Phoenix Motor Inc. reported significant financial growth in its annual Form 10-K filing for the fiscal year ending December 31, 2024. The company achieved total revenues of $31.2 million, a substantial increase of 897.9% compared to $3.1 million in the previous year. This surge in revenue was primarily driven by the acquisition of the Proterra Transit Business Unit, which contributed approximately $30 million to the total revenue. Despite this growth, Phoenix recorded a net income of $7.9 million, a notable turnaround from a net loss of $20.6 million in 2023, although the net income was bolstered by a one-time bargain purchase gain of $38.3 million from the Proterra acquisition.
The company’s operational metrics reflected a shift in focus towards the transit business, with a decrease in electric vehicle (EV) sales. Phoenix delivered only three EVs in 2024, down from nine in 2023, attributed to cash flow challenges and a strategic pivot towards enhancing its transit offerings. The backlog of orders included approximately 154 transit buses valued at $160.8 million and 73 medium-duty vehicle orders worth $16.7 million, indicating a strong demand for its products in the commercial EV market.
In terms of strategic developments, Phoenix completed the acquisition of Proterra's transit business unit on January 11, 2024, for $3.5 million, followed by the acquisition of Proterra's battery lease contracts for $6.5 million on February 7, 2024. These acquisitions are expected to enhance Phoenix's product offerings and operational efficiencies. The company also integrated its transit bus and medium-duty truck operations into a single management framework to streamline production and improve efficiency.
As of December 31, 2024, Phoenix employed 159 full-time staff, primarily in manufacturing roles, and has been actively working to optimize its workforce and operational costs. The company reported a gross profit margin of 23.6%, a significant improvement from a negative margin in the previous year, driven by higher margins on both EV and transit bus sales. However, the company continues to face challenges, including supply chain disruptions and the need for additional capital to support its growth initiatives.
Looking ahead, Phoenix Motor Inc. aims to capitalize on the growing demand for commercial electric vehicles, supported by favorable government regulations and incentives. The company plans to pursue an asset-light strategy, enhance production capabilities, and improve cost structures to achieve sustainable profitability. However, the filing also highlighted substantial doubts regarding the company's ability to continue as a going concern, emphasizing the need for effective execution of its strategic plans and the importance of securing additional funding to support ongoing operations.
About PHOENIX MOTOR INC.
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