Sanergy Group (2459) H1 2025 earnings summary

Executive summary

• Achieved a turnaround from a gross loss of US$8.1M in 1H2024 to a gross profit of US$2.5M in 1H2025, driven by cost optimization, geographic sales reallocation, and strategic market focus.

• Loss attributable to owners narrowed to US$9.7M from US$14.4M year-over-year; adjusted net loss (excluding FX loss) reduced to US$4.9M from US$15.0M.

• Adjusted EBITDA improved from a loss of US$13.0M to a profit of US$92,000, reflecting operational resilience.

Financial highlights

• Revenue declined to US$23.8M (from US$32.1M) due to lower sales volume and average selling price, but cost of sales dropped significantly to US$21.3M (from US$40.2M).

• Gross margin improved from -25.3% to 10.4%.

• Administrative expenses fell 37.4% to US$3.6M, and finance costs decreased to US$1.3M.

• Net cash from operating activities was US$4.5M; cash and cash equivalents at period-end were US$8.5M.

• Gearing ratio decreased to 26.5% from 28.1% at year-end 2024.

Outlook and guidance

• Expects continued market challenges in 2H2025 due to global steel demand, tariffs, and trade uncertainties, but operational strategies are in place to mitigate risks.

• Will maintain focus on higher-priced markets, cost control, and geographic optimization.

• Industry capacity rationalization and carbon neutrality may support future margin stabilization.

• OECD forecasts world steel demand to grow 0.7% annually through 2030.