How did Gaoping Electronics' revenue and expenses shift in Q3 2024?

Gap Electronics' Q3 2024 financial performance showcased notable improvements across key metrics, reflecting enhanced operational efficiency and strong market positioning:

1. **Revenue Growth**: The company's revenue increased by more than $3 million in Q3, representing a significant **7% quarter-over-quarter growth**. This uptick was driven by strategic shifts in merchandise mix and pricing initiatives, which successfully countered the impact of reduced battery hardware sales.
2. **Gross Profit and Margin Improvement**: Gap reported a **GAAP gross profit of $6.2 million**, marking a substantial improvement from the $(20.3) million recorded in Q3 2023. Concurrently, the **non-GAAP gross profit stood at $16.2 million**, up from $21.4 million in the prior year, yet this still reflected a decrease due to lower battery hardware revenue. Despite this, the **gross margin improved notably**, with a GAAP gross margin of 21% and a non-GAAP gross margin of 46%—up from 15% and 12% respectively.
3. **EBITDA and Operating Cash Flow**: The company's **Adjusted EBITDA was reported at $(3.5) million**, an improvement from the $(0.9) million in Q3 2023. Additionally, the **operating cash flow decreased to $(9.4) million**, down from $(4.0) million in the same period last year.
4. **Inventory and Asset Management**: Gap's inventory levels decreased by 5% to $2.11 billion compared to the previous year. The company also saw improvements in asset management, with contracted storage assets under management (AUM) increasing by 20% to 6.0 gigawatt hours (GWh) and solar monitoring AUM rising by 8% to 28.5 gigawatts (GW).

In summary, Gap Electronics' Q3 2024 financial performance demonstrated robust growth in revenue and gross profit margins, alongside strategic adjustments in inventory management and asset optimization.