PN Smart Energy Limited Reports First Half 2026 Financial Results
NINGBO, China, Aug. 04, 2026 (GLOBE NEWSWIRE) -- PN Smart Energy Limited (“PN Smart” or the “Company”) (NASDAQ: PN), a global independent power producer (IPP) focused on the development of clean power stations, critical energy materials, and intelligent energy infrastructure, announced its financial results for the six months ended March 31, 2026.
Financial Highlights
Operational Highlights
Management Commentary
Mr. Weiqi Huang, Chairman and CEO of the Company, commented: “Fiscal 2026 represents a pivotal transformation for PN Smart as we strategically evolve from a solar component manufacturer into a fully integrated independent power producer (IPP) and clean-energy solutions provider. Despite significant industry headwinds, including intense pricing competition and elevated raw material costs, we delivered resilient top-line growth of 5.5% and expanded our overseas sales by nearly 45%.”
“It is important for our shareholders to understand the context of our reported net loss this period. Of the $7.1 million net loss, $5.6 million, or approximately 78%, was a one-time, non-cash share-based compensation charge related to immediately vested equity awards. This was a strategic investment to align our core team for the next phase of our growth, and it had zero impact on our cash position or working capital. On a cash and operating basis, our business remains highly resilient, supported by a balance sheet that is significantly stronger than a year ago.”
“Looking ahead, the successful launch of our PV power station operations and our strategic investment in Nanjing Cesun Power mark critical milestones in our IPP transition. Backed by an unconditional $10.0 million profit guarantee from the seller of Nanjing Cesun, these investments lay the foundation for higher-quality, recurring revenue. We are aggressively building a vertically integrated platform positioned to power the future of global clean energy and intelligent infrastructure.”
Selected Semi-Annual Financial Results
Revenues
Total revenues for the six months ended March 31, 2026 increased by 5.47% to approximately $25.5 million, compared to approximately $24.2 million during the same period in 2025. This overall increase was primarily driven by a 5.05% growth in solar PV product sales, which rose by approximately $1.2 million to reach approximately $24.1 million.
Solar PV sales remained the core of the business and the segment's consistent growth was fueled by expanding global demand for solar cables, declining battery costs that accelerated energy storage returns, and supportive international policies.
The revenue growth in solar products was partially offset by a complete cessation of High-Performance Computing (HPC) product sales, which dropped to $0 for the current period. This reflects a strategic pivot initiated in the fiscal year ended September 30, 2023, to scale down HPC operations amid global computing challenges and reduced market demand.
Conversely, the Company's overall revenue was bolstered by an incremental approximately $1.4 million from new ventures launched in 2025, specifically freight transportation through the newly established Ningbo Zhuoxing Logistics Co., Limited in April 2025 and a power plant operations business initiated in August 2025.
Cost of revenues
Cost of revenues primarily includes the manufacturing and purchase costs of servers, photovoltaic (PV) cables, and connectors, alongside depreciation, maintenance, and other overhead expenses. Our cost of revenue for solar PV products increased by 8.39%, or approximately $1.7 million for the six months ended March 31, 2026. This rise outpaced the segment's corresponding 5.05% revenue growth primarily due to higher copper prices.
Additionally, the cost of revenues for the Company's newly launched business segments totaled approximately $1.2 million. These costs correspond directly to the recent expansion into logistics and power plant operations, consisting mainly of logistics agency expenses and depreciation on power station equipment.
Gross profit and margin
Gross profit for the six months ended March 31, 2026, was approximately $3.0 million, a decline from approximately $3.7 million during the same period in 2025, representing 11.6% and 15.32% of revenues, respectively.
This decline in gross margin was primarily driven by intense competition within the solar industry, which created significant pricing pressure and forced the company to reduce its unit selling prices. Additionally, a sharp increase in the cost of copper, a critical raw material, compounded these challenges and further squeezed overall margin levels during the current period.
Selling and marketing expenses
Selling and marketing expenses, which primarily consist of salaries, office, and freight costs, increased by 13.85%, or approximately $0.1 million to approximately $1.1 million for the six months ended March 31, 2026, compared to approximately $1.0 million in 2025. This rise was largely driven by higher international shipping costs tied to a 44.62% growth in overseas sales, which reached approximately $10.8 million up from approximately $7.5 million in the prior year. This robust overseas expansion reflects the Company's successful strategic shift toward solar PV products, which now account for the majority of international sales.
General and administrative expenses
General and administrative expenses, which include salaries, rent, depreciation, and bad debt provisions, surged by 321.49%, or approximately $5.9 million to approximately $7.8 million. This increase was predominantly caused by an approximately $5.6 million non-cash share-based compensation charge for immediately vested equity incentive awards granted to employees. Excluding this specific non-cash charge, standard general and administrative costs rose by a more modest 19.2% over the prior-year period.
Research and development expenses
Research and development expenses increased by 199.83%, or approximately $0.8 million to approximately $1.1 million, compared to approximately $0.4 million in 2025. These expenses cover materials, salaries, and efforts to improve solar PV products. The substantial growth in the current period was fueled by the launch of several new R&D initiatives, most notably the development of advanced photovoltaic conductor winding devices designed to prevent wire tangling and crimping.
Income tax expense
Under the PRC Enterprise Income Tax (EIT) Law, effective January 1, 2008, Chinese resident enterprises are subject to a uniform 25% tax rate. For the six months ended March 31, 2026, the Company recorded an income tax benefit of $52,878, compared to an income tax expense of approximately $0.2 million during the same period in 2025.
This shift resulted directly from a pre-tax loss of approximately $7.2 million in the 2026 period. This substantial loss increased the Company's deferred tax assets and caused a corresponding reversal of deferred tax expenses, ultimately generating the net tax benefit.
Net income (loss)
As a result of the foregoing, net (loss)/income for the six months ended March 31, 2026 and 2025 were approximately $(7.1) million and approximately $0.4 million, respectively, representing a decrease of approximately $7.5 million.
About PN Smart Energy Limited
PN Smart Energy Limited is an emerging independent power producer and clean energy infrastructure company. While the Company’s current revenue is anchored in solar equipment, manufacturing-including solar cables, inverters, and energy storage distribution, it is strategically transitioning toward power generation assets. The Company develops and operates solar and wind power plants as an IPP, with the long-term goal of becoming a vertically integrated smart energy company that powers the future through clean energy. For more information, please visit the Company's investor relations website at https://ir.pnsmartenergy.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:
PN Smart Energy Limited
Cathy Li
Investor Relations
Email: ir@pnsmartenergy.com
Tel: +1 574 575 7170
WFS Investor Relations Inc.
Connie Kang
Partner
Email: ckang@wfsir.com
Tel: +1 628 283 9214
PN SMART ENERGY LTD.
UNAUDITED CONSOLIDATED BALANCE SHEETS
EXPRESS IN U.S. DOLLARS, EXCEPT FOR SHARE AND PER SHARE DATA,
OR OTHERWISE NOTED
PN SMART ENERGY LTD.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
FOR THE SIX MONTHS ENDED MARCH 31, 2026, AND 2025
EXPRESS IN U.S. DOLLARS, EXCEPT FOR SHARE AND PER SHARE DATA,
OR OTHERWISE NOTED
PN SMART ENERGY LTD.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED MARCH 31, 2026, AND 2025
EXPRESS IN U.S. DOLLARS, EXCEPT FOR SHARE AND PER SHARE DATA,
OR OTHERWISE NOTED
*These financial statements are as of March 31, 2026. The Company effected a reverse share split with an exchange ratio of one new share for every twenty old shares on April 13, 2026. All share quantities and per-share data presented in the financial statements have been retroactively restated to reflect the impact of the reverse split.