CREG

Smart Powerr is a China-based waste-energy recycler that has effectively stopped operating as a real business. FY2025 revenue was just $262,509 — down 69.7% YoY — and per the MD&A the entire top line comes from a single Operation & Maintenance contract worth ~US$0.4M/year signed with third parties. Against that sliver of revenue the company lost $2.90M (net margin -1,105%, operating margin -1,149%), a loss that widened 86% YoY as G&A ballooned to $3.13M on $948K of new financing costs and $832K of share-based compensation. The risk factors confirm the structural problem: revenue 'historically resulted... primarily from the sale and operation of our waste energy recycling projects,' the company has 'only had a limited number of projects in process at any time,' and it depends entirely on customers' waste heat/gas supply and on winning scarce new project contracts it admits it cannot predict. This is a business without a durable revenue engine.

The balance sheet looks superficially strong — $158M assets, $143M equity, liabilities/equity of only 0.10x — but it does not survive inspection. Cash and equivalents total $40,156. Forty thousand dollars. Yet 'other current assets (excluding cash)' are $156.78M, and the MD&A reveals the earnings 'quality' behind them: interest income of $264,346 from 'the provision of financial support to other companies' plus a $200,000 reversal of a previously-impaired prepayment. In other words, nearly the entire asset base is non-cash claims — related-party loans/prepayments of unverifiable quality — not productive operating assets. The reported $66.9M operating cash flow (+722%) is impossible to reconcile with $263K of revenue, a $2.9M loss, and $40K of ending cash, and should be treated as uninterpretable rather than as a strength. Accumulated deficit stands at -$65.0M.