Press Release: TOYO Announces Updated Audited Financial Results for the Full Year 2024

Dow Jones
May 15, 2025

TOYO Announces Updated Audited Financial Results for the Full Year 2024

PR Newswire

TOKYO, May 15, 2025

TOKYO, May 15, 2025 /PRNewswire/ -- TOYO Co., Ltd (Nasdaq: TOYO) ("TOYO" or the "Company"), a solar solution company, today announced certain updates to its press release issued on April 28, 2025, announcing the Company's second half and fiscal year ended December 2024 financial results. The Company's Annual Report on Form 20-F for the fiscal year ended December 31, 2024, was filed with the Securities and Exchange Commission ("SEC") on May 12, 2025.

The operating expenses, general and administrative expenses, net income, and earnings per share for the fiscal year ended 2024 disclosed in the prior press release are updated and reflected in the audited financial statements as set forth below.

Operating expenses were $13.0 million for 2024 compared to $4.7 million in the prior year, representing an increase of 180.4% year-over-year.

   -- Selling and marketing expenses were $1.6 million for the fiscal year 2024 
      compared to $0.02 million in 2023. The increase was primarily due to an 
      increase of approximately $1.2 million in freight and handling expenses 
      and an increase of approximately $0.2 million in sales commissions. 
 
   -- General and administrative expenses were $11.4 million for the fiscal 
      year 2024, an increase from $4.6 million in 2023. The increase was 
      primarily attributable to an increase of payroll and welfare expenses of 
      approximately $3.3 million, an increase of audit and consulting expenses 
      of approximately $1.9 million, an increase of approximately $0.6 million 
      in rental expenses, an increase of approximately $0.9 million in 
      depreciation and amortization expenses, and expense of offering cost 
      allocated to contingent consideration payable. 

Net income was $40.5 million for 2024, compared to a net income of $9.9 million in the prior year. Net income in 2024 included a $35.1 million change in fair value of contingent consideration payable for 13 million earnout shares.

Earnings per share under US GAAP, basic and diluted, were $1.09 for 2024 compared to earnings per share, basic and diluted, of $0.24 in the prior year.

Earnout shares to be released to initial shareholders would be calculated based on the Company's audited net profit of $5.4 million, which excludes changes in fair value of such earnout shares as of December 31, 2024, divided by the benchmark amount of $41 million multiplied by 13 million earnout shares. 11,287,703 earnout shares are expected to be surrendered to and canceled by the Company, resulting in a total of 35,308,040 ordinary shares issued and outstanding immediately after such surrender.

As of December 31, 2024, the Company had $17.1 million in cash and restricted cash in total, compared to $19.0 million as of December 31, 2023.

For more information, investors will be able to obtain copies of the Company's Annual Report on Form 20-F for the fiscal year ended December 31, 2024 at the SEC' website at www.sec.gov.

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 an 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, activity levels, performance, or achievements to materially differ 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 
                     CONSOLIDATED BALANCE SHEETS 
   (Currency expressed in United States Dollars ("US$"), except for 
                          number of shares) 
 
                               December 31,        December 31, 
                                   2024                2023 
                               ------------  ------------------------- 
ASSETS 
Current Assets 
Cash                           $ 13,654,445             $   18,035,405 
Restricted cash                   1,878,267                     82,195 
Accounts receivable, net          6,913,996                         -- 
Accounts receivable -- 
related parties                  11,840,648                         -- 
Prepayments                         392,249                    149,304 
Prepayments -- a related 
 party                                   --                 24,400,798 
Inventories, net                 19,984,094                 39,999,992 
Other current assets                725,130                     85,702 
                                -----------  ------------  ----------- 
Total Current Assets             55,388,829                 82,753,396 
 
Non-current Assets 
Restricted cash, non-current      1,616,677                    879,893 
Deferred offering costs                  --                  2,084,810 
Long-term prepaid expenses        7,217,986                  7,757,193 
Deposits for property and 
 equipment                        9,716,009                  1,466,878 
Property and equipment, net     129,039,494                142,781,558 
Right of use assets              36,627,800                    537,032 
Other non-current assets            192,905                     22,250 
                                -----------  ------------  ----------- 
Total Non-current Assets        184,410,871                155,529,614 
                                -----------  ------------  ----------- 
Total Assets                   $239,799,700             $  238,283,010 
                                -----------  ------------  ----------- 
 
LIABILITIES AND EQUITY 
Current Liabilities 
Short-term bank borrowings     $ 16,126,730             $           -- 
Accounts payable                 17,629,696                 37,221,124 
Contract liabilities              3,635,144                    530,817 
Contract liabilities -- 
 related parties                 20,098,561                 28,815,934 
Income tax payable                  781,238                         -- 
Due to related parties           56,633,373                 96,867,739 
Other payable and accrued 
 expenses                         3,392,774                  5,606,763 
Lease liabilities, current        2,118,900                    151,260 
Contingent consideration 
payable (13,000,000 earnout 
shares subject to surrender 
and cancel as of December 
31, 

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