Sanergy Group Limited released its audited results for the year ended 31 December 2025, recording a decisive turnaround at the gross-profit level and a materially reduced bottom-line loss.
Financial Performance • Revenue slipped 8.90 % year-on-year to US$51.88 million, reflecting a 3.0 % decline in sales volume to 17,607 metric tonnes and a lower average selling price of US$2,946/MT (FY2024: US$3,139/MT).
• Cost of sales dropped 36.23 % to US$47.33 million, driven by a 34.3 % reduction in average unit cost to US$2,688/MT and a US$0.33 million reversal of inventory provisions.
• Gross profit rebounded to US$4.55 million from a US$17.25 million loss a year earlier, lifting gross margin to 8.8 % (FY2024: –30.3 %).
• Adjusted EBITDA loss narrowed to US$13.02 million from US$35.90 million, while loss attributable to shareholders contracted to US$25.53 million (FY2024: US$40.98 million). Excluding a non-cash unrealised foreign-exchange loss of US$4.53 million, adjusted net loss was US$21.00 million, almost halving year-on-year.
Operational Metrics • Debtor days lengthened to 78 (FY2024: 66) but remained within stated credit terms. • Creditor days increased to 119 from 37 as the Group negotiated longer payment cycles to preserve liquidity. • Inventory days rose to 284 (FY2024: 163) due to the strategic focus on higher-margin regions and avoidance of loss-making orders. • No work-related fatalities were recorded.
Liquidity and Capital Structure • Cash and pledged deposits stood at US$11.00 million (31 December 2024: US$16.40 million). • Interest-bearing borrowings declined to US$26.40 million (31 December 2024: US$29.70 million); gearing ratio edged up to 29.0 %. • Net cash from operations reached US$1.40 million, against a US$3.10 million outflow in FY2024.
Post-Year-End Developments 1. Share placing (20 February 2026) raised gross proceeds of approximately US$2.50 million, equivalent to 13.33 % of pre-placement share capital. 2. Grant of 100 million share options to employees of an associated company on 28 January 2026, exercisable at HK$0.106 with five-year vesting. 3. Proposed capital reorganisation announced 19 March 2026, involving a 10-for-1 share consolidation, capital reduction, share subdivision and change in board-lot size, pending shareholder approval. 4. On 9 March 2026, subsidiary Sangraf Italy S.r.l. applied for court-supervised protective measures to restructure its European cost base; an automatic stay of creditor actions is in force for up to twelve months.
Capital Deployment Of the HK$186.70 million IPO proceeds, HK$151.40 million had been utilised by 31 December 2025. The remaining HK$35.30 million (US$4.52 million) is earmarked mainly for production upgrades and operating costs, with full deployment targeted by first-half 2026.
Dividends The board proposed no final dividend, citing prevailing market uncertainty and liquidity management priorities.
Governance Sanergy reported full compliance with the Hong Kong Listing Rules’ Corporate Governance Code and confirmed that all directors adhered to the Model Code for securities transactions during the year.
The company continues to prioritise cost optimisation through its “Double-Engine” production strategy, selective sales focus, and ongoing financial discipline as the graphite electrode market navigates subdued global steel demand and geopolitical volatility.
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