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
2025 2024 Variances
Amount Amount %
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 Limited
Cathy Li
Investor Relations
Email: ir@skycorp.com
Tel: +86 185 0252 9641 $(CN)$
WFS Investor Relations Inc.
Connie Kang
Partner
Email: ckang@wealthfsllc.com
Tel: +86 1381 185 7742 (CN)
SKYCORP SOLAR GROUP LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In U.S. dollars except for number of shares)
March 31, September 30,
2025 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 LIMITED
UNAUDITED 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
(END) Dow Jones Newswires
September 08, 2025 16:30 ET (20:30 GMT)