SANERGY GROUP: Annual Report 2024

SANERGY GROUP faces a severe operating environment in the fiscal year 2024. Revenue is approximately $56.95 million, a year-on-year decrease of 21.2%, mainly influenced by the slowdown in demand in the Global Steel Industry and increased competition. Sales volume increased by 6.6% to 18,141 tons, but the average selling price fell by 26.1%. The group recorded a net loss of $40.98 million, an increase of 164.8% compared to the same period last year.The group's gross margin is approximately 30.3%, mainly due to the significant decline in the average selling price of Graphite Electrodes, and the impact of inventory provision of about $4.2 million and a net loss from the revaluation of property, plant, and equipment of approximately $4.52 million. Nevertheless, the group has reduced the average unit...Show More

SANERGY GROUP faces a severe operating environment in the fiscal year 2024. Revenue is approximately $56.95 million, a year-on-year decrease of 21.2%, mainly influenced by the slowdown in demand in the Global Steel Industry and increased competition. Sales volume increased by 6.6% to 18,141 tons, but the average selling price fell by 26.1%. The group recorded a net loss of $40.98 million, an increase of 164.8% compared to the same period last year.The group's gross margin is approximately 30.3%, mainly due to the significant decline in the average selling price of Graphite Electrodes, and the impact of inventory provision of about $4.2 million and a net loss from the revaluation of property, plant, and equipment of approximately $4.52 million. Nevertheless, the group has reduced the average unit sale cost by 2.6% compared to last year through optimizing production lines and cost control measures.Looking ahead, the group maintains a cautiously optimistic outlook on the industry's prospects. It is expected that the demand for Graphite Electrodes and the Steel industry will gradually recover in the second half of 2025, with steel demand in developed countries projected to grow by 1.9%. The group will continue to optimize its customer portfolio, strive for profitable orders, and expand its customer base while strengthening cost control to improve gross margin and profitability. Against the backdrop of dual carbon targets, the continued adoption of electric arc furnace steelmaking will drive long-term demand growth for ultra-high power Graphite Electrodes.