Phoenix Motor (US:PEV)2023-08-16 00:32Financial Data and Key Metrics Changes - For Q2 2023, net revenues were $1.2 million, a decrease of 23% compared to $1.5 million in Q2 2022, despite an 80% increase in electric vehicle sales, which was offset by a decline in electric forklift sales [7][21] - Cost of revenues remained at $1.2 million, resulting in a gross loss of $61,000 compared to a gross profit of $325,000 in the prior year, driven by a decline in gross margin from forklift sales [8][21] - SG&A expenses increased to $3.1 million from $2.3 million year-over-year, primarily due to higher payroll expenses, leading to a net loss of $3.2 million compared to a net loss of $2 million in the previous year [21] Business Line Data and Key Metrics Changes - The Retrofit Solutions business is gaining traction, with increasing inquiries from fleet owners looking to modernize and reduce carbon footprints [6][14] - Over half of vehicle deliveries in the recent quarter were leases to a large repeat customer, which, if classified as sales, would have increased total net revenues by approximately $1 million [20] Market Data and Key Metrics Changes - The company serves over 50 commercial fleet customers, having deployed over 125 shuttle buses and trucks with a combined distance traveled of more than 4 million miles [9][16] - The medium-duty EV market is heavily dependent on the supply of Ford chassis, with anticipated supply shortages prompting plans for a Gen 5 ground-up design [25] Company Strategy and Development Direction - The company aims to be a leader in sustainable and zero-emission medium-duty transportation, with a focus on Gen 4 and Gen 5 vehicle development [3][19] - The asset-light business model is a key differentiator, allowing for lower costs and faster production times, with plans to ramp Gen 4 production to 20-25 units per month in the first half of next year [19][22] - Future vehicle lines include EdisonFuture, a light-duty offering with solar-powered components expected to launch in 2025 [26][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges in battery supply and chassis availability but has secured a long-term supply agreement with CATL for Gen 4 vehicles [12][25] - The Gen 4 development is expected to be profitable with high gross margins, and its principles will be applied to the Gen 5 design for enhanced security and flexibility [13][36] Other Important Information - The company has reduced the number of parts in its Gen 4 vehicles from 450 to 70, improving design efficiency and supply chain management [24] - The Anaheim manufacturing facility will be reconfigured as a showcase and training center for third-party manufacturing partners [31] Q&A Session Summary - The management expressed appreciation for the interest in the company and encouraged questions via email, indicating a commitment to shareholder value and business development [28]