Scientific Energy Reports 39% Revenue Increase but 72% Decline in Profitability for Six Months Ending June 30, 2025

Scientific Energy, Inc. reported its financial results for the six months ending June 30, 2025, revealing a significant increase in revenue and a decline in profitability compared to the same period in 2024. The company generated total revenue of $43.4 million, a 39% increase from $31.2 million in the prior year. However, net income fell to $216,700, or $0.001 per share, down from $786,561, or $0.004 per share, in the previous year, reflecting a 72% decrease in profitability.

The increase in revenue was primarily driven by the subsidiary Graphite Energy, Inc., which contributed significantly to sales. The cost of revenue also rose, totaling $30.2 million, up 43% from $21.1 million in the same period last year, largely due to increased delivery rider costs and graphite inventory purchases. Operating expenses increased to $13 million, a 41% rise from $9.2 million, attributed to higher costs associated with the Graphite Energy subsidiary.

In terms of operational metrics, Scientific Energy's cash and cash equivalents rose to $6.5 million from $4.9 million at the end of 2024. The company reported a working capital deficit of $7 million, indicating ongoing liquidity challenges. The total assets increased to $58.1 million, up from $55.6 million, while total liabilities also rose to $26.6 million from $24.3 million. The company’s accumulated deficit improved slightly to $47.1 million from $47.7 million.

Strategically, Scientific Energy has made several organizational changes, including the establishment of new subsidiaries such as AgriJoy Catering Management Company Limited in March 2025, aimed at enhancing its catering services in Hong Kong. The company also disposed of Squirrel Logistic Company Limited in January 2024, which was part of a broader strategy to streamline operations. The company continues to focus on its e-commerce platform and food delivery services, primarily in Macau, while also expanding its graphite trading operations in the U.S.

Looking ahead, Scientific Energy's management has indicated that the company will need to secure additional financing to support its operations and growth initiatives. The ability to generate sufficient liquidity from operations remains uncertain, and the company may continue to rely on private debt or equity placements. The management has expressed that while they are optimistic about future growth, there are no guarantees regarding the availability of additional capital or the company's ability to achieve profitability in the near term.