Wed, May 28, 2:53 PM (52 days ago)
**Scientific Energy, Inc. (SCGY) Summary** **Financial Performance (2024):** - **Revenue:** $68.6 million, up 76% from 2023. - **Gross Profit:** $21.1 million, up 18% from 2023. - **Net Loss:** $1.1 million, significantly improved from a loss of $33.4 million in 2023. - **Earnings per Share (EPS):** $0.0003, improved from -$0.12 in 2023. **Revenue Breakdown:** - **Food Delivery:** $43.5 million (63% of total revenue). - **Graphite Sales:** $24.8 million (36% of total revenue). - **IT Supporting Services:** $0.3 million (0.5% of total revenue). **Operating Expenses:** - **Selling, General, and Administrative:** $21.9 million, down 57% from 2023. - **Depreciation and Amortization:** $0.2 million, up 94% from 2023. **Financial Condition:** - **Cash and Cash Equivalents:** $4.9 million, up 55% from 2023. - **Working Capital Deficit:** $7.3 million, improved from $13.3 million in 2023. **Market Position:** - **Food Delivery:** Leading mobile platform in Macau with over 1.8 million registered customers and 5,684 merchants. - **Graphite Sales:** New segment established in 2023, focusing on natural graphite products. **Strategic Overview:** - **Food Delivery:** Focus on increasing merchant and customer base, improving delivery driver experience, and expanding service offerings. - **Graphite Sales:** Emphasis on reliable product quality, expanding distribution channels, and stabilizing partnerships. **Future Outlook:** - **Growth Strategy:** Expand merchant and customer base, improve operational efficiency, and diversify service offerings. - **Risk Factors:** Regulatory risks in China and Macau, market competition, and economic uncertainties. **Risk Factors:** - **Regulatory Risks:** Significant oversight and discretion by the Chinese government, potential capital movement restrictions, and increased regulatory scrutiny. - **Market Risks:** Intense competition in the food delivery and graphite industries, economic uncertainties, and geopolitical instability. - **Operational Risks:** Dependence on third-party suppliers and partners, cybersecurity threats, and potential disruptions in supply chains. **Financial Condition:** - **Liquidity:** The company has a working capital deficit of $7.3 million and relies on cash on-hand and private debt or equity placements for operations. - **Debt:** The company has bank loans totaling $2.5 million, secured against directors and used for operational purposes. **Market Position Changes:** - **Food Delivery:** Maintained 50% market share in Macau despite competition from merged platforms MFood and Flash Bee. - **Graphite Sales:** New segment with potential growth opportunities in the expanding graphite market.