Sunrise New Energy Revenue Announces Financial Results for Fiscal Year 2022 Featuring 415% Revenue Growth to a New Record
May 16 2023 - 4:15PM
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 endedDecember
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 DepartmentEmail: IR@sunrisenewenergy.comPhone:
+86 4009919228
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