Sanergy Group Limited reported a markedly smaller loss for the six months ended 30 June 2026 as operating streamlining and a shift to higher-margin sales regions offset weaker top-line demand for ultra-high-power (UHP) graphite electrodes.
Financial performance • Revenue fell 15.33 % year on year to USD 20.14 million, reflecting a 14 % drop in sales volume to 6,994 MT and a 9 % decline in average selling price to USD 2,696/MT. • Gross profit edged up 4 % to USD 2.58 million; gross margin improved to 12.8 % (1H 2025: 10.4 %), with the core graphite electrode business delivering 13.9 %. • Loss attributable to owners narrowed 22.1 % to USD 7.53 million (1H 2025: USD 9.66 million). • Administrative expenses rose to USD 5.14 million (1H 2025: USD 3.64 million) due to advisory fees linked to financing and restructuring. Finance costs were stable at USD 1.30 million. • Basic and diluted loss per share improved to US 4.0 cents (restated) from US 7.4 cents.
Operational metrics • Debtor days increased to 95 (1H 2025: 85); creditor days extended to 182 (1H 2025: 103); inventory days lengthened to 331 (1H 2025: 301). • Inventory value reduced to USD 31.84 million from USD 36.83 million at 2025-year-end, reflecting de-stocking efforts.
Regional and product trends • PRC revenue advanced 40.6 % to USD 9.71 million, offset by softer demand in Americas and EMEA. • A pilot non-ferrous metals trading operation contributed USD 1.63 million in first-time revenue.
Liquidity and capital structure • Net cash from operations totaled USD 1.63 million (1H 2025: USD 4.47 million). • Cash and pledged deposits stood at USD 13.09 million; interest-bearing borrowings were USD 26.28 million. • Gearing ratio inched up to 29.3 % (31 Dec 2025: 29.0 %). • In February 2026, Sanergy raised approximately HKD 18.9 million (USD 2.37 million) gross via a share placing; in May 2026 a 10-for-1 share consolidation and capital reduction became effective.
Strategic developments • The Italy plant remained mothballed during the period; a restart is slated for 4Q 2026 following workforce and cost restructuring. • In March 2026, subsidiary Sangraf Italy S.r.l. entered court-supervised protective measures to facilitate creditor negotiations and operational turnaround. • Arbitration continues over the previously acquired Taigu assets in Shanxi, with a judicial appraisal expected within 2026.
Capital expenditure and commitments • Capex reached USD 0.76 million, mainly for plant upgrades; a further RMB 80.5 million (USD 11.10 million) commitment remains for the Hubei Hairong associate investment.
Share-based incentives • On 28 January 2026, 10 million share options were granted at an exercise price of HKD 1.06 (post-consolidation), representing 5.3 % of outstanding shares.
Dividend • No interim dividend was declared.
Outlook Management anticipates subdued demand in 2H 2026 but expects the reconfigured Italian facility to capitalise on potential supply gaps in North America created by evolving U.S. trade measures. Focus areas remain capacity reactivation, selective volume growth, continued cost discipline, and balance-sheet strengthening.