Company: CNEY
Filing Date: 2025-10-29
Form Type: F-1/A
Source: 0001477932-25-007791
Chunk: 86

Company: CN ENERGY GROUP. INC.
Filing Date: 2025-10-29
Form: F-1/A
Chunk 86
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Gross profit for biomass electricity showed improvement, with the deficit decreasing by $89,571 to $34,930 for the fiscal year ended September 30, 2023, as compared to a larger deficit of $124,501 for fiscal year 2022. Gross profit margin dropped to negative 176.63% in fiscal year 2023 from negative 82.61% in fiscal year 2022. The fluctuation was mainly because the increased average selling price being less than the average unit cost in fiscal year 2022, as mentioned above.

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Gross profit for technical services decreased by $0.1 million to nil for the fiscal year ended September 30, 2023, as compared to $0.1 million for the fiscal year 2022. The technical services did not generate any gross profit in fiscal 2023 as there was no demand for technical services requested by customers in fiscal 2023.

Allowance for inventory

Allowance for inventory were $0.2 million for the fiscal year ended September 30, 2023, representing an increase of $0.2 million, or 100%, from nil for fiscal 2022. The increase was primarily due to a lower net realizable value of certain inventory comparing with the carrying value of those inventory.

Selling Expenses

Selling expenses were $53,008 for the fiscal year ended September 30, 2023, representing a decrease of $36,304, or 40.6%, from $89,312 in the fiscal year 2022. The decrease was primarily due to a lower shipping expenses as most of the customers chose to pick up the activated carbon products themselves instead of having the operating entities ship the products to them.

General and Administrative Expenses

Our general and administrative expenses were $5.7 million for the fiscal year ended September 30, 2023, representing an increase by $3.7 million, or 178.1%, from $2.1 million for fiscal year 2022. The increase was primarily attributable to depreciation of biological assets of $0.9 million, consultation services of $1.6 million, payment of director salaries of $0.4 million, increase in depreciation of property, plant, and equipment and amortization of intangible assets of $0.3 million, and increase in legal and other professional expenses of $0.3 million. The breakdown of our consultation services fees for this year includes $1.1 million for public relations services, $