Sunrise New Energy, a Leading EV Battery Material Manufacturer, Announced 18.16% Revenue Growth for the Year of 2023

Rhea-AI Summary

Sunrise New Energy, a leading EV battery material manufacturer, reported an 18.16% revenue growth in 2023, increasing from $38.1 million to $45.1 million. The company also saw a significant rise in patents, from 11 to 27, a 145.45% increase. The company expects a revenue increase of 38.58%, reaching $62.5 million in 2024. Despite a net loss of $24.2 million due to market competition and surplus capacity, Sunrise anticipates a reduction in losses in 2024 as the industry recovers. The company's graphite anode material, which accounts for 98.52% of its revenue, saw customer growth from 16 to 23, and volume growth from 6,225 tons to 12,513 tons. R&D expenses also increased by 13.21%, supporting continuous innovation.

Positive

• Revenues increased by 18.16%, reaching $45.1 million in 2023.
• Expected revenue growth of 38.58% in 2024, reaching $62.5 million.
• Patent portfolio expanded by 145.45%, from 11 to 27 patents.
• Customer base grew from 16 to 23, and volume sold increased from 6,225 tons to 12,513 tons.

Negative

• Net loss attributable to shareholders increased from $22.6 million to $24.2 million.
• Decreased sales prices for graphite anode material due to market competition and surplus capacity.
• R&D expenses increased by 13.21%, potentially impacting short-term profitability.

Insights

Financial Analyst

The 18.16% revenue growth for Sunrise New Energy from $38.1 million to $45.1 million is a noteworthy development. This growth is substantial, especially amid the competitive landscape in the EV battery material industry. However, the company still posted a net loss of $24.2 million, which is an increase from the previous year's loss of $22.6 million. The increased loss was attributed to market competition and surplus manufacturing capacity, which led to a decrease in sales prices. Importantly, the company expects revenue to rise by 38.58% to $62.5 million in 2024, indicating confidence in market recovery and an improved strategic focus.

From a retail investor's perspective, the revenue growth and the company's forward guidance are positive signs, but the continued losses are a red flag. The market's competitive nature and price pressures could continue to impact profitability. Therefore, while there is potential for growth, the risks associated with the competitive environment and profitability must be carefully considered.

Market Research Analyst

The number of patents held by Sunrise New Energy rose by 145.45% to 27 patents in 2023. This suggests a significant investment in innovation and intellectual property. Patents can provide a competitive edge by protecting proprietary technologies and potentially enabling the company to command higher margins or licensing revenue. However, the R&D expenses only grew by 13.21%, indicating that despite the considerable increase in patents, the company is managing its R&D spending efficiently.

Additionally, with the growth in customer base from 16 to 23 and a corresponding increase in sales volume, Sunrise New Energy is demonstrating strong market traction. For investors, this could signal robust demand for its products, driven by the growing EV market. Nevertheless, it remains to be seen how effectively the company can turn these into sustainable profits given the current competitive pressures on pricing.

• Revenues grew to $45.1 million in the year 2023, an increase of 18.16%
• Patent number grew to 27 in the year 2023, an increase of 145.45%
• Company expects revenues of $62.5 million for the year 2024, an increase of 38.58%
• Company expects to shrink its net loss attributable to the ordinary shareholders in 2024

ZIBO, China, May 23, 2024 (GLOBE NEWSWIRE) -- Sunrise New Energy Co., Ltd. (“Sunrise”, the “Company”, “we” or “our”) (NASDAQ: EPOW), announced that its net revenues increased by $7 million, or 18.16%, from $38.1 million for the year ended December 31, 2022, to $45.1 million for the year ended December 31, 2023. Revenues from graphite anode material sales business accounted for 98.52% and 98.57% of net revenues for the years ended December 31, 2023 and 2022, respectively. The Company had supplied products to 23 customers for 12,513 tons for the year ended December 31, 2023, as compared to 16 customers for 6,225 tons for year ended December 31, 2022.

Sunrise continuously invested in research and development to remain competitive in graphite anode material business. Patent number increased by 16, or 145.45%, from 11 as of December 31, 2022, to 27 as of December 31, 2023. Research and development expenses increased by $139,200 or 13.21%, from $1,053,882 for the year ended December 31, 2022 to $1,193,082 for the year ended December 31, 2023.

Sunrise’s growth is being driven by the performance of its lithium battery graphite anode manufacturing business with the manufacturing plant located in Guizhou Province, China. The plant is now producing 30,000 metric tons of graphite anode a year, which has an approximate value of $66.7 million based on recent orders. Company expects revenues of $62.5 million for the year ending December 31, 2024, an increase of 38.58%, compared to $45.1 million for the year ended December 31, 2023.

Sunrise reported a net loss attributable to the ordinary shareholders of $24.2 million for the year ended December 31, 2023, compared to a loss of $22.6 million for the year ended December 31, 2022. The increased net loss attributable to the ordinary shareholders was attributable to the decrease in the sales prices of graphite anode material brought by market competition and industrial manufacturing capacity surplus. Notably, the Company believed that the net loss attributable to the ordinary shareholders had begun to shrink sequentially in the year 2024 as the industry began to recover due to the diminishment of outdated manufacturing capacity of the competitors and transformation strategy of the Company on the development of energy storage products.

“The rapid growth in EVs is driving demand for graphite anode and the market is in tight supply” commented Chairman, Mr. Haiping Hu. “I am extremely proud of the accomplishments of our team. As we look ahead to 2024, our focus is on utilizing our manufacturing capacity to fulfill our customer’s orders efficiently and effectively. I believe strongly in the potential of our company. We have laid a strong foundation for growth, and I am excited about what we can achieve in the years ahead. This gives us confidence for our fulfillment for the year 2024.”

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 has completed the construction of a manufacturing facility with a production capacity of 50,000 tons 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 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 published on the SEC’s website. In view of the above and other related reasons, we urge investors to visit the SEC’s website and consider 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 unless required by law.

For more information, please contact:

The Company:
IR Department
Email: IR@sunrisenewenergy.com
Phone: +86 4009919228

FAQ

What is the revenue growth for Sunrise New Energy in 2023?

Sunrise New Energy reported an 18.16% revenue growth in 2023, increasing from $38.1 million to $45.1 million.

What are Sunrise New Energy's expected revenues for 2024?

The company expects revenues of $62.5 million for the year ending December 31, 2024, an increase of 38.58% compared to 2023.

How many patents did Sunrise New Energy acquire in 2023?

Sunrise New Energy's patent number increased from 11 to 27 in 2023, representing a 145.45% increase.

What is the main product contributing to Sunrise New Energy’s revenue?

Graphite anode material sales accounted for 98.52% of Sunrise New Energy’s net revenues in 2023.

What were Sunrise New Energy’s R&D expenses in 2023?

R&D expenses increased by 13.21%, from $1,053,882 in 2022 to $1,193,082 in 2023.

What factors contributed to Sunrise New Energy’s net loss in 2023?

Sunrise New Energy's net loss of $24.2 million in 2023 was due to decreased sales prices for graphite anode material and surplus capacity.

How did Sunrise New Energy’s customer base change in 2023?

The customer base grew from 16 to 23, with a volume increase from 6,225 tons to 12,513 tons in 2023.

What is Sunrise New Energy’s outlook for reducing net losses in 2024?

Sunrise New Energy expects to shrink its net loss attributable to ordinary shareholders in 2024 as the industry recovers and outdated manufacturing capacity diminishes.