TOKYO, Aug. 21, 2024 /PRNewswire/ -- TOYO Co., Ltd (Nasdaq: TOYO) ("TOYO" or the "Company"), a solar solution company, today announced its financial results for the six months ended June 30, 2024.
First Six Months of 2024 Highlights
- Revenues of $138.1 million versus $0 revenues in the first half of 2023
- Gross Margin of 19.3%
- Net income of $19.6 million versus a loss of $1.9 million in the first half of 2023
- 985 MW shipped
"We are pleased with our financial and operational achievements in the first half of 2024, highlighting our team's outstanding execution capabilities," said Junsei Ryu, Chairman and CEO of TOYO. "Since we commenced manufacturing in October 2023, our facility has successfully delivered 1.3 GW of solar cells to customers. Customer feedback on the product's technical specifications and quality has been exceptional, and our team showed that they were able to establish high-volume cell manufacturing using advanced automation in the industry in record time. Confident in our ability to replicate this success, we are gearing up and expecting to begin the construction of a 2 GW solar module manufacturing facility in the U.S. in the fourth quarter of 2024."
Revenues for the first half of 2024 were $138.1 million, increased from zero in the comparable six months in 2023. The increase was primarily driven by sales as the facility increased its production capacity, which commenced in October 2023.
The cost of revenues was $111.4 million for the first six months of 2024, compared to zero for the same period of the last year, reflecting the absence of production in the same period of 2023.
Selling and marketing expenses were $0.36 million for the first six months of 2024 compared to zero for the same period of the last year.
General and administrative expenses were $3.8 million for the first six months of 2024, compared to $1.8 million for the same period of the last year.
Total operating expenses increased to $4.2 million for the first six months of 2024, from $1.8 million for the same period of the last year.
Net income was $19.6 million for the first six months of 2024, compared to a net loss of $1.9 million for the same period of the last year.
Earnings per share, basic and diluted, was $0.48 for the first six months of 2024, compared to a loss per share, basic and diluted of $0.05 for the same period of the last year3.
As of June 30, 2024, the Company had $44.4 million in cash and restricted cash in total, compared to $19.0 million as of December 31, 2023.
Recent Developments
- Completed business combination with Blue World Acquisition Corporation and, the ordinary shares of TOYO started trading on the Nasdaq Stock Market on July 2, 2024
- Signed a global cooperation agreement with OCI Company Limited, a major Korean silicon material supplier, to offer our customers trustworthy and verifiable photovoltaic products
- Reached the final stage of negotiations to build a 2GW solar module manufacturing plant in the United States
Business Outlook
At the beginning of the year, annual shipments were expected to reach 2.5 GW based on the demands of solar utilities, primarily in the U.S., for advanced N-Topcon solar modules and the strong brand reputation of TOYO Solar's affiliate, Vietnam Sunergy Joint Stock Company. However, due to the U.S. trade investigation into Southeast Asian solar manufacturers, which included TOYO's facility in Vietnam, the Company and its major clients have decided to reduce shipment volumes until the announcement of preliminary investigation results expected to be available between September to November 2024. As a result, the Company currently expects to deliver over 1.9 GW in orders during the full year 2024.
"The expiration of the two-year tariff exemption period at the beginning of June, combined with the probe into anti-dumping and countervailing duties by the U.S. Department of Commerce and International Trade Commission, have injected near-term uncertainty into pricing and demand for advanced solar products from the U.S., TOYO's primary market," commented Mr. Ryu.
"While these measures are targeted towards Chinese solar companies with operations in Southeast Asia, they also might apply to TOYO, despite having a Japanese parent company. To address this situation, we are accelerating plans to build out our U.S. manufacturing presence while increasing shipments to customers based in India, the Middle East, and other markets. Our strategy to build an integrated value chain in North America serving our U.S. customers remains unchanged, and we will continue to observe and adapt to dynamic industry conditions."
Conference Call
TOYO will host a webcast and conference call to discuss its first half of 2024 results on August 21, 2024, at 9:30 a.m. ET. A live webcast and a slide presentation will be available on TOYO's investor relations website in the "Events" section at investors.toyo-solar.com.
The dial-in numbers for the conference call are as follows:
Participant (toll-free): 1-800-579-2543
Participant (international): 1-203-518-9843
A webcast replay will be available for one year following the call's completion on the Company's investor relations website at investors.toyo-solar.com.
Exchange Rate Information
This announcement contains translations of certain Vietnamese Dong, or VND, amounts into U.S. dollars at a specified rate solely for the reader's convenience. Unless otherwise noted, except for the ash balance made at a rate of VND25,455 to US$1.00, the exchange rate as of June30, 2024, all translations from VND to U.S. dollars and from U.S. dollars to VND are made at a rate of VND 24,962 to US$1.00, the average exchange rate for period of six months ended June 30, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the VND or U.S. dollar amounts referenced could be converted into U.S. dollars or VND, as the case may be, at any particular rate or at all.
About TOYO Co., Ltd.
TOYO is a solar solutions company that is committed to becoming a full-service solar solutions provider in the global market, integrating the upstream production of wafers and silicon, midstream production of solar cells, downstream production of photovoltaic modules, and potentially other stages of the solar power supply chain. TOYO is well-positioned to produce high-quality solar cells at a competitive scale and cost.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the expected growth of TOYO, the expected order delivery of TOYO, TOYO's construction plan of manufactures and strategies of building up integrated value chain in the U.S. . These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of TOYO's management and are not predictions of actual performance.
These statements involve risks, uncertainties, and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by these forward-looking statements. Although TOYO believes that it has a reasonable basis for each forward-looking statement contained in this press release, TOYO caution you that these statements are based on a combination of facts and factors currently known and projections of the future, which are inherently uncertain. In addition, there are risks and uncertainties described in the documents filed by TOYO from time to time with the SEC. These filings may identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements.
TOYO cannot assure you that the forward-looking statements in this press release will prove to be accurate. These forward-looking statements are subject to several risks and uncertainties, including, among others, the outcome of any potential litigation, government or regulatory proceedings, the sales performance of TOYO, and other risks and uncertainties, including but not limited to those included under the heading "Risk Factors" of the filings of TOYO with the SEC. There may be additional risks that TOYO does not presently know or that TOYO currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In light of the significant uncertainties in these forward-looking statements, nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. The forward-looking statements in this press release represent the views of TOYO as of the date of this press release. Subsequent events and developments may cause those views to change. However, while TOYO may update these forward-looking statements in the future, there is no current intention to do so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing the views of TOYO as of any date subsequent to the date of this press release. Except as may be required by law, TOYO does not undertake any duty to update these forward-looking statements.
Contact Information:
For TOYO Co., Ltd.
IR@toyo-solar.com
Crocker Coulson
Email: crocker.coulson@aummedia.org
Tel: (646) 652-7185
TOYO Co., Ltd. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Currency expressed in United States Dollars ("US$"), except for number of shares) | ||||||||
June 30, | December 31, | |||||||
2024 | 2023 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash | $ | 41,669,523 | $ | 18,035,405 | ||||
Restricted cash | 129,635 | 82,195 | ||||||
Accounts receivable – a related party | 121,118 | — | ||||||
Prepayments | 229,992 | 149,304 | ||||||
Prepayments – a related party | 27,048,348 | 24,400,798 | ||||||
Inventories, net | 27,190,797 | 39,999,992 | ||||||
Other current assets | 169,005 | 85,702 | ||||||
Total Current Assets | 96,558,418 | 82,753,396 | ||||||
Non-current Assets | ||||||||
Restricted cash, non-current | 2,587,665 | 879,893 | ||||||
Deferred offering costs | 2,576,390 | 2,084,810 | ||||||
Long-term prepaid expenses | 7,311,709 | 7,757,193 | ||||||
Deposits for property and equipment | 1,364,798 | 1,466,878 | ||||||
Property and equipment, net | 130,812,056 | 142,781,558 | ||||||
Right of use assets | 233,357 | 537,032 | ||||||
Other non-current assets | — | 22,250 | ||||||
Total Non-current Assets | 144,885,975 | 155,529,614 | ||||||
Total Assets | $ | 241,444,393 | $ | 238,283,010 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Short-term bank borrowings | $ | 34,008,887 | $ | — | ||||
Accounts payable | 25,018,771 | 37,221,124 | ||||||
Contract liabilities | 4,913,175 | 530,817 | ||||||
Contract liabilities – a related party | 9,137,458 | 28,815,934 | ||||||
Due to related parties | 68,509,793 | 96,867,739 | ||||||
Other payable and accrued expenses | 3,771,701 | 5,606,763 | ||||||
Lease liabilities, current | 32,901 | 151,260 | ||||||
Total Current Liabilities | 145,392,686 | 169,193,637 | ||||||
Lease liabilities, non-current | 228,240 | 372,725 | ||||||
Long-term bank borrowings | 22,412,628 | 11,819,527 | ||||||
Total Non-current Liabilities | 22,640,868 | 12,192,252 | ||||||
Total Liabilities | 168,033,554 | 181,385,889 | ||||||
Commitments and Contingencies | ||||||||
Shareholders' Equity | ||||||||
Ordinary shares (par value $0.0001 per share, 500,000,000 shares authorized, | 4,100 | 4,100 | ||||||
Additional paid-in capital | 50,005,900 | 49,995,900 | ||||||
Retained earnings | 29,252,764 | 9,702,316 | ||||||
Accumulated other comprehensive loss | (5,851,925) | (2,805,195) | ||||||
Total Shareholders' Equity | 73,410,839 | 56,897,121 | ||||||
Total Liabilities and Shareholders' Equity | $ | 241,444,393 | $ | 238,283,010 | ||||
* The share information is presented on a retroactive basis to reflect the reorganization effected on February 27, 2024. | ||||||||
TOYO Co., Ltd. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
AND COMPREHENSIVE INCOME (LOSS) | ||||||||
(Currency expressed in United States Dollars ("US$"), except for number of shares) | ||||||||
For the Six Months Ended | ||||||||
2024 | 2023 | |||||||
Revenues from related parties | $ | 112,287,775 | $ | — | ||||
Revenues from third parties | 25,790,220 | — | ||||||
Revenues | 138,077,995 | — | ||||||
Cost of revenues – related parties | (84,435,258) | — | ||||||
Cost of revenues – third parties | (26,995,841) | — | ||||||
Cost of revenues | (111,431,099) | — | ||||||
Gross profit | 26,646,896 | — | ||||||
Operating expenses | ||||||||
Selling and marketing expenses | (355,026) | — | ||||||
General and administrative expenses | (3,836,158) | (1,756,468) | ||||||
Total operating expenses | (4,191,184) | (1,756,468) | ||||||
Income (loss) from operations | 22,455,712 | (1,756,468) | ||||||
Other expenses, net | ||||||||
Interest expenses, net | (1,767,661) | (165,644) | ||||||
Other expenses, net | (1,137,603) | (148) | ||||||
Total other expenses, net | (2,905,264) | (165,792) | ||||||
Income (loss) before income taxes | 19,550,448 | (1,922,260) | ||||||
Income tax expenses | — | — | ||||||
Net income (loss) | $ | 19,550,448 | $ | (1,922,260) | ||||
Other comprehensive loss | ||||||||
Foreign currency translation adjustment | (3,046,730) | (1,632,089) | ||||||
Comprehensive income (loss) | $ | 16,503,718 | $ | (3,554,349) | ||||
Weighted average number of ordinary share outstanding – basic and diluted* | 41,000,000 | 41,000,000 | ||||||
Earnings (loss) per share – basic and diluted* | $ | 0.48 | $ | (0.05) | ||||
* The share information is presented on a retroactive basis to reflect the reorganization effected on February 27, 2024. | ||||||||
TOYO Co., Ltd. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Currency expressed in United States Dollars ("US$") | ||||||||
For the Six Months | ||||||||
2024 | 2023 | |||||||
Net cash provided by (used in) operating activities | $ | 21,798,732 | $ | (1,860,902) | ||||
Cash flows from investing activities: | ||||||||
Purchase of property and equipment | (16,592,618) | (79,638,281) | ||||||
Purchase of property and equipment from a related party | — | (4,512,810) | ||||||
Net cash used in investing activities | (16,592,618) | (84,151,091) | ||||||
Cash flows from financing activities: | ||||||||
Capital injection from shareholders | 10,000 | 42,360,581 | ||||||
Proceeds from short-term bank borrowings | 34,680,563 | — | ||||||
Proceeds from long-term bank borrowings | 11,363,413 | — | ||||||
Proceeds from borrowings from a related party | 5,000,000 | 44,774,119 | ||||||
Repayment of borrowings to a related party | (27,992,018) | — | ||||||
Payments of offering costs | (1,569,634) | (593,335) | ||||||
Net cash provided by financing activities | 21,492,324 | 86,541,365 | ||||||
Effect of exchange rate changes on cash | (1,309,108) | (1,549,580) | ||||||
Net increase (decrease) in cash | 25,389,330 | (1,020,208) | ||||||
Cash and restricted cash at beginning of period | 18,997,493 | 2,065,448 | ||||||
Cash and restricted cash at end of period | $ | 44,386,823 | $ | 1,045,240 | ||||
Supplemental cash flow information | ||||||||
Cash paid for interest expense to a bank | $ | 1,059,748 | $ | — | ||||
Cash paid for interest expense to a related party | $ | 631,388 | $ | — | ||||
Cash paid for income tax | $ | — | $ | — | ||||
Supplemental cash flow information for non-cash operating, investing and | ||||||||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | — | $ | 472,163 | ||||
Purchase of property, plant and equipment financed by accounts payable | $ | 23,024,401 | $ | 14,749,735 | ||||
Payment of offering cost financed by other payable | $ | 700,000 | $ | — | ||||
Reconciliation of cash and restricted cash to the consolidated balance sheets | ||||||||
June 30, | December 31, | |||||||
Cash | $ | 41,669,523 | $ | 18,035,405 | ||||
Restricted cash | 129,635 | 82,195 | ||||||
Restricted cash, non-current | 2,587,665 | 879,893 | ||||||
$ | 44,386,823 | $ | 18,997,493 | |||||
