Sunrise New Energy Revenue Announces Financial Results for Fiscal Year 2022 Featuring 415% Revenue Growth to a New Record

ZIBO, China, May 16, 2023 (GLOBE NEWSWIRE) -- Sunrise New Energy Co., Ltd. ("Sunrise", the "Company", "we" or "our") (NASDAQ:EPOW), today announces financial results for the fiscal year ended December 31, 2022.

Chairman's Vision: Charting the Course Ahead

"I am immensely proud to announce our financial results for 2022," said Sunrise's Chairman, Mr. Haiping Hu. "Our revenue growth of 415% from fiscal year 2021 bears testament to the remarkable efforts of our dedicated team. We have quickly emerged as a leading manufacturer of graphite anode, earning the trust and business of the top 3 lithium battery manufacturers and the world's biggest EV manufacturer by volume, BYD. Our commitment to quality and service has positioned us as a trusted partner of our customers in the lithium battery market.

As we look ahead to 2023, our focus is on ramping up our manufacturing capacity to fulfill our customer's orders efficiently and effectively. I believe strongly in the potential of our company. I consider our stock to be deeply undervalued given our current position and prospects. As a testament to my confidence, I plan to continue purchasing shares in the open market. We have laid a strong foundation for growth, and I am excited about what we can achieve in the years ahead."

Highlight of accomplishments from late-2022 through today:

• Significant New Contracts: The Company secured significant new contracts throughout 2022 and 2023, including a $464 million purchase order from a top 5 global EV battery manufacturer and a $225 million contract with BYD. These contracts further strengthen the Company's market position.
• Strong Growth in Purchase Orders: The Company has experienced substantial growth in its volume of purchase orders, which now stands at a value of $700 million. This remarkable achievement highlights the Company's success in winning new contracts and solidifying its position in the market.
• Strong Financial Backing: By April 30, 2023, the Company has secured credit facilities amounting to approximately $19 million, enabling it to keep up with growing demand and fund its rapid growth.
• Confidence from Leadership: The Chairman of Sunrise, Mr. Haiping Hu, demonstrated his confidence in the Company's future by acquiring 20,000 shares of EPOW stock.
• Recognition of Sustainability Efforts: In November 2022, the Company was granted a license by the local government for an additional 50,000 metric tons annual production of graphite anode at its plant in Guizhou Province. This approval, which brings the total approved annual production at the plant to 100,000 metric tons, is a testament to the Company's commitment to employing the latest carbon and pollution remediation technologies, aligning with the strict carbon neutral policies implemented by the Chinese government.
  
  

Financial Highlights for fiscal year 2022

• Revenue Growth: Revenues increased by 415% to $38.1 million, up from $7.4 million in 2021. This increase was mainly due to the Company's launch of graphite anode materials business and offset by the shrink of peer-to-peer knowledge sharing and enterprise service revenue due to the impact of COVID-19.
• Operating Loss: The Company reported a net loss from operations of $18.8 million, compared to a loss of $7.4 million in 2021.The Company reported a decrease in gross loss (profit) of $4.9 million for the year ended December 31, 2022 due to the adverse effect of COVID-19 on peer-to-peer knowledge sharing and enterprise service. In addition, operating expenses increased $6.5 million primarily due to higher general and administrative (G&A) expenses associated with the company's expansion into the graphite anode business and impairment of intangible assets associated with peer-to-peer knowledge sharing and enterprise service businesses.
• Operating Cash Flow: The Company's operating cash flow significantly outperformed operating income, with negative cash flow of $9.6 million in 2022 compared to negative cash flow of $5.2 million in 2021.
• Cash Balance: At the end of 2022, the Company had cash and cash equivalents of $1.7 million, down from $13.9 million at the end of 2021. Additionally, the Company had $2.6 million in restricted cash.

SUNRISE NEW ENERGY CO., LTD. CONSOLIDATED BALANCE SHEETS
		As of December 31,
		2022				2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	1,655,549			$	13,916,155
Restricted cash			2,638,468				-
Accounts receivable, net			5,167,701				6,861,672
Notes receivable			868,679				-
Inventories			18,330,516				3,105,673
Due from related parties			400,022				65,278
Short-term investment			3,336,256				5,961,605
Prepaid expenses and other current assets			12,240,642				4,435,175
TOTAL CURRENT ASSETS			44,637,833				34,345,558
NON-CURRENT ASSETS
Restricted cash			-				700,060
Long term prepayments and other non-current assets			3,850,985				10,244,917
Plant, property and equipment, net			41,468,383				3,351,321
Land use rights, net			10,083,242				-
Intangible assets, net			3,962,650				3,594,977
Long-term investments			3,019,281				5,381,441
Operating lease right-of-use assets			-				224,773
Deferred tax assets			-				852,037
TOTAL NON-CURRENT ASSETS			62,384,541				24,349,526
TOTAL ASSETS			107,022,374				58,695,084
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable			12,259,772				34,486
Note payable			3,876,748				-
Deferred revenue			347,231				179,407
Deferred revenue - related parties			347,471				-
Deferred government subsidy			2,871,665				-
Due to related parties			885,150				-
Income taxes payable			506,638				1,076,518
Operating lease liabilities, current			-				99,569
Long-term payable, current			3,706,628				-
Consideration payable, current			582,381				-
Accrued expenses and other current liabilities			639,761				330,902
TOTAL CURRENT LIABILITIES			26,023,445				1,720,882
NON-CURRENT LIABILITIES
Long term payable, non-current			4,078,843				-
Consideration payable, non-current			3,358,906				-
Deferred tax liabilities, net			199,583				-
TOTAL NON-CURRENT LIABILITIES			7,637,332				-
TOTAL LIABILITIES			33,660,777				1,720,882
EQUITY
Ordinary shares (500,000,000 shares authorized; $0.0001 par value, 24,528,000 shares issued and outstanding as of December 31, 2021; 25,361,550 shares issued and outstanding as of December 31, 2022)			2,536				2,453
Additional paid-in capital			34,696,702				31,966,816
Statutory reserves			2,477,940				2,473,801
(Accumulated deficits) Retained earnings			(5,148,529	)			17,259,976
Accumulated other comprehensive (loss) income			(906,444	)			2,148,906
TOTAL SHAREHOLDERS' EQUITY ATTRIBUTABLE TO SUNRISE NEW ENERGY CO., LTD. ORDINARY SHAREHOLDERS			31,122,205				53,851,952
Non-controlling interests			42,239,392				3,122,250
TOTAL EQUITY			73,361,597				56,974,202
TOTAL LIABILITIES AND EQUITY		$	107,022,374			$	58,695,084

SUNRISE NEW ENERGY CO., LTD. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
		For the years ended December 31,
		2022				2021				2020
REVENUE, NET
Products		$	37,583,844			$	2,104,767			$	1,495,380
Service			541,824				5,304,505				21,685,704
Total revenues			38,125,668				7,409,272				23,181,084
COSTS OF REVENUES
Products			38,299,090				2,063,296				892,791
Service			1,176,956				1,823,358				2,087,425
Total cost of revenues			39,476,046				3,886,654				2,980,216
GROSS (LOSS) PROFIT			(1,350,378	)			3,522,618				20,200,868
OPERATING EXPENSES
Selling expenses			1,075,980				946,775				906,456
General and administrative expenses			12,678,873				7,834,291				3,897,040
Research and development expenses			1,053,882				2,151,565				671,312
Impairment of intangible assets			2,650,020				-				-
Total operating expenses			17,458,755				10,932,631				5,474,808
(LOSS) PROFIT FROM OPERATIONS			(18,809,133	)			(7,410,013	)			14,726,060
OTHER (EXPENSES) INCOME
Investment losses			(3,566,561	)			(2,118,453	)			(1,087	)
Interest (expense) income			(27,128	)			173,173				214,460
Other income, net			87,390				404,380				72,837
Total other (expenses) income			(3,506,299	)			(1,540,900	)			286,210
(LOSS) PROFIT BEFORE INCOME TAXES			(22,315,432	)			(8,950,913	)			15,012,270
Income taxes provision (benefit)			808,970				(236,581	)			3,054,983
NET (LOSS) INCOME			(23,124,402	)			(8,714,332	)			11,957,287
Less: net loss attributable to non-controlling interests			(720,036	)			(311,072	)			(130,240	)
NET (LOSS) INCOME ATTRIBUTABLE TO SUNRISE NEW ENERGY CO., LTD. ORDINARY SHAREHOLDERS		$	(22,404,366	)		$	(8,403,260	)			12,087,527
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment			(5,123,964	)			700,316				2,076,303
TOTAL COMPREHENSIVE (LOSS) INCOME			(28,248,366	)			(8,014,016	)			14,033,590
Less: comprehensive loss attributable to non-controlling interest			(2,788,650	)			(321,522	)			(91,862	)
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO ORDINARY SHAREHOLDERS OF SUNRISE NEW ENERGY CO., LTD.		$	(25,459,716	)		$	(7,692,494	)			14,125,452
(LOSS) EARNINGS PER SHARE
Basic and diluted		$	(0.90	)		$	(0.36	)		$	0.72
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
Basic and diluted			24,820,313				23,638,751				16,800,000

About Sunrise New Energy Co., Ltd

Headquartered in Zibo, Shandong Province, China, Sunrise New Energy Co., Ltd., through its joint venture, is engaged in the manufacturing and sale of graphite anode material for lithium-ion batteries. The Company's joint venture is constructing a 260,543 ㎡ manufacturing plant in Guizhou Province, China. The plant runs on inexpensive electricity from renewable sources, which helps to make Sunrise New Energy a low-cost and low–environmental-impact producer of graphite anode material. Mr. Haiping Hu, the founder and CEO of the Company, is a major pioneer for the graphite anode industry in China starting from 1999. The Company's management team is also composed of experts with years of experiences and strong track-records of success in the graphite anode industry. In addition, the Company also operates a knowledge sharing platform in China. For further information, please visit the Company's website at www.sunrisenewenergy.com. The Company also maintains a Twitter account (@sunrisenewener1) to keep investors up to date on the latest development of the Company.

Forward-looking statement

Certain statements in this press release regarding the Company's future expectations, plans and prospects constitute forward-looking statements as defined by Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about plans, goals, objectives, strategies, future events, expected results, assumptions and any other factual statements that have not occurred. Any words that refer to "may", "will", "want", "should", "believe", "expect", "expect", "estimate", "estimate" or similar non-factual words, shall be regarded as forward-looking statements. Due to various factors, the actual results may differ materially from the historical results or the contents expressed in these forward-looking statements. These factors include, but are not limited to, the company's strategic objectives, the company's future plans, market demand and user acceptance of the company's products or services, technological updates, economic trends, the company's reputation and brand, the impact of industry competition and bidding, relevant policies and regulations, the ups and downs of China's macroeconomic conditions, the relevant international market conditions, and other related risks and assumptions disclosed in the Company's Annual Report on Form 20-F. In view of the above and other related reasons, we advise investors not to blindly rely on these forward-looking statements, and we urge investors to visit the SEC's website to consult the company's relevant documents for other factors that may affect the company's future operating results. The company is under no obligation to make public amendments to changes in these forward-looking statements due to specific events or reasons unless required by law.

For more information, please contact:

The Company:

IR Department

Email: [email protected]

Phone: +86 4009919228