Phoenix Motor Inc.

Phoenix Motor reported Q1 2024 net revenue of $9.4 million versus $1.8 million in the prior-year period. Gross profit was $2.5 million, up from $0.2 million, and gross margin was 26.6% compared with 9.7% a year ago. Net income was $14.8 million, or $0.49 per share, driven primarily by a $32.9 million bargain inventory purchase gain. The company said total assets increased to $78.7 million and net assets were $23.7 million. For Q2, management expects about $12 million in revenue, which they said would be more than 20% sequential growth.

Denton Peng framed the quarter as a major turning point, saying the acquisition of a large zero-emission bus manufacturer significantly expanded Phoenix Motor’s capabilities and positioned it as a leader in the electric transit bus market. He emphasized record financial results, a strengthened balance sheet, and compliance with key NASDAQ listing standards. His tone was upbeat and strategic, pointing to a $200 million backlog and expectations that the transit bus business will drive future revenue.

Michael Yung highlighted the main financial drivers behind the quarter, saying Proterra Transit contributed $9 million of the $9.4 million in revenue. He noted that cash flow constraints affected delivery volume, but gross profit improved to $2.5 million and gross margin expanded to 26.6% because of the higher-margin transit business. On capital structure, he said the company secured a waiver that eliminated a potential $12 million convertible promissory note, raised $11.1 million in new capital at an average share price of $1.15, and expects about $12 million in Q2 revenue.

There was no analyst Q&A; no questions were asked. Management did, however, address likely investor concerns in prepared remarks by acknowledging that cash flow constraints limited first-quarter deliveries while explaining that the acquisition and recent capital raise improved flexibility. They also stressed that the waiver of a potential $12 million convertible note would avoid dilution and support growth plans.