Company: CNEY
Filing Date: 2025-10-29
Form Type: F-1/A
Source: 0001477932-25-007791
Chunk: 85

Company: CN ENERGY GROUP. INC.
Filing Date: 2025-10-29
Form: F-1/A
Chunk 85
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1 million for fiscal 2023 from $36.3 million for fiscal 2022, which was mainly due to the increased sales volume of activated carbon and an increase in the average unit cost of activated carbon. Average unit cost of activated carbon increased by $154.84, or 12.3%, to $1,417.50 per ton in fiscal year 2023 from $1,262.66 per ton in fiscal 2022. The increase in the average unit cost was mainly due to: (1) the increased purchase price of activated carbon from external suppliers as compared to the same period in the prior year; (2) higher costs for the main raw materials used in the production of activated carbon, such as wood chips; and (3) an increased price for wood, water, and electricity due to the implementation of water and power restrictions policy in 2021 in the PRC.

Cost of biomass electricity decreased by $0.2 million, or 80.1%, to $54,706 for fiscal 2023 from $275,217 for fiscal 2022. The decrease was mainly attributable to the operating entities’ newly commissioned equipment producing more activated carbon with less gas, which, in turn, reduced the amount and volume of electricity generation the operating entities supplied to State Grid Heilongjiang under the biomass electricity sales agreement. As a result, total costs for this segment decreased.

Gross Profit

Gross profit was $0.8 million for the fiscal year ended September 30, 2023, a decrease by $2.8 million, or 77.4%, from $3.6 million in fiscal 2022. Gross profit margin was 1.36% in fiscal 2023, as compared with 9.06% in fiscal 2022. The decrease by 7.7% was primarily attributable to a lower average selling price growth than the average unit cost growth in fiscal 2023.

Our gross profit and gross margin by product types were as follows:

|                     |     | Fiscal year ended September 30, |    2023 |   |     |                 |         |   |     |              |      2022 |   |     |                 |        |   |     |              | Variance   |   |     |                 |       |   |
|:--------------------|:----|:--------------------------------|--------:|:--|:----|:----------------|--------:|:--|:----|:-------------|----------: