Graphjet Technology Reports 96% Reduction in Quarterly Losses, Plans Product Sampling

Graphjet Technology has reported its financial results for the three and six months ended March 31, 2025, revealing a significant reduction in losses compared to the previous fiscal period. The company recorded a net loss of $577,023 for the three months ended March 31, 2025, a decrease of approximately 96% from a net loss of $14,269,147 during the same period in 2024. For the six months, the net loss was $1,266,178, down from $14,674,276 in the prior year, marking a 91.4% reduction. The substantial decrease in losses is attributed primarily to a significant reduction in general and administrative expenses, which fell from $14,090,612 in Q1 2024 to $552,947 in Q1 2025, largely due to the absence of a $13.8 million provision for bonuses that was recorded in the previous year.

In terms of operational developments, Graphjet Technology has not yet commenced commercial sales of its graphene and graphite products but plans to sample these products to multinational companies for market acceptance. The company has been focusing on its production capabilities, having secured a facility in Selangor, Malaysia, where it has begun production testing. As of March 31, 2025, Graphjet's total assets stood at $1,977,239, a decrease from $2,171,435 as of September 30, 2024, primarily due to a reduction in cash and property and equipment.

The company has also made strategic moves to enhance its financial position, including a PIPE investment of $2.5 million and a fundraising exercise that raised approximately $1.0 million in November 2024. However, Graphjet continues to face challenges, including a negative working capital of $19,803,945 as of March 31, 2025, raising concerns about its ability to continue as a going concern. The management has indicated that it is exploring additional financing options to support its operations and capital expenditures.

Graphjet's employee headcount has increased, contributing to higher staff costs, which were partially offset by the significant reduction in other operating expenses. The company is also navigating market conditions that have affected the pricing of graphite and the supply of palm kernel shells, which are critical for its production processes. Looking ahead, Graphjet Technology aims to establish itself as a low-cost producer of high-quality graphene and graphite, leveraging its patented technology and sustainable production methods. The company is optimistic about generating revenue from its side products starting in June 2025, which it hopes will support its operational funding needs.