Phoenix Motor Reports Record $9.4 Million Revenue and $14.8 Million Net Income for First Quarter of 2024

ANAHEIM, CA / ACCESSWIRE / October 3, 2024 / Phoenix Motor Inc. (NASDAQ:PEV), a leading manufacturer of heavy-duty transit buses and electrification solutions provider for medium-duty vehicles, today reported financial and operational results for the first quarter ended March 31, 2024.

First Quarter 2024 Financial Highlights

• Net revenues increased to a record $9.4 million, up from $1.8 million in the prior year period.

• Gross profit increased to a record $2.5 million, up from $0.2 million in the prior year period.

• Net income increased to a record $14.8 million, or $0.49 per share, up from a net loss of $2.8 million, or ($0.13) per share, in the prior year period; diluted EPS increased to $0.44 per share, up from ($0.13) per share in the prior year period.

• Total assets increased to $78.7 million, up from $11.6 million at December 31, 2023.

• Stockholders' equity increased to $23.7 million, up from a negative $4.8 million at December 31, 2023.

Q1 and Recent Company Highlights

• Completed the transformative acquisition of the Proterra's Transit business and battery lease portfolio, adding heavy-duty transit buses to Phoenix's existing product line of medium-duty shuttle and school buses.

• Raleigh Durham International Airport (RDU) ordered six-zero emission electric buses in March 2024, marking Phoenix's first formal order after acquiring the Proterra Transit business line.

• Formed long-term partnership with InductEV, a pioneer in wireless vehicle charging technology; Phoenix has already accepted orders for wireless charging of its Class 4 shuttles and expects to deploy its first wireless charging-capable shuttle buses later in 2024.

• Appointed Dr. Lewis Liu as Chief Operating Officer; prior to his new role, Dr. Liu demonstrated exemplary leadership and innovation as the Senior Vice President (SVP) of Operations and SVP of Vehicle Program & Business Development at Phoenix Motor.

• Appointed Michael Yung as Chief Financial Officer (CFO), effective April 17, 2024; Yung brings over 25 years of financial leadership and strategic business acumen to Phoenix Motor.

• Strengthened capital structure by negotiating key waiver with note holder, eliminating a potential $12 million convertible promissory note issuance related to a Securities Purchase Agreement (SPA) signed in November 2023.

• Raised approximately $11.1 million during Q1 through a series of private placements at an average price of $1.15 per share.

• Unveiled new branding at the Advanced Clean Transportation (ACT) Expo.

• Began production of fourth-generation drivetrain for Class-4 shuttle buses and trucks.

• Announced plans to establish an Artificial Intelligence (AI) development center in Silicon Valley to focus on developing next-generation self-driving technology and advanced energy management systems for shuttle buses and transit buses.

• Announced plans to accept Bitcoin as a payment option for purchases of EdisonFuture electric pick-up trucks and delivery vans once those products become available in the market.

"We are extremely pleased to report record revenues and net income for the first quarter of 2024," stated Denton Peng, CEO of Phoenix Motor. "Our substantial net income improvement was driven by a significant bargain purchase gain from our recent acquisition of Proterra's Transit business, which was acquired for considerably below its fair market value."

"As we look ahead, we remain confident in our ability to deliver continued strong performance," continued Peng. "By integrating Proterra's assets with our established operations at Phoenix, we have significantly strengthened our foundation for continued growth. Combined with strategic initiatives, including new product launches and key partnerships, we expect to drive accelerating momentum across all of our business segments, positioning us well for long-term growth in the rapidly evolving electric vehicle sector."

Conference Call Information

Phoenix Motor will host a conference call on Thursday, October 3, 2024, at 4:30 p.m. ET to discuss and answer questions about the Company's operational and financial highlights for the first quarter ended March 31, 2024.

For interested individuals unable to join the conference call, a dial-in replay of the call will be available until October 17, 2024, and can be accessed by dialing +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (International) and entering replay pin number: 13747425.

About Phoenix Motor Inc.

Phoenix Motor, a pioneer in the electric vehicle ("EV") industry, designs, builds, and integrates electric drive systems and manufactures heavy duty transit buses and medium and light duty commercial EVs. Phoenix operates two primary brands, "Phoenix", which is focused on commercial products including heavy and medium duty EVs (transit buses, shuttle buses, school buses and delivery trucks, among others) and "EdisonFuture", which intends to offer light-duty EVs. Phoenix endeavors to be a leading designer, developer and manufacturer of electric vehicles and electric vehicle technologies. To learn more, please visit: phoenixev.ai.

Forward-Looking Statements

This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties. Forward-looking statements can be identified through the use of words such as "may," "might," "will," "intend," "should," "could," "can," "would," "continue," "expect," "believe," "anticipate," "estimate," "predict," "outlook," "potential," "plan," "seek," and similar expressions and variations or the negatives of these terms or other comparable terminology. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's current expectations and speak only as of the date of this release. Actual results may differ materially from the Company's current expectations depending upon a number of factors. These risk factors include, among others, those related to our ability to raise additional capital necessary to grow our business, operations and business and financial performance, our ability to grow demand for our products and revenue, our ability to become profitable, our ability to have access to an adequate supply of parts and materials and other critical components for our vehicles on the timeline we expect, the coronavirus (COVID-19) and the effects of the outbreak and actions taken in connection therewith, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business, and those other risks and uncertainties that are described in the "Risk Factors" section of the Company's annual report filed on Form 10-K filed with the Securities and Exchange Commission. Except as required by law, the Company does not undertake any responsibility to revise or update any forward-looking statements.

Contact:
IR@phoenixev.ai

Dave Gentry, CEO
RedChip Companies, Inc.
1-407-644-4256
PEV@redchip.com

SOURCE: Phoenix Motor Inc.