Skycorp Solar Group Limited Reports First Half 2025 Financial Results

NINGBO, China, Sept. 08, 2025 (GLOBE NEWSWIRE) -- Skycorp Solar Group Limited (the “Company”) (NASDAQ: PN), a solar PV product provider engaged in the manufacture and sale of solar cables and solar connectors, announced its financial results for the six months ended March 31, 2025. Financial Highlights Revenues were $24,176,271 for the six months ended March 31, 2025 compared with $22,483,601 for the six months ended March 31, 2024, representing an increase of 7.53%, primarily driven by solar PV product sales.Gross profit was $3,703,925 for the six months ended March 31, 2025 compared with $3,395,547 for the six months ended March 31, 2024, representing 15.32% and 15.10% of revenue, respectively.Selling and marketing expense increased by 23.15% to 973,207 for the six months ended March 31, 2025 from $790,232 for the six months ended March 31, 2024, as a result of our continues effort in expanding our business.Net income was $391,967 for the six months ended March 31, 2025, representing a decrease of 39.09% from $643,498 for the six months ended March 31, 2024. Mr. Weiqi Huang, Chairman and CEO of the Company, commented: “We’re encouraged by strong top-line growth and improved gross profit in the first half, reflecting both market enthusiasm for our solar products and our team’s outstanding execution.” “Our bottom-line results were shaped by accelerated investments in strategic initiatives. We significantly increased sales and marketing spend to expand into new markets, with a focus on enhancing overseas logistics and delivery. Additionally, we scaled our operational infrastructure to support sustained growth.” “These investments are critical to building a stronger, more diversified, and market-leading company. While they affect short-term profitability, we’re confident they will deliver long-term value to shareholders and customers.” Semi-annual Financial Results as of March 31, 2025 Revenues Our revenue for the six months ended March 31, 2025 and 2024 was $24,176,271 and $22,483,601, respectively. The $1,692,670, or 7.53% increase in revenue mainly resulted from the $ 2,746,959, or 13.62% increase in solar PV products sales though offset by $1,054,289, or 45.53% decrease in HPC products sales. The booming global photovoltaic market, coupled with the shortage of electricity in many countries, has led to a huge growth in our PV product revenue for the six months ended March 31, 2025. The significant decrease in HPC product revenue was due to the global economic slowdown, and our relatively conservative investment in HPC for the six months ended March 31, 2025. Cost of revenues Cost of revenues consists primarily of manufacturing and purchase cost of servers, photovoltaic cable, and photovoltaic connectors etc., depreciation, maintenance, and other overhead expenses. Our cost of revenue for solar PV products increased by $2,568,852, or15.01%, to $19,683,435 for the six months ended March 31, 2025 from $17,114,583 for the six months ended March 31, 2024. The percentage increase in cost of revenue was consistent with the 13.62% increase in solar PV products sales revenue. Our cost of revenue for HPC products sales decreased by $1,184,560, or 60.02%, to $788,911 for the six months ended March 31, 2025 from $1,973,471 for the six months ended March 31, 2024. The percentage decrease in cost of revenue was consistent with the 45.53% decrease in HPC products sales revenue. Gross profit and margin Gross profit for the six months ended March 31, 2025 and 2024 was $3,703,925 and $3,395,547, representing 15.32% and 15.10% of revenue, respectively. The increase from 15.10% to 15.32% in gross margin for the six months ended March 31, 2025 was due to the increase of 13.62% in solar PV products sales. For the six months ended March 31 2025Amount2024AmountVariances %Revenues 24,176,271 22,483,601 7.53%Cost of revenue (20,472,346)(19,088,054)7.25%Gross profit 3,703,925 3,395,547 9.08%Operating income 504,319 577,582 (12.68%)Net income 391,967 643,498 (39.09%) Selling and marketing expenses Our selling and marketing expenses primarily consist of salaries and benefits, office expense, and freight expense. Our selling and marketing expenses were $973,207 and $790,232 for the six months ended March 31, 2025 and 2024, respectively. The selling and marketing increased by $182,975, or 23.15%, primarily due to increase transport expense for the six months ended March 31, 2025. General and administrative expenses Our general and administrative expenses consist primarily of salaries and welfare expenses, rent expense, depreciation and bad debt provision. Our general and administrative expenses were $1,850,399 and $1,198,885 for the six months ended March 31, 2025 and 2024 respectively, representing a increased of $651,514, or 54.34%, primarily due to increased service fees and consultant fee for the six months ended March 31, 2025. Research and development expenses Research and development expenses are related to improvement expenses for solar PV products. Research and development expenses primarily consist of employee salaries and benefit costs. Research and development expenses were $376,000 and $828,848 for the six months ended March 31, 2025 and 2024, respectively. Income tax expense The PRC EIT is calculated based on the taxable income determined under the applicable EIT Law and its implementation rules, which became effective on January 1, 2008. The EIT Law applies a uniform 25% income tax rate for all resident enterprises in China. Income tax expenses amounted to $181,987 and $143,875 for the six months ended March 31, 2025 and 2024, respectively. The change resulted from the change in our taxable income. Net income As a result of the foregoing, our net incomes for the six months ended March 31, 2025 and 2024 were $391,967 and $643,498, respectively, representing an decrease of $251,531, or 39.09%. About Skycorp Solar Group Limited Skycorp Solar Group Limited is a solar photovoltaic (PV) product provider focused on manufacturing and selling solar cables and connectors. Our operations are managed through our subsidiaries, including Ningbo Skycorp Solar Co., Ltd., in China. The Company’s mission is to become a green energy solutions provider by utilizing solar power and delivering eco-friendly solar PV products. By leveraging the Company’s expertise in solar technologies and relationships with worldwide clients, it aims to expand offerings of solar PV products and energy solutions for enterprise customers. For more information, please visit: https://ir.skycorp.com/. Forward-Looking Statements This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may, “will, “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, factors discussed in the “Risk Factors” section of the registration statement filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. For more information, please contact: Skycorp Solar Group LimitedCathy LiInvestor RelationsEmail: ir@skycorp.comTel: +86 185 0252 9641 (CN) WFS Investor Relations Inc.Connie KangPartnerEmail: ckang@wealthfsllc.comTel: +86 1381 185 7742 (CN) SKYCORP SOLAR GROUP LIMITEDUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(In U.S. dollars except for number of shares) March 31,2025 September 30,2024 (Unaudited) (Audited)Assets Current assets: Cash and cash equivalents $9,741,586 $5,166,851 Restricted cash Notes receivable 580,656 237,092 Accounts receivable, net 9,873,208 10,656,432 Inventory, net 3,751,975 2,597,322 Due from related party 121,611 2,314,477 Prepaid expenses and other current assets 9,007,200 4,457,783 Total current assets 33,076,236 25,429,957 Property, plant and equipment, net 669,338 538,708 Intangible asset 1,581,354 1,742,458 Investment 1,543,402 - Down-payment for investment 5,350,756 4,136,577 Right-of-use Asset 1,769,493 104,223 Total non-current assets 10,914,343 6,521,966 Total Assets $43,990,579 $31,951,923 Liabilities and Shareholders’ Equity Current liabilities: Bank borrowings – current $3,322,903 $2,363,303 Note payable 673,653 - Advance from customer 4,837,518 4,350,421 Account payable & other payables 3,680,827 1,815,751 Tax payables 4,219,883 4,125,038 Lease Liabilities, Current 374,750 84,492 Due to related party 17,947 21,157 Total current liabilities 17,127,481 12,760,162 Bank borrowings – non-current 242,848 427,421 Lease Liabilities, Non-Current 1,391,516 - Total non-current liabilities 1,634,364 427,421 Total liabilities 18,761,845 13,187,583 Equity: Common stock ($0.0001 par value, 500,000,000 shares authorized, 27,000,000 and 25,000,000 share issued and outstanding as of March 31, 2025 and September 30, 2024*) 2,700 2,500 Additional Paid-In Capital 8,996,955 2,032,655 Retained earnings 14,209,693 14,275,450 Accumulated other comprehensive (loss)/income (426,781) 109,082 Total Equity attributable to owners of the capital stock of the parent 22,782,567 16,419,687 Non-controlling interest 2,446,167 2,344,653 Total equity 25,228,734 18,764,340 Total Liabilities and Shareholders’ Equity $43,990,579 $31,951,923 SKYCORP SOLAR GROUP LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME(In U.S. dollars except for number of shares) Six Months Ended March 31, 2025 2024 (Unaudited) (Unaudited) Revenue$24,176,271 $22,483,601 Cost of revenues (20,472,346) (19,088,054)Gross profit 3,703,925 3,395,547 Operating expenses: Selling and marketing expenses (973,207) (790,232)General and administrative expenses (1,850,399) (1,198,885)Research and development expenses (376,000) (828,848)Total operating expenses (3,199,606) (2,817,965) Operating income 504,319 577,582 Other income (expenses): Interest expense (76,431) (58,961)Interest income 44,068 11,671 Foreign exchange gain (loss), net 9,722 32,596 Other income, net 92,276 224,485 Total other income (expense), net 69,635 209,791 Income before income tax expense 573,954 787,373 Income tax expense (181,987) (143,875)Net income 391,967 643,498 Other comprehensive income: Foreign currency translation (loss) gain (622,393) 39,197 Total comprehensive (loss)/income (230,426) 682,695 Net income attributable to: Owners of the Company (65,757) 377,745 Non-controlling interest 457,724 265,753 391,967 643,498 Total comprehensive (loss)/income attributable to: Owners of the Company (601,620) 446,622 Non-controlling interest 371,194 236,073 (230,426) 682,695 Earning per share: Basic and diluted 0.001 0.02 Weighted Average Number of Common Share Outstanding: Basic and Diluted* 25,296,703 25,000,000 SKYCORP SOLAR GROUP LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In U.S. dollars except for number of shares) Six Months Ended March 31, 2025 2024 (Unaudited) (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES Net Income 391,967 643,498 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 176,175 148,190 Amortization of right-of-used asset 231,811 76,855 Provision for expected credit loss 191,437 107,577 Changes in Operating Assets and Liabilities: Accounts receivable, net 281,777 (1,916,377)Inventories, net (1,244,674) (1,174,864)Notes receivable,net (352,635) (9,561)Prepaid expenses and other current assets (4,740,203) 612,948 Accounts payable 1,855,273 (525,490)Other payable 76,270 51,774 Advance from customer 632,697 516,880 Tax payable 231,586 120,340 Note payable 676,066 401,497 Net Cash Used In Operating Activities (1,592,453) (946,733) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment (221,024) (153,341)Down-payment for investments (1,452,121) (2,227,187)Purchase of investments (1,446,938) - Net Cash Used in Investing Activities (3,120,083) (2,380,528) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds of bank borrowings 1,713,503 1,360,236 Repayment of bank borrowings (843,419) (1,937,730)Amount due from related party 2,120,858 1,906,091 Amount due to related party (2,523) (235,702)Capital contributed by minor shareholders 6,915 - Dividend paid to non-controlling shareholders (276,595) (138,766)Gross proceeds from initial public offering 8,000,000 - Expenses related to initial public offering (1,035,500) - Principal portion of lease liability (178,363) (78,469)Interest portion of lease liability (37,538) (4,790)Net Cash Provided by Financing Activities 9,467,338 870,870 Effect of exchange rate changes on cash and restricted cash (180,067) 66,251 NET INCREASE(DECREASE) IN CASH AND RESTRICTED CASH 4,574,735 (2,390,140)CASH AND RESTRICTED CASH, beginning of period 5,166,851 5,930,340 CASH AND RESTRICTED CASH, end of period 9,741,586 3,540,200 SUPPLEMENTAL CASH FLOW INFORMATION Cash paid during the period for: Income taxes 15 - Interest 76,431 58,961

Skycorp Solar Group Limited Reports First Half 2025 Financial Results

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