Sunrise New Energy, a Leading EV Battery Material Manufacturer, Preannounces 86% Revenue Growth for 1st Half of 2022 and Issues Guidance

Rhea-AI Summary

Sunrise New Energy Co., Ltd. (NASDAQ: EPOW) reported revenues of $10.1 million for the first half of 2022, marking an 86% increase year-over-year. The company anticipates revenues of $30 million for the second half of 2022, which indicates a projected growth of over 1,400% compared to the same period in 2021. The joint venture in lithium battery graphite anode manufacturing is driving this growth. Despite a $5.8 million loss in the first half, the loss has decreased sequentially, and the company expects to achieve positive operating income by year-end.

Positive

• Revenues grew to $10.1 million in the first half of 2022, an 86% increase.
• Guidance for the second half of 2022 predicts revenues of $30 million, indicating over 1,400% growth.
• The company expects to achieve positive operating income by year-end.
• Anticipates closing several large orders in the coming weeks.

Negative

• Reported a loss of $5.8 million for the first half of 2022, up from a loss of $1.4 million year-over-year.
• Increased General & Administrative expenses related to the transition into the graphite anode business.

• Revenues Grew to $10.1 Million in 1^st Half 2022, an Increase of 86%
• Company Issues Guidance for 2^nd Half 2022 for Revenues of $30 million, an Increase of Greater than 1,400%
• Company Expects to Achieve Positive Operating Income by Year-End
• Company Anticipates Closing Several Large Orders in the Coming Weeks

ZIBO, China, Sept. 15, 2022 (GLOBE NEWSWIRE) --  Sunrise New Energy Co., Ltd. (“Sunrise”, the “Company”, “we” or “our”) (NASDAQ: EPOW), today preannounced revenues of $10.1 million for the 6 months ended June 30, 2022, an 86% increase over the same period in 2021. Additionally, the Company issued guidance for the 2^nd half of 2022 for revenues of $30 million, which would be greater than 1,400% growth over the 2^nd half of 2021 and 197% growth sequentially. The Company anticipates achieving positive operating income by year-end.

Sunrise’s growth is being driven by the performance of its joint-venture lithium battery graphite anode manufacturing business with the plant located in Guizhou Province, China. The plant is now producing 1650 metric tons of graphite anode a month, which has an approximate value of $9 million based on recent orders.

Sunrise will report a loss of $5.8 million for the 1^st half of 2022, which includes non-cash charges of roughly $3 million, as compared to a loss of $1.4 million for the 1^st half 2021. The increased net loss was attributable to weakness in the Company’s legacy Global Internet of the People business coupled with increased General & Administrative expenses associated with the Company’s transition into the graphite anode business. Notably, the loss has begun to shrink sequentially as compared to the 2^nd half of 2021 loss of $7 million as the Company aggressively cut expenses at its Global Internet of the People business for which it is currently exploring strategic alternatives. The Company anticipates announcing its full set of unaudited financial results for the first six months ended June 30, 2022, which are subject to change, by the end of October, which is within the SEC deadline.

“The rapid growth in EVs is driving demand for graphite anode and the market is in tight supply.” continued the Chairman of the Company, Mr. Haiping Hu. “I am extremely proud of the accomplishments of our team. Within a year we have built a state-of-the-art manufacturing facility that is now producing a large quantity of graphite anode and secured orders from the world’s 3 largest lithium-ion battery manufacturers. Furthermore, we anticipate closing several large orders in the coming weeks. This gives us confidence that we will meet this newly issued guidance for the 2^nd half of 2022.”

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 138,000 ㎡ 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 a cumulative decades of experiences and strong track-records of success in the graphite anode industry. In addition, the Company also operates a knowledge sharing platform business. 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 international market conditions served by the Company, and other related risks and assumptions disclosed in the prospectus. 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
Tel：+86 4009919228

FAQ

What were Sunrise New Energy's revenues for the first half of 2022?

Sunrise New Energy reported revenues of $10.1 million for the first half of 2022, an increase of 86% compared to the previous year.

What revenue growth is Sunrise New Energy expecting for the second half of 2022?

The company expects revenues of $30 million for the second half of 2022, which represents over 1,400% growth compared to the same period in 2021.

Is Sunrise New Energy expected to achieve positive operating income?

Yes, Sunrise New Energy anticipates achieving positive operating income by the end of 2022.

What was the loss reported by Sunrise New Energy for the first half of 2022?

The company reported a net loss of $5.8 million for the first half of 2022.