunk) - The adjusted net loss was **significantly reduced**, driven by revenue growth, a **14.3 percentage point gross margin improvement**, and an **11% increase in adjusted operating costs**[3](index=3&type=chunk) [Full Year 2023 Financial Highlights](index=1&type=section&id=Full%20Year%202023%20Financial%20Highlights) For full year 2023, Microvast reported a **49.9% revenue increase to $306.6 million**, significantly improving gross margin and narrowing net and adjusted EBITDA losses Full Year 2023 Key Financial Metrics (in millions) | Metric | FY 2023 | FY 2022 | Change | | :--- | :--- | :--- | :--- | | Revenue | $306.6M | $204.5M | +49.9% | | Gross Margin | 18.7% | 4.4% | +14.3 p.p. | | Adjusted Gross Margin (Non-GAAP) | 20.7% | 8.2% | +12.5 p.p. | | Net Loss | ($106.4M) | ($158.2M) | +32.7% | | Adjusted Net Loss (Non-GAAP) | ($41.6M) | ($77.3M) | +46.2% | | Net Loss per Share | ($0.34) | ($0.52) | +34.6% | | Adjusted EBITDA (Non-GAAP) | ($19.6M) | ($56.7M) | +65.4% | | Capital Expenditures | $186.8M | $150.9M | +23.8% | - Cash, cash equivalents, restricted cash, and short-term investments **decreased to $93.8 million** as of December 31, 2023, from **$327.7 million** a year prior, largely due to capital expenditures for manufacturing expansion in the U.S. and China[6](index=6&type=chunk) [Fourth Quarter 2023 Financial Highlights](index=2&type=section&id=Fourth%20Quarter%202023%20Financial%20Highlights) Microvast achieved **record quarterly revenue of $104.6 million** in Q4 2023, marking a **61.4% increase** and substantial gross margin improvement Fourth Quarter 2023 Key Financial Metrics (in millions) | Metric | Q4 2023 | Q4 2022 | Change | | :--- | :--- | :--- | :--- | | Revenue | $104.6M | $64.8M | +61.4% | | Gross Margin | 22.0% | 3.4% | +18.6 p.p. | | Adjusted Gross Margin (Non-GAAP) | 23.5% | 6.4% | +17.1 p.p. | | Net Loss | ($24.6M) | ($33.7M) | +27.0% | | Adjusted Net Loss (Non-GAAP) | ($11.4M) | ($15.9M) | +28.3% | | Net Loss per Share | ($0.08) | ($0.11) | +27.3% | | Adjusted EBITDA (Non-GAAP) | ($2.6M) | ($11.8M) | +78.0% | [Q1 2024 Outlook](index=2&type=section&id=Q1%202024%20Outlook) For Q1 2024, the company projects **revenue of $65 million to $75 million** and a **gross margin of 20% to 25%**, alongside strategic financing and customer acquisition goals - Targeting Q1 2024 revenue of **$65 million to $75 million**, a **40% to 60% year-over-year increase**[12](index=12&type=chunk) - Company-wide gross margin is targeted to be between **20% and 25%** for Q1 2024[12](index=12&type=chunk) - Strategic goals include finalizing financing for the **Clarksville Phase 1A plant** and securing new long-term domestic customer contracts[12](index=12&type=chunk) - Focus on new customer wins in APAC and EMEA to expand in differentiated commercial vehicle markets as OEMs electrify their product lines[12](index=12&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated balance sheets, statements of operations, and cash flows for the reported periods [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2023, Microvast's **total assets increased to $1.10 billion**, while **total liabilities grew to $532.5 million**, leading to a slight decrease in total equity Selected Balance Sheet Data (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $44,541 | $231,420 | | Inventories, net | $149,749 | $84,252 | | Property, plant and equipment, net | $620,667 | $335,140 | | **Total Assets** | **$1,096,732** | **$984,957** | | Accounts payable | $112,618 | $44,985 | | Total Current Liabilities | $403,410 | $252,409 | | **Total Liabilities** | **$532,542** | **$371,980** | | **Total Equity** | **$564,190** | **$612,977** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For full year 2023, revenue grew to **$306.6 million** with significant gross profit improvement, and the loss from operations narrowed for both the full year and Q4 Full Year Statement of Operations (in thousands) | Account | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Revenues | $306,617 | $204,495 | | Gross profit | $57,227 | $9,073 | | Loss from operations | ($106,729) | ($159,946) | | Net loss | ($106,412) | ($158,200) | | Net loss per common share | ($0.34) | ($0.52) | Q4 Statement of Operations (in thousands) | Account | Three Months Ended Dec 31, 2023 | Three Months Ended Dec 31, 2022 | | :--- | :--- | :--- | | Revenues | $104,575 | $64,797 | | Gross profit | $23,024 | $2,226 | | Loss from operations | ($22,216) | ($34,626) | | Net loss | ($24,591) | ($33,698) | | Net loss per common share | ($0.08) | ($0.11) | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For 2023, net cash used in operating activities increased to **$75.3 million**, with significant cash usage in investing activities, resulting in an **$88.2 million** year-end cash balance Statement of Cash Flows Summary (in thousands) | Activity | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | ($75,303) | ($53,928) | | Net cash used in investing activities | ($165,605) | ($175,945) | | Net cash generated from financing activities | $33,041 | $4,967 | | **Decrease in cash, cash equivalents and restricted cash** | **($214,428)** | **($233,492)** | | **Cash, cash equivalents and restricted cash at end of year** | **$88,189** | **$302,617** | [Non-GAAP Financial Measures and Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section explains the company's non-GAAP financial measures and provides reconciliations to their most directly comparable GAAP counterparts [Explanation of Non-GAAP Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Microvast utilizes non-GAAP measures like adjusted gross profit, net loss, and EBITDA to provide a clearer view of underlying business trends by excluding certain non-cash items - Non-GAAP measures disclosed include **adjusted gross profit, adjusted EBITDA, and adjusted net loss**[15](index=15&type=chunk) - Adjustments from GAAP to Non-GAAP typically exclude **non-cash stock-based compensation** and **changes in the fair value of warrant liabilities**[17](index=17&type=chunk) - Management uses these non-GAAP measures to illustrate underlying business trends and for internal performance comparisons, believing they offer greater transparency to investors[18](index=18&type=chunk)[19](index=19&type=chunk) [Reconciliation of Gross Profit to Adjusted Gross Profit](index=10&type=section&id=Reconciliation%20of%20Gross%20Profit%20to%20Adjusted%20Gross%20Profit) For full year 2023, adjusted gross profit reached **$63.3 million** with a **20.7% margin**, while Q4 2023 saw **$24.6 million** in adjusted gross profit at a **23.5% margin** FY 2023 Gross Profit Reconciliation (in thousands) | Metric | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Gross profit (GAAP) | $57,227 | $9,073 | | Non-cash settled share-based compensation | $6,091 | $7,677 | | **Adjusted gross profit (non-GAAP)** | **$63,318** | **$16,750** | | **Adjusted gross margin (non-GAAP)** | **20.7%** | **8.2%** | Q4 2023 Gross Profit Reconciliation (in thousands) | Metric | Q4 2023 | Q4 2022 | | :--- | :--- | :--- | | Gross profit (GAAP) | $23,024 | $2,226 | | Non-cash settled share-based compensation | $1,532 | $1,932 | | **Adjusted gross profit (non-GAAP)** | **$24,556** | **$4,158** | | **Adjusted gross margin (non-GAAP)** | **23.5%** | **6.4%** | [Reconciliation of Net Loss to Adjusted Net Loss](index=11&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20Net%20Loss) The full-year 2023 GAAP net loss of **$106.4 million** was adjusted to a non-GAAP adjusted net loss of **$41.6 million**, improving adjusted net loss per share to **$0.13** FY 2023 Net Loss Reconciliation (in thousands) | Metric | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Net loss (GAAP) | ($106,412) | ($158,200) | | Gain on changes in fair value of warrant liability | ($59) | ($979) | | Non-cash settled share-based compensation | $64,920 | $81,906 | | **Adjusted Net Loss (non-GAAP)** | **($41,551)** | **($77,273)** | | **Adjusted net loss per share (non-GAAP)** | **($0.13)** | **($0.25)** | [Reconciliation of Net Loss to EBITDA and Adjusted EBITDA](index=12&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20EBITDA%20and%20Adjusted%20EBITDA) For full year 2023, the GAAP net loss of **$106.4 million** was reconciled to an adjusted EBITDA loss of **$19.6 million**, significantly improving from the prior year and Q4 2022 FY 2023 EBITDA Reconciliation (in thousands) | Metric | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Net loss (GAAP) | ($106,412) | ($158,200) | | EBITDA (non-GAAP) | ($84,455) | ($137,658) | | **Adjusted EBITDA (non-GAAP)** | **($19,594)** | **($56,731)** | Q4 2023 EBITDA Reconciliation (in thousands) | Metric | Q4 2023 | Q4 2022 | | :--- | :--- | :--- | | Net loss (GAAP) | ($24,591) | ($33,698) | | EBITDA (non-GAAP) | ($15,826) | ($29,598) | | **Adjusted EBITDA (non-GAAP)** | **($2,592)** | **($11,789)** |

Company Classification and Growth - The company is classified as an "emerging growth company" under the JOBS Act, which allows it to provide only two years of audited financial statements and reduced disclosure obligations [333]. - The company will maintain its status as an emerging growth company until it reaches total annual gross revenue of $1.235 billion or other specified conditions [334]. Dividend Policy - The company does not intend to pay dividends on common stock for the foreseeable future, opting to retain funds for business development and growth [347]. Stock Performance and Market Risks - The trading price of the common stock is expected to be volatile, influenced by various factors including market conditions and company performance [342]. - The company’s ability to attract research coverage from securities analysts is crucial, as unfavorable commentary could negatively impact the stock price [348]. Compliance and Legal Risks - The company faces risks related to compliance with anti-corruption laws, particularly in China, which could adversely affect its business and financial condition [349]. - The company has implemented safeguards to prevent unauthorized payments in compliance with anti-corruption laws, but risks remain [349]. - The company’s stockholder litigation provisions may limit stockholders' ability to bring claims in favorable judicial forums, which could discourage lawsuits [336]. Economic and Operational Challenges - The ongoing effects of the COVID-19 pandemic have led to significant volatility in the global economy and disruptions in the supply chain, impacting vehicle sales [353]. - The sales cycle for the company's products can be lengthy, sometimes exceeding four years, making revenue forecasting challenging [355]. - Revenue and operating results are expected to fluctuate significantly due to external factors such as economic conditions and customer order changes [356]. Financial Performance Overview - Revenues for the year ended December 31, 2023, were $204,495 million, a significant increase from $151,976 million in 2022, representing a growth of approximately 34.5% [501]. - The gross profit for 2023 was $9,073 million, a recovery from a gross loss of $42,743 million in 2022 [501]. - Operating expenses increased to $170,691 million in 2023 from $157,448 million in 2022, reflecting a rise of about 8.0% [501]. - The net loss attributable to common stock shareholders decreased to $158,200 million in 2023 from $234,103 million in 2022, indicating an improvement of approximately 32.4% [501]. - The comprehensive loss for 2023 was $114,033 million, down from $182,982 million in 2022, showing a reduction of about 37.5% [504]. - Basic and diluted net loss per share improved to $(0.52) in 2023 from $(1.26) in 2022 [501]. Cash Flow and Liquidity - As of December 31, 2023, cash and cash equivalents decreased to $44.541 million from $231.420 million in 2022, a decline of approximately 81.7% [496]. - Total cash, cash equivalents, and restricted cash decreased to $88,189 thousand in 2023 from $302,617 thousand in 2022, showing a significant decline in available cash resources [515]. - The company reported a net cash used in operating activities of $75,303 thousand for 2023, compared to $53,928 thousand in 2022, indicating increased cash outflows from operations [513]. - Management has concluded that existing cash and cash equivalents will not be sufficient to fund operations and capital expenditures for the next twelve months [531]. Assets and Liabilities - Total assets rose from $984.957 million in 2022 to $1.096732 billion in 2023, an increase of approximately 11.3% [496]. - Total liabilities increased significantly from $371.980 million in 2022 to $532.542 million in 2023, representing a rise of about 43.1% [496]. - The accumulated deficit grew from $791.165 million in 2022 to $897.501 million in 2023, indicating an increase of approximately 13.4% [498]. - The company’s total shareholders' equity as of December 31, 2023, was $564,190 thousand, a decrease from $612,977 thousand at the end of 2022, indicating a decline in net worth [510]. Research and Development - Research and development expenses rose to $43,508 million in 2023, compared to $34,385 million in 2022, marking an increase of approximately 26.3% [501]. - The Group's research and development expenses primarily consist of salaries, raw materials, and general expenses associated with R&D activities [572]. Inventory and Receivables - Accounts receivable increased from $119,304 million in 2022 to $138,717 million in 2023, reflecting a growth of about 16.3% [496]. - Total inventories rose significantly from $84,252 in 2022 to $149,749 in 2023, marking an increase of about 77.6% [617]. Capital Expenditures and Investments - The company incurred $186,788 thousand in capital expenditures for property, plant, and equipment in 2023, up from $150,880 thousand in 2022, indicating ongoing investment in growth [514]. - The Group completed a capacity expansion project in China with a total project amount of $168,467 in Q3 2023 [621]. Funding and Financing - An estimated additional funding of $150,000 to $170,000 is required to complete the Tennessee capacity expansion [529]. - The Group is pursuing a Proposed Term Loan of $150,000 to support the Tennessee capacity expansion, with a maturity term of four years [534]. - The Group is evaluating various funding initiatives, including debt or equity issuance and the sale of non-core U.S. real estate assets [535]. - The Group has engaged an investment bank to assess strategic alternatives and solicit additional financing from third-party sources [536]. Warrants and Shareholder Equity - The Company assumed 27,600,000 Public Warrants and 837,000 Private Warrants upon the Merger, with an exercise price of $11.50 per share [647]. - None of the Public Warrants or Private Warrants have been exercised during the year ended December 31, 2023 [647]. - The Public Warrants will expire five years after the completion of the Merger or earlier upon redemption or liquidation [648].