Smart Powerr Corp. Reports $82,839 Revenue and $2.1M Net Loss for Six Months Ending June 30, 2025

Smart Powerr Corp. reported its financial results for the six months ending June 30, 2025, revealing a total revenue of $82,839, a significant increase from zero revenue in the same period last year. The company recorded a gross profit of $35,421, resulting in a gross margin of 43%. However, Smart Powerr also reported a net loss of $2,129,276, compared to a loss of $689,554 in the prior year, indicating a substantial increase in operating expenses, which rose to $2,223,109 from $559,237.

The increase in operating expenses was primarily attributed to higher financing costs and share-based compensation, which accounted for $948,648 and $831,520, respectively. The company's total non-operating income for the period was $93,159, a turnaround from non-operating expenses of $116,141 in the previous year. This improvement was driven by interest income and the reversal of a provision for impaired prepayments. The income tax expense for the current period was $34,747, up from $14,176 in the previous year.

In terms of operational developments, Smart Powerr's cash and equivalents surged to $131.11 million as of June 30, 2025, compared to just $25,341 at the end of 2024. The company also reported a current ratio of 10.31:1 and a debt-to-equity ratio of 0.12:1, indicating a strong liquidity position. The company generated $64.5 million in cash from operating activities, largely due to the recovery of advance payments to suppliers. Additionally, the company raised $9.87 million through equity issuance during the first half of 2025.

Strategically, Smart Powerr is transitioning into an energy storage integrated solution provider, actively seeking opportunities in high-growth sectors such as industrial complexes and renewable energy projects. The company has also signed a ten-year operation and maintenance contract for a power station, further diversifying its revenue streams. Despite the increase in net loss, the company remains optimistic about its future, citing a cash flow forecast that indicates sufficient funds to support operations for the next 12 months.

Looking ahead, Smart Powerr aims to implement disciplined expansion strategies and explore new markets. The company is focused on leveraging its cash reserves and operational capabilities to achieve profitable operations, although it acknowledges the potential for continued operating losses as it executes its business strategy. The management has expressed confidence in the company's ability to navigate market conditions and capitalize on emerging opportunities in the energy sector.