Summary by Moomoo AI
Microvast reported Q2 2024 revenue of $83.7 million, up 12% year-over-year, with gross margin improving to 32.5% from 15.3%. The company recorded a net loss of $101.6 million, primarily due to an $88.0 million impairment charge related to its Clarksville facility. Sales volume increased to 301.7 MWh from 270.2 MWh in Q2 2023, with Europe becoming the largest market at 55% of revenue.The company announced a strategic shift to LFP battery technology for its U.S. operations, pausing construction of the Clarksville facility until additional funding is secured. To improve liquidity, Microvast secured a $25 million convertible loan from CEO Yang Wu, reduced U.S. workforce by 82%, and is exploring the sale of non-core U.S. real estate assets.Management expressed substantial doubt about the company's ability to continue as a going concern, citing insufficient cash to fund operations and capital expenditure needs for the next twelve months. The company had $68.2 million in cash and cash equivalents as of June 30, 2024, with $94.2 million in bank borrowings and an order backlog of $278.6 million.
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