Scientific Energy, Inc. has reported significant financial improvements for the fiscal year ending December 31, 2024, with total revenue reaching $68.6 million, a substantial increase of $29.7 million compared to $38.96 million in 2023. The company’s gross profit also rose to $21.1 million, up from $17.9 million the previous year. Despite these gains, the company recorded a net loss of $1.1 million, a notable reduction from a loss of $33.4 million in 2023, indicating a marked improvement in operational efficiency and cost management.
The company has undergone several strategic developments, including the establishment of a new wholly-owned subsidiary, Graphite Energy, Inc., in December 2023, aimed at entering the graphite sales market. Additionally, Scientific Energy acquired 90% of Fresh Life Technology Company Limited in January 2023 and 70% of Citysearch Technology (HK) Company Limited in October 2023, further diversifying its business operations. These acquisitions are expected to enhance the company’s logistics and group dining service capabilities, respectively.
Operationally, Scientific Energy has reported a customer base of approximately 1.82 million registered users on its food delivery platform, with 5,684 merchants actively participating. The company processed over 10 million transactions in 2024, generating a gross merchandise volume of approximately $141.4 million. The food delivery segment remains the primary revenue driver, accounting for about 64% of total revenue, while the graphite sales segment contributed approximately 36%. The company has also seen a reduction in operating expenses, which fell to $22.1 million from $51.2 million in the previous year, primarily due to a decrease in impairment losses.
Looking ahead, Scientific Energy faces challenges related to its liquidity, with a working capital deficit of $7.29 million as of December 31, 2024. The company has indicated that it will require ongoing financial support from shareholders and may need to raise additional capital to fund operations. The management remains optimistic about future growth, particularly in the graphite market, which is expected to expand due to increasing demand for electric vehicles and battery applications. However, the company acknowledges the potential risks associated with regulatory changes in China and Macau, which could impact its operations and financial performance.
About SCIENTIFIC ENERGY, INC
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