Financial Performance - Revenues for the six months ended June 30, 2025, reached $139.11 million, slightly up from $138.08 million in the same period of 2024, indicating a growth of 0.75%[4] - Gross profit decreased to $23.08 million for the first half of 2025, down from $26.65 million in 2024, reflecting a decline of 13.5%[4] - Net income attributable to TOYO Co., Ltd.'s shareholders was $3.47 million for the six months ended June 30, 2025, compared to $19.55 million in 2024, a decrease of 82.24%[4] - The company reported a comprehensive income of $1.79 million for the first half of 2025, down from $16.50 million in the same period of 2024, a decline of 89.2%[4] - For the six months ended June 30, 2025, TOYO reported total revenue of $139,105,223, a slight increase from $138,077,995 in the same period of 2024[42] - For the six months ended June 30, 2025, the net income attributable to TOYO Co., Ltd.'s shareholders was $3,467,011, with earnings per share of $0.10, compared to $19,550,448 and $0.48 for the same period in 2024[143] Assets and Liabilities - Total assets increased to $353.62 million as of June 30, 2025, up from $239.80 million at the end of 2024, representing a growth of 47.5%[1] - Total current liabilities rose to $249.26 million as of June 30, 2025, compared to $125.03 million at the end of 2024, an increase of 99.4%[1] - Shareholders' equity increased to $70.24 million as of June 30, 2025, up from $59.44 million at the end of 2024, a growth of 18.5%[1] - The Company's long-lived assets totaled $228,510,728 as of June 30, 2025, an increase from $182,601,289 as of December 31, 2024[54] - As of June 30, 2025, the Company had a working capital deficit of $131,381,504, which raised substantial doubt about its ability to continue as a going concern[71] Cash Flow and Financing - Cash and cash equivalents increased significantly to $28.19 million as of June 30, 2025, compared to $13.65 million at the end of 2024, an increase of 106.5%[1] - Net cash provided by operating activities for the six months ended June 30, 2025, was $40,045,122, compared to $21,798,732 for the same period in 2024, representing an increase of 83.5%[9] - The company incurred total operating expenses of $13.41 million for the first half of 2025, compared to $4.19 million in 2024, an increase of 219.5%[4] - The company has drawn down approximately $13.6 million from a long-term bank credit facility with BIDV, with an unused line of credit of approximately $76.4 million as of June 30, 2025[82] - The Company is actively seeking financing from outside investors and financial institutions to improve liquidity and support its business plan[75] Inventory and Sales - Revenue from sales of solar cells to third parties reached $114,019,674 for the six months ended June 30, 2025, compared to $25,790,220 for the same period in 2024, indicating a significant growth[42] - Total inventories as of June 30, 2025, reached $53,547,925, up from $19,984,094 as of December 31, 2024, with raw materials accounting for $29,175,156[78] - The company commenced sales of solar cells in the second half of 2023 and began providing facilitation services for solar cell products in the second half of 2024[38][40] Shareholder Information - The company issued 41,000,000 ordinary shares at par value of $0.0001 per share to existing shareholders on a pro rata basis on February 23, 2024[14] - As of July 1, 2024, TOYO had 33,095,743 ordinary shares outstanding, with offering costs capitalized at $2,572,889, reducing additional paid-in capital[23] - The Company issued 41,000,000 ordinary shares on February 23, 2024, as part of its reorganization, with no cash consideration involved[120] - The Company had 4,600,000 Public Warrants outstanding as of June 30, 2025, with an exercise price of $11.50 per share[134] Risk and Provisions - Two customers accounted for 59% and 14% of accounts receivable as of June 30, 2025, indicating a concentration risk in revenue sources[67] - The company maintains an allowance for credit losses but reported no expected credit losses as of June 30, 2025, and December 31, 2024[33] - The Company has a significant concentration of credit risk, primarily with cash deposits in various financial institutions across different countries[63] Capital Expenditures - The company incurred $47,128,016 in capital expenditures for the purchase of property and equipment during the six months ended June 30, 2025, compared to $16,592,618 in the same period of 2024, reflecting a significant increase of 184.5%[9] - Property and equipment, net increased to $169,340,273 as of June 30, 2025, compared to $129,039,494 as of December 31, 2024, driven by machinery and building investments[79] Tax and Interest Expenses - Cash paid for interest expense to a bank was $748,698 for the six months ended June 30, 2025, compared to $1,059,748 for the same period in 2024, showing a decrease of 29.3%[9] - As of June 30, 2025, the company incurred current income tax expenses of $3,296,448, compared to $nil for the same period in 2024[108] - For the six months ended June 30, 2025, interest expenses recognized were $560,132, compared to $532,514 for the same period in 2024[95] Agreements and Commitments - The Company has future minimum capital commitments of $60,648,024 under non-cancellable agreements for construction projects in Vietnam, Texas, and Ethiopia[147] - On July 2, 2025, the company entered into a Module Supply and Purchase Agreement to supply 380,380 photovoltaic modules for approximately $60 million[157] - The Module Supply and Purchase Agreement is set to expire on December 31, 2025, unless terminated earlier[157]
TOYO Co., Ltd(TOYO) - 2025 Q2 - Quarterly Report