ZIBO, China, March 08, 2024 (GLOBE NEWSWIRE) --  Sunrise New Energy Co., Ltd. ("Sunrise", the "Company", "we" or "our") (NASDAQ:EPOW), today announced securing a significant financing of $14 million USD from China Everbright Bank. This low-interest loan effectively bolsters the Company's liquidity, ensuring seamless production and delivery of client orders. Among the esteemed clientele are globally renowned lithium battery manufacturers such as Contemporary Amperex Technology Co. Limited (CATL), BYD and HiT ...

Company Overview - Sunrise New Energy Co., Ltd. is headquartered in Zibo, Shandong Province, China, and specializes in manufacturing and selling graphite anode material for lithium-ion batteries [4] - The company is constructing a manufacturing plant of 260,543 square meters in Guizhou Province, utilizing inexpensive electricity from renewable sources, positioning itself as a low-cost and environmentally friendly producer [4] - The founder and CEO, Mr. Haiping Hu, has been a pioneer in the graphite anode industry in China since 1999, supported by a management team with extensive experience [4] Industry Context - The global energy storage cell shipments reached 196.7 GWh in 2023, with HiTHIUM accounting for over 15 GWh, indicating a growing market for energy storage solutions [2] - HiTHIUM specializes in lithium-ion energy storage, offering a comprehensive portfolio that includes core materials, research, development, production, and sales of lithium iron phosphate energy storage batteries and systems [2] Strategic Developments - Sunrise has announced a significant order of 25,000 tons of energy storage materials from HiTHIUM, marking its entry into the energy storage battery materials market [1][3] - This collaboration is seen as a strategic milestone for Sunrise, as it aims to deliver innovative solutions that meet the evolving needs of global customers and contribute to sustainability [3] - The initial order from HiTHIUM reflects confidence in Sunrise's products and is expected to lead to a series of subsequent orders, with two clients already in mass production and nine undergoing trials [3]

ZIBO, China, March 06, 2024 (GLOBE NEWSWIRE) -- Sunrise New Energy Co., Ltd. ("Sunrise", the "Company", "we" or "our") (NASDAQ:EPOW), announced today that Mr. Haiping Hu, Chairman, was awarded the esteemed title of "Outstanding Entrepreneur of Guizhou Province" for the years 2021-2023. The event, graced by senior officials including Guizhou Provincial governors, underscored Mr. Hu's exceptional leadership and contributions to the regional business landscape. In a parallel recognition of talent and dedicatio ...

ZIBO, China, March 04, 2024 (GLOBE NEWSWIRE) -- Sunrise New Energy Co., Ltd. (NASDAQ:EPOW), today announced the approval of its "High-Energy Fast Charging Lithium Battery Graphite Anode Project" by Guizhou Province's Department of Science and Technology as part of the provincial "Industrialization of Advanced Scientific and Technological Achievements" plan. This project aims to utilize patented technology to enhance energy density, improve charging efficiency and cycling performance. Sunrise has made signif ...

ZIBO, China, Jan. 12, 2024 (GLOBE NEWSWIRE) --  Sunrise New Energy Co., Ltd. ("Sunrise", the "Company", "we" or "our") (NASDAQ:EPOW), announced today that its subsidiary, Sunrise (Guizhou) New Energy Materials Co., Ltd. has announced its application for the prestigious China Patent Award, which is regarded as the foremost recognition in the field of intellectual property rights in China. Established in 1989, the China Patent Award is jointly organized by the State Intellectual Property Office of China and t ...

Company Overview - Sunrise New Energy Co., Ltd. is headquartered in Zibo, Shandong Province, China, and is engaged in the manufacturing and sale of graphite anode material for lithium-ion batteries [2] - The company operates a joint venture that is constructing a manufacturing plant of 260,543 square meters in Guizhou Province, China, utilizing inexpensive electricity from renewable sources, positioning itself as a low-cost and environmentally friendly producer [2] - The management team consists of experts with extensive experience and a strong track record in the graphite anode industry, and the company also runs a knowledge-sharing platform in China [2] Recent Developments - Mr. Haiping Hu, the CEO of Sunrise, purchased 245,000 shares of the company's ordinary shares at a price of $1.0706 per share, totaling approximately $262,297, increasing his total ownership to 7,107,933 shares [1] - Mr. Hu expressed pride in the team's accomplishments and stated his unwavering confidence in the company's future prospects [1]

SUNRISE NEW ENERGY CO., LTD. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | --- | --- | --- | |-------|-------|-------| | | | | | | | | | | | | | | | | | As | | | | | | | | | | | | | | | | June | | | | | | | | | | | | --- | --- | |----------|-------| | | | | | | | | | | | | | As | | | | | | | | | December | | Exhibit 99.1 | --- | --- | --- | --- | |------------------------------------------------------------------------------------------------------------------------------|--------------|---------------- ...

VIE Structure and Financial Impact - As of December 31, 2022, the VIE accounted for 8.79% of the company's consolidated total assets, 13.04% of total liabilities, and 1.61% of total net revenues[20]. - The VIE accounted for 51.21% of consolidated total assets, 99% of total liabilities, and 100% of total net revenues as of December 31, 2021[20]. - The company relies on VIE Agreements to control and operate the VIE, which may not be as effective as direct ownership[20]. - The VIE provided interest-free loans totaling $6,188,307 to the Company's subsidiaries for the construction costs related to the graphite anode business in 2022[28]. - The VIE provided interest-free loans of $90,000 to the Company for professional fees related to the initial public offering in 2021[28]. - The VIE has been certified as a National High Tech Enterprise, allowing a favorable tax rate of 15% instead of the standard 25%[95]. - The VIE Agreements are subject to significant risks, including potential non-compliance with PRC regulations, which could lead to severe penalties[120]. - The company operates its knowledge sharing and enterprise service platform through a variable interest entity (VIE) under contractual arrangements, treating the VIE's assets and liabilities as its own[121]. - The company's PRC legal counsel has indicated uncertainties regarding the interpretation of current and future PRC laws, which may affect the validity of the VIE structure[122]. - If the VIE's contractual arrangements are deemed illegal, the company may lose the ability to consolidate the VIE's financial results, adversely impacting its financial condition[122]. - The company relies on contractual arrangements with the VIE, which may not provide effective operational control compared to direct ownership[123]. Financial Performance - For the fiscal year ended December 31, 2022, the Company reported net revenues of $38,125,668, a significant increase from $7,409,272 in 2021[38]. - The total cost and operating expenses for the fiscal year 2022 were $56,934,801, leading to a net loss of $23,124,402[38]. - The Company reported a loss from operations of $18,809,133 for the fiscal year ended December 31, 2022[38]. - Net revenue for the year ended December 31, 2022, was $38,125,668, with a net loss of $23,124,402, primarily due to the impact of the COVID-19 pandemic and investments in the new venture, Sunrise Guizhou[73]. - For the year ended December 31, 2021, net revenue was $7,409,272, and the net loss was $8,714,332, compared to a net income of $11,957,287 for the year ended December 31, 2020[73]. - The company reported a significant increase in total assets from $58,695,084 in 2021 to $107,022,374 in 2022, indicating growth in its financial position[42]. Regulatory Environment and Compliance - The company is subject to legal and operational risks associated with being based in the PRC, which could materially affect its operations and securities value[22]. - The company has not been involved in any investigations on cybersecurity review initiated by PRC regulatory authorities as of the date of the annual report[22]. - The company is classified as an Existing Issuer and is not required to complete immediate filing procedures with the CSRC for its current listing[23]. - The company has faced increased regulatory scrutiny in China, particularly regarding anti-monopoly laws, but has not been impacted in its operations[25]. - The company is closely monitoring regulatory developments in China that may impact its business operations and compliance requirements[29]. - The company may face additional compliance requirements due to the Trial Measures and revised Provisions issued by PRC authorities[157]. - The Cybersecurity Review Measures require online platform operators with personal information of at least one million users to apply for a cybersecurity review before listing overseas[153]. - Compliance with PRC regulations on mergers and acquisitions is critical, as failure to obtain necessary approvals may lead to severe penalties[200]. - The PRC tax authorities may scrutinize related party transactions, potentially leading to additional tax liabilities that could reduce consolidated net income[128]. - The Foreign Investment Law, effective January 1, 2020, introduces uncertainties regarding the treatment of VIE agreements as foreign investments[140]. Business Operations and Market Risks - The company faces risks related to its limited operating history and the challenges of managing growth effectively in a development-stage environment[70]. - The company faces increasing competition in the enterprise service and knowledge sharing industries, which could negatively impact revenues and profit margins[79]. - The company must continuously invest in research and development to remain competitive, which can be costly and uncertain[106]. - Any reduction in government support for electric vehicles and renewable energy could adversely affect demand for the company's graphite products[108]. - The company may require additional capital to develop and expand operations, which may not be available when needed[71]. - The company faces risks related to maintaining cooperative relationships with joint venture partners, which are crucial for the success of its graphite anode business[103]. - Sunrise Guizhou's operations depend on the availability and quality of raw materials, with potential adverse effects from price volatility and supply chain disruptions[115]. - The company’s profitability in merchandise sales is dependent on effective inventory management and responding to consumer demand patterns[78]. - A severe or prolonged downturn in the global or Chinese economy could materially and adversely affect the company's business and financial condition[161]. - The company’s operations were significantly disrupted by health epidemics, particularly the COVID-19 pandemic, impacting its business performance[164]. Capital Structure and Shareholder Control - Executive officers, directors, and affiliates own approximately 43.56% of the company's outstanding Ordinary Shares, allowing them to exert significant control over shareholder matters[142]. - The company may need additional capital for business expansion and may face challenges in obtaining financing on acceptable terms[118]. - The company does not expect to be classified as a Passive Foreign Investment Company (PFIC) for U.S. federal income tax purposes in the foreseeable future, but this status could change based on asset composition[217]. Labor and Employment Risks - Increases in labor costs in China are expected to continue, potentially impacting profitability if these costs cannot be passed on to customers[210]. - The company is subject to stricter regulatory requirements regarding labor contracts and employee benefits, which could adversely affect its business operations[212]. - There is a risk of labor disputes or government investigations due to evolving labor-related laws and regulations in China, potentially impacting financial conditions[213]. Foreign Exchange and Taxation - The PRC government imposes controls on the convertibility of Renminbi into foreign currencies, which may affect the company's ability to remit dividends and its financial condition[183]. - Dividends from PRC subsidiaries to offshore holding companies may be subject to a withholding tax rate of 10%, potentially reduced to 5% under certain conditions[179]. - The company is subject to a uniform PRC enterprise income tax rate of 25% if classified as a "resident enterprise," which could adversely affect its effective tax rate and net income[177]. - The PRC government has imposed more restrictive foreign exchange policies, which may affect the company's ability to pay dividends in foreign currencies[187]. Risks from Government Control - The Chinese government has significant control over the economy, which may materially affect the company's operations and financial condition[150]. - The PRC government continues to exercise significant control over economic growth, which may impair the company's ability to operate profitably[165]. - Changes in PRC laws and regulations governing business operations may materially and adversely affect the company's business[167]. - The evolving PRC legal system may lead to inconsistencies in the enforcement of laws and regulations, impacting the company's business[169]. - The company may not be able to complete necessary government registrations or obtain approvals for future loans or capital contributions to its PRC subsidiaries[182]. U.S. Regulatory Environment - The Holding Foreign Companies Accountable Act requires issuers to ensure their auditors are PCAOB inspected, with potential delisting risks if not complied[192]. - The PCAOB has determined it can inspect firms in mainland China and Hong Kong, but future access may be obstructed by PRC authorities[196]. - The Accelerating Holding Foreign Companies Accountable Act reduces the non-inspection period from three years to two years, increasing delisting risks[198]. - The company’s current auditor, MarcumAsia, is PCAOB registered and has been regularly inspected, mitigating immediate delisting risks[199]. - If the company is scrutinized like other U.S.-listed Chinese companies, it may need to expend significant resources to address the situation, harming its operations and reputation[188]. - U.S. listed Chinese companies have faced significant scrutiny, leading to sharp declines in stock value and potential shareholder lawsuits[189]. - The SEC reports are not subject to review by PRC regulatory authorities, creating uncertainties regarding compliance with new PRC regulations[190].