Sanergy Group (2459) investor relations material

Executive summary

• Revenue declined to US$20.1 million in 1H2026 from US$23.8 million in 1H2025, mainly due to lower selling prices and reduced sales volume of graphite electrodes.

• Gross profit improved slightly to US$2.6 million, with gross margin rising to 12.8% from 10.4% year-over-year, reflecting successful cost optimization and margin-focused strategy.

• Net loss narrowed by 22.1% to US$7.5 million, driven by improved gross profit and ongoing cost discipline.

• Strategic restructuring included mothballing the Italy factory for cost optimization, with plans to restart in Q4 2026, while the PRC factory sustained sales and profitability.

• The Group launched a non-ferrous metals trading business, contributing US$1.6 million in new revenue.

Financial highlights

• Revenue: US$20.1 million (down from US$23.8 million year-over-year).

• Gross profit: US$2.6 million (up from US$2.5 million year-over-year).

• Gross margin: 12.8% (up from 10.4% year-over-year).

• Net loss: US$7.5 million (improved from US$9.7 million year-over-year).

• EBITDA loss: US$3.5 million (improved from US$4.6 million year-over-year).

• Administrative expenses increased to US$5.1 million due to restructuring and advisory costs.

Outlook and guidance

• Challenging market conditions expected to persist through 2H2026; further US trade measures may impact China-origin exports but create opportunities for the Italy factory.

• The Italy factory, after restructuring, is positioned to capture incremental demand in the US market.

• Medium- to long-term prospects supported by global shift to electric arc furnace steelmaking, driving demand for graphite electrodes.