Microvast Posts 62.8% Revenue Drop and Seeks Debt Changes

U.S.-listed Microvast Holdings, Inc. posted a 62.8% year-over-year revenue decline in the third quarter and said it is discussing near-term debt with lenders while weighing asset sales and operating cuts.

Management is speaking with lenders about refinancing obligations due soon, extending repayment terms or restructuring the debt. It cautioned that the discussions may not succeed. Microvast is also considering asset sales, reducing its workforce and curbing costs. It has deferred discretionary capital spending.

Sales volume was about 190 MWh, down from about 502 MWh a year earlier, a 62.2% contraction. Gross margin fell to 5.2% from 37.6%. A $9.3 million inventory write-down contributed to the decline.

Microvast founder, Chairman and CEO Yang Wu said the quarter brought difficult operating conditions: “As our financial results detail, the third quarter presented a highly challenging operating environment for Microvast.”