Smart Powerr Corp.
For the period ended Mar 31, 2026. Filed May 15, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 15, 2026
CREG$0.77-46.0%Stored close · as of Jul 20, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-13.
0001213900-25-110034
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0001213900-26-057542
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 60 previous paragraphs and 50 current paragraphs.
30 unchanged; 12 reworded; 8 added; 18 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
The Company, through its subsidiaries, provides energy saving solutions and services, including selling and leasing energy saving systems and equipment to customers, project investment, investment management, economic information consulting, technical services, financial leasing, purchase of financial leasing assets, disposal and repair of financial leasing assets, consulting and ensuring of financial leasing transactions in the Peoples Republic of China (“PRC”).
Current report
Our business is primarily conducted through our wholly-owned subsidiaries, Yinghua and Sifeng, Sifeng’s wholly-owned subsidiaries, Huahong and Shanghai TCH, Shanghai TCH’s wholly-owned subsidiaries, Xi’an TCH, Xi’an TCH’s wholly-owned subsidiary Erdos TCH and Xi’an TCH’s 90% owned and Shanghai TCH’s 10% owned subsidiary Xi’an Zhonghong New Energy Technology Co., Ltd., and Zhongxun. Shanghai TCH was established as a foreign investment enterprise in Shanghai under the laws of the PRC on May 25, 2004, and currently has registered capital of $29.80 million. Xi’an TCH was incorporated in Xi’an, Shaanxi Province under the laws of the PRC in November 2007. Erdos TCH was incorporated in April 2009. Huahong was incorporated in February 2009. Xi’an Zhonghong New Energy Technology Co., Ltd. was incorporated in July 2013. Xi’an TCH owns 90% and Shanghai TCH owns 10% of Zhonghong. Zhonghong provides energy saving solutions and services, including constructing, selling and leasing energy saving systems and equipment to customers. Zhongxun was incorporated in March 2014 and is a wholly owned subsidiary of Xi’an TCH.
Current report
The Company is transforming and expanding into an energy storage integrated solution provider business and has produced revenue since 2025. We actively seek and explore opportunities to apply energy storage technologies to new industries or segments with high growth potential, including industrial and commercial complexes, large scale photovoltaic (PV) and wind power stations, remote islands without electricity, and smart energy cities with multi-energy supplies.
Current report
On May 1, 2026, we received written notice (the “Notice”) from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that, because the closing price for the Company’s common stock had fallen below $1.00 per share for 30 consecutive trading days, the Company was no longer in compliance with the requirement for continued inclusion on The Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2) (the “Bid Price Rule”). Further, the Notice stated that, pursuant to Listing Rule 5810(c)(3)(A)(iv), the Company was not eligible for any compliance period specified in Rule 5810(c)(3)(A) due to the fact that the Company has effected a reverse stock split over the prior one-year period. The Company requested an appeal of such determination to Nasdaq’s Hearings Panel (the “Panel”) on May 7, 2026. The hearing request will automatically stay any suspension or delisting action pending the hearing and the expiration of any additional extension period if granted by the Panel following the hearing.
Current report
Cost of sales (“COS”) for the three months ended March 31, 2026, was $53,683.
Current report
NET NON-OPERATING INCOME.
Current report
Comparison of three months ended March 31, 2026, and 2025
Current report
Net cash provided by investing activities was $156.84 million and $55.20 million respectively for the three months ended March 31, 2026, and 2025. As of March 31, 2026, the Company has collected back US$156.8 million in short term loan receivable.
Removed paragraphs (18)
Previous report
Cost of sales for the nine months ended September 30, 2025, was $94,028.
Previous report
Operating expenses consisted of general and administrative expenses (“G&A”) totaling $2,480,809 for the nine months ended September 30, 2025, compared to $747,540 for the nine months ended September 30, 2024. This represented an increase of $1,733,269 year-over-year. The increase was mainly attributable to an increase in financing costs of $948,648 and share-based compensation of $831,520.
Previous report
NET NON-OPERATING INCOME (EXPENSES).
Previous report
Comparison of Results of Operations for the three months ended September 30, 2025 and 2024
Previous report
The following table sets forth the results of our operations for the periods indicated as a percentage of net sales. Certain columns may not add due to rounding.
Previous report
SALES. Total sales for the three months ended September 30, 2025 and 2024 were $90,820.
Previous report
*COST OF SALES.*Cost of sales for the three months ended September 30, 2025 and 2024 were $46,610.
Previous report
GROSS PROFIT. Gross profit for the three months ended September 30, 2025 and 2024 were $44,210 with gross margin of 49%.
Previous report
NET NON-OPERATING INCOME (EXPENSES). Net non-operating expenses consisted of gain or loss on note conversion, interest income, interest expenses, and miscellaneous expenses. For the three months ended September 30, 2025, net non-operating expenses was $82,194 compared to non-operating income of $74,436 for the three months ended September 30, 2024. For the three months ended September 30, 2025, we had $32,786 interest income, which was partly offset by $114,980 interest expense on note payable. For the three months ended September 30, 2024, we had $27,216 interest income, which was partly offset by $99,520 interest expense on note payable and $1,995 loss on note conversion.
Previous report
INCOME TAX EXPENSE. Income tax expense was 4,690 for the three months ended September 30, 2025, compared with nil for the three months ended September 30, 2024. The consolidated effective income tax rate for the three months ended September 30, 2025 and 2024 were -1.6% and nil, respectively.
Previous report
NET LOSS. Net loss for the three months ended September 30, 2025 was $300,374 compared to $262,731 for the three months ended September 30, 2024, an increase of net loss of $37,643. This increase in net loss was mainly due to increased operating expenses by $69,405 , increased income tax expense by $4,690 and increased interest expense on note payable by $15,460, which was partly offset by increased Gross profit by $44,210 and interest income by $5,570 as described above.
Previous report
Comparison of nine months ended September 30, 2025, and 2024
Previous report
Net cash provided by investing activities was $55.2 million and $68.5 million respectively for the nine months ended September 30, 2025, and 2024. For the nine months ended September 30, 2025, repayments of short-term loans decreased by $-12.52million. As of September 30, 2025, the Company had recovered a short-term loan of $55,660,131 (RMB406.3 million) from Xi’an Yingtai Energy Conservation Technology Co., Ltd (“Xi’an Yingtai”), an unrelated party of the Company.
Previous report
Going Concern
Previous report
The Company’s financial statements are prepared assuming that the Company will continue as a going concern.
Previous report
The Company incurred an operating loss of $2.4 million, and reported net loss of $2.4 million for nine months ended September 30, 2025. As the Company implements its future business plan, it may continue to incur operating losses and generate negative operating cash flows.
Previous report
In 2025, the Company collected back $65.6 million advance to supplier and had positive operating cash flow during the nine months ended September 30, 2025. At the end of September 30, 2025, the Company had accumulated deficit balance of $64.5 million and cash balance of $131.9 million. The Company has collected back RMB405.8 million in accounts receivable and recovered RMB476 million in supplier advances and raised capital through of common stock issuance during the first quarter of 2025.
Previous report
The Company’s ability to continue as a going concern is dependent upon the successful execution of its business strategy to eventually achieve profitable operations. The accompanying financial statements do not include any adjustments that would be necessary if the Company is unable to continue as a going concern.
Reworded paragraphs (12)
Previous wording
Comparison of Operating Results for the years ended September 30, 2025 and 2024
Current wording
Comparison of Operating Results for the three months ended March 31, 2026 and 2025
Previous wording
Total sales for the nine months ended September 30, 2025, amounted to $ 173,659. The company signed an Operation and Maintenance Contract for a power station. The contract has total amount RMB1.8 million (US$0.2 million), starting from March 1, 2025 to February 28, 2035 for 10 years with a third party. The Company recognized the revenue based on the time period.
Current wording
Total sales for the three months ended March 31, 2026, amounted to $108,353. The company signed an Operation and Maintenance Contract for power stations. The contract has total amount RMB3.0 million (US$0.4 million) per annum, starting from 2025 to 2035 for 10 years with third parties. The Company recognized the revenue based on the time period.
Previous wording
For the nine months ended September 30, 2025, the gross margin was 46%.
Current wording
For the three months ended March 31, 2026, the gross margin was 50%.
Previous wording
OPERATING EXPENSES. Operating expenses consisted of general and administrative expenses (“G&A”) totaling $257,700 for the three months ended September 30, 2025, compared to $188,295 for the three months ended September 30, 2023, an increase of $69,405 or 37%. The increase in operating expenses was mainly due to increased professional fee by $69,734.
Current wording
Operating expenses consisted of general and administrative expenses (“G&A”) totaling $593,307 for the three months ended March 31, 2026, compared to $1,171,209 for the three months ended March 31, 2025. This represented a decrease of $577,902 period-over-period due to expenses control in the company.
Previous wording
Net non-operating expenses consisted of gain or loss from note conversion, interest income, interest expenses, and other miscellaneous expenses. For the nine months ended September 30, 2025, net non-operating income were $10,965 compared to non-operating expenses of $190,577 for the nine months ended September 30, 2024. The primary reason was the provision of financial support to other companies, which generated interest income of $98,999, coupled with the reversal of a $200,000 provision for impaired prepayments, offsetting by the interest expenses of $251,414.
Current wording
Net non-operating income (expenses) consisted of gain or loss from note conversion, interest income, interest expenses, and other miscellaneous expenses. For the three months ended March 31, 2026, net non-operating income were $64,141 compared to non-operating income of $311,849 for the three months ended March 31, 2025. The primary reason was the reversal of a $200,000 provision for impaired prepayments in the first quarter of 2025, which did not incur in 2026.
Previous wording
Income tax expense was $39,437 for the nine months ended September 30, 2025, compared with income tax expense of $14,168 for the nine months ended September 30, 2024. The consolidated effective income tax rate for the nine months ended September 30, 2025, and 2024 were -0.23% and 1.5%, respectively. In 2025, Management concluded that the realizability of related tax benefits from these losses was uncertain due to the continuing operating losses at the US parent company. Accordingly, a 100% valuation allowance was provided against the deferred tax asset.
Current wording
Income tax expense was $72,914 for the three months ended March 31, 2026, compared with income tax expense of $33,919 for the three months ended March 31, 2025. In 2026, Management concluded that the realizability of related tax benefits from these losses was uncertain due to the continuing operating losses at the US parent company. Accordingly, a 100% valuation allowance was provided against the deferred tax asset.
Previous wording
Net loss for the nine months ended September 30, 2025, was $2,429,650 compared to loss of $952,285 for the nine months ended September 30, 2024, representing an increase in net loss of $1,477,365 The increase in net loss was mainly driven by rising operating expenses and the reversal of impairment provision, as previously discussed.
Current wording
Net loss for the three months ended March 31, 2026, was $547,410 compared to loss of $884,460 for the three months ended March 31, 2025, representing a decrease in net loss of $337,050. The decrease in net loss was mainly driven by control on the operating expenses and revenue recognized due to new contract obtained.
Previous wording
As of September 30, 2025, the Company maintained cash and equivalents of $131.88million, other current assets (excluding cash and equivalents) of $0.26million, current liabilities of $11.37million, and working capital of $120.76million, with a current ratio of11.69:1 and a debt-to-equity ratio of 0.11:1.
Current wording
As of March 31, 2026, the Company maintained cash and equivalents of $158.8 million, other current assets (excluding cash and equivalents) of $66,782, current liabilities of $8.6 million, and working capital of $150.3 million, with a current ratio of 18.5 and a debt-to-equity ratio of 0.09:1.
Previous wording
The following is a summary of cash flows provided by or used in each of the indicated types of activities, for the six- months periods ended September 30, 2025, and 2024:
Current wording
The following is a summary of cash flows provided by or used in each of the indicated types of activities, for the three- months periods ended March 31, 2026, and 2025:
Previous wording
Net cash generated from operating activities was $64.44million for the nine months ended September 30, 2025, compared to $0.33 million net cash used for the nine months ended September 30, 2024. The increase in net cash inflow for the nine months ended September 30, 2025, was mainly driven by the recovery of $65.6 million in advance payments to suppliers, which generated cash inflows.
Current wording
Net cash used in operating activities was $(125,927) for the three months ended March 31, 2026, compared to $64.6 million net cash provided for the three months ended March 31, 2025. The decrease in net cash inflow for the three months ended March 31, 2026, was mainly driven by the collection of $65.6 million in advance payments to suppliers, which generated cash inflows in Q1 2025 and no such event happened in Q1 2026.
Previous wording
Net cash provided by financing activities was $9.87 million during the nine months ended September 30, 2025, primarily attributable to proceeds from equity issuance.
Current wording
There was no net cash provided by financing activities during the three months ended March 31, 2026.
Previous wording
The Company believes it has sufficient cash as of September 30, 2025, and a sufficient channel to obtain any loans that may be necessary to meet its working capital needs from commercial institutions. Historically, we have been able to obtain loans or otherwise achieve our financing objectives due to the Chinese government’s support for energy-saving businesses with stable cash inflows, good credit ratings and history. In November 2024, we paid the Entrusted loan principal of $10,548,957 (RMB77 million), with interest still outstanding.
Current wording
The Company believes it has sufficient cash as of March 31, 2026, and a sufficient channel to obtain any loans that may be necessary to meet its working capital needs from commercial institutions.