TOYO Co., Ltd (TOYO) sheds going-concern doubts after cash boost
Rhea-AI Filing Summary
TOYO Co., Ltd (TOYO) reported very strong growth and improved liquidity for the six months ended June 30, 2026. Revenues rose to $260.96 million from $139.11 million a year earlier, driven by higher sales of solar cells, new solar module revenue and OEM services. Net income attributable to shareholders increased markedly to $45.82 million from $3.47 million, with basic EPS up to $1.21 from $0.08. Cash and restricted cash increased to $123.42 million from $58.86 million at December 31, 2025, supported by $61.44 million of operating cash flow and equity raises, including a $47.05 million registered direct offering and $5.55 million from an at-the-market program.
Total assets reached $537.57 million and shareholders’ equity rose to $209.79 million from $111.26 million, reflecting profitability and new share issuances. A loan from related party VSUN was extended to June 17, 2028 and reclassified to non-current, turning a prior working capital deficit into $29.83 million of working capital at June 30, 2026. Management states that, given stronger cash flows, improved capital structure and the loan extension, earlier substantial doubt about TOYO’s ability to continue as a going concern has been resolved, and the financial statements are prepared on a going-concern basis.
Positive
- Revenue nearly doubled to $260.96 million from $139.11 million for the six months ended June 30, 2026, reflecting rapid growth in solar cells, solar modules, and OEM services.
- Net income surged to $45.82 million from $3.47 million year over year, with basic EPS rising to $1.21 from $0.08, indicating substantially improved profitability.
- Liquidity and capital structure strengthened with cash and restricted cash up to $123.42 million, equity raised via a $47.05 million registered direct offering and $5.55 million ATM issuance, and total equity increasing to $209.79 million.
- Going-concern risk alleviated: prior substantial doubt related to working capital and related-party debt was resolved after the VSUN loan extension to June 17, 2028, positive cash flows and improved working capital of $29.83 million.
Negative
- Customer concentration is high: for the six months ended June 30, 2026, one third-party and one related-party customer accounted for 35% and 22% of total revenues, respectively, creating dependency risk.
- Inventory write-downs increased to $6.52 million for the six months ended June 30, 2026 (vs. $3.89 million), indicating pressure on net realizable values of certain finished goods.
- Regulatory and operational risk noted: U.S. Customs and Border Protection initiated an investigation in May 2026 relating to shipments from TOYO Ethiopia, and management disclosed uncertainty about potential impacts on sales distribution and inventory recoverability.
Filing Explained
The June 25 issuance and ATM sales raised issued shares to 42,718,948, while warrants and the $30 million ATM authorization leave further issuance capacity.
The
The ATM program was also active by
A registered direct offering is a negotiated sale of registered securities to selected investors; here, the investors were institutional investors. An ATM program instead permits gradual sales of new shares into the open market at prevailing prices.
Issued ordinary shares rose from 37,758,997 at
The warrants represent a future issuance right rather than shares issued in this filing; if exercised, they would add shares, and further ATM sales would also issue new shares.
Key Figures
Key Terms
registered direct offering financial
at-the-market offering financial
contract liabilities financial
Business Combination financial
going concern financial
FAQ
How did TOYO (TOYO) perform financially for the six months ended June 30, 2026?
How strong is TOYO (TOYO)’s liquidity and cash position as of June 30, 2026?
What capital-raising transactions did TOYO (TOYO) complete in 2026?
Has the going-concern uncertainty for TOYO (TOYO) been resolved?
What are the main risks highlighted in TOYO (TOYO)’s interim financial statements?
How concentrated are TOYO (TOYO)’s revenues and receivables?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August
Commission File Number:
5F, Tennoz First Tower
2-2-4, Higashi-Shinagawa, Shinagawa-ku
Tokyo, Japan 140-0002
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
EXPLANATORY NOTE
TOYO Co., Ltd, a Cayman Islands exempted company (“TOYO” or the “Company”), is furnishing this Form 6-K to provide unaudited interim financial statements for the six months ended June 30, 2026.
A copy of the investor presentation of the Company for the conference call held by the Company on August 19, 2026 to discuss the Company’s results for the second quarter of 2026 and the six months ended June 30, 2026 is being furnished as Exhibit 99.3 with this Report on Form 6-K.
A copy of the press release of the Company, dated August 19, 2026, relating to its financial results for the second quarter of 2026 and the six months ended June 30, 2026 is being furnished as Exhibit 99.4 with this Report on Form 6-K.
INCORPORATION BY REFERENCE
This Report on Form 6-K is hereby incorporated by reference in the Company’s registration statements on Form F-3 (File No. 333-290952) and Form S-8 (File No. 333-284642) to the extent not superseded by documents or reports subsequently filed or furnished.
1
EXHIBIT INDEX
| Exhibit No. | Description | |
| 99.1 | Unaudited Interim Consolidated Financial Statements as of June 30, 2026 and for the Six Months Ended June 30, 2026 and 2025. | |
| 99.2 | Operating and Financial Review and Prospects in Connection with the Unaudited Interim Consolidated Financial Statements for the Six Months Ended June 30, 2026 and 2025. | |
| 99.3 | Investor Presentation dated August 19, 2026 | |
| 99.4 | Press release dated August 19, 2026 | |
| 101.INS | XBRL Instance Document | |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
2
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| TOYO Co., Ltd | ||
| By: | /s/ Takahiko Onozuka | |
| Name: | Takahiko Onozuka | |
| Title: | Director and Chief Executive Officer | |
Date: August 19, 2026
3
Exhibit 99.1
TOYO Co., Ltd
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
| June 30, 2026 |
December 31, 2025 |
|||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash | $ | $ | ||||||
| Restricted cash | ||||||||
| Accounts receivable, net | ||||||||
| Accounts receivable – related parties | ||||||||
| Prepayments | ||||||||
| Prepayments – a related party | ||||||||
| Inventories, net | ||||||||
| Other current assets | ||||||||
| Total Current Assets | ||||||||
| Non-current Assets | ||||||||
| Restricted cash, non-current | ||||||||
| Long-term prepaid expenses | ||||||||
| Deposits for property and equipment | ||||||||
| Property and equipment, net | ||||||||
| Right of use assets | ||||||||
| Deferred tax assets | ||||||||
| Other non-current assets | ||||||||
| Total Non-current Assets | ||||||||
| Total Assets | $ | $ | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current Liabilities | ||||||||
| Short-term bank borrowings | $ | $ | ||||||
| Accounts payable | ||||||||
| Accounts payable – related parties | ||||||||
| Contract liabilities | ||||||||
| Contract liabilities – related parties | ||||||||
| Income tax payable | ||||||||
| Due to related parties | ||||||||
| Other payable and accrued expenses | ||||||||
| Lease liabilities, current | ||||||||
| Long-term bank borrowings, current portion | ||||||||
| Total Current Liabilities | ||||||||
| Lease liabilities, non-current | ||||||||
| Due to a related party, non-current | ||||||||
| Total Non-current Liabilities | ||||||||
| Total Liabilities | ||||||||
| Commitments and Contingencies (Note 16) | ||||||||
| Shareholders’ Equity | ||||||||
| Ordinary shares (par value $ | ||||||||
| Additional paid-in capital | ||||||||
| Statutory reserves | ||||||||
| Retained earnings | ||||||||
| Accumulated other comprehensive loss | ( | ) | ( | ) | ||||
| Total Shareholders’ Equity | ||||||||
| Total Liabilities and Shareholders’ Equity | $ | $ | ||||||
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
TOYO Co., Ltd
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(Currency expressed in United States Dollars (“US$”), except for number of shares)
| For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues from related parties | $ | $ | $ | $ | ||||||||||||
| Revenues from third parties | ||||||||||||||||
| Revenues | ||||||||||||||||
| Cost of revenues – related parties | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Cost of revenues – third parties | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Cost of revenues | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Gross profit | ||||||||||||||||
| Operating expenses | ||||||||||||||||
| Selling and marketing expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| General and administrative expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Total operating expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Income from operations | ||||||||||||||||
| Other expenses | ||||||||||||||||
| Interest income (expenses), net | ( | ) | ( | ) | ( | ) | ||||||||||
| Other expenses, net | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Changes in fair value of contingent consideration payable | ( | ) | ( | ) | ||||||||||||
| Total other expenses, net | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Income before income taxes | ||||||||||||||||
| Income tax expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Net income | ||||||||||||||||
| Less: net loss attributable to noncontrolling interests | ( | ) | ( | ) | ||||||||||||
| Net income attributable to TOYO Co., Ltd.’s shareholders | $ | $ | $ | $ | ||||||||||||
| Other comprehensive loss | ||||||||||||||||
| Foreign currency translation adjustment | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Comprehensive income | $ | $ | ||||||||||||||
| Less: net loss attributable to noncontrolling interests | ( | ) | ( | ) | ||||||||||||
| Comprehensive income attributable to TOYO Co., Ltd.’s shareholders | $ | $ | ||||||||||||||
| Weighted average number of ordinary share outstanding– basic | ||||||||||||||||
| Earnings per share – basic | $ | $ | $ | $ | ||||||||||||
| Weighted average number of ordinary share outstanding– diluted | ||||||||||||||||
| Earnings per share –diluted | $ | $ | $ | $ | ||||||||||||
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
2
TOYO Co., Ltd
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Currency expressed in United States Dollars (“US$”), except for number of shares)
| Attributable to TOYO Co., Ltd.’s shareholders | ||||||||||||||||||||||||||||||||
| Ordinary shares | Additional | Accumulated other |
Non- | |||||||||||||||||||||||||||||
| Number of shares |
Amount | paid-in capital |
Statutory reserve |
Retained Earnings |
comprehensive loss |
controlling interest |
Total Amount |
|||||||||||||||||||||||||
| Balance as of December 31, 2024 | $ | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||||||
| Issuance warrants to a service provider | — | |||||||||||||||||||||||||||||||
| Net loss | — | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
| Foreign currency translation adjustments | — | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Balance as of March 31, 2025 | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Settlement of contingent consideration payable | ||||||||||||||||||||||||||||||||
| Issuance warrants to a service provider | — | |||||||||||||||||||||||||||||||
| Capital injection from a non-controlling shareholder | — | |||||||||||||||||||||||||||||||
| Net income (loss) | — | ( | ) | |||||||||||||||||||||||||||||
| Foreign currency translation adjustments | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Balance as of June 30, 2025 | $ | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||||||
| — | ||||||||||||||||||||||||||||||||
| Balance as of December 31, 2025 | $ | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||||||
| Share-based compensation to employees | ( | ) | ||||||||||||||||||||||||||||||
| Share-based compensation to nonemployees | ||||||||||||||||||||||||||||||||
| Net income | — | |||||||||||||||||||||||||||||||
| Foreign currency translation adjustments | — | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Balance as of March 31, 2026 | ( | ) | ||||||||||||||||||||||||||||||
| Issuance of ordinary shares in connection with a registered direct offering | ||||||||||||||||||||||||||||||||
| Issuance of ordinary shares in connection with at-the-market offering (“ATM”) | ||||||||||||||||||||||||||||||||
| Appropriation of statutory reserves | — | ( | ) | |||||||||||||||||||||||||||||
| Net income | — | |||||||||||||||||||||||||||||||
| Foreign currency translation adjustments | — | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Balance as of June 30, 2026 | $ | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||||||
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
3
TOYO Co., Ltd
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Currency expressed in United States Dollars (“US$”)
| For the Six Months Ended June 30, |
||||||||
| 2026 | 2025 | |||||||
| Net cash provided by operating activities | $ | $ | ||||||
| Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | ( | ) | ( | ) | ||||
| Advances made to a related party | ( | ) | ||||||
| Net cash used in investing activities | ( | ) | ( | ) | ||||
| Cash flows from financing activities: | ||||||||
| Capital injection from shareholders | ||||||||
| Proceeds from issuance of ordinary shares in connection with a registered direct offering | ||||||||
| Proceeds from issuance of ordinary shares in connection with ATM | ||||||||
| Proceeds from short-term bank borrowings | ||||||||
| Repayment of short-term bank borrowings | ( | ) | ( | ) | ||||
| Repayment of long-term bank borrowings | ( | ) | ( | ) | ||||
| Proceeds of borrowings from a related party | ||||||||
| Repayment of borrowings to a related party | ( | ) | ||||||
| Net cash provided by financing activities | ||||||||
| Effect of exchange rate changes on cash and restricted cash | ( | ) | ||||||
| Net increase in cash and restricted cash | ||||||||
| Cash and restricted cash at beginning of period | ||||||||
| Cash and restricted cash at end of period | $ | $ | ||||||
| Supplemental cash flow information | ||||||||
| Cash paid for interest expense | $ | $ | ||||||
| Cash paid for income tax | $ | $ | ||||||
| Noncash investing and financing activities | ||||||||
| Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | $ | ||||||
| Payables related to purchase of property and equipment | $ | $ | ||||||
| Issuance of ordinary shares to settle contingent consideration payable | $ | $ | ||||||
Reconciliation of cash and restricted cash to the consolidated balance sheets:
| June 30, 2026 |
December 31, 2025 |
|||||||
| Cash | $ | $ | ||||||
| Restricted cash | ||||||||
| Restricted cash, non-current | ||||||||
| Total cash and restricted cash | $ | $ | ||||||
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
4
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
1. ORGANIZATION AND BUSINESS DESCRIPTION
History of TOYO Co., Ltd
TOYO was incorporated on
As of June 30, 2026, the accompanying unaudited condensed consolidated financial statements reflect the activities of TOYO and each of the following entities:
| Name of Entity | Date of Incorporation | Place of Incorporation | Ownership | Principal Activities | ||||
| Parent company: | ||||||||
| TOYO | ||||||||
| Wholly owned subsidiaries of TOYO | ||||||||
| TOPTOYO Investment Pte. Ltd. (“SinCo”) | ||||||||
| TOYO Solar | ||||||||
| TOYO China Co., Ltd. (“TOYO China”) | ||||||||
| TOYO Holdings LLC (“TOYO USA Holding”) | ||||||||
| TOYO America LLC (“TOYO America”) | ||||||||
| TOYO Solar LLC | ||||||||
| TOYO Solar Texas LLC (formerly named as Solar Plus Technology Texas LLC, “TOYO Texas”) | ||||||||
| TOYO Solar (Singapore) Pte. Ltd. (“TOYO Singapore”) | ||||||||
| TOYO Solar Manufacturing One Member PLC (“TOYO Ethiopia”) | ||||||||
| TOYO Energy LLC (“TOYO Solar PLC”) | ||||||||
| TOYO Solar Clean Energy Company Limited (“TOYO Solar Clean Energy”) |
5
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
1. ORGANIZATION AND BUSINESS DESCRIPTION (cont.)
Reorganization of TOYO
On February 27, 2024, TOYO completed the reorganization of entities under common control of its then existing shareholders, who collectively owned
On February 23, 2024, the Company issued
The Company believed that it was appropriate to reflect the reorganization on a retroactive basis as if such structure existed at that time and in accordance with ASC 805-50-45-5, the entities under common control are presented on a combined basis for all periods to which such entities were under common control. The Company has retroactively adjusted all share and per share data for all periods presented. The unaudited condensed consolidated financial statements are prepared on the basis as if the reorganization became effective as of the beginning of the first year presented in the unaudited condensed consolidated financial statements.
History of Blue World Acquisition Corporation (“BWAQ”)
BWAQ is a blank check company incorporated as a Cayman Islands exempted company on July 19, 2021, and formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. The registration statement for BWAQ’s Initial Public Offering (“Initial Public Offering”) was declared effective on January 31, 2022.
As a part of Business Combination, BWAQ merged with and into TOYOone Limited, a Cayman Islands exempted company and wholly-owned subsidiary of TOYO (“Merger Sub”), with Merger Sub continuing as the surviving company.
On December 31, 2024, Merger Sub was struck from the Registrar of Companies of the Cayman Islands and dissolved accordingly. Merger Sub was a holding company. The management believed the disposal of Merger Sub does not represent a strategic shift, in both operating and financing aspects, because it is not changing the way it is running its business. The Company has not shifted the nature of its operations or the major geographic market area. The management believed the deconsolidation of Merger Sub does not represent a strategic shift that has (or will have) a major effect on the Company’s operations and financial results. The dissolution is not accounted for as discontinued operations in accordance with ASC 205-20.
Business Combination with a SPAC
On August 10, 2023, BWAQ entered into the Agreement and Plan of Merger (the “Business Combination Agreement”) with TOYO, Merger Sub, SinCo, and TOYO Solar (together with TOYO, Merger Sub and SinCo, the “Group Companies”, or each individually, a “Group Company”), Vietnam Sunergy Joint Venture Stock Company (“VSUN”), and Fuji Solar Co., Ltd, a Japanese company (“Fuji Solar”, together with VSUN, the “Shareholders”, or individually, a “Shareholder”).
6
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
1. ORGANIZATION AND BUSINESS DESCRIPTION (cont.)
Business Combination with a SPAC (cont.)
Pursuant to the Business Combination Agreement, (a) the Group Companies, VSUN and Fuji Solar shall consummate a series of transactions involving the Group Companies, including (A) TOYO (“PubCo”) acquiring one hundred percent (
Among the
| a. | Following the closing of Business Combination, if the net profit, excluding changes in fair value of Earnout Shares, of PubCo for the fiscal year ending December 31, 2024 as shown on the audited financial statements of PubCo for the fiscal year ending December 31, 2024 (such net profit, the “2024 Audited Net Profit”) is no less than $ |
| b. | If the 2024 Audited Net Profit is less than $ |
The Business Combination was consummated on July 1, 2024. Following the consummation of the Business Combination, the ordinary shares of TOYO commenced trading on the Nasdaq Stock Market on July 2, 2024, under the symbol “TOYO.”
7
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
1. ORGANIZATION AND BUSINESS DESCRIPTION (cont.)
Business Combination with a SPAC (cont.)
Upon closing of the Business Combination, each Class A ordinary share of BWAQ was cancelled in exchange for the right to receive
After giving effect to the Business Combination and the issuance of the ordinary shares described above, there were
The reverse recapitalization is equivalent to the issuance of securities by the Company for the net monetary assets of BWAQ, accompanied by a recapitalization. The Company debited equity for the fair value of the net liabilities of BWAQ. In the subsequent financial statements after the Business Combination, the amounts of assets and liabilities for the period before the reverse recapitalization in financial statements are presented as the Company’s and recognized and measured at their pre-combination carrying amounts.
On May 14, 2025, based on the 2024 Audited Net Profit which was reported in the Company’s Annual Report on Form 20-F for the year ended December 31, 2024, filed on May 12, 2025 (the “Form 20-F”), which excludes changes in the fair value of Earnout Shares, the Company released an aggregate of
8
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Consolidation
The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and accounting principles generally accepted in the United States of America (“U.S. GAAP’’) for interim financial reporting. Certain information and footnote disclosures normally included in financial statements prepared in conformity with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2025.
In the opinion of the management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments, which are necessary for a fair presentation of financial results for the interim periods presented. The Company believes that the disclosures are adequate to make the information presented not misleading. The accompanying unaudited condensed consolidated financial statements have been prepared using the same accounting policies as used in the preparation of the Company’s consolidated financial statements for the year ended December 31, 2025. The results of income for the three and six months ended June 30,2026 are not necessarily indicative of the results for the full year.
Foreign currency translation
Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing on the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates on the date of the balance sheet.
The reporting currency of the Company is U.S. dollars (“USD” or “$”) and the accompanying unaudited condensed consolidated financial statements have been expressed in USD.
In general, assets and liabilities of the Company whose functional currency is not the USD, are translated into USD, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of the Company is recorded as a separate component of accumulated other comprehensive income within the statement of shareholders’ equity.
| June 30, 2026 | December 31, 2025 | |||||||
| VND exchange rate for balance sheet items, except for equity accounts | ||||||||
| RMB exchange rate for balance sheet items, except for equity accounts | ||||||||
| For the Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| VND exchange rate for items in the statement of operations and comprehensive income, and statement of cash flows | ||||||||
| RMB exchange rate for items in the statement of operations and comprehensive income, and statement of cash flows | ||||||||
No representation is made that the VND and RMB amounts could have been, or could be, converted into USD at the rates used in translation.
9
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Accounts receivable, net
Accounts receivables are recorded at the gross amount less an allowance for expected credit losses and do not bear interest.
The management maintains an allowance for credit losses and records the allowance for credit losses as an offset to accounts receivable and the estimated credit losses charged to the allowance is classified as “general and administrative expenses” in the unaudited condensed consolidated statements of operations and comprehensive income. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due status, the age of the balances, credit quality of the Company’s customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. As of June 30, 2026 and December 31, 2025, the Company did not record allowance for expected credit losses.
Inventories, net
Inventories are stated at the lower of cost or net realizable value. Cost of inventories is determined using the moving weighted average cost method. Adjustments are recorded to write down the cost of inventories to the estimated net realizable value due to damaged and slow-moving goods, which is dependent upon factors such as historical and forecasted consumer demand, and specific customer requirements. The Company takes ownership, risks, and rewards of the products. Write downs are recorded in “cost of revenues” in the unaudited condensed consolidated statements of operations and comprehensive income. For the three months ended June 30, 2026 and 2025, the Company provided inventory provision of $
Revenue recognition
The Company adopted ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”) since its setup. In accordance with ASC 606, revenue is recognized when the control of the promised goods or services is transferred to the customers, and the performance obligations under the contract have been satisfied, in an amount that reflects the consideration expected to be entitled to in exchange for those goods or services (excluding sales taxes collected on behalf of government authorities). The Company’s revenue contracts generally do not include a right of return in relation to the delivered products or services.
The Company determines revenue recognition through the following steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation.
10
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Revenue recognition (cont.)
Sales of solar cells
The Company officially commenced sales of solar cells to customers in the second half of 2023. The Company recognizes revenue generated from sales of solar cells at a point in time following the transfer of control of the solar cells to the customers, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts. The transaction price was fixed in the contracts with customers. No variable considerations, significant financing component or payable to customers were identified in contracts with the customer. The contracts with customers may contain provisions that require the Company to make liquidated damage payments to the customer if the Company fails to ship or deliver solar cells before scheduled dates. The Company recognizes these liquidated damages as a reduction of revenue. For the three and six months ended June 30,2026 and 2025, the Company did not incur such liquidation damages.
Customers are generally required to make prepayment ranging between
Sales agreements typically contain the assurance-type customary product warranties if defects in solar cells exceeds agreed percentage of delivered quantity. The percentage varies among different customers. The assurance-type product warranties are subject to ASC 450, Contingencies. As of June 30, 2026 and December 31, 2025, the Company did not accrue warranty liabilities.
Sales of solar modules
The Company recognizes revenue generated from sales of solar modules at a point in time following the transfer of control of the solar modules to the customers, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts. The transaction price was fixed in the contracts with customers. No variable consideration, significant financing component or payable to customers were identified in contracts with the customer.
The related party customer is required to make prepayment of
Provision of original equipment manufacturer (OEM) services
During the three and six months ended June 30,2026, the Company provided OEM services to a third-party customer. The Company manufactured solar cells under the customer’s name and recognized revenues on a net basis upon delivery of solar cells to the customer.
11
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Revenue recognition (cont.)
Provision of facilitation services
The Company provided facilitation services for customers’ solar cell and solar module products. The Company is an agent in facilitation services, as it did not bear inventory risks or determine the product selling price in provision of services. The Company identifies one performance obligation in the agreements with customers. The commission rate and the amount of customers’ solar cell and solar module products sold are both explicitly stipulated in the agreements with customers. No variable considerations, significant financing components or payable to customers were identified in contracts with the customer. The Company recognizes revenue from facilitation services for the customers’ solar cells and solar module products at a point when the end customers accept the agreed solar cell and solar module products and the customers collect the fees from end customers. The transaction prices are collected after the sales, accounts receivable are recognized when revenue is recognized. Accounts receivable is generally due within 60 days from provision of facilitation services.
Contract liabilities
Contract liabilities are recognized if the Company receives consideration prior to satisfying the performance obligation. As of June 30, 2026, the Company had contract liabilities of $
For the three and six months ended June 30,2026, the Company disaggregate revenue into three streams as the following table:
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues from third parties: | ||||||||||||||||
| Sales of solar cells | $ | $ | $ | $ | ||||||||||||
| Sales of solar modules | ||||||||||||||||
| Provision of OEM services | ||||||||||||||||
| Revenues from related parties: | ||||||||||||||||
| Sales of solar cells | ||||||||||||||||
| Sales of solar modules | ||||||||||||||||
| Provision of facilitation services | ||||||||||||||||
| Total revenue | $ | $ | $ | $ | ||||||||||||
12
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Revenue recognition (cont.)
For the six months ended June 30,2026 and 2025, the movement of contract liabilities, including related parties and third parties was as follows:
| For the Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Opening balance | $ | $ | ||||||
| Addition of contract liabilities | ||||||||
| Revenue recognition during the year | ( | ) | ( | ) | ||||
| Net off gross billing to the OEM customers | ( | ) | ||||||
| Foreign exchange adjustment | ( | ) | ( | ) | ||||
| Ending balance | $ | $ | ||||||
| Contract liabilities – third party customers | $ | $ | ||||||
| Contract liabilities – related party customers | $ | $ | ||||||
For the six months ended June 30,2026, the contract liabilities increased by $
Income taxes
The Company accounts for income taxes in accordance with the U.S. GAAP for income taxes. Under the asset and liability method as required by this accounting standard, the recognition of deferred income tax liabilities and assets for the expected future tax consequences of temporary differences between the income tax basis and financial reporting basis of assets and liabilities. Provision for income taxes consists of taxes currently due plus deferred taxes. The charge for taxation is based on the results for the year as adjusted for items which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax basis. Deferred tax assets are recognized to the extent that it is more likely than not these items will be utilized against taxable income in the future. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided in accordance with the laws of the relevant taxing authorities.
An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than
13
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Warrants
The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ordinary shares, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent period end date while the warrant is outstanding.
For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter with changes in fair value recognized in the statements of operations in the period of change.
Segment reporting
The Company uses the management approach to determine operating segment. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker (“CODM”) for making decisions, allocation of resources and assessing performance.
The CODM assesses performance and decides how to allocate resources for our
Since the Company operates in
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| USA | $ | $ | $ | $ | ||||||||||||
| Other areas | ||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
The following table disaggregates the geographic information of the Company’s long-lived assets, which consist of long-term prepaid expenses, deposits for property and equipment, property and equipment and operating lease right-of-use assets, as of June 30, 2026 and December 31, 2025.
| June 30, 2026 | December 31, 2025 | |||||||
| Vietnam | $ | $ | ||||||
| USA | ||||||||
| Ethiopia | ||||||||
| Total | $ | $ | ||||||
14
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Recently adopted accounting standards
In December 2023, the FASB issued ASU 2023-09, which is an update to Topic 740, Income Taxes. The amendments in this update related to the rate reconciliation and income taxes paid disclosures improve the transparency of income tax disclosures by requiring (1) adding disclosures of pretax income (or loss) and income tax expense (or benefit) to be consistent with U.S. Securities and Exchange Commission (SEC) Regulation S-X 210.4-08(h), Rules of General Application—General Notes to Financial Statements: Income Tax Expense, and (2) removing disclosures that no longer are considered cost beneficial or relevant. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments in this Update should be applied on a prospective basis. Retrospective application is permitted. As an Emerging Growth Company (“EGC”), the Company adopted ASU 2023-09 effective January 1, 2026. The amendments were applied prospectively, and the adoption did not have a significant impact on the Company’s consolidated financial statements.
In July 30 2025, the FASB issued ASU 2025-05, which amends ASC 326-20 to provide a practical expedient for all entities which elect a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset in developing reasonable and supportable forecasts as part of estimating expected credit losses, and an accounting policy election for all entities, other than a public business entity, that elect the practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. Under ASU 2025-05, an entity is required to disclose whether it has elected to use the practical expedient and, if so, whether it has also applied the accounting policy election. An entity that makes the accounting policy election is required to disclose the date through which subsequent cash collections are evaluated. ASU 2025-05 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. Entities should apply the new guidance prospectively. The Company adopted ASU 2025-05 from January 1, 2026 and the adoption did not have a significant impact on the Company’s unaudited condensed consolidated financial statements.
Recently issued accounting standards
On December 17, 2025, the FASB issued ASU 2025-12, which is to correct, clarify, and otherwise improve U.S. GAAP. ASU 2025-12 includes 33 improvements that span a wide range of topics, including Clarifying diluted earnings per share (EPS) calculation when a loss from continuing operations exists, Clarifying disclosure requirements for lease receivables from sales-type or direct financing leases, Revising the calculation of the reference amount for beneficial interests to prevent double counting credit losses, Clarifying the permissible methods to account for treasury stock retirements, and Clarifying the guidance for transfers of receivables from contracts with customers. The amendments in this Update are effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted in both interim and annual reporting periods in which financial statements have not yet been issued or made available for issuance. If an entity adopts the amendments in this Update in an interim period, it must adopt them as of the beginning of the annual reporting period that includes that interim reporting period. An entity may elect to early adopt the amendments on an issue-by-issue basis. For example, an entity may decide to early adopt certain amendments and adopt the remaining amendments at the effective date. An entity should apply the amendments in this Update (except for the amendments to Topic 260, Earnings Per Share, related to Issue 4) using one of the following transition methods: (i) Prospectively to all transactions recognized on or after the date that the entity first applies the amendments, or (ii) Retrospectively to the beginning of the earliest comparative period presented. An entity should adjust the opening balance of retained earnings (or other appropriate components of equity or net assets in the statement of financial position) as of the beginning of the earliest comparative period presented. The Company is currently evaluating these new disclosure requirements and does not expect the adoption to have a material impact.
15
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Recently issued accounting standards (cont.)
On December 8, 2025, the FASB issued ASU 2025-11, which is intended to improve the navigability of the guidance in ASC 270 and clarify when it applies. Under the amendments, an entity is subject to ASC 270 if it provides “interim financial statements and notes in accordance with GAAP.” The ASU also addresses the form and content of such financial statements, adds lists to ASC 270 of the interim disclosures required by all other Codification topics, and establishes a principle under which an entity must “disclose events since the end of the last annual reporting period that have a material impact on the entity.” For public business entities, the amendments in ASU 2025-11 are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. For all other entities, the amendments in ASU 2025-11 are effective for interim reporting periods within annual reporting periods beginning after December 15, 2028. Early adoption is permitted for all entities. The Company is currently evaluating these new disclosure requirements and does not expect the adoption to have a material impact.
In January 2025, the FASB issued ASU 2025-01, “Income Statement – Comprehensive Income – Expense Disaggregation Disclosure (Subtopic 220-40): Clarifying the Effective Date.” This pronouncement revises the effective date of ASU 2024-03 and clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Entities within the ASU’s scope are permitted to early adopt the accounting standard update. The Company is currently evaluating these new disclosure requirements and does not expect the adoption to have a material impact.
In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income (Subtopic 220-40): Disaggregation of Income Statement Expenses.” This pronouncement introduces new disclosure requirements aimed at enhancing transparency in financial reporting by requiring disaggregation of specific income statement expense captions. Under the new guidance, entities are required to disclose a breakdown of certain expense categories, such as: employee compensation; depreciation; amortization, and other material components. The disaggregated information can be presented either on the face of the income statement or in the notes to the financial statements, often using a tabular format. The ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating these new disclosure requirements and does not expect the adoption to have a material impact.
In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements — codification amendments in response to SEC’s disclosure Update and Simplification initiative which amend the disclosure or presentation requirements of codification subtopic 230-10 Statement of Cash Flows—Overall, 250-10 Accounting Changes and Error Corrections— Overall, 260-10 Earnings Per Share— Overall, 270-10 Interim Reporting— Overall, 440-10 Commitments—Overall, 470-10 Debt—Overall, 505-10 Equity—Overall, 815-10 Derivatives and Hedging—Overall, 860-30 Transfers and Servicing—Secured Borrowing and Collateral, 932-235 Extractive Activities— Oil and Gas—Notes to Financial Statements, 946-20 Financial Services— Investment Companies— Investment Company Activities, and 974-10 Real Estate—Real Estate Investment Trusts—Overall. The amendments represent changes to clarify or improve disclosure and presentation requirements of above subtopics. Many of the amendments allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the SEC’s requirements. Also, the amendments align the requirements in the Codification with the SEC’s regulations. For entities subject to existing SEC disclosure requirements or those that must provide financial statements to the SEC for securities purposes without contractual transfer restrictions, the effective date aligns with the date when the SEC removes the related disclosure from Regulation S-X or Regulation S-K. Early adoption is not allowed. For all other entities, the amendments will be effective two years later from the date of the SEC’s removal.
The Company does not believe the above-mentioned recently issued but not yet effective accounting standards, if currently adopted, would have a material impact on its consolidated financial position, statements of operations and comprehensive income and cash flows.
16
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Significant risks and uncertainties
1) Credit risk
Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash. The maximum exposure of such assets to credit risk is their carrying amount as at the balance sheet dates. As of June 30, 2026, the Company held cash of $
Each bank account in Singapore is insured by government authority with the maximum limit of SG$
To limit exposure to credit risk relating to deposits, the Company primarily place cash deposits with large financial institutions in Vietnam which management believes are of high credit quality and the Company also continually monitors their credit worthiness.
2) Foreign currency risk
The Company has contracts for the sales of products, purchases of materials and equipment which are denominated in foreign currencies, including Vietnam Dong (VND), Renminbi (RMB), Ethiopia Birr (ETB), and Singapore Dollar (SGD). For the six months ended June 30, 2026, substantially all of the Company’s revenues are dominated in US Dollar. VND, the functional currency of TOYO Solar, and RMB, the functional currency of TOYO China, are not freely convertible into foreign currencies.
All foreign exchange transactions in Vietnam take place either through the State Bank of Vietnam (“SBV”) or other authorized financial institutions at exchange rates quoted by SBV. Approval of foreign currency payments by the SBV or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices and signed contracts. The value of VND is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the Vietnam Foreign Exchange Trading System market.
All foreign exchange transactions in China take place either through the Peoples’ Bank of China (“PBOC”) or other authorized financial institutions at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices and signed contracts. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market.
3) Concentration risk
The Company has a concentration of its revenues from specific customers and accounts payable with specific vendors.
For the six months ended June 30, 2026, one third-party customer and one related-party customer accounted for
17
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Significant risks and uncertainties (cont.)
3) Concentration risk (cont.)
As of June 30, 2026, two third-party customers accounted for
As of June 30, 2026, three third-party suppliers accounted for
For the six months ended June 30, 2026, two third-party suppliers accounted for
3. LIQUIDITY CONDITION
As of March 31, 2026 and December 31, 2025, the Company had working capital deficits of $
During the three and six months ended June 30, 2026, the Company generated net income of $
On June 18, 2026, the Company and VSUN entered into a loan extension agreement, pursuant to which VSUN agreed to extend the loan repayment date to June 17, 2028. Interest is payable upon repayment of principal. As a result of the extension, the Company reclassified the borrowing and related interest payable due to VSUN from current liabilities to non-current liabilities. After giving effect to this reclassification, the Company had working capital of $
Management considered the extension of the VSUN loan, the improvement in the Company’s working capital position, the Company’s recent profitability and positive operating cash flows, and the net proceeds received from the registered direct offering and the at-the-market offering in evaluating the Company’s ability to meet its obligations as they become due. Accordingly, the conditions and events that previously raised substantial doubt about the Company’s ability to continue as a going concern have been resolved, and substantial doubt no longer exists regarding the Company’s ability to continue as a going concern for at least twelve months from the date these unaudited condensed consolidated financial statements are issued. The unaudited condensed consolidated financial statements have been prepared on a going concern basis.
18
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
4. ACCOUNTS RECEIVABLE, NET
Accounts receivable, net consisted of the following:
| June 30, 2026 | December 31, 2025 | |||||||
| Accounts receivable | $ | $ | ||||||
| Less: expected credit losses | ||||||||
| Accounts receivable, net | $ | $ | ||||||
For the three and six months ended June 30, 2026 and 2025, the Company did not provide expected credit losses against accounts receivable. Of the balance of $
5. INVENTORIES, NET
Inventories, net consisted of the following:
| June 30, 2026 | December 31, 2025 | |||||||
| Raw materials | $ | $ | ||||||
| Finished goods | ||||||||
| Goods in transit | ||||||||
| Total inventories, net | $ | $ | ||||||
In May 2026, the Company was subject to an investigation by U.S. Customs and Border Protection (“CBP”) relating to certain shipments manufactured by TOYO Ethiopia. The management assessed that the investigation was temporary and currently it is uncertain whether the final decision of CBP had any impact on the Company’s sales distributions and potential inventory recoverability.
For the three months ended June 30, 2026 and 2025, the Company provided an inventory write-down of $
6. PROPERTY AND EQUIPMENT, NET
Property and equipment, net consisted of the following:
| June 30, 2026 | December 31, 2025 | |||||||
| Construction in progress | $ | $ | ||||||
| Machinery | ||||||||
| Building | ||||||||
| Leasehold improvement | ||||||||
| Office equipment | ||||||||
| Vehicle | ||||||||
| Total property and equipment | ||||||||
| Less: accumulated depreciation | ( | ) | ( | ) | ||||
| Total property and equipment, net | $ | $ | ||||||
19
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
6. PROPERTY AND EQUIPMENT, NET (cont.)
Depreciation expense was $
As of December 31, 2025, the Company collateralized all of its buildings in TOYO Solar with a carrying value of $
7. LONG-TERM PREPAID EXPENSES
In November 2022, the Company entered into an agreement with a third party. The agreement conveys the Company the right to use a piece of designated land (“Land Use Rights”) and the right to use certain public infrastructures within the industrial zones, for a period of 45 years maturing in October 2067. Pursuant to the agreement, the third party charged a total fee of $
Because these public infrastructures were shared among all lessees in the industrial zone, the Company has no rights to obtain substantially all of the economic benefits from this public infrastructure. The Company recorded the total public infrastructure service fee as long-term prepaid expenses, and amortized the long-term prepaid expenses over
Long-term prepaid expenses were comprised of the following:
| June 30, 2026 | December 31, 2025 | |||||||
| Prepaid expenses for public infrastructure | $ | $ | ||||||
| Less: accumulated amortization | ( | ) | ( | ) | ||||
| Total | $ | $ | ||||||
For the three months ended June 30, 2026 and 2025, the amortization expenses for long-term prepaid expenses were $
20
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
8. OPERATING LEASE
As of June 30, 2026, the Company leased its land use rights, office spaces and staff dormitory with third party lessors in Vietnam, Ethiopia and the USA. The lease term ranged between
The table below presents the operating lease related assets and liabilities recorded on the consolidated balance sheets.
| June 30, 2026 | December 31, 2025 | |||||||
| Right of use assets | $ | $ | ||||||
| Operating lease liabilities, current | ||||||||
| Operating lease liabilities, noncurrent | ||||||||
| Total operating lease liabilities | $ | $ | ||||||
Other information about the Company’s leases is as follows:
| For the Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Operating cash flows used in operating leases | $ | $ | ||||||
| Weighted average remaining lease term (years) | ||||||||
| Weighted average discount rate | % | % | ||||||
For the three months ended June 30, 2026, operating lease expenses were $
The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2026:
| June 30, 2026 | ||||
| For the six months ending December 31, 2026 | $ | |||
| For the year ending December 31, 2027 | ||||
| For the year ending December 31, 2028 | ||||
| For the year ending December 31, 2029 | ||||
| For the year ending December 31, 2030 | ||||
| Thereafter | ||||
| Total lease payments | ||||
| Less: Imputed interest | ||||
| Present value of operating lease liabilities | $ | |||
21
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
9. LINE OF CREDIT
On April 26, 2023, the Company entered into a three-year bank credit facility with BIDV, under which the Company can draw-down up to $
For the six months ended June 30, 2026 and 2025, the Company did not draw down loans from the long-term bank credit facility from BIDV, respectively. For the six months ended June 30, 2026 and 2025, the Company repaid loans of $
For the three months ended June 30, 2026 and 2025, the Company recognized interest expenses of $
Short-term bank credit facility
On January 31, 2024, the Company entered into a one-year revolving bank credit facility with BIDV (“2024 Bank Credit Facility”), under which the Company can draw-down up to $
In March 2025, The Company entered the revolving bank credit facility with BIDV (“2025 Bank Credit Facility”), under which the Company can draw-down up to $
Letter of credit
In April 2025, the Company issued a letter of credit of $
For the six months ended June 30, 2026, the Company issued eight letters of credit aggregating $
22
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
10. SHORT-TERM BORROWINGS
In connection with the 2024 Bank Credit Facility (Note 9), the Company repaid loans of $
In connection with the 2025 Bank Credit Facility (Note 9), the Company has drawn down loans of $
For the three months ended June 30, 2026 and 2025, the Company recognized and fully paid interest expenses of $
11. INCOME TAXES
Cayman Islands
Under the current tax laws of the Cayman Islands, the Company is not subject to tax on its income or capital gains.
Singapore
SinCo and TOYO Singapore are subject to corporate income tax for its business operation in Singapore. Tax on corporate income is imposed at a flat rate of
Vietnam
TOYO Solar and TOYO Clean are subject to Vietnam Enterprise Income Tax (“EIT”) on the taxable income in accordance with the relevant Vietnam income tax laws. The Vietnam’s statutory, Enterprise Income Tax (“EIT”) rate is
As a new enterprise, TOYO Solar received the preferential tax treatments since its inception, and is exempt from income taxes for the first two years since the year ended December 31, 2023. When TOYO Solar generated taxable income through year 2024, TOYO Solar is entitled to income tax rate of
China
Under the Enterprise Income Tax (“EIT”) Law in the PRC, the unified EIT rate for domestic enterprises and foreign invested enterprises is
USA
In the United States, TOYO USA Holding, TOYO America, TOYO Solar LLC, TOYO Texas and TOYO Energy are subject to federal and state income taxes on its business operations.
The Company also evaluated the impact from the recent tax reforms in the United States, including the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), the One Big Beautiful Bill Act and Inflation Reduction Act. No material impact on the Company is expected based on our analysis. We will continue to monitor the potential impact going forward.
23
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
11. INCOME TAXES (cont.)
Ethiopia
TOYO Ethiopia is subject to corporate income tax at a standard rate of
For the three months ended June 30, 2026 and 2025, the Company incurred current income tax expenses of $
Uncertain tax positions
The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of June 30, 2026 and December 31, 2025, the Company did have any unrecognized uncertain tax positions. For the three and six months ended June 30, 2026 and 2025, the Company did incur any interest and penalties related to potential underpaid income tax expenses.
The Company and its subsidiaries’ major tax jurisdictions are Vietnam, Singapore, Ethiopia, PRC and the United States. Income tax returns of the Company and its subsidiaries remain open and subject to examination by the local tax authorities of Vietnam, Singapore, Ethiopia, PRC and the United States until the statute of limitations expire in each corresponding jurisdiction. The statute of limitations in Vietnam, Singapore, Ethiopia, PRC and the United States are between
12. RELATED PARTY TRANSACTIONS AND BALANCES
1) Nature of relationships with related parties
The table below sets forth the major related parties and their relationships with the Company, with which the Company entered into transactions for the three and six months ended June 30, 2026 and 2025, or recorded balances as of June 30, 2026 and December 31, 2025.
| Name | Relationship with the Company | |
| Fuji Solar Co., Ltd. (“Fuji Solar”) | ||
| VSUN | ||
| Vietnam Sunergy (Bac Ninh) Company Limited (“VSun Bac Ninh”) | ||
| VSun Solar USA Inc. (“VSun USA”) | ||
| VSun China Co., Ltd. (“VSun China”) | ||
| Vietnam Sunergy Wafer Co., Ltd. (“VSun Wafer”) |
24
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
12. RELATED PARTY TRANSACTIONS AND BALANCES (cont.)
2) Transactions with related parties
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Sales and service revenue from related parties | ||||||||||||||||
| VSUN | $ | $ | $ | $ | ||||||||||||
| VSun USA (a) | ( | ) | ||||||||||||||
| VSun Bac Ninh | ||||||||||||||||
| VSun China (a) | ||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
| Purchase of raw materials from related parties | ||||||||||||||||
| VSun Bac Ninh | ||||||||||||||||
| VSun China | ||||||||||||||||
| VSun Wafer | ||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
| Purchase of machinery from a related party | ||||||||||||||||
| VSun China | $ | $ | $ | $ | ||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
| Prepayments of raw materials to related parties | ||||||||||||||||
| VSun China | $ | $ | $ | $ | ||||||||||||
| VSun Wafer | ||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
| Borrowings from related parties | ||||||||||||||||
| VSun USA (b) | $ | $ | $ | $ | ||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
| Repayment of borrowings to a related party | ||||||||||||||||
| VSun USA (c) | $ | $ | $ | $ | ||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
| Accrual of interest expenses on borrowings from related parties | ||||||||||||||||
| VSUN (b) | $ | $ | $ | $ | ||||||||||||
| VSun USA (b) | ||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
| Repayment of interest expenses on borrowings from a related party | ||||||||||||||||
| VSun USA (b) | $ | $ | $ | $ | ||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
| (a) |
25
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
12. RELATED PARTY TRANSACTIONS AND BALANCES (cont.)
| (b) | For the six months ended June 30, 2025, the Company borrowed a loan of $ |
| For the three months ended June 30, 2026 and 2025, the Company accrued interest expenses of $ and $ |
| (c) | For the six months ended June 30, 2026 and 2025, the Company did not borrow loans from or repaid loans to VSUN. For the six months ended June 30, 2026 and 2025, the Company did not make payments of interest expenses to VSUN. |
For the three months ended June 30, 2026 and 2025, the Company accrued interest expenses of $
3) Balances with related parties
Accounts receivable – related parties
| Related party | Nature of balance | June 30, 2026 | December 31, 2025 | |||||||
| VSun USA | Sales to the related party | $ | $ | |||||||
| VSun China | Sales to the related party | |||||||||
| Total | $ | $ | ||||||||
Prepayments — a related party
| Related party | Nature of balance | June 30, 2026 | December 31, 2025 | |||||||
| VSUN | Prepayments for raw materials | |||||||||
| Total | $ | $ | ||||||||
26
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
12. RELATED PARTY TRANSACTIONS AND BALANCES (cont.)
Accounts payable – related parties
| Related party | Nature of balance | June 30, 2026 | December 31, 2025 | |||||||
| VSun Bac Ninh | Purchase of equipment | $ | $ | |||||||
| VSun Bac Ninh | Purchase of raw materials | |||||||||
| VSun China | Purchase of raw materials | |||||||||
| Total | $ | $ | ||||||||
Contract liabilities — related parties
| Related party | Nature of balance | June 30, 2026 | December 31, 2025 | |||||||
| VSUN | Advance for solar cells | $ | $ | |||||||
| VSun Bac Ninh | Advance for solar cells | |||||||||
| VSun USA | Advance for solar modules | |||||||||
| Total | $ | $ | ||||||||
Due to related parties
| Related party | Nature of balance | June 30, 2026 | December 31, 2025 | |||||||
| VSUN | Borrowings | $ | $ | |||||||
| VSUN | Interest payable | |||||||||
| VSUN | Payment of other operating expenses on behalf of the Company | |||||||||
| VSun USA | Borrowings | |||||||||
| VSun USA | Interest payable | |||||||||
| Others | Payment of other operating expenses on behalf of the Company | |||||||||
| Total | $ | $ | ||||||||
Due to a related party, non-current
| Related party | Nature of balance | June 30, 2026 | December 31, 2025 | |||||||
| VSUN | Borrowings | $ | $ | |||||||
| VSUN | Interest payable | |||||||||
| Total | $ | $ | ||||||||
On June 18, 2026, the Company and VSUN entered into a loan extension agreement, pursuant to which VSUN agreed to extend the loan repayment date to June 17, 2028. Interest is payable with payment of principal. Accordingly, the Company reclassified the borrowing and interest payable due to VSUN to noncurrent liabilities.
27
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
13. EQUITY
Ordinary shares
| a) | Reorganization of TOYO |
TOYO’s authorized share capital is
On February 23, 2024, the Company issued
The issuance of
| b) | Earnout shares |
Among the
| (a) | Following the closing of Business Combination, if the net profit, excluding changes in fair value of Earnout Shares, of PubCo for the fiscal year ending December 31, 2024 as shown on the audited financial statements of PubCo for the fiscal year ending December 31, 2024 (such net profit, the “2024 Audited Net Profit”) is no less than $ |
| (b) | If the 2024 Audited Net Profit is less than $ |
Upon the closing of the Business Combination, the
On May 14, 2025, based on the 2024 Audited Net Profit which was reported in the Form 20-F, which excludes changes in the fair value of Earnout Shares, the Company released an aggregate of
| c) | Business Combination with BWAQ |
On July 1, 2024, as part of the Business Combination between the Company and BWAQ, the Company issued
28
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
13. EQUITY (cont.)
| d) | Share-based compensation |
On August 29, 2025, the Company granted an aggregated
| e) | PIPE purchase agreement |
On March 6, 2024, the Company entered into a share purchase agreement (as amended on June 26, 2024, the “PIPE Purchase Agreement”) with BWAQ and a certain investor, NOTAM Co., Ltd., a Japanese corporation (the “PIPE Investor” or “NOTAM”), in connection with the Business Combination. Pursuant to the PIPE Purchase Agreement, NOTAM agrees to purchase a total of
| f) | At-the-market offering |
On April 22, 2026, the Company entered into a sales agreement with Roth Capital Partners, LLC and H.C. Wainwright & Co., LLC as agents (collectively, the “Agents”). Pursuant to the sales agreement, the Company may offer and sell up to $
| g) | Registered direct offering |
On June 25, 2026, the Company consummated a registered direct offering (“RDO”) with certain institutional investors, pursuant to which the Company issued: (i)
As of June 30, 2026 and December 31, 2025, the Company had
29
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
13. EQUITY (cont.)
Public Warrants
Pursuant to BWAQ’s initial public offering on February 2, 2022, BWAQ sold
Public Warrants may only be exercised for a whole number of shares. No fractional shares will be issued upon exercise of the Public Warrants. The Public Warrants will expire five years from the consummation of a business combination or earlier upon redemption or liquidation.
The Public Warrants became exercisable after the consummation of the Business Combination between the Company and BWAQ on July 1, 2024. No Public Warrants will be exercisable for cash unless the Company has an effective and current registration statement covering the ordinary shares issuable upon exercise of the Public Warrants and a current prospectus relating to such ordinary shares. The Company may call the warrants for redemption, in whole and not in part, at a price of $
| ● | at any time while the warrants are exercisable, |
| ● | upon not less than |
| ● | if, and only if, the reported last sale price of the Ordinary Shares equals or exceeds $ |
| ● | if, and only if, there is a current registration statement in effect with respect to the ordinary shares underlying such warrants at the time of redemption and for the entire |
If the Company call the warrants for redemption as described above, its management will have the option to require all holders that wish to exercise warrants to do so on a “cashless basis.” In such event, each holder would pay the exercise price by surrendering the whole warrants for that number of ordinary shares equal to the quotient obtained by dividing (x) the product of the number of ordinary shares underlying the warrants, multiplied by the difference between the exercise price of the warrants and the “fair market value” (defined below) by (y) the fair market value. The “fair market value” shall mean the average reported last sale price of the ordinary shares for the
As the Public Warrants meet the criteria for equity classification under ASC 815, therefore, the warrants are classified as equity. As of June 30, 2026 and December 31, 2025, the Company had
Private Warrants
Simultaneously with the closing of the initial public offering of BWAQ, BWAQ also sold
The Private Placement Units are identical to the Public Units being sold in the initial public offering of BWAQ except that Private Placement Units will not be transferable, assignable or saleable until 30 days after the completion of the business combination and will be entitled to registration rights.
As the Private Warrants meet the criteria for equity classification under ASC 815, therefore, the warrants are classified as equity. As of June 30, 2026 and December 31, 2025, the Company had
30
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
13. EQUITY (cont.)
Other Warrants
On July 1, 2024, the Company issued
The Other Units are identical to the Private Units. As the Other Warrants meet the criteria for equity classification under ASC 815, therefore, the warrants are classified as equity. As of June 30, 2026 and December 31, 2025, the Company had
Public Rights, Private Rights and Other Rights
Each holder of a Public Right and Private Right will automatically receive one-tenth (1/10) of an ordinary share upon consummation of a business combination, even if the holder of a Public Right converted all ordinary shares held by him, her or it in connection with a business combination or an amendment to the Company’s Amended and Restated Memorandum and Articles of Association with respect to its pre-business combination activities. Upon the closing of the Business Combination of the Company and BWAQ, the Company issued
AMI Warrants
On February 26, 2025, the Company also issued certain warrants to AUM Media Inc. exercisable for
RDO Warrants
In connection with the registered direct offering closed on June 25, 2026, the Company issued RDO Warrants, which have an exercise price of $
The fair value of RDO Warrants was determined at $
| June 25, 2026 | ||||
| Stock price | $ | |||
| Expected volatility (%) | % | |||
| Risk-free interest rate | % | |||
| Expected terms (in years) | ||||
| Expected dividends (%) | % | |||
31
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
14. SHARE-BASED COMPENSATION
Warrants issued to AUM Media Inc. (“AMI”)
On February 26, 2025, the Company issued warrants to AMI to purchase up to
AMI Warrants was classified as equity (Note 13). The fair value of AMI Warrants was determined using a binomial model.
| February 26, 2025 | ||||
| Stock price | $ | |||
| Expected volatility (%) | % | |||
| Risk-free interest rate | % | |||
| Expected terms (in years) | ||||
| Expected dividends (%) | % | |||
On February 26, 2025, the fair value of AMI Warrants was $
Restricted shares under TOYO ESOP
The Company has TOYO ESOP, under which the Company may grant share incentive awards, including options, restricted shares and restricted share units, to eligible service providers in order to attract, retain and motivate the talent for which the Company competes. The number of ordinary shares initially be approved for issuance under the TOYO ESOP (the “Share Limit”) is
On August 29, 2025, the Company granted an aggregated
As of June 30, 2026 and December 31, 2025, the Company had
32
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
14. SHARE-BASED COMPENSATION (cont.)
The details were as the following:
| Recipients | Granted and issued shares | Outstanding shares as of June 30, 2026 | Outstanding shares as of December 31, 2025 | Share compensation expenses recognized in the three months ended June 30, 2026 | ||||||||||||
| Restricted shares issued to management: | ||||||||||||||||
| Management (a) | $ | |||||||||||||||
| Independent directors (b) | ||||||||||||||||
| $ | ||||||||||||||||
| Restricted shares issued to non-employees: | ||||||||||||||||
| Three consultants (c) | $ | |||||||||||||||
| One consultant (d) | ||||||||||||||||
| Employees of Abalance Corporation (e) | $ | |||||||||||||||
| $ | ||||||||||||||||
| (a) |
| (b) |
| (c) |
| (d) |
| (e) |
For the six months ended June 30, 2026, the transaction activities of restricted shares were as below:
| Number of Restricted Shares | Weighted Average Grant-date Fair Value | |||||||
| Unvested restricted shares as of December 31, 2025 | $ | |||||||
| Granted | $ | |||||||
| Vested | ( | ) | $ | |||||
| Unvested restricted shares as of June 30, 2026 | $ | |||||||
As of June 30, 2026, the Company had
33
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
15. EARNINGS PER SHARE
The Company had
The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2026 and 2025:
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||
| Less: Net loss attributable to holders of earnout shares | ( | ) | ( | ) | ||||||||||||
| Net income attributable to TOYO Co., Ltd.’s shareholders | $ | $ | $ | $ | ||||||||||||
| Weighted average number of ordinary share outstanding– basic | ||||||||||||||||
| Earnings per share – basic | $ | $ | $ | $ | ||||||||||||
| Weighted average number of ordinary share outstanding– diluted | ||||||||||||||||
| Earnings per share –diluted | $ | $ | $ | $ | ||||||||||||
Pursuant to ASC 260, Earnings Per Share, the Company has retroactively restated all shares and per share data for all periods presented. For the three months and six months ended June 30, 2026, the Public Warrants, Private Warrants, Other Warrants and AMI Warrants were dilutive securities and were included in the calculation of diluted net earnings per ordinary share under the treasury stock method. The RDO warrants were excluded from the calculation of diluted net earnings per ordinary share, as their inclusion would have been anti-dilutive. For the three and six months ended June 30, 2025, the outstanding warrants, including Public Warrants, Private Warrants, Other Warrants and AMI Warrants, were excluded from the calculation of diluted net loss per ordinary share, as their inclusion would have been anti-dilutive.
The number of incremental shares included in diluted earnings per share for the three months ended June 30, 2026 was computed using the average market prices during the three months. The number of incremental shares included in diluted earnings per share for the six months ended June 30, 2026 was determined by computing a year-to-date weighted average of the number of incremental shares included in each quarterly diluted EPS computation.
The weighted-average number of potentially anti-dilutive shares excluded from calculation of dilutive earnings per share are as follows:
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Public Warrants | ||||||||||||||||
| Private Warrants | ||||||||||||||||
| Other Warrants | ||||||||||||||||
| RDO Warrants | ||||||||||||||||
| AMI Warrants | ||||||||||||||||
| Total | ||||||||||||||||
34
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
16. COMMITMENTS AND CONTINGENCIES
Legal proceedings
On December 6, 2024, Shanghai Jinko Green Energy Enterprise Management Co, Ltd and Zhejiang Jinko Solar Co., Ltd. (collectively “JINKO”) filed a patent infringement lawsuit with the United States District Court for the Northern District of California (“CA Case”), against Abalance Corporation, the Company’s ultimate shareholder, and its seven subsidiaries, including the Company. JINKO alleged that VSUN’s solar panel products (including TOPCON N-type solar panels) allegedly utilize JINKO’s patented technologies without authorization. JINKO asserts that the lawsuit was filed to recover damages for both past and future losses resulting from VSUN’s alleged patent infringement. Defendants Abalance Corporation, WWB Corporation, and Fuji Solar filed a motion to dismiss the Complaint for lack of personal jurisdiction and failure to state a claim on April 16, 2025. On July 24, 2025, the Court held a hearing on WWB Corporation’s motion to dismiss. The Court granted WWB Corporation’s motion to dismiss on July 28, 2025. Defendants Abalance Corporation and Fuji Solar were dismissed on August 8, 2025. Prior to the dismissal described below, the Court had set a Markman hearing for February 3, 2026. No trial date had been set.
On February 7, 2025, Shanghai Jinko Green Energy Enterprise Management Co., Ltd. et. al. brought a patent infringement claim against Waaree Solar Americas Inc. et. al. in the Southern District of Texas (“TX Case”). On July 11, 2025, TOYO Solar, Toyo America, and SinCo, filed a motion to intervene in the lawsuit as intervenors-defendants because a portion of the products subject to the litigation were produced by the Company. The Court granted the motion on July 16, 2025. Prior to the dismissal described below, the Court had set a Markman hearing for February 2, 2026, and a trial in February or March 2027.
Pursuant to a certain settlement and release agreement between JINKO and TOYO dated December 30, 2025, on January 30, 2026, the CA Case was dismissed pursuant to a joint stipulation of dismissal of JINKO and VSUN, VSun Bac Ninh, VSun USA, TOYO, TOYO Solar, TOYO Texas, and TOYO Ethiopia. In addition, on February 20, 2026, the TX Case was dismissed with respect to TOYO Solar, TOYO America, SinCo pursuant to the parties’ joint stipulation. Regardless of outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors.
On March 26, 2026, the U.S. International Trade Commission (the “USITC”) instituted an investigation pursuant to Section 337 of the Tariff Act of 1930. The investigation is based on a complaint filed by First Solar, Inc. (“First Solar”) on February 24, 2026, as supplemented on March 10, 2026, alleging that certain respondents, including TOYO, TOYO Texas and VSun USA of Fremont, violated Section 337 by importing into the United States certain TOPCon solar cells, modules, panels, components thereof, and products containing the same (the “TOPCon products”), that allegedly infringe one or more U.S. patents asserted by First Solar. First Solar has requested that the USITC issue a general exclusion order that would bar the TopCon products from entry into the United States, or in the alternative a limited exclusion order, as well as cease and desist orders against the respondents. As of the date of issuance of the report, USITC has not made any determination on the merits of the allegations, and the Company’s products continue to be imported and sold in the United States in the ordinary course. The investigation remains ongoing in the discovery phase, and the USITC has not made any determination that the TOYO has infringed the asserted patent or otherwise violated Section 337. The Company, together with its outside counsel, is actively defending against First Solar’s allegations and disputes that the accused products infringe the asserted patent. As of the date of issuance of the report, the Company are unable to predict the outcome of the investigation or whether any remedial orders will be issued and will evaluate the potential impact of this matter as the investigation progresses.
35
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
16. COMMITMENTS AND CONTINGENCIES (cont.)
On May 12, 2026, First Solar, Hanwha Q CELLS and certain other U.S. solar manufacturers filed a request with the U.S. Department of Commerce seeking the initiation of a country-wide anti-circumvention inquiry under Section 781(b) of the Tariff Act of 1930 concerning certain crystalline silicon photovoltaic products completed in Ethiopia using inputs from China. The request alleges that certain solar products produced in Ethiopia and/or assembled into modules in third countries using Ethiopian-produced cells are circumventing existing U.S. antidumping and countervailing duty orders applicable to solar products from China.
On May 27, 2026 and May 28, 2026, TOYO received detention notices from U.S. Customs and Border Protection (CBP) on May 27 and May 28, 2026, respectively, regarding cell shipments under Entry Nos. 8QH26007473 and 8QH26007481. CBP has indicated that the shipments are suspected of being associated with forced labor. The total quantities of the detained solar cells are approximately 0.094MW at the amount of $
On July 17, 2026, Commerce formally initiated the requested country-wide circumvention inquiry. The inquiry covers (i) solar cells and modules completed in Ethiopia using parts and components from China and subsequently exported from Ethiopia to the United States, and (ii) solar cells completed in Ethiopia using parts and components from China that are subsequently completed or assembled into modules in Vietnam using additional inputs from China and exported from Vietnam to the United States. The inquiry will determine whether such products are circumventing existing U.S. antidumping and countervailing duty orders applicable to crystalline silicon photovoltaic cells from China. TOYO submitted comments and factual information opposing the request prior to initiation and will continue to vigorously defend its position in the proceeding.
Capital commitments
As of June 30, 2026, the Company entered into certain construction agreements with vendors to build its plant in Vietnam, Texas, and Ethiopia. Future minimum capital payment under non-cancellable agreements are as follows:
| Minimum capital payments | ||||
| For the six months ending December 31, 2026 | $ | |||
| For the twelve months ending December 31, 2027 and thereafter | ||||
| Total | $ | |||
36
TOYO Co., Ltd
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
16. COMMITMENTS AND CONTINGENCIES (cont.)
Contingent consideration
On February 23, 2024, the Company issued
The
The fair value of Earnout Shares was determined using a Monte Carlo simulation model. This approach considered (i) the share price on July 1, 2024 and December 31, 2024, (ii) the discount for lack of marketability (“DLOM”). According to the agreement, the share consideration to be issued to the existing equity holders in the business combination will be subject to a lock-up. The lock-up will be staggered, with
The following table summarizes the assumptions used in estimating the fair value of the Earnout Shares on July 1, 2024 and December 31, 2024.
| December 31, 2024 | July 1, 2024 | |||||||
| Stock price | $ | $ | ||||||
| Expected volatility (%) | % | % | ||||||
| Expected terms (in years) | ||||||||
| Expected dividends (%) | % | % | ||||||
The fair value of contingent consideration on July 1, 2024 and December 31, 2024 was estimated at $
On May 14, 2025, based on the 2024 Audited Net Profit which was reported in the Form 20-F, which excludes changes in the fair value of Earnout Shares, the Company released an aggregate of
As of June 30, 2026 and December 31, 2025, the Company had outstanding balance of contingent consideration payable.
37
Exhibit 99.2
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND
RESULTS OF OPERATIONS OF TOYO CO., LTD
A. Operation Results
Overview
Our mission is to power the world with green and clean energy.
We, TOYO Co., Ltd (the “Company”), are an early-stage company incorporated in November 2022 to separate the solar cell and module production businesses from VSUN, a majority-owned subsidiary of Fuji Solar and our affiliate. We are committed to becoming a reliable integrated service solar solutions provider in the United States and globally, integrating the upstream production of wafer and silicon, midstream production of solar cell, downstream production of photovoltaic (PV) modules, and potentially other stages of the solar power supply chain.
Recent Developments
Registered Direct Offering
On June 25, 2026, the Company consummated a registered direct offering (“RDO”) with certain institutional investors, pursuant to which the Company issued: (i) 4,545,456 ordinary shares, par value $0.0001 per share, of the Company, and (ii) warrants to purchase 4,545,456 Ordinary Shares (the “RDO Warrants”). The Company raised net proceeds of $47,054,065 from the RDO. In connection with the registered direct offering closed on June 25, 2026, the Company issued RDO Warrants, which have an exercise price of $13.20 per share and are exercisable immediately upon issuance and will expire five years from the issuance date. The RDO Warrants meet the criteria for equity classification under ASC 815, therefore, the warrants are classified as equity. As of June 30, 2026 and December 31, 2025, the Company had 4,545,456 and nil RDO Warrants outstanding.
ATM Program
On April 22, 2026, the Company entered into a sales agreement (the “Sales Agreement”) with Roth Capital Partners, LLC and H.C. Wainwright & Co., LLC as agents (collectively, the “Agents”). Pursuant to the terms of the Sales Agreement, the Company may offer and sell up to $30,000,000 of its ordinary shares of a par value of US$0.0001 each (the “Ordinary Shares”) from time to time through the Agents (the “Offering”). The Agents will use their reasonable best efforts, as agents and subject to the terms of the Sales Agreement, to sell the Shares offered. Sales of the Shares, if any, may be made in sales deemed to be an “at-the-market offering” as defined in Rule 415 under the Securities Act of 1933, as amended. The Agents will be entitled to a commission from the Company of 3.0% of the gross proceeds from the sale of Shares sold under the Sales Agreement. In addition, the Company has agreed to reimburse certain expenses incurred by the Agents in connection with the Offering. The Sales Agreement contains customary representations, warranties, and agreements of the Company and the Agents, indemnification rights and obligations of the parties and termination provisions. The Company intends to use any net proceeds from the Offering for working capital and general corporate purposes. As of June 30, 2026, the Company raised net proceeds of approximately $5.5 million from the issuance of 414,495 Ordinary Shares under the Sales Agreement, at an average selling price of $13.78 per share.
Legal Proceedings
On May 12, 2026, First Solar, Hanwha Q CELLS and certain other U.S. solar manufacturers filed a request with the U.S. Department of Commerce seeking the initiation of a country-wide anti-circumvention inquiry under Section 781(b) of the Tariff Act of 1930 concerning certain crystalline silicon photovoltaic products completed in Ethiopia using inputs from China. The request alleges that certain solar products produced in Ethiopia and/or assembled into modules in third countries using Ethiopian-produced cells are circumventing existing U.S. antidumping and countervailing duty orders applicable to solar products from China.
On May 27, 2026 and May 28, 2026, TOYO received detention notices from U.S. Customs and Border Protection (CBP) on May 27 and May 28, 2026, respectively, regarding cell shipments under Entry Nos. 8QH26007473 and 8QH26007481. CBP has indicated that the shipments are suspected of being associated with forced labor. The total quantities of the detained solar cells are approximately of 0.094MW at the amount of $13,770. The solar cells were manufactured by TOYO’s Ethiopian manufacturing entity. TOYO and its outside counsel have prepared and submitted applicability packages (supply chain documentation) for shipments which have been detained by USCBP for suspected Forced Labor. Currently, USCBP is reviewing the documents, but has not indicated when its review will be completed.
On July 17, 2026, Commerce formally initiated the requested country-wide circumvention inquiry. The inquiry covers (i) solar cells and modules completed in Ethiopia using parts and components from China and subsequently exported from Ethiopia to the United States, and (ii) solar cells completed in Ethiopia using parts and components from China that are subsequently completed or assembled into modules in Vietnam using additional inputs from China and exported from Vietnam to the United States. The inquiry will determine whether such products are circumventing existing U.S. antidumping and countervailing duty orders applicable to crystalline silicon photovoltaic cells from China. TOYO submitted comments and factual information opposing the request prior to initiation and will continue to vigorously defend its position in the proceeding.
Key Factors Affecting Our Results of Operations
We believe that our performance and future success will depend on several factors, including those key factors discussed below.
Our ability to retain VSUN as customer for our solar cells and obtain new customers
As of June 30, 2026, we fully utilized our production capacity at our cell plants in Vietnam with achieved 2GW production capacity as well as collaborations with some OEMs to fulfill additional orders. We achieved 4GW production capacity in Ethiopia in October 2025, and we fully utilized our production capacity at our cell plants in Ethiopia plant before we were subject to an investigation by U.S. Customs and Border Protection (CBP) in May 2026. However our ability to retain VSUN as a solar cell customer and to obtain new solar cell customers will affect our short-term profitability and financial prospects. As of June 30, 2026, we have signed supply contracts with over 50 third-party customers, and are in active negotiation with several potential customers to supply our solar cells. For the six months ended June 30, 2026 and 2025, we derived 22% and 18% of our revenue from VSUN, respectively. Loss of business from VSUN or other future major customers could reduce our revenues and significantly harm our business.
Our ability to acquire new customers for our solar PV module products
We commenced the manufacture and sales of PV module products in the United States in the six months ended June 30, 2026. We expect that our mid-term revenue generation will primarily depend on our ability to capture the solar PV module market in the United States. Specifically, it depends on our ability to acquire new customers for our solar PV module products, both through leveraging our relationship and collaboration with VSUN, who has existing presence and market recognition in the United States, and through independent marketing efforts.
Our ability to control material, transportation and manufacturing costs
We expect that our profitability will significantly depend on our ability to control costs of sales, mainly comprised of cost of product sold, which is affected by fluctuations in prices of raw materials, including but not limited to polysilicon, silicon wafers, labor costs and costs associated with the transportation of raw materials. As we expand our production outside of Vietnam with a new cell plant in Ethiopia and a new solar module plant in Texas, U.S., we will also incur significant capital expenditure to fund the expansion of our sales and manufacturing facilities, including the construction of new solar module plants.
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Our ability to extend our production capacity and integrate additional stages of the solar product supply chain
Our ability to become a reliable supplier of solar cell and module products at a competitive price will depend on our ability to extend our production capacity and achieve vertical integration. Specifically, we may plan to integrate the upstream production of wafer, midstream production of solar cell, and downstream production of PV modules. To that end, we have strategically selected a solar cell plant located in Hawassa, Ethiopia, which has commence production since April 2025 with 2GW production capacity and expanded the capacity to 4GW in October 2025 and have leased a facility located in Texas to accommodate our solar module production. We are assessing the timing and venues to further expand the annual capacity of our cell plant in the future, and whether we are successful in our future endeavor in constructing these plants will affect our ability to extend our production capacity. Additionally, executing capacity expansion also depends on our ability to secure necessary approvals, permits and adequate funding.
Our ability to price solar cell products competitively, which depends primarily on our ability to enhance conversion efficiency of solar cells
The price of our solar cells, which are our main products in the near-term, is determined by their electricity generation capacity, measured in watts. Our ability to offer competitive prices is dependent on our ability to optimize the conversion efficiency of our solar cells, utilizing effective manufacturing technologies. We are dedicated to ongoing research and development efforts to boost conversion efficiency while reducing production costs. We aim to expand our research and development team by specifically targeting top engineering talents with a background in solar energy.
Current supply-demand disparity in the United States and regulatory environment
Our ability to profit also depends on the market in United States as well as the regulatory environment for the solar industry. The U.S. market is a significant focus for us as it is one of the largest solar PV markets globally and continues to grow, and local suppliers in the United States only account for approximately 15% of the total solar module demand in 2022, according to CIC, indicating a significant supply-demand disparity. Our business and operations will also be affected by regulatory initiatives in the United States and elsewhere. For example, the U.S. Customs and Border Protection has banned the import of any products related to Xinjiang Uygur Autonomous Region of China in terms of UFLPA and a number of Chinese PV manufacturers have been included in the ban list. As a result of this regulatory development, manufacturers from Southeast Asia, particularly Malaysia, Vietnam, and Thailand, have emerged as the primary sources of PV panel and cell imports for the United States.
Impact of Macroeconomic Factors
Recently, geopolitical and economic uncertainty and volatility including armed conflicts such as the U.S. and Israeli war with Iran and further escalation of the ongoing conflict in the Middle East and Red Sea, and the conflict between Russia and Ukraine have caused supply chain disruptions and challenges for many companies.
For example, the armed conflicts such as the U.S. and Israeli war with Iran may cause shipping disruptions, cyberattacks, supply chain and logistics disruptions, and changes to foreign exchange rates and financial markets, any of which may adversely affect our business and supply chain, or a diminished consumer confidence resulting in reduced demand. In addition, following the launch of a military action in Ukraine by Russia, commodity prices, including the price of oil, gas, nickel, copper and aluminum, increased. Such impacts may also be exacerbated by recent developments in the Israel-Hamas conflict. Our result of operations have not been materially impacted by the Russia-Ukraine conflict or the Israel-Hamas conflict for a number of reasons: (i) we utilize AGVs in our solar cell plant, which have reduced our reliance on manpower and the risk of production stoppages and delay; (ii) we recruit employees for our Vietnam solar cell plant primarily from Vietnam, minimizing the impact of global supply chain, if any, on our labor supply; and (iii) in obtaining polysilicon, a kind of raw materials for our solar cells, we only partner with suppliers that are pre-approved by the United States and comply with the necessary standards and regulations.
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Components of Operating Results
Revenues
We generated revenues from sales of solar cells, solar modules and provision of facilitation services.
Sales of solar cells. We recognize revenue generated from sales of solar cells and silicon materials at a point in time following the transfer of control of the solar cells and silicon materials to the customers, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts. The transaction price was fixed in the contracts with customers. No variable consideration, significant financing component or payable to customers were identified in contracts with customers. In addition, the Company did not provide warranties to the customers. The contracts with customers may contain provisions that require us to make liquidated damage payments to the customer if we fail to ship or deliver solar cells before scheduled dates. We recognize these liquidated damages as a reduction of revenue. For the three and six months ended June 30, 2026 and 2025, we did not incur such liquidation damages.
Sales of solar modules. We commenced sales of solar modules to customers in October 2025. We recognize revenue generated from sales of solar modules at a point in time following the transfer of control of the solar modules to the customers, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts. No variable consideration, significant financing component or payable to customers were identified in contracts with customers. In addition, the Company did not provide warranties to the customers.
Provision of original equipment manufacturer (OEM) services. During the three and six months ended June 30, 2026, we also provided original equipment manufacturer (OEM) services to a third-party customer. We manufactured solar cells under the customer’s name and recognized revenues on a net basis upon delivery of solar cells to the customer.
Provision of facilitation services. We commenced provision of facilitation services for customers’ solar cell products in the second half of 2024 and solar module products in the year of 2025. We are an agent in facilitation services, as we did not bear inventory risks or determine the product selling price in provision of services. The transaction price is fixed in the agreements by multiplying fixed commission rate and the quantity of customers’ solar cell products sold. No variable considerations, significant financing components or payable to customers were identified in contracts with the customer. We recognize revenue from facilitation services for the customers’ solar cells products at a point when the end customers accepts the agreed solar cell products and the customers collect the fees from end customers.
For the three and six months ended June 30, 2026 and 2025, the revenues were comprised of the following:
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues to third parties: | ||||||||||||||||
| Sales of solar cells | $54,638,399 | $72,996,313 | $147,562,435 | $114,019,674 | ||||||||||||
| Sales of solar modules | 17,049,791 | — | 18,743,155 | — | ||||||||||||
| Provision of OEM services | 24,960,176 | — | 37,158,520 | — | ||||||||||||
| 96,648,366 | 72,996,313 | 203,464,110 | 114,019,674 | |||||||||||||
| Revenues to related parties: | ||||||||||||||||
| Sales of solar cells | 6,764,604 | 14,566,338 | 28,454,484 | 23,830,234 | ||||||||||||
| Sales of solar modules | 14,660,493 | — | 28,928,327 | — | ||||||||||||
| Provision of facilitation services | 111,432 | — | 111,432 | 1,257,254 | ||||||||||||
| 21,536,529 | 14,566,338 | 57,494,243 | 25,087,488 | |||||||||||||
| Total revenue | $ | 118,184,895 | $ | 87,562,651 | $ | 260,958,353 | $ | 139,107,162 | ||||||||
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Cost of revenues
Cost of revenues primarily consist of cost of materials, direct labor costs, and overheads which were attributable to the solar cells and solar modules sold in the relevant periods.
Selling and marketing expenses
Selling and marketing expenses primarily consist of freight and handling expenses, distribution commission expenses, entertainment expenses, and employee salary and welfare expenses.
General and administrative expenses
General and administrative expenses primarily consist of employee salary and welfare expenses, amortization of usage of infrastructure expenses and other expenses related to administrative functions. Over the next several years, we anticipate an increase in our general and administrative expenses. This is primarily due to the expansion of our workforce as our new solar cell plant commences operation. Additionally, we expect to incur higher costs related to accounting, auditing, legal, regulatory compliance, director and officer insurance, as well as investor relations, public relations, and other expenses associated with being a publicly traded company.
Interest expenses, net
Interest expenses, net consists of interest expenses incurred on borrowings from banks and related parties, partially offset by interest income generated on bank deposits.
Income Tax Expenses
Cayman Islands
Under the current tax laws of the Cayman Islands, the Company is not subject to tax on its income or capital gains.
Singapore
SinCo and TOYO Singapore are subject to corporate income tax for its business operation in Singapore. Tax on corporate income is imposed at a flat rate of 17%. Effective on June 1, 2026, SinCo was granted a tax incentive pursuant to the provisions of Part 4 of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 and enjoys a preferential income tax rate of 5% for five years from June 1, 2026 through May 31, 2031.
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Vietnam
TOYO Solar and TOYO Clean are subject to Vietnam Enterprise Income Tax (“EIT”) on the taxable income in accordance with the relevant Vietnam income tax laws. The Vietnam’s statutory, Enterprise Income Tax (“EIT”) rate is 20%.
As a new enterprise, the Company received the preferential tax treatments since its inception, and is exempt from income taxes for the first two years since the year ended December 31, 2023. When Company generated taxable income through year 2024, the Company is entitled to income tax rate of 8.5%, which is half of preferential income tax rate of 17% for four years ended December 31, 2025 through 2028.
China
Under the Enterprise Income Tax (“EIT”) Law in the PRC, the unified EIT rate for domestic enterprises and foreign invested enterprises is 25%, except for available preferential tax treatments.
USA
In the United States, TOYO USA Holding, TOYO America, TOYO Solar LLC, TOYO Texas and TOYO Energy are subject to federal and state income taxes on its business operations.
The Company also evaluated the impact from the recent tax reforms in the United States, including the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), the One Big Beautiful Bill Act and Inflation Reduction Act. No material impact on the Company is expected based on our analysis. We will continue to monitor the potential impact going forward.
Ethiopia
TOYO Ethiopia is subject to corporate income tax at a standard rate of 30% on its business operations in Ethiopia. In accordance with the investment incentive framework of Ethiopia, eligible manufacturing entities may be granted corporate income tax exemptions upon approval by the Ethiopian Investment Commission. TOYO Ethiopia is entitled to a four-year exemption from corporate income tax commencing from the date of establishment. The Company obtained its business license on February 21, 2025. The tax exemption period covers the fiscal years from 2025 to 2028.
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Results of Operations
The following table sets forth a summary of our results of operations for the three and six months ended June 30, 2026 and 2025, in dollar amounts. This information should be read together with our unaudited condensed consolidated financial statements and related notes included elsewhere in this report. The operating results in any period are not necessarily indicative of the results that may be expected for any future period.
For the three months ended June 30, 2026 and 2025
| For the Three Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Revenues from related parties | $ | 21,536,529 | $ | 14,566,338 | ||||
| Revenues from third parties | 96,648,366 | 72,996,313 | ||||||
| Revenues | 118,184,895 | 87,562,651 | ||||||
| Cost of revenues – related parties | (20,885,274 | ) | (9,126,165 | ) | ||||
| Cost of revenues – third parties | (60,333,330 | ) | (60,151,456 | ) | ||||
| Cost of revenues | (81,218,604 | ) | (69,277,621 | ) | ||||
| Gross profit | 36,966,291 | 18,285,030 | ||||||
| Operating expenses | ||||||||
| Selling and marketing expenses | (1,564,629 | ) | (2,074,792 | ) | ||||
| General and administrative expenses | (12,846,480 | ) | (5,268,587 | ) | ||||
| Total operating expenses | (14,411,109 | ) | (7,343,379 | ) | ||||
| Income from operations | 22,555,182 | 10,941,651 | ||||||
| Other expenses | ||||||||
| Interest income (expenses), net | 278,102 | (1,197,987 | ) | |||||
| Other expenses, net | (1,392,802 | ) | (392,200 | ) | ||||
| Changes in fair value of contingent consideration payable | — | (941,764 | ) | |||||
| Total other expenses, net | (1,114,700 | ) | (2,531,951 | ) | ||||
| Income before income taxes | 21,440,482 | 8,409,700 | ||||||
| Income tax expenses | (4,030,918 | ) | (2,191,989 | ) | ||||
| Net income | $ | 17,409,564 | 6,217,711 | |||||
Revenues. We commenced commercial production and sales of solar cells since the second half of 2023, coinciding with the introduction of our brand “TOYO Solar” to the market. In the second half of 2025, we commenced production and sales of solar modules to customers based in the United States. Our revenues increased by approximately $30.6 million, or 35%, from approximately $87.6 million for the three months ended June 30, 2025 to approximately $118.2 million in the three months ended June 30, 2026. The increase was primarily caused by an increase of approximately $31.7 million in sales of solar modules and an increase of approximately $25.1 million in provision of OEM services, partially offset by a decrease of approximately $26.2 million in sales of solar cells.
The increase of solar modules and provision of OEM services was primarily due to the commencement of sales of solar modules to a related party since October 2025 and commencement of provision of OEM services in late 2025. We expect to expand our customer base in the years ending December 31, 2026 and 2027.
Our sales of solar cells decreased due to investigation by U.S. Customs and Border Protection (CBP) in May 2026. CBP has indicated that the shipments are suspected of being associated with forced labor. As affected by the CBP investigation, the certain US market customers, including our largest customer which accounted for 35% of total revenue for the first half of 2026, did not place purchase orders in June 2026. The investigation is currently under review by U.S. Customs and Border Protection (CBP), and no final determination has been made.
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Cost of revenues. The cost of revenues increased by approximately $11.9 million, or 17%, from approximately $69.3 million for the three months ended June 30, 2025 to approximately $81.2 million for the three months ended June 30, 2026. The increase in cost of revenues was primarily the net effect of the increase in sales of solar modules, partially offset by the decrease in sales of solar cells. However the increase in the cost of revenues is lower than the increase in the revenues. This was primarily caused by an increase in revenue from provision of OEM services, which was presented as net revenue.
Gross profit. As a result of the foregoing, we recorded a gross profit of approximately $37.0 million and $18.3 million for the three months ended June 30, 2026 and 2025, respectively, with gross profit margin of approximately 31.3% and 20.9%. The increase in gross profit margin was due to increase in provision of OEM services.
Selling and marketing expenses. As compared with the selling and marketing expenses for the three months ended June 30, 2025, the selling and marketing expenses for the three months ended June 30, 2026 decreased by approximately $0.5 million. The decrease was primarily due to a decrease of approximately $0.9 million in sales commissions which was in line with a decrease of revenues from sales of solar cells, partially offset by an increase of approximately $0.1 million in service fees, an increase of approximately $0.1 million in advertising expenses and an increase of approximately $0.1 million in travel expenses.
General and administrative expenses. Our general and administrative expenses increased from approximately $5.3 million for the three months ended June 30, 2025 to approximately $12.8 million for the three months ended June 30, 2026. The increase was primarily attributable to (a) an increase of payroll and welfare expenses of approximately $3.5 million because we hired more administrative staff in our Ethiopia and Texas plants to achieve our target production capacity in these two areas, (b) an increase of consulting expenses of approximately $0.9 million as we engaged more professionals and incurred share-based compensation expenses of approximately $0.1 million through the of issuance ordinary shares to certain consultants, and (c) an increase of other expenses of approximately $3.4 million, primarily because we reclassified cost incurred by our Ethiopia plant in June 2026. The reclassification was due to idleness of production line affected by CBP investigation.
Changes in fair value of contingent consideration payable. The 13,000,000 Earnout Shares are determined as contingent consideration in connection with the reverse recapitalization. For definition of Earnout Shares, please refer to Note 1 - ORGANIZATION AND BUSINESS DESCRIPTION - Business Combination with a SPAC to the unaudited condensed consolidated financial statements. The number of Earnout Shares depends on the ratio of actual 2024 audited net profit to the benchmark amount of $41 million, which precluded from the equity classification under ASC 815. The contingent consideration was initially recognized as a liability on July 1, 2024, with subsequent changes in fair value charged to the unaudited condensed consolidated statements of operations and comprehensive income. On May 14, 2025, based on the 2024 audited net profit which was reported in the Company’s Annual Report on Form 20-F for the year ended December 31, 2024, filed on May 12, 2025 (the “Form 20-F”), which excludes changes in the fair value of Earnout Shares, the Company released an aggregate of 1,712,297 Earnout Shares, which were fully vested, from the Earnout Escrow Account, and cancelled the remaining 11,287,703 Earnout Shares. For definition of Earnout Escrow Account, please refer to Note 1 - ORGANIZATION AND BUSINESS DESCRIPTION - Business Combination with a SPAC to the unaudited condensed consolidated financial statements. The changes of approximately $0.9 million in fair value between April 1, 2025 and May 14, 2025 was charged to the account of “Changes in fair value of contingent consideration payable”.
Income tax expenses. We incurred income tax expenses of approximately $4.0 million and $2.2 million for the three months ended June 30, 2026 and 2025, respectively. The increase was primarily caused by an increase in taxable income in certain subsidiaries.
Net income. As a result of the foregoing, we reported a net income of approximately $17.4 million and a net income of $6.2 million for the three months ended June 30, 2026 and 2025, respectively.
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For the six months ended June 30, 2026 and 2025
| For the Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Revenues from related parties | $ | 57,494,243 | $ | 25,087,488 | ||||
| Revenues from third parties | 203,464,110 | 114,019,674 | ||||||
| Revenues | 260,958,353 | 139,107,162 | ||||||
| Cost of revenues – related parties | (49,360,863 | ) | (17,983,523 | ) | ||||
| Cost of revenues – third parties | (126,870,001 | ) | (98,037,375 | ) | ||||
| Cost of revenues | (176,230,864 | ) | (116,020,898 | ) | ||||
| Gross profit | 84,727,489 | 23,086,264 | ||||||
| Operating expenses | ||||||||
| Selling and marketing expenses | (3,572,021 | ) | (2,530,879 | ) | ||||
| General and administrative expenses | (22,330,242 | ) | (10,878,506 | ) | ||||
| Total operating expenses | (25,902,263 | ) | (13,409,385 | ) | ||||
| Income from operations | 58,825,226 | 9,676,879 | ||||||
| Other expenses | ||||||||
| Interest income (expenses), net | (507,158 | ) | (1,777,036 | ) | ||||
| Other expenses, net | (2,932,052 | ) | (759,865 | ) | ||||
| Changes in fair value of contingent consideration payable | — | (1,341,794 | ) | |||||
| Total other expenses, net | (3,439,210 | ) | (3,878,695 | ) | ||||
| Income before income taxes | 55,386,016 | 5,798,184 | ||||||
| Income tax expenses | (9,565,248 | ) | (3,296,448 | ) | ||||
| Net income | $ | 45,820,768 | 2,501,736 | |||||
Revenues. Our revenues increased by approximately $121.9 million, or 88%, from approximately $139.1 million for the six months ended June 30, 2025 to approximately $261.0 million in the six months ended June 30, 2026. The increase was primarily caused by an increase of approximately $38.2 million in sales of solar cells, an increase of approximately $47.7 million in sales of solar modules and an increase of approximately $37.2 million in provision of OEM services.
The increase of solar cells was primarily driven by our achievement of 4GW and 2GW production capacity in Ethiopia in October 2025, leading to an increase of output to meet sales orders from our customers. However our sales were affected by CBP investigation in May 2026, leading to a decrease in revenues of sola cells in June 2026. The investigation is currently under review by U.S. Customs and Border Protection (CBP), and no final determination has been made.
The increase of solar modules and provision of OEM services was primarily due to the commencement of sales of solar modules to a related party since October 2025 and commencement of provision of OEM services in late 2025. We expect to expand our customer base in the years ending December 31, 2026 and 2027.
Cost of revenues. The cost of revenues increased by approximately $60.2 million, or 52%, from approximately $116.0 million for the six months ended June 30, 2025 to approximately $176.2 million for the six months ended June 30, 2026. The increase in cost of revenues was primarily in line with the increase in sales of solar cells and solar modules. However the increase in the cost of revenues is lower than the increase in the revenues. This was primarily caused by an increase in revenue from provision of OEM services, which was presented as net revenue.
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Gross profit. As a result of the foregoing, we recorded a gross profit of approximately $84.7 million and $23.1 million for the six months ended June 30, 2026 and 2025, respectively, with gross profit margin of approximately 32.5% and 16.6%. The increase in gross profit margin was due to increase in provision of OEM services.
Selling and marketing expenses. As compared with the selling and marketing expenses for the six months ended June 30, 2025, the selling and marketing expenses for the six months ended June 30, 2026 increased by approximately $1.0 million. The increase was primarily due to an increase of approximately $0.1 million in sales commissions which was in line with the increase in revenues from sales of solar cells, an increase of approximately $0.1 million in payroll and welfare expenses, an increase of approximately $0.2 million in testing fees, an increase of approximately $0.2 million in advertising expenses and an increase of approximately $0.1 million in travel expenses.
General and administrative expenses. Our general and administrative expenses increased from approximately $10.9 million for the six months ended June 30, 2025 to approximately $22.3 million for the six months ended June 30, 2026. The increase was primarily attributable to (a) an increase of payroll and welfare expenses of approximately $7.1 million because we hired more administrative staff in our Ethiopia and Texas plants to achieve our target production capacity in these two areas, (b) an increase of consulting expenses of approximately $1.3 million as we engaged more professionals and incurred share-based compensation expenses of approximately $0.1 million through the of issuance ordinary shares to certain consultants, and (c) an increase of depreciation expenses of approximately $2.2 million and an increase of other expenses of approximately $3.4 million, primarily because we reclassified depreciation expenses and other costs incurred by our Ethiopia plant in June 2026 from cost of revenues to general and administrative expenses. The reclassification was due to idleness of production line affected by CBP investigation.
Changes in fair value of contingent consideration payable. The 13,000,000 Earnout Shares are determined as contingent consideration in connection with the reverse recapitalization. The number of Earnout Shares depends on the ratio of actual 2024 audited net profit to the benchmark amount of $41 million, which precluded from the equity classification under ASC 815. The contingent consideration was initially recognized as a liability on July 1, 2024, with subsequent changes in fair value charged to the unaudited condensed consolidated statements of operations and comprehensive income. On May 14, 2025, based on the 2024 Audited Net Profit which was reported in the Form 20-F, which excludes changes in the fair value of Earnout Shares, the Company released an aggregate of 1,712,297 Earnout Shares, which were fully vested, from the Earnout Escrow Account, and cancelled the remaining 11,287,703 Earnout Shares. The changes of approximately $1.3 million in fair value between January 1, 2025 and May 14, 2025 was charged to the account of “Changes in fair value of contingent consideration payable”.
Income tax expenses. We incurred income tax expenses of approximately $9.6 million and $3.3 million for the six months ended June 30, 2026 and 2025, respectively. The increase was primarily caused by an increase in taxable income in certain subsidiaries.
Net income. As a result of the foregoing, we reported a net income of approximately $45.8 million and $2.5 million for the six months ended June 30, 2026 and 2025, respectively.
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B. Liquidity and Capital Resources
To date, we have financed our operating and investing activities primarily through cash generated from operating activities, capital contribution from shareholders, borrowings from a related party and a bank and equity financing in the market. As of June 30, 2026, we had cash and restricted cash of approximately $123.4 million. For the six months ended June 30, 2026, we generated cash flow of approximately $61.4 million from its operating activities and entered into borrowing agreements with financial institutions to borrow an aggregate amount of approximately $25.6 million. We also raised funds from issuance of ordinary shares in connection with ATM and a direct registered offering of approximately $5.5 million and $47.1 million, respectively.
As of March 31, 2026 and December 31, 2025, we had working capital deficits of approximately $97.1 million and $123.9 million, respectively. These conditions raised substantial doubt about our ability to continue as a going concern within twelve months from the issuance of our interim financial statements for the three months ended March 31, 2026. The substantial doubt was primarily attributable to our working capital deficit and the scheduled maturity of amounts due to related parties, including amounts due to VSUN.
During the three and six months ended June 30, 2026, we generated net income of approximately $17.4 million and $45.8 million, respectively, and generated positive cash flow from operating activities of approximately $61.4 million during the six months ended June 30, 2026. In addition, during the second quarter of 2026, we completed financing transactions that improved its liquidity position. On June 25, 2026, we consummated a registered direct offering with certain institutional investors, pursuant to which we issued 4,545,456 ordinary shares and warrants to purchase 4,545,456 ordinary shares, resulting in net proceeds of approximately $47.1 million. In April 2026, we also entered into an at-the-market sales agreement under which it may offer and sell up to $30 million of ordinary shares from time to time. As of June 30, 2026, we had raised net proceeds of approximately $5.5 million through the issuance of 414,495 ordinary shares under the sales agreement.
On June 18, 2026, we and VSUN entered into a loan extension agreement, pursuant to which VSUN agreed to extend the loan repayment date to June 17, 2028. Interest is payable upon repayment of principal. As a result of the extension, we reclassified the borrowing and related interest payable due to VSUN from current liabilities to non-current liabilities. After giving effect to this reclassification, we had working capital of approximately $29.8 million as of June 30, 2026, compared with a working capital deficit of approximately $97.1 million as of March 31, 2026.
Management considered the extension of the VSUN loan, the improvement in our working capital position, our recent profitability and positive operating cash flows, and the net proceeds received from the registered direct offering and the at-the-market offering in evaluating our ability to meet its obligations as they become due. Accordingly, the conditions and events that previously raised substantial doubt about our ability to continue as a going concern have been resolved, and substantial doubt no longer exists regarding our ability to continue as a going concern for at least twelve months from the date these unaudited condensed consolidated financial statements are issued. The unaudited condensed consolidated financial statements have been prepared on a going concern basis.
Further, because of the numerous risks and uncertainties associated with our path to continued profitability, we are unable to estimate the amounts of increased capital outlays and operating expenditures associated with our business development. There can be no assurance that our future cashflows from operating activities or financing activities including equity financing will be sufficient to support our ongoing operations, or that any additional financing will be available in a timely manner or on acceptable terms, if at all. If we are unable to generate sufficient revenue or events or circumstances occur such that we do not meet our strategic plans, we will be required to reduce certain discretionary spending, or be unable to fund capital expenditures, which would have a material adverse effect on our financial position, results of operations, cash flows, and ability to achieve its intended business objectives. We had commenced operations in the second half of 2023, and we need to implement our business plan to obtain the necessary operational liquidity on a sustainable basis. Failure to successfully implement the plans will have a material adverse effect on our business, results of operations and financial position, and may materially and adversely affect our ability to continue as a going concern.
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Cash Flows
The following table shows a summary of our cash flows:
| For the Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Net cash provided by operating activities | $ | 61,439,429 | $ | 40,045,122 | ||||
| Net cash used in investing activities | (27,780,462 | ) | (47,195,409 | ) | ||||
| Net cash provided by financing activities | 31,158,696 | 26,647,871 | ||||||
| Effect of exchange rate changes on cash and restricted cash | (257,925 | ) | 20,838 | |||||
| Net increase in cash and restricted cash | 64,559,738 | 19,518,422 | ||||||
| Cash and restricted cash at beginning of year | 58,860,026 | 17,149,389 | ||||||
| Cash and restricted cash at end of year | $ | 123,419,764 | $ | 36,667,811 | ||||
Operating activities
Net cash provided by operating activities for the six months ended June 30, 2026 was approximately $61.4 million, primarily due to a net income of approximately $45.8 million, adjusted for non-cash depreciation and amortization expenses of approximately $24.5 million, inventory write-down of approximately $6.5 million, and for changes in operating assets and liabilities which primarily included (i) an increase of approximately $4.2 million in accounts receivable due from third-party customers, which were driven by an increase in revenues generated from third parties during the six months ended June 30, 2026, (ii) a decrease of approximately $15.3 million in prepayments to third parties because we received certain inventories in the six months ended June 30, 2026, (iii) an increase of approximately $58.2 million in inventories as a result of decrease of revenues in June 2026 as affected by CBP investigation, (iv) an increase of approximately $23.7 million in accounts payable due to third-party suppliers as a result of increase in purchase of raw materials, (v) an increase of approximately $21.7 million in advances from third-party customers which slowed down purchase orders from us as affected by CBP investigation, and (vi) a decrease of approximately $15.6 million in advances from related-party customers because of an increase in sales.
Net cash provided by operating activities in the six months ended June 30, 2025 was approximately $40.0 million, primarily due to net income of approximately $2.5 million, adjusted for non-cash depreciation and amortization expenses of approximately $13.8 million, inventory write-down of approximately $3.9 million and changes in the fair value of contingent consideration of approximately $1.3 million, and for changes in operating assets and liabilities which primarily included (i) an increase of inventories of approximately $37.8 million as a result of increased orders from third-party customers, (ii) an increase of approximately $22.2 million in accounts payable which was caused by the increased purchase of raw materials from suppliers, and (iii) an increase of approximately $44.4 million in advances from a related party as we prioritize our delivery of solar cells to third-party customers, leading to a delay in delivery of products to the related party.
Investing Activities
Net cash used in investing activities for the six months ended June 30, 2026 was approximately $27.8 million, primarily attributable to the purchase of property and equipment of approximately $27.8 million.
Net cash used in investing activities in the six months ended June 30, 2025 was approximately $47.2 million, primarily attributable to purchase of property and equipment of approximately $47.1 million.
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Financing Activities
Net cash provided financing activities for the six months ended June 30, 2026 was approximately $31.2 million, which was primarily due to proceeds from issuance of ordinary shares in a registered direct offering of approximately $47.1 million, proceeds from issuance of ordinary shares in ATM offerings of approximately $5.5 million, proceeds from short-term borrowings of approximately $25.6 million, partially offset by the repayment of bank borrowings, including long-term bank borrowings and short-term bank borrowings, of approximately $36.1 million and repayment of related-party borrowings of approximately $11.0 million.
Net cash provided by financing activities in the six months ended June 30, 2025 was approximately $26.6 million, which was primarily due to capital contribution of approximately $4.0 million from a non-controlling shareholder, borrowings from a bank of approximately $22.8 million and borrowings from related parties of approximately $22.7 million, partially offset by a repayment of borrowings, including short-term and long-term borrowings, of approximately $22.8 million to a bank.
Material Cash Requirements
Our material cash requirements as of June 30, 2026 and any subsequent period primarily include our capital expenditures and non-cancellable lease obligations.
Capital Expenditures
We incur capital expenditures primarily for the purchase of property and equipment. For the six months ended June 30, 2026 and 2025, we purchased property and equipment of approximately $27.8 million and $47.1 million, respectively. We funded our capital expenditures primarily with cash flows generated from operating and financing activities. We intend to fund our future capital expenditures with our existing cash balance, anticipated cash flows from operations and financing alternatives. We will continue to make capital expenditures to meet the expected growth of its business.
Other than as disclosed in Note 16 to our unaudited condensed consolidated financial statements, we did not have any significant capital and other commitments, long-term obligations or guarantees as of June 30, 2026.
We have not entered into any significant financial guarantees or other commitments to guarantee the payment obligations of any third parties. We have not entered into any off-balance sheet derivative instruments. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or research and development services with us.
C. Trend Information
Other than as disclosed elsewhere in this report and the annual report on Form 20-F for the year ended December 31, 2025, filed on April 1, 2026, we are not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on our net revenues, income from operations, profitability, liquidity or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial condition.
D. Critical Accounting Estimates
In preparing the unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in our unaudited condensed consolidated financial statements and accompanying notes. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the assets or liabilities in the future.
We consider an accounting estimate to be critical if: (i) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and (ii) changes in the estimate that are reasonably likely to occur from period to period or use of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition or results of operations. The management determines there are no critical accounting estimates.
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Exhibit 99.3
NASDAQ: TOYO | OTC: TOYWF TOYO SOLAR Second Quarter & First Half 2026 Financial Results Scaling an integrated, non-FEOC solar manufacturing platform across global cells and U.S. modules. $261.0M H1 REVENUE 2.6 GW CELL DELIVERIES 32.5% GROSS MARGIN $123.4M CASH + RESTRICTED AUGUST 2026 TOYO SOLAR
Forward-Looking Statements This presentation 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 Co., Ltd ("TOYO"), the expected order delivery of TOYO, TOYO's construction plan for manufacturing and TOYO's strategies for building up an integrated value chain in the U.S. These statements are based on various assumptions, whether or not identified in this presentation, and on the current expectations of TOYO's management and are not predictions or guarantees of actual performance or future results. These statements involve risks, uncertainties, and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different 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 presentation, 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 TOYO's filings with the Securities and Exchange Commission (the "SEC"), including without limitation under the heading "Risk Factors" in the Company's annual report on Form 20-F filed with the SEC on March 31, 2026 (the "Annual Report"). 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 presentation 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 described in TOYO's filings with the SEC, including without limitation under the heading "Risk Factors" in the Annual Report. 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 presentation 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 presentation represent the views of TOYO as of the date of this presentation. 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 presentation. Except as may be required by law, TOYO does not undertake any duty to update these forward-looking statements. Certain information contained in this presentation was obtained from various sources, including third parties, and has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, correctness or reasonableness of the information or the sources presented or contained herein. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. 2 Safe Harbor
TOYO SOLAR H 1 & Q 2 2 0 2 6 E A R N I N G S P R E S E N T A T I O N Today's Executive Presenters Takahiko Onozuka CHAIRMAN & CHIEF EXECUTIVE OFFICER DISCUSSION TOPICS ●Key messages / H1 2026 highlights ●Business update — Section 232 impact ●Business outlook and concluding remarks Rhone Resch CHIEF STRATEGY OFFICER DISCUSSION TOPICS ●Section 232 policy update ●Ethiopia trade matter update ●HJT cell facility update Yasunari Harada CHIEF FINANCIAL OFFICER DISCUSSION TOPICS ●Financial summary (Q2 & H1 2026) ●Capital formation update TOYO CO., LTD. · H1 & Q2 2026 EARNINGS PRESENTATION 2 02
H1 2026 Scale translated into stronger earnings and liquidity 03 $261.0M TOTAL REVENUE +87.6% year over year 2.61 GW cells and 191.5 MW modules delivered in the first half. GROSS PROFIT $84.7M 32.5% gross margin GAAP NET INCOME $45.8M vs. $2.5M in H1 2025 ADJUSTED NET INCOME $46.0M Non-GAAP DILUTED EPS $1.20 vs. $0.08 in H1 2025 CAPITAL ENHANCEMENT Approximately $52.6M of net proceeds raised in H1 2026 Cash + restricted cash: $123.4M
Q2 2026 Revenue growth held while profitability expanded 04 $118.2M Q2 REVENUE +35.0% YoY Growth versus $87.6M in Q2 2025 GROSS MARGIN 31.3% +10.4 pts vs. Q2 2025 OPERATING INCOME $22.6M vs. $10.9M in Q2 2025 GAAP NET INCOME $17.4M vs. $6.2M in Q2 2025 DILUTED EPS $0.45 vs. $0.16 in Q2 2025 DISCIPLINED SCALE Operating expenses of $14.4M supported multi-gigawatt expansion in Houston. TOYO SOLAR | H1 & Q2 2026
OPERATING SCALE Cell deliveries lead; U.S. module output accelerated in Q2 05 0.32 1.74 4.3 1.45 1.16 0 1 2 3 4 5 2023 2024 2025 Q1 2026 Q2 2026 Solar cell shipments (GW) 0 56 250 55.7 135.8 0 50 100 150 200 250 300 2023 2024 2025 Q1 2026 Q2 2026 Solar module shipments (MW) H1 2026 CELLS 2.61 GW H1 2026 MODULES 191.5 MW TOYO SOLAR | H1 & Q2 2026
STRATEGIC PROGRESS Capital, market access and U.S. manufacturing advanced together 06 APR Registered offering $50.0M gross / ~$47.1M net JUN ATM program ~$5.5M net proceeds JUN Russell inclusion Russell 3000® and Microcap® JUL CFO appointment Yasunari Harada U.S. MANUFACTURING PLATFORM 45X qualification • $357M HJT investment • Houston capacity toward 2 GW
TOYO SOLAR C O R P O R A T E M I L E S T O N E S Recent Corporate & Strategic Developments 1 Registered Offering Closed June 25, 2026 with institutional investors: $50.0M gross / ~$47.1M net proceeds. 2 At-The-Market Program ~$5.5M net proceeds raised through June 30, 2026 with Roth Capital and H.C. Wainwright. 3 Russell Index Inclusion Added to the Russell 3000® and Russell Microcap® Indices in June 2026. 4 CFO Appointment Yasunari Harada appointed CFO effective July 1, 2026, bringing 30+ yrs banking expertise. 5 Section 45X Tax Credits Toyo Solar Texas LLC expects qualification for tax year 2025 credits per 3rd-party analysis. 6 Section 232 Policy Support Welcomed Section 232 determination; reaffirmed $357M Humble, TX HJT facility buildout. 7 HJT Cell Facility Announced $357M investment in Humble, TX targeting 1.5 GW initial capacity to be completed by no later than Q12028 8 Module Line Expansion 2nd Houston module line targeted for Sept 2026, expanding total capacity toward 2 GW. TOYO CO., LTD. · H1 & Q2 2026 EARNINGS PRESENTATION 07
SUPPLY-CHAIN INTEGRITY Traceability spans polysilicon through U.S. modules 08 01 POLYSILICON 70% of Ethiopia-U.S Poly 30% of Ethiopia- OCI Poly 02 INGOTS & WAFERS Non-FEOC sourcing Southeast Asia today; U.S. BOM in development 03 SOLAR CELLS 6.0 GW capacity 4 GW Ethiopia + 2 GW Vietnam operational +1.5 GW HJT cells to be completed by Q1 2028 in Houston 04 SOLAR MODULES 2.0 GW Houston First GW operational; second line targeted Sept. 2026 INDEPENDENT VALIDATION & TRACEABILITY Documented custody and manufacturing records support regulatory alignment. UFLPA and non-FEOC standards remain central to the operating model. 100% non-Chinese for U.S Supply Chain
U.S. MANUFACTURING EXPANSION Humble HJT cell facility brings advanced technology onshore TOTAL INVESTMENT $357M Advanced HJT equipment INITIAL CAPACITY 1.5 GW High-efficiency cells PILOT PRODUCTION Q1 2028 20-month timeline WORKFORCE ~400 Direct high-tech jobs SECTION 45X Eligible for federal production tax credits ($0.04/W cell) 09
TOYO SOLAR L E A D E R S H I P C O M M E N T A R Y Executive Management Commentary Takahiko Onozuka Chairman & Chief Executive Officer We are very pleased with our first-half 2026 results, which reflect the continued strength of our global manufacturing platform and the growing demand across our target markets. Following the recent Section 232 determination, we are actively engaged with the U.S. Department of Commerce on a framework supporting domestic U.S. solar production. Rhone Resch Chief Strategy Officer TOYO supports building a secure, competitive American solar supply chain, and we're putting capital behind it. That includes our integrated solar manufacturing campus in Humble, Texas, in the greater Houston area, comprising our 2 GW solar module facility and the new 1.5 GW advanced HJT solar cell facility on the same site TOYO CO., LTD. · H1 & Q2 2026 EARNINGS PRESENTATION 10
H1 & Q2 2026 Consolidated Results & Non-GAAP Reconciliations Income Statement Summary In Millions (USD) H1 '26 REVENUE $261.0M ↑ +87.6% YoY H1 '26 ADJ. EBITDA $82.3M ↑ +260.2% YoY Metric ($M) Q2 '26 Q2 '25 H1 '26 H1 '25 Revenues $118.2 $87.6 $261.0 $139.1 Gross Profit $37.0 $18.3 $84.7 $23.1 Gross Margin (%) 31.3% 20.9% 32.5% 16.6% Operating Expenses $14.4 $7.3 $25.9 $13.4 Net Income $17.4 $6.2 $45.8 $2.5 Diluted EPS ($) $0.45 $0.16 $1.20 $0.08 GAAP to Non-GAAP Reconciliation For the Six Months Ended June 30 In Million (USD) Line Item (Stated in US Dollars) June 30, 2026 June 30, 2025 Reconciliation of Non-GAAP Measures Net income $45. 8 $2.5 Income tax $9.6 $3.3 Interest expenses $0.5 $1.8 Depreciation and amortization $24.5 $12.3 Amortization of right-of-use assets $1.6 $1.5 Amortization of long-term prepaid expenses $0.08 $0.08 EBITDA (Non-GAAP) $82.1 $21.5 Adjustments Share-based compensation $0.02 $0.002 Changes in fair value of contingent consideration — $1.3 Adjusted EBITDA (Non-GAAP) $82.3 $22.8 Reconciliation of Non-GAAP net income Net income $45.8 $2.5 Share-based compensation $0.02 $0.002 Changes in fair value of contingent consideration — $1.3 Adjusted Net Income (Non-GAAP) $46.0 $3.9 *Non-GAAP financial measures exclude share-based compensation and contingent consideration adjustments. Strong H1 operating performance with full non-GAAP reconciliation 11
Balance Sheet ($M) Jun 30 '26 Dec 31 '25 Cash $103.5 $51.6 Total Current Assets $272.2 $171.8 Total Assets $537.6 $441.4 Total Current Liabilities $242.4 $295.7 Total Liabilities $327.8 $330.2 Total Shareholders' Equity $209.8 $111.3 Cash Flow ($M) H1 2026 H1 2025 Net cash from operating activities $61.4 $40.0 Net cash used in investing activities ($27.8) ($47.2) Net cash from financing activities $31.2 $26.6 Net increase in cash and restricted cash $64.6 $19.5 Cash and restricted cash, beginning of period $58.9 $17.1 Cash and restricted cash, end of period $123.4 $36.7 FINANCIAL DETAIL Balance sheet and cash flow summary as of and for H1 2026 BALANCE SHEET SUMMARY H1 CASH FLOW SUMMARY TOYO SOLAR | H1 & Q2 2026 12
NASDAQ: TOYO | OTC: TOYWF Questions & Answers H1 & Q2 2026 earnings presentation
APPENDIX Detailed financial statements Unaudited consolidated results for the periods ended June 30, 2026.
Q2 2026 Q2 2025 H1 2026 H1 2025 Revenues from related parties 21,536,529 14,566,338 57,494,243 25,087,488 Revenues from third parties 96,648,366 72,996,313 203,464,110 114,019,674 Revenues 118,184,895 87,562,651 260,958,353 139,107,162 Cost of revenues — related parties (20,885,274) (9,126,165) (49,360,863) (17,983,523) Cost of revenues — third parties (60,333,330) (60,151,456) (126,870,001) (98,037,375) Cost of revenues (81,218,604) (69,277,621) (176,230,864) (116,020,898) Gross profit 36,966,291 18,285,030 84,727,489 23,086,264 Selling and marketing expenses (1,564,629) (2,074,792) (3,572,021) (2,530,879) General and administrative expenses (12,846,480) (5,268,587) (22,330,242) (10,878,506) Total operating expenses (14,411,109) (7,343,379) (25,902,263) (13,409,385) Income from operations 22,555,182 10,941,651 58,825,226 9,676,879 Interest income (expenses), net 278,102 (1,197,987) (507,158) (1,777,036) Other expenses, net (1,392,802) (392,200) (2,932,052) (759,865) Changes in fair value of contingent consideration payable — (941,764) — (1,341,794) Total other expenses, net (1,114,700) (2,531,951) (3,439,210) (3,878,695) Income before income taxes 21,440,482 8,409,700 55,386,016 5,798,184 Income tax expenses (4,030,918) (2,191,989) (9,565,248) (3,296,448) Net income 17,409,564 6,217,711 45,820,768 2,501,736 Less: net loss attributable to noncontrolling interests — (502,522) — (965,275) Net income attributable to TOYO shareholders 17,409,564 6,720,233 45,820,768 3,467,011 Earnings per share – basic $0.46 $0.16 $1.21 $0.08 Earnings per share – diluted $0.45 $0.16 $1.20 $0.08 APPENDIX | FINANCIAL STATEMENTS Unaudited consolidated statements of income Three and six months ended June 30, 2026 and 2025 · Stated in US$ TOYO SOLAR | H1 & Q2 2026
ASSETS Jun 30, 2026 Dec 31, 2025 Cash 103,467,022 51,634,374 Restricted cash 6,576,827 714,245 Accounts receivable, net 15,406,535 11,253,459 Accounts receivable — related parties — 494,695 Prepayments 10,075,305 25,407,080 Prepayments — a related party — 72,264 Inventories, net 132,128,202 79,986,077 Other current assets 4,570,761 2,282,883 Total Current Assets 272,224,652 171,845,077 Restricted cash, non-current 13,375,915 6,511,407 Long-term prepaid expenses 6,747,346 6,834,162 Deposits for property and equipment 3,826,052 776,627 Property and equipment, net 206,577,123 220,648,149 Right of use assets 33,966,220 34,354,338 Deferred tax assets 36,044 178,107 Other non-current assets 820,781 285,954 Total Non-current Assets 265,349,481 269,588,744 Total Assets 537,574,133 441,433,821 LIABILITIES & EQUITY Jun 30, 2026 Dec 31, 2025 Short-term bank borrowings 25,674,455 30,648,493 Accounts payable 63,065,077 52,376,724 Accounts payable — related parties 3,068,695 3,269,212 Contract liabilities 49,327,830 27,592,381 Contract liabilities — related parties 64,715,769 80,348,303 Income tax payable 24,779,716 15,386,467 Due to related parties 11,090 62,328,287 Other payable and accrued expenses 8,219,614 15,415,684 Lease liabilities, current 3,534,017 2,867,727 Long-term bank borrowings, current portion — 5,471,119 Total Current Liabilities 242,396,263 295,704,397 Lease liabilities, non-current 34,028,802 34,474,040 Due to a related party, non-current 51,362,654 - Total Non-current Liabilities 85,391,456 34,474,040 Total Liabilities 327,787,719 330,178,437 Ordinary shares 4,272 3,671 Additional paid-in capital 81,534,872 28,779,967 Statutory reserves 100,000 — Retained earnings 135,697,152 89,976,384 Accumulated other comprehensive loss (7,549,882) (7,504,638) Total Shareholders' Equity 209,786,414 111,255,384 Total Liabilities and Shareholders' Equity 537,574,133 441,433,821 APPENDIX | FINANCIAL STATEMENTS Unaudited condensed consolidated balance sheets As of June 30, 2026 and December 31, 2025 · Stated in US$ TOYO SOLAR | H1 & Q2 2026
H1 2026 H1 2025 Net cash provided by operating activities 61,439,429 40,045,122 Cash flows from investing activities: Purchase of property and equipment (27,780,462) (47,128,016) Advances made to a related party — (67,393) Net cash used in investing activities (27,780,462) (47,195,409) Cash flows from financing activities: Capital injection from shareholders — 4,000,000 Proceeds from ordinary shares — registered direct offering 47,054,065 — Proceeds from ordinary shares — ATM program 5,546,541 — Proceeds from short-term bank borrowings 25,640,403 22,755,361 Repayment of short-term bank borrowings (30,602,649) (15,780,809) Repayment of long-term bank borrowings (5,479,664) (7,051,681) Proceeds of borrowings from a related party — 22,725,000 Repayment of borrowings to a related party (11,000,000) — Net cash provided by financing activities 31,158,696 26,647,871 Effect of exchange rate changes on cash and restricted cash (257,925) 20,838 Net increase in cash and restricted cash 64,559,738 19,518,422 Cash and restricted cash at beginning of period 58,860,026 17,149,389 Cash and restricted cash at end of period 123,419,764 36,667,811 Supplemental: Cash paid for interest expense 1,671,463 748,698 APPENDIX | FINANCIAL STATEMENTS Unaudited consolidated statements of cash flows Six months ended June 30, 2026 and 2025 · Stated in US$ H1 CASH FLOW $61.4M OCF $27.8M CAPEX $123.4M END CASH TOYO SOLAR | H1 & Q2 2026
Exhibit 99.4
TOYO Co., Ltd Announces Unaudited Second Quarter and First Half 2026 Financial Results
TOKYO, Japan, August 19, 2026 – TOYO Co., Ltd (Nasdaq: TOYO) (OTC: TOYWF) (“TOYO,” “we” or the “Company”), a solar solution company, today announced its unaudited financial results for the second quarter of 2026 and the six months ended June 30, 2026.
First Half 2026 Financial Highlights
| ● | 2.6 GW of solar cells delivered, an increase of 62.5% year-over-year |
| ● | 191.5 MW of solar modules delivered; module production capacity had not yet come online in the first half of 2025 |
| ● | Revenues of $261.0 million, an increase of 87.6% year-over-year |
| ● | Net income of $45.8 million, compared to $2.5 million in the first half of 2025, an increase of 1,731.6% year-over-year |
| ● | EBITDA (Non-GAAP) of $82.1 million, compared to $21.5 million in the first half of 2025, an increase of 282.3% year-over-year |
| ● | Adjusted EBITDA (Non-GAAP) of $82.3 million, compared to $22.8 million in the first half of 2025, an increase of 260.2% year-over-year |
| ● | Adjusted Net Income (Non-GAAP) of $46.0 million, compared to $3.9 million in the first half of 2025, an increase of 1,090.6% year-over-year |
| ● | Earnings per share, basic and diluted, of $1.21 and $1.20, respectively, compared to $0.08 in the first half of 2025 |
| ● | Raised approximately $52.6 million in aggregate net proceeds from a registered direct offering and at-the-market offerings during the first half of 2026 |
“We are very pleased with our first-half 2026 results, which reflect the continued strength of our global manufacturing platform and the growing demand we’re seeing across our markets,” said Takahiko Onozuka, Chairman and CEO of TOYO. “Following the recent policy movement, we do expect an impact on our second-half results, though the magnitude is not yet certain, as we are currently in discussion with the Department of Commerce on a framework that would help address it. We will provide further updates as more clarity emerges.”
“TOYO supports building a secure, competitive American solar supply chain, and we’re putting capital behind it,” said Rhone Resch, Chief Strategy Officer of TOYO. “That includes our integrated solar manufacturing campus in Humble, Texas, in the greater Houston area, comprising our 2 GW solar module facility and the new 1.5 GW advanced heterojunction (HJT) solar cell facility on the same site. We are working with the Department of Commerce on an investment offset that would support this buildout while keeping cell supply available to U.S. solar module makers. TOYO remains committed to growing U.S. solar manufacturing, supporting American jobs, and building a secure, non-FEOC (Non-Foreign Entity of Concern) supply chain.”
Recent Developments
| ● | Registered Direct Offering: On June 25, 2026, the Company closed a registered direct offering with certain institutional investors for gross proceeds of $50.0 million and net proceeds of approximately $47.1 million. |
| ● | At-the-Market Offering: As of June 30, 2026, the Company had raised approximately $5.5 million in net proceeds from at-the-market offerings under its at-the-market equity program with Roth Capital Partners, LLC and H.C. Wainwright & Co., LLC. |
| ● | Russell Index Inclusion: Effective following the June 2026 annual reconstitution, TOYO was added to the Russell 3000® Index and the Russell Microcap® Index. |
| ● | CFO Transition: Effective July 1, 2026, Yasunari Harada was appointed Chief Financial Officer, succeeding Taewoo (Raymond) Chung who resigned effective June 30, 2026. |
| ● | Section 45X Tax Credit Eligibility: Toyo Solar Texas LLC expects to qualify for Section 45X Advanced Manufacturing Production Credits for the tax year 2025, based on a third-party tax compliance analysis announced on July 21, 2026. |
| ● | “Houston-Area Module Capacity Expansion: Construction of the Company’s second 1 GW solar module production line at its Humble, Texas facility, in the greater Houston area, is nearing completion, with production expected to begin in September 2026. Once operational, this will bring TOYO’s total solar module manufacturing capacity at that site to approximately 2 GW. |
| ● | HJT Cell Manufacturing Line: TOYO’s previously announced 1.5 GW advanced HJT solar cell manufacturing line — a $357 million investment, located on the same Humble, Texas site as the Company’s solar module plant — is progressing on schedule. TOYO reaffirms that the line will enter pilot production no later than the first quarter of 2028. |
| ● | Section 232 Polysilicon Determination: TOYO welcomed the Section 232 determination of the Trump Administration on polysilicon, reaffirming TOYO’s $357 million HJT facility investment in Humble, Texas. |
Unaudited Second Quarter 2026 Results
Revenues for the second quarter of 2026 were approximately $118.2 million, an increase of 35.0% from $87.6 million in the same period in 2025, primarily reflecting approximately $31.7 million of solar module sales contributed during the second quarter by the Company’s newly operational module facility in Texas.
Cost of revenues was approximately $81.2 million for the second quarter of 2026, compared to $69.3 million for the same period in 2025.
Gross profit was approximately $37.0 million for the second quarter of 2026, an increase of 102.2% compared to $18.3 million for the same period in 2025. Gross margin improved to 31.3% for the second quarter of 2026 from 20.9% in the second quarter of 2025.
Total operating expenses increased to approximately $14.4 million for the second quarter of 2026 from $7.3 million for the same period in 2025.
| ● | Selling and marketing expenses were $1.6 million for the second quarter of 2026, compared to $2.1 million for the same period in 2025. |
| ● | General and administrative expenses were $12.8 million for the second quarter of 2026, compared to $5.3 million for the same period in 2025. |
Income from operations was approximately $22.6 million for the second quarter of 2026, compared to $10.9 million for the same period in 2025.
Net income was approximately $17.4 million for the second quarter of 2026, compared to $6.2 million for the same period in 2025.
Net income attributable to TOYO’s shareholders was $17.4 million for the second quarter of 2026, compared to $6.7 million for the same period in 2025.
Earnings per share, basic and diluted, for the second quarter of 2026 were $0.46 and $0.45, respectively, compared to $0.16 for both basic and diluted in the same period in 2025.
2
Unaudited First Half 2026 Results
Revenues for the six months ended June 30, 2026 were approximately $261.0 million, an increase of 87.6% from $139.1 million in the same period in 2025. The increase was primarily driven by higher solar cell and solar module revenue, including a 153.9% increase in sales to end customers in the United States, which represented $210.5 million, or approximately 80.7%, of first-half revenue.
Cost of revenues was approximately $176.2 million for the first half of 2026, compared to $116.0 million for the same period in 2025.
Gross profit was approximately $84.7 million for the first half of 2026, an increase of 267.0% compared to $23.1 million for the same period in 2025. Gross margin improved to 32.5% for the first half of 2026 from 16.6% in the first half of 2025, primarily reflecting expanded production capacity and improved production efficiencies.
Total operating expenses increased to approximately $25.9 million for the first half of 2026 from $13.4 million for the same period in 2025.
| ● | Selling and marketing expenses were $3.6 million for the first half of 2026, compared to $2.5 million for the same period in 2025. |
| ● | General and administrative expenses were $22.3 million for the first half of 2026, compared to $10.9 million for the same period in 2025, primarily reflecting the scale-up of operations at the Company’s Houston module facility and increased headcount to support growth. |
Income from operations was approximately $58.8 million for the first half of 2026, an increase of 507.9% compared to $9.7 million for the same period in 2025.
Net income was approximately $45.8 million for the first half of 2026, compared to $2.5 million for the same period in 2025.
Net income attributable to TOYO’s shareholders was $45.8 million for the first half of 2026, compared to $3.5 million for the same period in 2025.
Earnings per share, basic and diluted, of $1.21 and $1.20, respectively, compared to $0.08 in the first half of 2025.
For the six months ended June 30, 2026, the Company generated cash from operations of $61.4 million and incurred capital expenditures of $27.8 million.
As of June 30, 2026, the Company had $123.4 million in cash and restricted cash (including non-current restricted cash), compared to $58.9 million as of December 31, 2025. As of June 30, 2026, cash and cash equivalents were $103.5 million, with $6.6 million in current restricted cash and $13.4 million in non-current restricted cash, primarily securing letters of credit and bank facilities.
Business Outlook
“The current dynamic policy environment presents both challenges and opportunities for our business. We are in constructive discussions with the Department of Commerce on the Section 232 framework, and we are working toward a favorable outcome that would limit impact on our results — though we will not know the final terms until those discussions conclude,” said Takahiko Onozuka, Chairman and CEO of TOYO.
“We remain confident in the underlying strength of our business, and we continue to execute on our U.S. manufacturing strategy. Our second module production line at our Humble, Texas campus in the greater Houston area is on track to begin production in September, bringing total module capacity there to approximately 2 GW, while our 1.5 GW HJT cell facility on that same site is progressing on schedule and we reaffirm that it will enter pilot production no later than the first quarter of 2028. Together, these investments mark real progress toward a larger, increasingly integrated U.S. manufacturing platform built to meet growing demand for high-performance solar products,” said Takahiko Onozuka, Chairman and CEO of TOYO.
“The recent Section 232 proclamation reinforces the importance of this strategy. We believe TOYO’s module operations, planned HJT capacity, use of American polysilicon, and broader non-FEOC supply chain align closely with the Trump Administration’s onshoring goals. While near-term implementation details remain uncertain, we view the policy direction as supportive of TOYO’s long-term position in the U.S. market,” said Rhone Resch, Chief Strategy Officer of TOYO.
3
Conference Call
TOYO will host a webcast and conference call to discuss its second quarter and first half 2026 results on August 19, 8:30 am ET. A live webcast and slide presentation will be available on TOYO’s investor relations website in the “Events” section at investors.toyo-solar.com.
The dial-in numbers for the conference call are expected to be:
| ● | Participant Toll-Free Dial-In Number: (800) 715-9871 |
| ● | Participant Toll Dial-In Number: +1 (646) 307-1963 |
| ● | Japan – Tokyo: +81.3.4578.9081 |
| ● | Conference ID: 4590776 |
Live Webcast: https://events.q4inc.com/attendee/998298548
Exchange Rate Information
This announcement contains translations of certain Vietnamese Dong (“VND”) amounts into U.S. dollars solely for the reader’s convenience. The VND exchange rate for balance sheet items, except for equity accounts, was VND 26,311 to US$1.00, the exchange rate as of June 30, 2026. Translations related to items in the statements of operations and comprehensive income and statements of cash flows from VND to U.S. dollars are made at a rate of VND 26,250 to US$1.00, the average exchange rate for the six months ended June 30, 2026. The Company makes no representation that the VND or U.S. dollar amounts referenced could be converted into U.S. dollars or VND, as the case may be, at any particular rate or at all.
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 manufacturing facilities, 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 cautions 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 Securities and Exchange Commission (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.
4
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@aumadvisors.com
Tel: (646) 652-7185
Non-GAAP Measures
Some of the financial information and data contained in this press release, such as EBITDA, Adjusted EBITDA and Adjusted Net Income, have not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). TOYO believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to TOYO’s financial condition and results of operations. TOYO’s management uses these non-GAAP measures for trend analysis and for budgeting and planning purposes. TOYO believes that the use of these non-GAAP measures provides an additional tool for investors to evaluate projected operating results and trends, as well as compare TOYO’s financial measures with those of other similar companies, many of which also present similar non-GAAP financial measures to investors.
Management of TOYO does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses such as share-based compensation and changes in fair value of contingent consideration and income that are required by GAAP to be recorded in TOYO’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. You should review TOYO’s audited and unaudited financial statements filed with the SEC and not rely on any single financial measure to evaluate TOYO’s business, results of operations and financial condition.
5
TOYO Co., Ltd
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(Currency expressed in United States Dollars (“US$”), except for number of shares)
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues from related parties | $ | 21,536,529 | $ | 14,566,338 | $ | 57,494,243 | $ | 25,087,488 | ||||||||
| Revenues from third parties | 96,648,366 | 72,996,313 | 203,464,110 | 114,019,674 | ||||||||||||
| Revenues | 118,184,895 | 87,562,651 | 260,958,353 | 139,107,162 | ||||||||||||
| Cost of revenues – related parties | (20,885,274 | ) | (9,126,165 | ) | (49,360,863 | ) | (17,983,523 | ) | ||||||||
| Cost of revenues – third parties | (60,333,330 | ) | (60,151,456 | ) | (126,870,001 | ) | (98,037,375 | ) | ||||||||
| Cost of revenues | (81,218,604 | ) | (69,277,621 | ) | (176,230,864 | ) | (116,020,898 | ) | ||||||||
| Gross profit | 36,966,291 | 18,285,030 | 84,727,489 | 23,086,264 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling and marketing expenses | (1,564,629 | ) | (2,074,792 | ) | (3,572,021 | ) | (2,530,879 | ) | ||||||||
| General and administrative expenses | (12,846,480 | ) | (5,268,587 | ) | (22,330,242 | ) | (10,878,506 | ) | ||||||||
| Total operating expenses | (14,411,109 | ) | (7,343,379 | ) | (25,902,263 | ) | (13,409,385 | ) | ||||||||
| Income from operations | 22,555,182 | 10,941,651 | 58,825,226 | 9,676,879 | ||||||||||||
| Other expenses | ||||||||||||||||
| Interest income (expenses), net | 278,102 | (1,197,987 | ) | (507,158 | ) | (1,777,036 | ) | |||||||||
| Other expenses, net | (1,392,802 | ) | (392,200 | ) | (2,932,052 | ) | (759,865 | ) | ||||||||
| Changes in fair value of contingent consideration payable | — | (941,764 | ) | — | (1,341,794 | ) | ||||||||||
| Total other expenses, net | (1,114,700 | ) | (2,531,951 | ) | (3,439,210 | ) | (3,878,695 | ) | ||||||||
| Income before income taxes | 21,440,482 | 8,409,700 | 55,386,016 | 5,798,184 | ||||||||||||
| Income tax expenses | (4,030,918 | ) | (2,191,989 | ) | (9,565,248 | ) | (3,296,448 | ) | ||||||||
| Net income | 17,409,564 | 6,217,711 | 45,820,768 | 2,501,736 | ||||||||||||
| Less: net loss attributable to noncontrolling interests | — | (502,522 | ) | — | (965,275 | ) | ||||||||||
| Net income attributable to TOYO Co., Ltd.’s shareholders | $ | 17,409,564 | $ | 6,720,233 | $ | 45,820,768 | $ | 3,467,011 | ||||||||
| Other comprehensive loss | ||||||||||||||||
| Foreign currency translation adjustment | (15,395 | ) | (1,195,959 | ) | (45,244 | ) | (1,675,148 | ) | ||||||||
| Comprehensive income | $ | 17,394,169 | $ | 5,021,752 | 45,775,524 | 826,588 | ||||||||||
| Less: net loss attributable to noncontrolling interests | — | (502,522 | ) | — | (965,275 | ) | ||||||||||
| Comprehensive income attributable to TOYO Co., Ltd.’s shareholders | $ | 17,394,169 | $ | 5,524,274 | 45,775,524 | 1,791,863 | ||||||||||
| Weighted average number of ordinary share outstanding– basic | 38,193,043 | 34,480,116 | 37,937,402 | 34,040,373 | ||||||||||||
| Earnings per share – basic | $ | 0.46 | $ | 0.16 | $ | 1.21 | $ | 0.08 | ||||||||
| Weighted average number of ordinary share outstanding– diluted | 38,535,995 | 34,480,116 | 38,116,031 | 34,040,373 | ||||||||||||
| Earnings per share –diluted | $ | 0.45 | $ | 0.16 | $ | 1.20 | $ | 0.08 | ||||||||
6
TOYO Co., Ltd
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Currency expressed in United States Dollars (“US$”), except for number of shares)
| June 30, 2026 | December 31, 2025 | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash | $ | 103,467,022 | $ | 51,634,374 | ||||
| Restricted cash | 6,576,827 | 714,245 | ||||||
| Accounts receivable, net | 15,406,535 | 11,253,459 | ||||||
| Accounts receivable – related parties | — | 494,695 | ||||||
| Prepayments | 10,075,305 | 25,407,080 | ||||||
| Prepayments – a related party | — | 72,264 | ||||||
| Inventories, net | 132,128,202 | 79,986,077 | ||||||
| Other current assets | 4,570,761 | 2,282,883 | ||||||
| Total Current Assets | 272,224,652 | 171,845,077 | ||||||
| Non-current Assets | ||||||||
| Restricted cash, non-current | 13,375,915 | 6,511,407 | ||||||
| Long-term prepaid expenses | 6,747,346 | 6,834,162 | ||||||
| Deposits for property and equipment | 3,826,052 | 776,627 | ||||||
| Property and equipment, net | 206,577,123 | 220,648,149 | ||||||
| Right of use assets | 33,966,220 | 34,354,338 | ||||||
| Deferred tax assets | 36,044 | 178,107 | ||||||
| Other non-current assets | 820,781 | 285,954 | ||||||
| Total Non-current Assets | 265,349,481 | 269,588,744 | ||||||
| Total Assets | $ | 537,574,133 | $ | 441,433,821 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current Liabilities | ||||||||
| Short-term bank borrowings | $ | 25,674,455 | $ | 30,648,493 | ||||
| Accounts payable | 63,065,077 | 52,376,724 | ||||||
| Accounts payable – related parties | 3,068,695 | 3,269,212 | ||||||
| Contract liabilities | 49,327,830 | 27,592,381 | ||||||
| Contract liabilities – related parties | 64,715,769 | 80,348,303 | ||||||
| Income tax payable | 24,779,716 | 15,386,467 | ||||||
| Due to related parties | 11,090 | 62,328,287 | ||||||
| Other payable and accrued expenses | 8,219,614 | 15,415,684 | ||||||
| Lease liabilities, current | 3,534,017 | 2,867,727 | ||||||
| Long-term bank borrowings, current portion | — | 5,471,119 | ||||||
| Total Current Liabilities | 242,396,263 | 295,704,397 | ||||||
| Lease liabilities, non-current | 34,028,802 | 34,474,040 | ||||||
| Due to a related party, non-current | 51,362,654 | — | ||||||
| Total Non-current Liabilities | 85,391,456 | 34,474,040 | ||||||
| Total Liabilities | 327,787,719 | 330,178,437 | ||||||
| Commitments and Contingencies (Note 16) | ||||||||
| Shareholders’ Equity | ||||||||
| Ordinary shares (par value $0.0001 per share, 500,000,000 shares authorized, 42,718,948 shares and 37,758,997 shares issued as of June 30, 2026 and December 31, 2025, and 42,718,948 shares and 36,712,040 shares outstanding as of June 30, 2026 and December 31, 2025, respectively) | 4,272 | 3,671 | ||||||
| Additional paid-in capital | 81,534,872 | 28,779,967 | ||||||
| Statutory reserves | 100,000 | — | ||||||
| Retained earnings | 135,697,152 | 89,976,384 | ||||||
| Accumulated other comprehensive loss | (7,549,882 | ) | (7,504,638 | ) | ||||
| Total Shareholders’ Equity | 209,786,414 | 111,255,384 | ||||||
| Total Liabilities and Shareholders’ Equity | $ | 537,574,133 | $ | 441,433,821 | ||||
7
TOYO Co., Ltd
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Currency expressed in United States Dollars (“US$”)
| For the Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Net cash provided by operating activities | $ | 61,439,429 | $ | 40,045,122 | ||||
| Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | (27,780,462 | ) | (47,128,016 | ) | ||||
| Advances made to a related party | — | (67,393 | ) | |||||
| Net cash used in investing activities | (27,780,462 | ) | (47,195,409 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Capital injection from shareholders | — | 4,000,000 | ||||||
| Proceeds from issuance of ordinary shares in connection with a registered direct offering | 47,054,065 | — | ||||||
| Proceeds from issuance of ordinary shares in connection with ATM | 5,546,541 | — | ||||||
| Proceeds from short-term bank borrowings | 25,640,403 | 22,755,361 | ||||||
| Repayment of short-term bank borrowings | (30,602,649 | ) | (15,780,809 | ) | ||||
| Repayment of long-term bank borrowings | (5,479,664 | ) | (7,051,681 | ) | ||||
| Proceeds of borrowings from a related party | — | 22,725,000 | ||||||
| Repayment of borrowings to a related party | (11,000,000 | ) | — | |||||
| Net cash provided by financing activities | 31,158,696 | 26,647,871 | ||||||
| Effect of exchange rate changes on cash and restricted cash | (257,925 | ) | 20,838 | |||||
| Net increase in cash and restricted cash | 64,559,738 | 19,518,422 | ||||||
| Cash and restricted cash at beginning of period | 58,860,026 | 17,149,389 | ||||||
| Cash and restricted cash at end of period | $ | 123,419,764 | $ | 36,667,811 | ||||
| Supplemental cash flow information | ||||||||
| Cash paid for interest expense | $ | 1,671,463 | $ | 748,698 | ||||
| Cash paid for income tax | $ | 18,430 | $ | — | ||||
| Noncash investing and financing activities | ||||||||
| Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | 1,230,418 | $ | 1,863,841 | ||||
| Payables related to purchase of property and equipment | $ | 21,931,470 | $ | 19,328,018 | ||||
| Issuance of ordinary shares to settle contingent consideration payable | $ | $ | 5,958,794 | |||||
8
Reconciliation of cash and restricted cash to the consolidated balance sheets:
| June 30, 2026 | December 31, 2025 | |||||||
| Cash | $ | 103,467,022 | $ | 51,634,374 | ||||
| Restricted cash | 6,576,827 | 714,245 | ||||||
| Restricted cash, non-current | 13,375,915 | 6,511,407 | ||||||
| Total cash and restricted cash | $ | 123,419,764 | $ | 58,860,026 | ||||
Reconciliation of GAAP to Non-GAAP Measures** (Stated in US dollars)
| For the six months ended | ||||||||
| June 30, 2026 | June 30, 2025 | |||||||
| Reconciliation of Non-GAAP Measures | ||||||||
| Net income | $ | 45,820,768 | $ | 2,501,736 | ||||
| Income tax | $ | 9,565,248 | $ | 3,296,448 | ||||
| Interest expenses | $ | 507,158 | $ | 1,777,036 | ||||
| Depreciation and amortization | $ | 24,523,769 | $ | 12,310,919 | ||||
| Amortization of right-of-use assets | $ | 1,638,620 | $ | 1,514,384 | ||||
| Amortization of long-term prepaid expenses | $ | 81,811 | $ | 83,575 | ||||
| EBITDA (Non-GAAP) | $ | 82,137,374 | $ | 21,484,098 | ||||
| Adjustments | ||||||||
| Share-based compensation | $ | 154,900 | $ | 18,000 | ||||
| Changes in fair value of contingent consideration | - | $ | 1,341,794 | |||||
| Adjusted EBITDA (Non-GAAP) | $ | 82,292,274 | $ | 22,843,892 | ||||
| Reconciliation of Non-GAAP Net Income Operations | ||||||||
| Net income | $ | 45,820,768 | $ | 2,501,736 | ||||
| Share-based compensation | $ | 154,900 | $ | 18,000 | ||||
| Changes in fair value of contingent consideration | - | $ | 1,341,794 | |||||
| Adjusted Net Income (Non-GAAP) | $ | 45,975,668 | $ | 3,861,530 | ||||
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Filing Exhibits & Attachments
9 documentsPress Releases
- EX-99.1 UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2026 AND FOR 794.7 KB
- EX-99.2 OPERATING AND FINANCIAL REVIEW AND PROSPECTS IN CONNECTION WITH THE UNAUDITED IN 129.0 KB
- EX-99.3 INVESTOR PRESENTATION DATED AUGUST 19, 2026 31.7 KB
- EX-99.4 PRESS RELEASE DATED AUGUST 19, 2026 152.2 KB