Scientific Energy Reports 85.5% Revenue Growth to $19.3 Million in Latest Quarter

Scientific Energy, Inc. reported significant financial growth in its latest quarterly results, with revenues reaching $19.3 million for the three months ended March 31, 2025, compared to $10.4 million in the same period last year, marking an increase of 85.5%. The company's gross profit also rose to $6.4 million, up 42.8% from $4.5 million in the previous year. This growth was primarily driven by the performance of its subsidiary, Graphite Energy, Inc., which contributed substantially to the revenue increase. The company achieved a net income of $143,535, a notable turnaround from a net loss of $12,562 in the prior year.

In terms of operational changes, Scientific Energy has been active in expanding its business structure. The company established a new subsidiary, AgriJoy Catering Management Company Limited, in March 2025, which focuses on dining management services in Hong Kong. This follows the acquisition of Celebrity Chef Catering Management Limited in December 2024, which has enhanced the company's food service capabilities. Additionally, the company disposed of Squirrel Logistic Company Limited in January 2024, which reflects a strategic shift in its operational focus.

The company's balance sheet as of March 31, 2025, shows total assets of $54.8 million, a slight decrease from $55.6 million at the end of 2024. Current assets decreased to $15.8 million, primarily due to changes in accounts receivable and prepaid expenses. Current liabilities also decreased to $22.9 million, down from $23.7 million, indicating improved management of short-term obligations. The company’s stockholders' equity increased to $33.7 million, reflecting a positive shift in financial health.

Operationally, Scientific Energy reported a working capital deficit of $7.2 million, which raises concerns about liquidity. The company generated $1.5 million in net cash from operating activities during the quarter, a significant improvement from a cash outflow of $480,025 in the same period last year. However, the company used $69,067 in investing activities and $639,781 in financing activities, primarily for loan repayments. The management indicated that continued operations will depend on generating sufficient liquidity from operations and raising additional capital.

Looking ahead, Scientific Energy's management expressed cautious optimism about future growth, emphasizing the need for ongoing financial support from shareholders to sustain operations. The company plans to continue leveraging its e-commerce platform and expanding its service offerings in the food and beverage sector while navigating the challenges posed by market conditions and regulatory environments in the regions it operates.