Workflow
Smart Powerr (CREG) - 2023 Q1 - Quarterly Report
CREGSmart Powerr (CREG)2023-06-20 16:00

Financial Performance - For the three months ended March 31, 2023, the Company reported a net loss of 89,504,comparedtoanetlossof89,504, compared to a net loss of 441,459 for the same period in 2022, indicating a 79.8% improvement in losses year-over-year[130] - Net loss for the three months ended March 31, 2023 was 89,504,adecreaseof89,504, a decrease of 351,955 from a net loss of 441,459forthesameperiodin2022[159]−TotalsalesforthethreemonthsendedMarch31,2023and2022were441,459 for the same period in 2022[159] - Total sales for the three months ended March 31, 2023 and 2022 were 0[156] - Operating expenses decreased by 110,952or56.7110,952 or 56.7% to 84,828 for the three months ended March 31, 2023, compared to 195,780forthesameperiodin2022[157]−Incometaxexpensewas195,780 for the same period in 2022[157] - Income tax expense was 4,534 for the three months ended March 31, 2023, compared to 17,707forthesameperiodin2022[159]−TheCompanyrecorded17,707 for the same period in 2022[159] - The Company recorded 88,195 in interest income for the three months ended March 31, 2023, offset by 111,104ininterestexpense[158]CashandLiabilities−TheCompanyhadcashonhandof111,104 in interest expense[158] Cash and Liabilities - The Company had cash on hand of 39,406 and a loan receivable of 140,614,361(RMB966.0million)fromJinanYoukaiEngineeringConsultingCo.,Ltd.,whichwasfullyrepaidonApril3,2023[131]−CashandequivalentsasofMarch31,2023were140,614,361 (RMB 966.0 million) from Jinan Youkai Engineering Consulting Co., Ltd., which was fully repaid on April 3, 2023[131] - Cash and equivalents as of March 31, 2023 were 39,406, with current liabilities of 24.10millionandacurrentratioof5.85:1[161]−TheCompanyhadaliability−to−equityratioof0.25:1asofMarch31,2023[161]−AsofMarch31,2023,thecompanyhastotalcontractualobligationsof24.10 million and a current ratio of 5.85:1[161] - The Company had a liability-to-equity ratio of 0.25:1 as of March 31, 2023[161] - As of March 31, 2023, the company has total contractual obligations of 17,158,397, with 5,601,075duein1yearorless[175]−Thecompanyhassufficientcashandaccesstoloanstomeetitsworkingcapitalneeds,supportedbytheChinesegovernment′sbackingforenergy−savingbusinesses[175]BusinessStrategyandOperations−TheCompanyplanstopursuedisciplinedandtargetedexpansionstrategiesintonewmarketareas,includingindustrialandcommercialcomplexesandlarge−scalephotovoltaicandwindpowerstations[128]−TheCompanyistransformingintoanenergystorageintegratedsolutionprovider,exploringapplicationsofenergystoragetechnologiesinhigh−growthpotentialindustries[128]−TheCompanyhasnotrecognizedanyincomefromtheErdosTCHjointventureduetouncertaintyofcollection,despitereceivingmonthlycompensationofRMB1million(5,601,075 due in 1 year or less[175] - The company has sufficient cash and access to loans to meet its working capital needs, supported by the Chinese government's backing for energy-saving businesses[175] Business Strategy and Operations - The Company plans to pursue disciplined and targeted expansion strategies into new market areas, including industrial and commercial complexes and large-scale photovoltaic and wind power stations[128] - The Company is transforming into an energy storage integrated solution provider, exploring applications of energy storage technologies in high-growth potential industries[128] - The Company has not recognized any income from the Erdos TCH joint venture due to uncertainty of collection, despite receiving monthly compensation of RMB 1 million (145,460) until operations resume[137] - The Company owns 100% of Xi'an Zhonghong New Energy Technology Co., Ltd., which provides energy-saving solutions and services[139] - The Company recorded a loss of 624,133relatedtothetransferoftheChengliCDQWHPGstation,whichwaspartofaloanrepaymentagreement[141]MarketandEconomicEnvironment−TheCompany’soperationsaresignificantlyinfluencedbythepolitical,economic,andlegalenvironmentsinthePeople′sRepublicofChina[148]−ThecompanyisexposedtoexchangerateriskduetooperationsprimarilyconductedinthePRC,affectingearningswhentransactionsaredenominatedinRMB[177]AccumulatedDeficit−AsofMarch31,2023,theCompanyhadanaccumulateddeficitof624,133 related to the transfer of the Chengli CDQ WHPG station, which was part of a loan repayment agreement[141] Market and Economic Environment - The Company’s operations are significantly influenced by the political, economic, and legal environments in the People's Republic of China[148] - The company is exposed to exchange rate risk due to operations primarily conducted in the PRC, affecting earnings when transactions are denominated in RMB[177] Accumulated Deficit - As of March 31, 2023, the Company had an accumulated deficit of 59.82 million[130] - The Company’s unrestricted accumulated deficit was (59,819,037)asofMarch31,2023[172]CashFlow−Netcashusedinoperatingactivitieswas(59,819,037) as of March 31, 2023[172] Cash Flow - Net cash used in operating activities was 70,282 for the three months ended March 31, 2023, compared to 38,420forthesameperiodin2022[162]−Netcashusedininvestingactivitieswas38,420 for the same period in 2022[162] - Net cash used in investing activities was 141,070,591 for the three months ended March 31, 2023, primarily due to a short-term loan to Jinan Youkai Engineering Consulting Co., Ltd[163]