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Ideanomics seeing 'robust growth' in its MEG division thanks to a spate of new orders

The New York-based firm is focusing on electric vehicles and financial services, two industries that the company believes will provide near- and long-term revenues

truck on road
MEG helps enable fleet operators to migrate over to electric vehicles and transition away from fossil fuels

Ideanomics Inc (NASDAQ:IDEX) said Monday that its new Mobile Energy Global division will provide the company with “robust growth” thanks to confirmed orders from commercial fleet operators.

The new division, MEG, helps enable fleet operators to migrate over to electric vehicles and transition away from fossil fuels.
Ideanomics said it has built a “diverse pipeline of orders and opportunities” that cover four commercial vehicle segments that represent “major opportunities” in commercial fleet switching to electric vehicles.

The New York-based firm embarked on a strategy to concentrate its business on electric vehicles and financial services, two industries that the company believes will provide near- and long-term revenues, it told shareholders at it released its full year 2019 results on Monday.

READ: Ideanomics' electric vehicle subsidiary receives order worth about $215M in China

"The results for 2019 reflect the finalization of our business transformation and position us to focus on our core activities in (electric vehicle) and financial services from 2020 forward," said Alf Poor, CEO of Ideanomics, in a statement.

The company reported that its cost of revenues was $1.5 million for the year ended December 31, 2019 and a gross profit of $43.1 million. Loss from operations was just over $68 million due to the impairments of the company’s holdings of GTB cryptocurrency and other fintech expenses, it told shareholders.

"The impairments taken in our 2019 financials are due to US GAAP accounting rules and reflect our decision to clear a path to profitability and growth which will see our resources fully focused on the near-term revenue opportunities in MEG and the strategic development of Ideanomics Capital,” CEO Poor said.

“The fact that these are non-cash impairments, and the assets are still within the group and available to be sold or otherwise divested, means we have taken definitive decisions to ensure we are best-placed to grow our revenues and shareholder value from this point forward.”

Earlier on Monday Ideanomics reported that MEG received an order for 2,000, 8x4 meter heavy dump trucks worth about $215 million from a Chinese customer.  

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

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Price: 1.63 USD

NASDAQ:IDEX
Market: NASDAQ
Market Cap: $273.67 m
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