ESG Inc. Releases Q2 2024 10-Q Report Highlighting Financial and Operational Performance
Thời gian đọc: 1 phút
ESG Inc., a leading producer of fresh mushrooms primarily serving the Yangzi River Delta, has released its Form 10-Q report for the second quarter of 2024. The report provides a detailed overview of the company's financial performance and operational highlights, reflecting the impact of recent facility expansions and market dynamics.
Financial Highlights
- Revenues: $2.51 million for the three months ended June 30, 2024, compared to $3.63 million for the same period in 2023, reflecting a decrease due to the testing phase of expanded facilities.
- Gross Profit: $0.43 million for the three months ended June 30, 2024, compared to $0.70 million for the same period in 2023, with a gross profit margin decrease to 17.22% from 19.36%.
- Operating Income: $0.16 million for the three months ended June 30, 2024, compared to $0.21 million for the same period in 2023, a decrease attributed to facility testing.
- Net Income: $0.10 million for the three months ended June 30, 2024, compared to $0.08 million for the same period in 2023, with no income taxes recorded.
- Net loss per share - basic and diluted: $(0.01) for the three months ended June 30, 2024.
Business Highlights
- Revenue Segments: The company generates revenue primarily from selling fresh mushrooms to authorized distributors and wholesalers, mainly in the Yangzi River Delta. Two main distributors account for 41% and 59% of sales, respectively.
- New Production Launches: The company expanded its facility to triple its previous capacity. Testing of the expanded facility began with one-third capacity in the first quarter and half capacity in the second quarter. Full capacity operations are expected to commence from late July.
- Geographical Performance: The company's operations are primarily based in China, with subsidiaries involved in mushroom composting and growing. The performance is influenced by regional demand and production capabilities.
- Sales Units: The company is involved in direct white button mushroom composting and growing, with production volumes expected to increase following the expansion of facilities.
- Future Outlook: The company anticipates an increase in revenue and gross profit margin after the testing phase of the expanded facility is completed. The full capacity operation is expected to enhance operational efficiency and profitability.