SCIENTIFIC ENERGY, INC., a leading player in the mobile ordering and delivery services sector through its subsidiary Macao E-Media Development Company Limited (MED), has released its Form 10-Q report for the first quarter of 2024. The report highlights significant financial and operational developments, including revenue growth, strategic acquisitions, and new business ventures.
Financial Highlights
- Revenue: $10.4 million, reflecting a 12.88% increase from the same period in 2023, driven by the newly acquired subsidiary, MED.
- Gross Profit: $4.5 million, representing a 14.43% increase, indicating improved efficiency in cost management.
- Net Profit from Operations: $0.4 million, a decrease of 38.39% compared to the previous year, primarily due to increased operating expenses.
- Net Income: $0.4 million, down 41.34% from the previous year, impacted by higher interest expenses.
- Net Income Per Common Share, Basic and Diluted: $0.001, compared to $0.002 in the prior year, reflecting the decrease in net income.
Business Highlights
- Revenue Segments: The company operates primarily through its 98.75% owned subsidiary, Macao E-Media Development Company Limited (MED), which is a leading mobile platform for ordering and delivery services in Macau. The platform connects restaurants and merchants with consumers and delivery riders, enhancing operational efficiency and customer satisfaction.
- Geographical Performance: The company's operations are concentrated in the Greater Bay Area, with significant activities in Macau and Hong Kong. The acquisition of Citysearch Technology (HK) Company Limited in Hong Kong expands the company's reach into the group dining service platform, addressing corporate dining needs.
- Sales Units: The company reported an increase in sales for the three months ended March 31, 2024, driven by the operations of its subsidiary MED. The platform's growth is attributed to its ability to serve the needs of merchants, consumers, and delivery riders effectively.
- New Production Launches: The company established a new wholly-owned subsidiary, Graphite Energy, Inc., to enter the graphite production and sales business. This includes setting up a production line for graphite refined powder products in Madagascar, ensuring a stable supply of graphite ore.
- Future Outlook: The company plans to continue expanding its operations through strategic acquisitions and partnerships. The agreement with Madagascar Graphite Limited aims to secure a long-term supply of graphite ore, supporting the company's new production initiatives.
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