Sanergy Group (2459) H1 2026 earnings summary

Executive summary

• Sales volume declined to 6,994 MT in 1H2026 from 8,062 MT in 1H2025, reflecting strategic production optimization and cost restructuring, especially at the Italy factory, which is scheduled to restart in Q4 2026.

• 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 to US$2.6 million (1H2025: US$2.5 million), with gross margin rising to 12.8% from 10.4%, driven by cost discipline and a focus on higher-margin regions.

• Loss attributable to owners narrowed to US$7.5 million from US$9.7 million, a 22.1% reduction year-over-year, due to sustained gross profit and ongoing cost optimization.

• The PRC factory played a key role in sustaining sales and profitability amid U.S. tariffs on China-origin products.

Financial highlights

• Revenue decreased to US$20.1 million from US$23.8 million year-over-year, mainly due to lower average selling prices and reduced sales quantities.

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

• Administrative expenses rose to US$5.1 million (1H2025: US$3.6 million), mainly due to professional fees for financing and restructuring.

• Net cash from operating activities was US$1.6 million, down from US$4.5 million in 1H2025.

• Cash and cash equivalents at period end were US$13.1 million (up from US$11.0 million at year-end 2025).

Outlook and guidance

• Market conditions are expected to remain challenging through 2H2026, with further U.S. trade measures potentially impacting global trade flows in 2027.

• The Italy factory, post-restructuring, is positioned to capture incremental demand in the American market due to potential supply gaps from new tariffs.

• Strategic priorities include capacity reactivation, selective commercial growth, operational discipline, and financial sustainability.

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

• The group is exploring further cost reductions and strategic industrial integration to diversify revenue and enhance resilience.