ZIBO, China, May 16, 2023 (GLOBE NEWSWIRE) -- Sunrise New Energy Co., Ltd. (“Sunrise”, the “Company”, “we” or “our”) (NASDAQ: EPOW), today announces financial results for the fiscal year ended December 31, 2022.
Chairman's Vision: Charting the Course Ahead
"I am immensely proud to announce our financial results for 2022," said Sunrise's Chairman, Mr. Haiping Hu. "Our revenue growth of 415% from fiscal year 2021 bears testament to the remarkable efforts of our dedicated team. We have quickly emerged as a leading manufacturer of graphite anode, earning the trust and business of the top 3 lithium battery manufacturers and the world's biggest EV manufacturer by volume, BYD. Our commitment to quality and service has positioned us as a trusted partner of our customers in the lithium battery market.
As we look ahead to 2023, our focus is on ramping up our manufacturing capacity to fulfill our customer’s orders efficiently and effectively. I believe strongly in the potential of our company. I consider our stock to be deeply undervalued given our current position and prospects. As a testament to my confidence, I plan to continue purchasing shares in the open market. We have laid a strong foundation for growth, and I am excited about what we can achieve in the years ahead."
Highlight of accomplishments from late-2022 through today:
- Significant New Contracts: The Company secured significant new contracts throughout 2022 and 2023, including a $464 million purchase order from a top 5 global EV battery manufacturer and a $225 million contract with BYD. These contracts further strengthen the Company's market position.
- Strong Growth in Purchase Orders: The Company has experienced substantial growth in its volume of purchase orders, which now stands at a value of $700 million. This remarkable achievement highlights the Company's success in winning new contracts and solidifying its position in the market.
- Strong Financial Backing: By April 30, 2023, the Company has secured credit facilities amounting to approximately $19 million, enabling it to keep up with growing demand and fund its rapid growth.
- Confidence from Leadership: The Chairman of Sunrise, Mr. Haiping Hu, demonstrated his confidence in the Company's future by acquiring 20,000 shares of EPOW stock.
- Recognition of Sustainability Efforts: In November 2022, the Company was granted a license by the local government for an additional 50,000 metric tons annual production of graphite anode at its plant in Guizhou Province. This approval, which brings the total approved annual production at the plant to 100,000 metric tons, is a testament to the Company's commitment to employing the latest carbon and pollution remediation technologies, aligning with the strict carbon neutral policies implemented by the Chinese government.
Financial Highlights for fiscal year 2022
- Revenue Growth: Revenues increased by 415% to $38.1 million, up from $7.4 million in 2021. This increase was mainly due to the Company's launch of graphite anode materials business and offset by the shrink of peer-to-peer knowledge sharing and enterprise service revenue due to the impact of COVID-19.
- Operating Loss: The Company reported a net loss from operations of $18.8 million, compared to a loss of $7.4 million in 2021.The Company reported a decrease in gross loss (profit) of $4.9 million for the year ended December 31, 2022 due to the adverse effect of COVID-19 on peer-to-peer knowledge sharing and enterprise service. In addition, operating expenses increased $6.5 million primarily due to higher general and administrative (G&A) expenses associated with the company's expansion into the graphite anode business and impairment of intangible assets associated with peer-to-peer knowledge sharing and enterprise service businesses.
- Operating Cash Flow: The Company’s operating cash flow significantly outperformed operating income, with negative cash flow of $9.6 million in 2022 compared to negative cash flow of $5.2 million in 2021.
- Cash Balance: At the end of 2022, the Company had cash and cash equivalents of $1.7 million, down from $13.9 million at the end of 2021. Additionally, the Company had $2.6 million in restricted cash.
| SUNRISE NEW ENERGY CO., LTD. CONSOLIDATED BALANCE SHEETS | |||||||
| As of December 31, | |||||||
| 2022 | 2021 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS | |||||||
| Cash and cash equivalents | $ | 1,655,549 | $ | 13,916,155 | |||
| Restricted cash | 2,638,468 | - | |||||
| Accounts receivable, net | 5,167,701 | 6,861,672 | |||||
| Notes receivable | 868,679 | - | |||||
| Inventories | 18,330,516 | 3,105,673 | |||||
| Due from related parties | 400,022 | 65,278 | |||||
| Short-term investment | 3,336,256 | 5,961,605 | |||||
| Prepaid expenses and other current assets | 12,240,642 | 4,435,175 | |||||
| TOTAL CURRENT ASSETS | 44,637,833 | 34,345,558 | |||||
| NON-CURRENT ASSETS | |||||||
| Restricted cash | - | 700,060 | |||||
| Long term prepayments and other non-current assets | 3,850,985 | 10,244,917 | |||||
| Plant, property and equipment, net | 41,468,383 | 3,351,321 | |||||
| Land use rights, net | 10,083,242 | - | |||||
| Intangible assets, net | 3,962,650 | 3,594,977 | |||||
| Long-term investments | 3,019,281 | 5,381,441 | |||||
| Operating lease right-of-use assets | - | 224,773 | |||||
| Deferred tax assets | - | 852,037 | |||||
| TOTAL NON-CURRENT ASSETS | 62,384,541 | 24,349,526 | |||||
| TOTAL ASSETS | 107,022,374 | 58,695,084 | |||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| CURRENT LIABILITIES | |||||||
| Accounts payable | 12,259,772 | 34,486 | |||||
| Note payable | 3,876,748 | - | |||||
| Deferred revenue | 347,231 | 179,407 | |||||
| Deferred revenue - related parties | 347,471 | - | |||||
| Deferred government subsidy | 2,871,665 | - | |||||
| Due to related parties | 885,150 | - | |||||
| Income taxes payable | 506,638 | 1,076,518 | |||||
| Operating lease liabilities, current | - | 99,569 | |||||
| Long-term payable, current | 3,706,628 | - | |||||
| Consideration payable, current | 582,381 | - | |||||
| Accrued expenses and other current liabilities | 639,761 | 330,902 | |||||
| TOTAL CURRENT LIABILITIES | 26,023,445 | 1,720,882 | |||||
| NON-CURRENT LIABILITIES | |||||||
| Long term payable, non-current | 4,078,843 | - | |||||
| Consideration payable, non-current | 3,358,906 | - | |||||
| Deferred tax liabilities, net | 199,583 | - | |||||
| TOTAL NON-CURRENT LIABILITIES | 7,637,332 | - | |||||
| TOTAL LIABILITIES | 33,660,777 | 1,720,882 | |||||
| EQUITY | |||||||
| Ordinary shares (500,000,000 shares authorized; $0.0001 par value, 24,528,000 shares issued and outstanding as of December 31, 2021; 25,361,550 shares issued and outstanding as of December 31, 2022) | 2,536 | 2,453 | |||||
| Additional paid-in capital | 34,696,702 | 31,966,816 | |||||
| Statutory reserves | 2,477,940 | 2,473,801 | |||||
| (Accumulated deficits) Retained earnings | (5,148,529 | ) | 17,259,976 | ||||
| Accumulated other comprehensive (loss) income | (906,444 | ) | 2,148,906 | ||||
| TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO SUNRISE NEW ENERGY CO., LTD. ORDINARY SHAREHOLDERS | 31,122,205 | 53,851,952 | |||||
| Non-controlling interests | 42,239,392 | 3,122,250 | |||||
| TOTAL EQUITY | 73,361,597 | 56,974,202 | |||||
| TOTAL LIABILITIES AND EQUITY | $ | 107,022,374 | $ | 58,695,084 | |||
| SUNRISE NEW ENERGY CO., LTD. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | ||||||||||||
| For the years ended December 31, | ||||||||||||
| 2022 | 2021 | 2020 | ||||||||||
| REVENUE, NET | ||||||||||||
| Products | $ | 37,583,844 | $ | 2,104,767 | $ | 1,495,380 | ||||||
| Service | 541,824 | 5,304,505 | 21,685,704 | |||||||||
| Total revenues | 38,125,668 | 7,409,272 | 23,181,084 | |||||||||
| COSTS OF REVENUES | ||||||||||||
| Products | 38,299,090 | 2,063,296 | 892,791 | |||||||||
| Service | 1,176,956 | 1,823,358 | 2,087,425 | |||||||||
| Total cost of revenues | 39,476,046 | 3,886,654 | 2,980,216 | |||||||||
| GROSS (LOSS) PROFIT | (1,350,378 | ) | 3,522,618 | 20,200,868 | ||||||||
| OPERATING EXPENSES | ||||||||||||
| Selling expenses | 1,075,980 | 946,775 | 906,456 | |||||||||
| General and administrative expenses | 12,678,873 | 7,834,291 | 3,897,040 | |||||||||
| Research and development expenses | 1,053,882 | 2,151,565 | 671,312 | |||||||||
| Impairment of intangible assets | 2,650,020 | - | - | |||||||||
| Total operating expenses | 17,458,755 | 10,932,631 | 5,474,808 | |||||||||
| (LOSS) PROFIT FROM OPERATIONS | (18,809,133 | ) | (7,410,013 | ) | 14,726,060 | |||||||
| OTHER (EXPENSES) INCOME | ||||||||||||
| Investment losses | (3,566,561 | ) | (2,118,453 | ) | (1,087 | ) | ||||||
| Interest (expense) income | (27,128 | ) | 173,173 | 214,460 | ||||||||
| Other income, net | 87,390 | 404,380 | 72,837 | |||||||||
| Total other (expenses) income | (3,506,299 | ) | (1,540,900 | ) | 286,210 | |||||||
| (LOSS) PROFIT BEFORE INCOME TAXES | (22,315,432 | ) | (8,950,913 | ) | 15,012,270 | |||||||
| Income taxes provision (benefit) | 808,970 | (236,581 | ) | 3,054,983 | ||||||||
| NET (LOSS) INCOME | (23,124,402 | ) | (8,714,332 | ) | 11,957,287 | |||||||
| Less: net loss attributable to non-controlling interests | (720,036 | ) | (311,072 | ) | (130,240 | ) | ||||||
| NET (LOSS) INCOME ATTRIBUTABLE TO SUNRISE NEW ENERGY CO., LTD. ORDINARY SHAREHOLDERS | $ | (22,404,366 | ) | $ | (8,403,260 | ) | 12,087,527 | |||||
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||
| Foreign currency translation adjustment | (5,123,964 | ) | 700,316 | 2,076,303 | ||||||||
| TOTAL COMPREHENSIVE (LOSS) INCOME | (28,248,366 | ) | (8,014,016 | ) | 14,033,590 | |||||||
| Less: comprehensive loss attributable to non-controlling interest | (2,788,650 | ) | (321,522 | ) | (91,862 | ) | ||||||
| COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO ORDINARY SHAREHOLDERS OF SUNRISE NEW ENERGY CO., LTD. | $ | (25,459,716 | ) | $ | (7,692,494 | ) | 14,125,452 | |||||
| (LOSS) EARNINGS PER SHARE | ||||||||||||
| Basic and diluted | $ | (0.90 | ) | $ | (0.36 | ) | $ | 0.72 | ||||
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | ||||||||||||
| Basic and diluted | 24,820,313 | 23,638,751 | 16,800,000 | |||||||||
About Sunrise New Energy Co., Ltd
Headquartered in Zibo, Shandong Province, China, Sunrise New Energy Co., Ltd., through its joint venture, is engaged in the manufacturing and sale of graphite anode material for lithium-ion batteries. The Company’s joint venture is constructing a 260,543 ㎡ manufacturing plant in Guizhou Province, China. The plant runs on inexpensive electricity from renewable sources, which helps to make Sunrise New Energy a low-cost and low–environmental-impact producer of graphite anode material. Mr. Haiping Hu, the founder and CEO of the Company, is a major pioneer for the graphite anode industry in China starting from 1999. The Company’s management team is also composed of experts with years of experiences and strong track-records of success in the graphite anode industry. In addition, the Company also operates a knowledge sharing platform in China. For further information, please visit the Company’s website at www.sunrisenewenergy.com. The Company also maintains a Twitter account (@sunrisenewener1) to keep investors up to date on the latest development of the Company.
Forward-looking statement
Certain statements in this press release regarding the Company's future expectations, plans and prospects constitute forward-looking statements as defined by Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about plans, goals, objectives, strategies, future events, expected results, assumptions and any other factual statements that have not occurred. Any words that refer to "may", "will", "want", "should", "believe", "expect", "expect", "estimate", "estimate" or similar non-factual words, shall be regarded as forward-looking statements. Due to various factors, the actual results may differ materially from the historical results or the contents expressed in these forward-looking statements. These factors include, but are not limited to, the company's strategic objectives, the company's future plans, market demand and user acceptance of the company's products or services, technological updates, economic trends, the company's reputation and brand, the impact of industry competition and bidding, relevant policies and regulations, the ups and downs of China's macroeconomic conditions, the relevant international market conditions, and other related risks and assumptions disclosed in the Company’s Annual Report on Form 20-F. In view of the above and other related reasons, we advise investors not to blindly rely on these forward-looking statements, and we urge investors to visit the SEC’s website to consult the company's relevant documents for other factors that may affect the company's future operating results. The company is under no obligation to make public amendments to changes in these forward-looking statements due to specific events or reasons unless required by law.
For more information, please contact:
The Company:
IR Department
Email: IR@sunrisenewenergy.com
Phone: +86 4009919228
