Sanergy Group (2459) H2 2024 earnings summary

Executive summary

• Revenue declined 21.2% year-over-year to US$57.0 million due to lower average selling prices and global economic headwinds.

• Sales volume increased by over 6% to 18,141 MT, reflecting efforts to maintain competitiveness.

• Gross margin turned negative, with a gross loss margin of 30.3% versus a 1.2% profit margin in FY2023.

• Loss attributable to owners widened to US$41.0 million from US$15.5 million in FY2023.

• No final dividend was recommended for FY2024.

Financial highlights

• Revenue: US$56.95 million (FY2024) vs US$72.29 million (FY2023).

• Gross loss: US$17.25 million (FY2024) vs gross profit US$0.84 million (FY2023).

• Gross margin: -30.3% (FY2024) vs 1.2% (FY2023).

• Loss for the year: US$40.98 million (FY2024) vs US$15.48 million (FY2023).

• Basic and diluted loss per share: US$(0.04) vs US$(0.016) in FY2023.

Outlook and guidance

• Anticipates gradual recovery in graphite electrode demand in 2025, supported by projected 1.9% growth in developed-world steel demand.

• Strategic focus on improving gross margin, prioritizing key customers, and expanding the customer base.

• Long-term growth expected from global carbon neutrality trends and increased electric arc furnace steelmaking.