NINGBO, China, Aug. 04, 2026 (GLOBE NEWSWIRE) -- PN Smart Energy Limited ("PN Smart" or the "Company") (NASDAQ: PN), a global independent power producer (IPP) focused on the development of clean power stations, critical energy materials, and intelligent energy infrastructure, announced its financial results for the six months ended March 31, 2026.
Financial Highlights
-- Total revenue increased 5.5% YoY to approximately $25.5 million for the
six months ended March 31, 2026, compared to approximately $24.2 million
in the prior-year period.
-- International revenue surged 44.6% YoY to approximately $10.8 million, up
from approximately $7.5 million, driven by global network expansion and
new production capacity.
-- Total assets grew 29.5% to approximately $58.9 million as of March 31,
2026 from approximately $45.5 million as of September 30, 2025.
Shareholders' equity also increased 47.7% to approximately $33.2 million
from approximately $22.5 million.
-- Cash and equivalents were approximately $4.9 million as of March 31,
2026. Working capital maintained positive at approximately $11.6 million.
Operational Highlights
-- The newly launched PV power station operation in August 2025 and
international freight & logistics business launched in April 2025
generated approximately $1.4 million in incremental revenue during the
reporting period.
-- PN Smart increased ownership in Nanjing Cesun Power Co., Ltd. to 44%. The
seller provided an unconditional 5-year cumulative audited net profit
guarantee of at least approximately $10.0 million, backed by cash
shortfall settlement and a 5-year lock-up on consideration shares.
-- Research and development expenses rose 199.8% YoY to approximately $1.1
million. The Company held 58 patents as of the press release date.
Management Commentary
Mr. Weiqi Huang, Chairman and CEO of the Company, commented: "Fiscal 2026 represents a pivotal transformation for PN Smart as we strategically evolve from a solar component manufacturer into a fully integrated independent power producer (IPP) and clean-energy solutions provider. Despite significant industry headwinds, including intense pricing competition and elevated raw material costs, we delivered resilient top-line growth of 5.5% and expanded our overseas sales by nearly 45%."
"It is important for our shareholders to understand the context of our reported net loss this period. Of the $7.1 million net loss, $5.6 million, or approximately 78%, was a one-time, non-cash share-based compensation charge related to immediately vested equity awards. This was a strategic investment to align our core team for the next phase of our growth, and it had zero impact on our cash position or working capital. On a cash and operating basis, our business remains highly resilient, supported by a balance sheet that is significantly stronger than a year ago."
"Looking ahead, the successful launch of our PV power station operations and our strategic investment in Nanjing Cesun Power mark critical milestones in our IPP transition. Backed by an unconditional $10.0 million profit guarantee from the seller of Nanjing Cesun, these investments lay the foundation for higher-quality, recurring revenue. We are aggressively building a vertically integrated platform positioned to power the future of global clean energy and intelligent infrastructure."
Selected Semi-Annual Financial Results
For the six months ended March 31
$ in millions, except
percentages, differences due 2026 2025 Variances
to rounding. Amount Amount %
Revenues 25.5 24.2 5.5%
Cost of revenue (22.5) (20.5) 10.1%
Gross profit 3.0 3.7 (20.2)%
(3.7)
Gross margin 11.6% 15.3% percentage points
Net income (7.1) 0.4 (1,920.4)%
Revenues
Total revenues for the six months ended March 31, 2026 increased by 5.47% to approximately $25.5 million, compared to approximately $24.2 million during the same period in 2025. This overall increase was primarily driven by a 5.05% growth in solar PV product sales, which rose by approximately $1.2 million to reach approximately $24.1 million.
Solar PV sales remained the core of the business and the segment's consistent growth was fueled by expanding global demand for solar cables, declining battery costs that accelerated energy storage returns, and supportive international policies.
The revenue growth in solar products was partially offset by a complete cessation of High-Performance Computing (HPC) product sales, which dropped to $0 for the current period. This reflects a strategic pivot initiated in the fiscal year ended September 30, 2023, to scale down HPC operations amid global computing challenges and reduced market demand.
Conversely, the Company's overall revenue was bolstered by an incremental approximately $1.4 million from new ventures launched in 2025, specifically freight transportation through the newly established Ningbo Zhuoxing Logistics Co., Limited in April 2025 and a power plant operations business initiated in August 2025.
Cost of revenues
Cost of revenues primarily includes the manufacturing and purchase costs of servers, photovoltaic (PV) cables, and connectors, alongside depreciation, maintenance, and other overhead expenses. Our cost of revenue for solar PV products increased by 8.39%, or approximately $1.7 million for the six months ended March 31, 2026. This rise outpaced the segment's corresponding 5.05% revenue growth primarily due to higher copper prices.
Additionally, the cost of revenues for the Company's newly launched business segments totaled approximately $1.2 million. These costs correspond directly to the recent expansion into logistics and power plant operations, consisting mainly of logistics agency expenses and depreciation on power station equipment.
Gross profit and margin
Gross profit for the six months ended March 31, 2026, was approximately $3.0 million, a decline from approximately $3.7 million during the same period in 2025, representing 11.6% and 15.32% of revenues, respectively.
This decline in gross margin was primarily driven by intense competition within the solar industry, which created significant pricing pressure and forced the company to reduce its unit selling prices. Additionally, a sharp increase in the cost of copper, a critical raw material, compounded these challenges and further squeezed overall margin levels during the current period.
Selling and marketing expenses
Selling and marketing expenses, which primarily consist of salaries, office, and freight costs, increased by 13.85%, or approximately $0.1 million to approximately $1.1 million for the six months ended March 31, 2026, compared to approximately $1.0 million in 2025. This rise was largely driven by higher international shipping costs tied to a 44.62% growth in overseas sales, which reached approximately $10.8 million up from approximately $7.5 million in the prior year. This robust overseas expansion reflects the Company's successful strategic shift toward solar PV products, which now account for the majority of international sales.
General and administrative expenses
General and administrative expenses, which include salaries, rent, depreciation, and bad debt provisions, surged by 321.49%, or approximately $5.9 million to approximately $7.8 million. This increase was predominantly caused by an approximately $5.6 million non-cash share-based compensation charge for immediately vested equity incentive awards granted to employees. Excluding this specific non-cash charge, standard general and administrative costs rose by a more modest 19.2% over the prior-year period.
Research and development expenses
Research and development expenses increased by 199.83%, or approximately $0.8 million to approximately $1.1 million, compared to approximately $0.4 million in 2025. These expenses cover materials, salaries, and efforts to improve solar PV products. The substantial growth in the current period was fueled by the launch of several new R&D initiatives, most notably the development of advanced photovoltaic conductor winding devices designed to prevent wire tangling and crimping.
Income tax expense
Under the PRC Enterprise Income Tax (EIT) Law, effective January 1, 2008, Chinese resident enterprises are subject to a uniform 25% tax rate. For the six months ended March 31, 2026, the Company recorded an income tax benefit of $52,878, compared to an income tax expense of approximately $0.2 million during the same period in 2025.
This shift resulted directly from a pre-tax loss of approximately $7.2 million in the 2026 period. This substantial loss increased the Company's deferred tax assets and caused a corresponding reversal of deferred tax expenses, ultimately generating the net tax benefit.
Net income (loss)
As a result of the foregoing, net (loss)/income for the six months ended March 31, 2026 and 2025 were approximately $(7.1) million and approximately $0.4 million, respectively, representing a decrease of approximately $7.5 million.
About PN Smart Energy Limited
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