SGT risks delisting amid mounting losses
January 28, 2025
Suzhou Goldengreen Technologies warns of delisting after forecasting a $4.3–6.2 million (€3.9–5.6 million) loss.
Suzhou Goldengreen Technologies (SGT) has warned investors it faces the risk of delisting from the Shenzhen Stock Exchange following its 2024 annual performance forecast, which projects a significant loss. The company expects to post a net loss of between RMB 29 million and RMB 42 million ($4.3–6.2 million / €3.9–5.6 million), with basic earnings per share falling to a negative 0.119–0.171 yuan.
The forecast, released by SGT’s Board of Directors on January 24, attributes the losses to several market challenges. A sharp decline in average selling prices, increased raw material procurement costs, and higher expenses linked to the development of new business ventures have all contributed to the company’s financial strain. Additionally, impairments on inventory and accounts receivable have further weighed on its profitability.
This forecast caps a difficult period for SGT, which has faced persistent financial challenges over the past three years. In 2024, The Recycler reported that SGT’s revenues have sharply declined, with the company struggling to achieve the anticipated benefits of its strategic expansions, including its acquisition of Cartridge World in 2015 and its 2016 IPO. A comparison with its competitor HG Technologies showed the extent of its challenges, with HG reporting robust growth while SGT faced declining profitability and operational setbacks.
Although SGT reported a 10.03% revenue increase in the third quarter of 2024 compared to the previous year, this was overshadowed by a widened net loss and declining cash flow. The company cited increased sales expenses, rising operating costs, and substantial investments in non-core areas as contributing factors. These issues have obscured the financial performance of its core printer division, raising concerns about its ability to sustain market competitiveness.
While the short-term outlook remains bleak, SGT’s increased spending on sales and management is partly attributed to efforts to accelerate the development of new business areas. These investments, though currently a financial burden, may position the company for diversification and growth in the longer term.
The company has assured stakeholders that it is actively engaging with auditors and regulators to ensure full compliance with reporting requirements. However, the preliminary nature of the financial data adds to the sense of caution surrounding SGT’s future. The final figures are expected to be disclosed in its 2024 annual report later this year.
The Board has issued a stark warning to investors about the risks associated with SGT’s stock. If the company’s financial position does not improve, the stock may face delisting after the disclosure of its audited results.
Categories : City News
Tags : Delisting Financials Losses SGT Shenzhen
