Financial Performance - For the year ended December 31, 2023, the company reported a net loss of 4,457,327 in 2022, indicating a reduction in losses by approximately 83.2%[295] - The company has an accumulated deficit of 0[314] - Operating expenses decreased by 3,880,433 in 2022 to 798,473 in 2023, primarily due to reduced R&D and litigation expenses[315] - Net non-operating income for 2023 was 148,387, a significant improvement from non-operating expenses of 746,786, a decrease of 4,457,327 in 2022[317] - The effective income tax rate for 2023 was 14.9%, compared to 1.6% in 2022[317] - The company's unrestricted accumulated deficit as of December 31, 2023, was 45,305,726[335] Cash Flow and Liquidity - The company’s cash flow forecast indicates sufficient cash to fund operations for the next 12 months from the date of issuance of the financial statements[295] - As of December 31, 2023, the company had cash and equivalents of 23.87 million, resulting in a current ratio of 5.72:1[319] - Net cash used in operating activities was 351,880 in 2022, primarily due to increased cash outflow on advance to suppliers[320] - The company has sufficient cash and access to commercial loans to meet its working capital needs, supported by the Chinese government's backing for energy-saving businesses[338] - The company has a history of achieving financing objectives due to stable cash inflows and good credit ratings[338] Business Strategy and Operations - The company is transitioning to an energy storage integrated solution provider and is actively seeking opportunities in high-growth potential industries, including large-scale photovoltaic and wind power stations[294] - The company plans to pursue disciplined and targeted expansion strategies in market areas currently not served[294] - The company intends to raise additional funds through private or public offerings or bank loans to support its operations and business plan[296] Joint Ventures and Contracts - The company has not recognized any income from its joint venture, Erdos TCH, due to uncertainties regarding the collection of compensation during its operational hiatus[299] - Erdos TCH has a total power capacity of 45 MW, with two systems in Phase I (18 MW) and three systems in Phase II (27 MW)[299] - The company holds five power generating systems through Erdos TCH, which are currently not producing electricity[295] - The company entered a purchase agreement with Hubei Bangyu New Energy Technology Co., Ltd. for 65.9 million made as of December 31, 2023[321] - As of December 31, 2023, the company has total contractual obligations of 5,225,033 due within one year and 68,730,851 to Jinan Youkai Engineering Consulting Co., Ltd. as of December 31, 2023, with repayment expected in January 2024[324] Subsidiaries - The company’s subsidiaries include Yinghua and Sifang, with Sifang's registered capital at $29.80 million[297]
Smart Powerr (CREG) - 2023 Q4 - Annual Report