E-Power EPOW

Sunrise New Energy Co., Ltd. is a Cayman Islands holding company that conducts its operations primarily through Chinese subsidiaries and a variable interest entity. Its core activities consist of manufacturing and selling graphite anode materials for lithium ion batteries via the joint venture Sunrise Guizhou, and providing knowledge based enterprise services through its VIE, which operates a knowledge sharing platform in China. The company’s ordinary shares trade on the Nasdaq Capital Market under the ticker symbol EPOW.

The company generates revenue from two main sources: sales of graphite anode products and fees from knowledge sharing and enterprise services. In fiscal year 2024, graphite anode sales amounted to $64,365,362, representing about 99% of total revenue, while the knowledge sharing business contributed $632,379. Customers for the graphite anode business are manufacturers of lithium ion batteries used in electric vehicles, energy storage systems, and consumer electronics, whereas the service segment serves small and medium sized enterprises seeking consulting, training, and other advisory solutions. The graphite anode business has shown strong growth, with revenue increasing from $37,580,677 in 2022 to $64,365,362 in 2024, reflecting rising demand for battery materials.

The company operates through the following segments.

• Graphite anode business: This segment manufactures and sells graphite anode materials for lithium ion batteries, serving customers in the electric vehicle, energy storage, and consumer electronics markets.

• Knowledge sharing and enterprise business: This segment provides consulting services, enterprise solutions, and operates a knowledge sharing platform for small and medium sized enterprises in China.

In the graphite anode material market, Sunrise New Energy holds a growing position as a supplier to major battery manufacturers, competing with established players such as BTR New Energy, Hitachi Chem, Shanshan Tech, Mitsubishi Chem, and Zichen Tech. The company’s competitive advantages include its control over the Sunrise Guizhou joint venture through board representation, a portfolio of patented technologies, and a direct sales staff with deep industry connections. These factors enable it to meet stringent quality requirements and to benefit from the rising demand for lithium ion batteries driven by electric vehicle adoption and energy storage growth. According to industry reports, the global lithium ion battery market is projected to expand at a compound annual growth rate of over 20% through 2030, providing a favorable backdrop for the company’s anode material business.

The company’s customers are primarily manufacturers of lithium ion batteries used in electric vehicles, energy storage systems, and consumer electronics. Specific customers include BYD Company Limited and Contemporary Amperex Technology Co., Limited, with some accounting for over 10% of sales. Revenue concentration remains a risk, as a small number of clients have historically contributed a large share of the graphite anode business’s sales.