10-K: Smart Powerr Corp. Reports Deepened 2025 Losses Amidst Strategic Shift

Sentiment:

Annual Report 31 March 2026 5:27 PM

Smart Powerr Corp. reported a net loss of $2.9 million for fiscal year 2025, driven by increased operating expenses, while actively transitioning into an energy storage integrated solution provider.

Delay expectedErdos TCH ceased operations in May 2019 due to renovations and furnace safety upgrades at Erdos Metallurgy Co., Ltd. The resumption of operations, initially expected in July 2020, was further delayed due to government mandates for Erdos to significantly lower its energy consumption per unit of GDP by implementing a comprehensive technical upgrade of its ferrosilicon production line.

Capital raiseOn February 18, 2025, the company entered into securities purchase agreements to issue and sell an aggregate of 8,029,851 shares of common stock for up to $5,380,000 in a private offering.Net cash provided by financing activities was $32.1 million during the year ended December 31, 2025, primarily attributable to proceeds from equity issuance.On December 30, 2025, the Company filed a Registration Statement on Form S-1 for the offering of common stock, which was declared effective on February 13, 2026.From January 5, 2026 to March 19, 2026, the Company entered into several Exchange Agreements with Bucktown Capital, LLC, partitioning and exchanging Promissory Notes totaling $2,524,698 for 2,007,250 shares of Common Stock.

Worse than expectedNet loss increased significantly from $1,559,012 in 2024 to $2,900,041 in 2025, representing a substantial deterioration in profitability.Total operating expenses surged from $1,093,468 in 2024 to $3,132,219 in 2025, an increase of $2,038,751, primarily driven by higher financing costs and share-based compensation, indicating rising operational burdens.Net cash used in investing activities shifted from an inflow of $11.0 million in 2024 to an outflow of $99.5 million in 2025, reflecting significant capital deployment without immediate positive returns on investment.

Summary

Smart Powerr Corp. (CREG) is a Nevada holding company with primary operations in the PRC, transitioning from waste energy recycling to an energy storage integrated solution provider.
The company reported a net loss of $2,900,041 for the fiscal year ended December 31, 2025, a significant increase from a $1,559,012 net loss in 2024.
Total sales for 2025 amounted to $262,509, generated from a new 10-year Operation and Maintenance Contract for power stations, compared to $0 in sales for 2024.
Operating expenses more than doubled, reaching $3,132,219 in 2025, up from $1,093,468 in 2024, primarily due to increased financing costs ($948,648) and share-based compensation ($831,520).
Net cash generated from operating activities was $66,908,783 in 2025, a substantial improvement from $10,764,096 used in 2024, mainly driven by the collection of $68.1 million in advance payments to suppliers.
Net cash used in investing activities was $99,473,027 in 2025, compared to $11,031,196 provided in 2024, largely due to new short-term loan receivables of $156.8 million.
Net cash provided by financing activities was $32,137,831 in 2025, primarily from equity issuance.
As of March 31, 2026, there were 22,959,128 shares of common stock issued and outstanding, reflecting a one-for-ten (1:10) reverse stock split effective July 18, 2025.
The company faces significant legal proceedings, including an outstanding loan principal of RMB 77 million ($11.06 million) and additional judgment enforcement fees of RMB 80,288,184 ($11.53 million) related to a Beijing court judgment.
Accrued litigation expenses totaled $2,497,136 as of December 31, 2025.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a concerning report due to the significant increase in net loss and operating expenses, coupled with ongoing legal and regulatory uncertainties in China. While the strategic shift to energy storage is positive, its impact on financial performance is yet to be realized, and current financial health and operational risks present a highly unfavorable investment profile.

Positives

Net cash generated from operating activities significantly improved to $66.9 million in 2025, compared to a $10.8 million outflow in 2024, primarily due to the collection of $68.1 million in advance payments to suppliers.
The company successfully secured a 10-year Operation and Maintenance Contract for power stations, generating $262,509 in sales in 2025, marking the first revenue reported compared to $0 in 2024.
Smart Powerr Corp. is actively transforming and expanding into the high-growth energy storage integrated solution provider business, targeting new market areas like industrial and commercial complexes, large-scale photovoltaic (PV) and wind power stations, remote islands, and smart energy cities.
The company maintains a strong current ratio of 14.09 and a low debt-to-equity ratio of 0.09:1 as of December 31, 2025, indicating good short-term liquidity and manageable leverage.
Management concluded that internal controls over financial reporting were effective as of December 31, 2025, providing reasonable assurance regarding financial reporting reliability.
The company's auditor, Enrome LLP, is based in Singapore and registered with the PCAOB, which may mitigate some of the risks associated with the Holding Foreign Companies Accountable Act (HFCAA).

Negatives

Net loss significantly increased to $2,900,041 in 2025 from $1,559,012 in 2024, indicating a worsening financial performance.
Total operating expenses more than doubled, rising by $2,038,751 year-over-year to $3,132,219 in 2025, primarily driven by higher financing costs and share-based compensation.
Net cash used in investing activities shifted from an inflow of $11.0 million in 2024 to an outflow of $99.5 million in 2025, reflecting substantial capital deployment without immediate returns.
The company has accrued significant litigation expenses of $2,497,136 as of December 31, 2025, related to ongoing legal proceedings.
An outstanding loan principal of RMB 77 million ($11.06 million) and additional judgment enforcement fees of RMB 80,288,184 ($11.53 million) from a Beijing court judgment remain, with the payment of interest still undetermined.
The company has not paid an estimated one-time transition tax of $7.61 million on foreign unremitted earnings and expects to apply for an extension.
PRC subsidiaries have $608.79 thousand in Net Operating Loss (NOL) carryforwards, but a 100% valuation allowance was provided due to recurring losses, indicating uncertainty in realizing future tax benefits.
The company does not anticipate paying any cash dividends in the foreseeable future, intending to retain earnings for operations and growth.
The company does not currently possess any intellectual property rights, which could be a competitive disadvantage in technology-driven industries.
The company's common stock was subject to a 1-for-10 reverse stock split effective July 18, 2025, often indicative of efforts to maintain listing compliance due to a low stock price.

Risks

Risks related to natural disasters, extreme weather conditions, health epidemics, and other catastrophic incidents, which could significantly disrupt operations.
Changes in the economic and credit environment could adversely affect demand for projects, results of operations, cash flows, ability to borrow, and stock price.
Decreases in the price of coal, oil, and gas or a decline in popular support for green energy technologies could reduce demand for waste energy recycling projects.
Changes in the growth of demand for or pricing of electricity could reduce demand for waste energy recycling projects, materially harming business growth.
Operating in an emerging competitive industry, inability to compete successfully could adversely affect revenue and profitability.
Reliance on dividends paid by PRC subsidiaries for cash needs, with limitations on dividend payments due to PRC laws and potential tax implications.
The Chinese government exerts substantial influence over business activities and may intervene or influence operations at any time with little advance notice, potentially affecting operations and stock value.
Complex procedures for acquisitions of Chinese companies by foreign investors (M&A Rules) could make it more difficult to pursue growth through acquisitions in China.
Exposure to liabilities under the Foreign Corrupt Practices Act and Chinese anti-corruption law.
Uncertainties with respect to the PRC legal system could limit the legal protection available.
Potential for additional and more stringent criteria to be applied to emerging market companies upon assessing auditor qualifications, especially non-U.S. auditors not inspected by the PCAOB, adding uncertainties to the trading of common stock and potential delisting risks under the HFCAA.
The market price for common stock may be volatile or decline regardless of operating performance, with potential for rapid and substantial price volatility, low trading volumes, and large bid-ask spreads.
Shareholders could experience substantial dilution from future issuances of capital stock.
Failure to meet all applicable Nasdaq requirements could lead to delisting, adversely affecting market liquidity, stock value, and ability to raise capital.
If delisted, common stock may be considered 'penny stocks,' subjecting transactions to additional rules and reducing liquidity.
Dependence on the waste energy of customers; inadequate supply could impede power generation and revenue.
Difficulty in predicting new customer orders and project contracts due to lengthy processes and external factors beyond control.
Need for additional funds for operations and expansion, with potential for unfavorable terms or substantial dilution.
The Build-Operate-Transfer (BOT) model requires substantial upfront financial and technical resources, making the company vulnerable to customer or contract loss.
Collection risk associated with payments to be received over the terms of agreements with customers of waste energy recycling projects.
Inability to assemble and deliver waste energy recycling projects as quickly as customers require, potentially causing lost sales, reputational harm, and penalties.
Infringement of third-party intellectual property rights could prevent product sales, force damage payments, and compel defense against costly litigation.
Inability to adequately respond to rapid technological changes affecting the waste energy recycling industry.
Dependence on third parties for manufacturing key components, leading to potential delays, increased costs, or supply shortages.
Increases in income tax rates, changes in income tax laws, or disagreements with tax authorities could adversely affect business, financial condition, or results of operations.
A downturn in China or the global economy, and adverse economic and political policies of China, could materially and adversely affect business and financial condition.
Geopolitical events, such as the war in Ukraine and the Israel-Hamas conflict, could adversely affect global economic markets and, in turn, the company's business.
Difficulty maintaining adequate management, legal, and financial controls in the PRC, potentially leading to significant deficiencies or material weaknesses in internal controls.
Limited ability to bring an action against the company or its directors and officers, or to enforce a judgment, due to operations primarily in the PRC and residency of management.
Failure by PRC resident stockholders or beneficial owners to comply with certain PRC foreign exchange regulations (e.g., SAFE Circular 37) could restrict profit distribution or investment activities.
Labor costs may increase due to the implementation of the new PRC Labor Contract Law.
Substantial uncertainties exist with respect to the interpretation and implementation of PRC Foreign Investment Law and its impact on corporate structure and operations.
Potential classification as a PRC tax resident enterprise could result in unfavorable tax consequences for the company and its non-PRC shareholders.
PRC regulation of loans to and direct investment by offshore holding companies in PRC entities may delay or prevent the company from making loans or additional capital contributions to its PRC operating companies.
PRC regulatory risks relating to equity incentive plans (e.g., SAFE Circular 75) could lead to penalties or more stringent review processes.
Risk of inadvertently becoming an investment company if cash assets are not carefully managed, subjecting the company to additional obligations.

Future Outlook

Smart Powerr Corp. is in the process of transforming and expanding into an energy storage integrated solution provider, planning disciplined and targeted expansion strategies for new market areas. The company actively seeks opportunities to apply energy storage technologies to new industries such as industrial and commercial complexes, large-scale photovoltaic (PV) and wind power stations, remote islands without electricity, and smart energy cities. It intends to provide services including peak shaving with compensation and frequency modulation. The company plans to devote resources to research and development to enhance its waste-to-energy design and engineering capabilities. Management intends to retain all available funds and future earnings for business operations and expansion, not anticipating declaring or paying any dividends in the foreseeable future. The New Energy Storage Guidance (April 2021) sets a national goal of over 30 million kilowatts (30GW+) of new energy storage projects installed by 2025, implying a 10x expansion from 2020 levels with an annual compound annual growth rate of over 55%.

Management Comments

"We are in the process of transforming and expanding into an energy storage integrated solution provider business."
"We plan to pursue disciplined and targeted expansion strategies for market areas the Company currently does not serve."
"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."
"We currently intend to retain all available funds and future earnings, if any, for the operation and expansion of our business and do not anticipate declaring or paying any dividends in the foreseeable future."
"Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures will prevent or detect all errors and all fraud."
"Based on our assessment, management has concluded that our ICFR was effective as of the end of the fiscal year to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with US GAAP."

Industry Context

StockSavvy.ai notes that Smart Powerr Corp. operates within China's waste energy recycling industry, which is experiencing growth driven by the country's rapid economic expansion, increasing electricity demand, and stringent government environmental policies. The Chinese government actively promotes energy efficiency and waste-to-energy projects, with the 14th Five-Year Plan (2021-2025) targeting significant reductions in energy consumption and carbon emissions. The company's strategic pivot towards becoming an energy storage integrated solution provider aligns with broader industry trends and national initiatives, particularly the New Energy Storage Guidance aiming for substantial growth in installed capacity by 2025. While the waste-to-energy sector offers cost-effective electricity compared to fossil fuels, the market is fragmented and competitive. The company's expansion into energy storage positions it in a rapidly evolving and government-supported segment, but it must navigate intense competition and complex regulatory landscapes unique to operating in China.

Comparison to Industry Standards

The company's operated recycling electricity rate ranges from RMB 0.35-0.45/kWh, which is lower than the national grid electricity rate of RMB 0.45-0.50/kWh, indicating a cost advantage for its customers.
Electricity generated from straw has a preferential price of RMB 0.25 per kWh higher than coal-fueled power when sold to the state grid, highlighting government support for certain biomass energy sources.
China aims to save 1.7 million tons of coal and 6 billion kWh of electricity per year, and reduce sulfur dioxide by 850,000 tons annually in the nonferrous metallurgy sector, indicating significant national targets for energy efficiency that the company's services contribute to.
The utilization rate for nonferrous metal mineral resources in China is 60%, which is 10-15% lower than developed countries, and for associated nonferrous metals, it is only 40%, 20% lower than developed nations, suggesting a large untapped potential for efficiency improvements that the company could address.
The New Energy Storage Guidance projects a 10x expansion of the new energy storage market from 3.28GW at the end of 2020 to over 30GW by 2025, with an annual compound annual growth rate of over 55%, positioning the company in a high-growth segment compared to traditional energy sectors.

Corporate Governance

Change Type	Description	Effective Date	Impact Assessment
Leadership Structure	The Board leadership structure separates the board chair and principal executive officer roles into two positions, with Mr. Ku serving as both Chairman of the Board and CEO.	2009-04-01	Promotes clear communication between management and the Board and enhances strategic planning, while providing clarity of leadership.
Risk Oversight	The Board is responsible for oversight of the company's risk management practices, with management handling day-to-day risk management processes. The Audit Committee assists the Board in its oversight.		Provides a structured approach to identifying, assessing, and mitigating company risks, leveraging both board-level governance and management execution.
Director Independence	Xiaoping Guo, Zhongli Liu, and LuLu Sun are independent directors, and all members of the Audit, Compensation, and Corporate Governance and Nominating Committees are independent as defined by Nasdaq rules.		Ensures objective oversight and decision-making, enhancing investor confidence and compliance with listing standards.
Audit Committee Financial Expert	Mr. Zhongli Liu qualifies as an audit committee financial expert, as defined by Nasdaq Rule 5605(a)(2) and Item 407 of Regulation S-K.		Strengthens the financial oversight capabilities of the Audit Committee, ensuring a high level of expertise in financial reporting and internal controls.
Code of Ethics	A code of ethics has been adopted, applying to all directors and employees worldwide, including principal executive, financial, and accounting officers.	2009-12-02	Establishes clear ethical guidelines and standards of conduct, promoting integrity and compliance across the organization.
Section 16(a) Compliance	All filing requirements of Section 16(a) of the Exchange Act were believed to be timely complied with during the fiscal year ended December 31, 2025.		Indicates adherence to regulatory reporting obligations for insiders, contributing to transparency and investor trust.

Legal Proceedings

In November 2019, Beijing Hongyuan Recycling Energy Investment Center (BIPC) filed a lawsuit against Xian TCH to compel stock repurchase. A judgment in favor of Hongyuan was rendered on April 9, 2021. Xian TCH filed a motion for retrial on April 13, 2022, after an out-of-court settlement of RMB 261 million ($37.58 million) principal and interest. Xian Zhonghong New Energy Technology Co. Ltd. also filed for retrial on April 11, 2022. As of the report date, Xian Zhonghong is awaiting the court's decision on the retrial petition. BIPC entered the execution procedure, resulting in a balance of RMB 14,204,317 ($2.20 million) for enforcement, legal, and penalty fees, with $2.10 million accrued as litigation expense as of December 31, 2024.
On June 28, 2021, Beijing No.4 Intermediate Peoples Court of Beijing entered a judgment that Xian Zhonghong Technology Co., Ltd. should pay a loan principal of RMB 77 million ($11.06 million) with interest of RMB 2,418,449 ($0.35 million) to Beijing Hongyuan Recycling Energy Investment Center (Limited Partnership). In late 2022, judgment enforcement procedures were initiated, requiring Xian Zhonghong to pay additional fees of RMB 80,288,184 ($11.53 million). The company recorded these additional fees in 2022. In November 2024, RMB 77,000,000 ($10.81 million) of the principal was paid, but the interest remains outstanding and its payment is undetermined.
On October 17, 2022, the United States District Court for the District of Nevada entered a default judgment against the company for $139,066.0 in favor of Newbridge Securities Corporation. On May 15, 2024, a stipulation led to the court ordering the issuance of 128,765 shares of CREG to the plaintiff and its assignees, which was completed by August 14, 2024.

Related Party Transactions

On February 18, 2025, Mr. Guohua Ku, the Chief Executive Officer and Chairman of the Board, participated in a private offering, purchasing 2,925,373 shares of common stock, increasing his beneficial ownership to approximately 22.9% of the company's issued and outstanding shares.
Mr. Guohua Ku's employment agreement was renewed for an additional two-year term on December 10, 2024.
Mr. Yongjiang Shi's employment agreement was renewed for an additional two-year term on December 16, 2025.
In April 2021, the CEO amended his purchase from a prior securities purchase agreement (February 23, 2021) from 1,000,000 shares to 940,000 shares and received $691,320 in extra proceeds back.

Stakeholder Impact

Shareholders face potential dilution from ongoing equity issuances and note conversions, as well as risks of stock price volatility, potential delisting, and limited liquidity. No dividends are expected in the foreseeable future, as earnings are retained for business expansion.
Employees received stock awards, with 12,413 shares granted to two employees in April 2025 and 290,000 restricted stocks to three new engineering employees in October 2025. The company's labor costs may increase due to the implementation of the new PRC Labor Contract Law.
Customers benefit from the company's waste energy recycling projects, which aim to reduce energy costs by 5% to 20% and lower operating costs, while also reducing air pollution. The strategic shift to energy storage solutions is intended to further meet customer energy recovery needs.
Creditors, particularly those holding notes payable and entrusted loans, are impacted by the company's ongoing legal proceedings related to loan repayments, with significant accrued interest and enforcement fees still outstanding.
Regulatory bodies in both the PRC and the U.S. (e.g., SEC, PCAOB, CSRC, CAC) have significant oversight, and the company faces risks of sanctions, operational limitations, and delisting if it fails to comply with evolving regulations, particularly those related to overseas listings and data security.

Next Steps

Pursue disciplined and targeted expansion strategies for new market areas in the energy storage integrated solution provider business.
Actively seek and explore opportunities to apply energy storage technologies to new industries or segments with high growth potential.
Devote resources to research and development to enhance waste-to-energy design and engineering capabilities.
Retain all available funds and future earnings for business operations and expansion, as no dividends are anticipated in the foreseeable future.
Erdos TCH will carry out technical transformation for its waste heat power station project once Erdos determines its technical rectification scheme.
Xian Zhonghong is awaiting the Court's decision on its retrial petition submitted in April 2022 regarding a legal proceeding.
The company expects to apply for an extra extension for the payment of the estimated one-time transition tax on post-1986 foreign unremitted earnings.
The company's auditor is subject to PCAOB plans to resume regular inspections in early 2023 and beyond, and continue pursuing ongoing investigations and initiate new investigations as needed.

Key Dates

Date	Description
1980-05-08	Company incorporated as Boulder Brewing Company under the laws of the State of Colorado.
2001-09-06	Company changed its state of incorporation to the State of Nevada.
2004	Company changed its name from Boulder Brewing Company to China Digital Wireless, Inc.
2007-03-08	Company changed its name from China Digital Wireless, Inc. to China Recycling Energy Corporation.
2008-12-10	Guohua Ku appointed as a director and Chief Executive Officer (CEO).
2009-04-01	Guohua Ku elected Chairman of the Board.
2009-04-14	Company formed a joint venture (Erdos TCH) with Erdos Metallurgy Co., Ltd.
2010-06-29	Xian TCH entered into a Biomass Power Generation (BMPG) Project Lease Agreement with Pucheng (Pucheng Phase I).
2011-05-25	Xian TCH entered into a Letter of Intent with Shenqiu YuNeng Thermal Power Co., Ltd. to reconstruct and transform a Thermal Power Generation System.
2011-09-28	Xian TCH entered into a Biomass Power Generation Asset Transfer Agreement and a Biomass Power Generation Project Lease Agreement (2011 Shenqiu Lease) with Shenqiu.
2012-10-08	Xian TCH entered into a Letter of Intent for technical reformation of Shenqiu Project Phase II with Shenqiu.
2013-03-30	Xian TCH and Shenqiu entered into a BMPG Project Lease Agreement (2013 Shenqiu Lease).
2013-06-15	Xian TCH became the sole stockholder of Erdos TCH.
2013-07-18	Beijing Hongyuan Recycling Energy Investment Center, LLP (HYREF Fund) established.
2013-07-19	Xian TCH formed Xian Zhonghong New Energy Technology Co., Ltd. (Zhonghong).
2013-07-19	Zhonghong entered into a Cooperative Agreement for Energy Management of CDQ and CDQ WHPG Projects with Jiangsu Tianyu Energy and Chemical Group Co., Ltd. (Tianyu Project).
2013-07-24	Zhonghong entered into a Cooperative Agreement of CDQ and CDQ WHPG Project with Boxing County Chengli Gas Supply Co., Ltd. (Chengli Project).
2013-12-06	Xian TCH entered into a CDQ and WHPG Energy Management Cooperative Agreement with Xuzhou Zhongtai Energy Technology Co., Ltd. (Zhongtai Agreement).
2014-03-24	Xian TCH incorporated Zhongxun Energy Investment (Beijing) Co., Ltd. (Zhongxun).
2014-06-28	Xian TCH entered into an Asset Transfer Agreement and a Coke Oven Gas Power Generation Project Lease Agreement with Qitaihe City Boli Yida Coal Selection Co., Ltd. (Yida).
2015-02-11	Company incorporated Shanghai Yinghua Financial Leasing Co., Ltd. (Yinghua).
2015-06-19	Stockholders approved the China Recycling Energy Corporation Omnibus Equity Plan (2015 Equity Plan).
2015-08-05	Ms. LuLu Sun appointed a director.
2016-03-14	Xian TCH entered into a Transfer Agreement of CDQ and a CDQ WHPG system with Zhongtai and Xian Huaxin.
2016-05-01	Erdos TCH and Erdos entered into a supplemental agreement, cancelling monthly minimum lease payments and starting to charge based on actual electricity sold.
2017-06-01	Mr. Xiaoping Guo appointed a director.
2018-12-29	Shanghai TCH entered into a Share Transfer Agreement with HYREF, where HYREF transferred its 10% ownership in Xian Zhonghong to Shanghai TCH.
2018-12-29	Xian Zhonghong transferred Chengli CDQ WHPG station to HYREF as repayment for a loan.
2018-12-29	Xian TCH transferred its 40% ownership of the Fund Management Company to Hongyuan Huifu.
2019-01-04	Xian Zhonghong transferred a CDQ WHPG station (Xuzhou Huayu Project) to Mr. Chonggong Bai for RMB120,000,000 ($17.52 million).
2019-01-04	Xian TCH transferred two Biomass Power Generation Projects in Shenqiu (Shenqiu Phase I and II Projects) to Mr. Chonggong Bai for RMB127,066,000 ($18.55 million).
2019-01-10	Mr. Chonggong Bai transferred all equity shares of Xian Hanneng to HYREF as repayment for the loan.
2019-02-15	Transfer of the Xuzhou Huayu Project and Shenqiu Phase I and II Projects to Mr. Bai completed.
2019-11	Beijing Hongyuan Recycling Energy Investment Center (BIPC) filed a lawsuit against Xian TCH to compel stock repurchase.
2019-12-19	Xian TCH, Xian Zhonghong, Guohua Ku, and Chonggong Bai jointly and severally agreed to buy back all outstanding capital equity of Xian Hanneng.
2019-12-20	The total buy back price of RMB261,727,506 ($37.52 million) for Xian Hanneng equity was paid in full by Xian TCH.
2019-12-20	Mr. Yongjiang (Jackie) Shi appointed as Chief Financial Officer (CFO) and Vice President.
2019-12-20	Mr. Bai, Xian TCH, and Xian Zhonghong agreed for Mr. Bai to repay the Company in cash for the transfer price of Xuzhou Huayu and Shenqiu.
2020-01-10	Zhonghong, Tianyu, and Huaxin signed a transfer agreement to transfer all assets under construction and related rights of Xuzhou Tianan Project to Tianyu for RMB 170 million ($24.37 million).
2020-03-06	Mr. Zhongli Liu appointed a director.
2020-12	The Company received payment in full for the Tianan Project.
2020-12-04	The Company entered into a Note Purchase Agreement with an institutional investor, issuing a Promissory Note of $3,150,000.
2021-03-16	Mr. Yan Zhan appointed a director of the Company.
2021-03-24	The SEC adopted interim final rules relating to the implementation of certain disclosure and documentation requirements of the HFCAA.
2021-04-02	The Company entered into a Note Purchase Agreement with an institutional investor, issuing a Promissory Note of $5,250,000.
2021-04-09	The Beijing Intermediate Peoples Court rendered a judgment in favor of Hongyuan against Xian TCH.
2021-04-09	Xian TCH, Xian Zhonghong, Guohua Ku, Chonggong Bai, and HYREF entered a Termination of Fulfillment Agreement, terminating the original buyback agreement for the Chengli project.
2021-06-10	The Standing Committee of the National People's Congress of China promulgated the PRC Data Security Law, which took effect in September 2021.
2021-06-22	The U.S. Senate passed the Accelerating Holding Foreign Companies Accountable Act.
2021-06-28	The Beijing No.4 Intermediate Peoples Court of Beijing entered a judgment that Xian Zhonghong Technology Co., Ltd. should pay loan principal and interest to Beijing Hongyuan Recycling Energy Investment Center (Limited Partnership).
2021-07-06	The General Office of the Central Committee of the Communist Party of China and the General Office of the State Council jointly issued the Opinions on Strictly Cracking Down on Illegal Securities Activities.
2021-08-17	The State Council promulgated the Regulations on the Protection of the Security of Critical Information Infrastructure, which took effect on September 1, 2021.
2021-08-20	The SCNPC promulgated the Personal Information Protection Law of the PRC, which took effect in November 2021.
2021-09-22	The PCAOB adopted a final rule implementing the HFCAA.
2021-12-02	The SEC issued amendments to finalize rules implementing the submission and disclosure requirements in the HFCAA.
2021-12-16	The PCAOB issued a report on its determinations that it is unable to inspect or investigate completely PCAOB-registered public accounting firms headquartered in mainland China and in Hong Kong.
2021-12-28	The CAC and other relevant PRC governmental authorities jointly promulgated the Cybersecurity Review Measures (new Cybersecurity Review Measures), which took effect on February 15, 2022.
2022-03	Company changed its name from China Recycling Energy Corporation to Smart Powerr Corp.
2022-04-11	Xian Zhonghong New Energy Technology Co. Ltd. filed an application for retrial to the Beijing High Peoples Court.
2022-04-13	Xian TCH filed a motion for retrial to the High Peoples Court of Beijing.
2022-08-10	Beijing No. 1 Intermediate Peoples Court of Beijing issued a Certificate of Active Performance, proving Xian Zhonghong New Energy Technology Co., Ltd. had fulfilled its buyback obligations.
2022-08-26	The CSRC, the Ministry of Finance of the PRC (MOF), and the PCAOB signed a Statement of Protocol governing inspections and investigations of audit firms based in China and Hong Kong.
2022-10-17	United States District Court for the District of Nevada entered a default judgment against the company and its transfer agent for $139,066.0.
2022-12	Beijing No.4 Intermediate Peoples Court of Beijing entered into the judgment enforcement procedure for the loan principal and interest against Xian Zhonghong Technology Co., Ltd.
2022-12-15	The PCAOB announced it was able to secure complete access to inspect and investigate PCAOB-registered public accounting firms headquartered in mainland China and Hong Kong completely in 2022.
2022-12-29	The Accelerating Holding Foreign Companies Accountable Act was signed into law.
2023-02-17	The CSRC promulgated Trial Administrative Measures of the Overseas Securities Offering and Listing by Domestic Companies (Overseas Listing Trial Measures), effective March 31, 2023.
2023-02-24	The CSRC published the Provisions on Strengthening the Confidentiality and Archives Administration Related to the Overseas Securities Offering and Listing by Domestic Enterprises, effective March 31, 2023.
2024-05-15	Securities Transfer Corporation entered into a stipulation with Newbridge Securities Corporation, leading to the issuance of 128,765 shares of CREG.
2024-07-18	The 1-for-10 reverse stock split became effective.
2024-08-14	The 128,765 shares of CREG ordered by the court were issued to Newbridge Securities Corporation and its assignees.
2024-09-24	The Company received a written notification from Nasdaq regarding non-compliance with the minimum bid price requirement.
2024-11	The Company paid Hongyuan RMB 77,000,000 ($10.81 million) for the Entrusted loan principal.
2024-12-10	Mr. Guohua Ku's employment agreement was renewed for an additional two-year term.
2025-02-18	The Company entered into securities purchase agreements to issue and sell 8,029,851 shares of common stock for up to $5,380,000 in a private offering.
2025-02-19	Payment for the private offering was received, and the transaction closed.
2025-03-11	A termination agreement was signed with Hubei Bangyu New Energy Technology Co., Ltd., reclaiming an advance payment of RMB476.0 million.
2025-04	The Compensation Committee granted 12,413 shares of Common Stock to two employees under the 2015 Equity Plan.
2025-08-01	The Company received a letter from Nasdaq Staff, confirming compliance with the minimum bid price requirement and closing the matter.
2025-10	The Company granted 290,000 restricted stocks to three new employees in the engineering department.
2025-10-13	The Compensation Committee and the Board adopted the Smart Powerr Corp. 2025 Inducement Award Plan.
2025-11	Warrants offered in the November 2025 Private Placement.
2025-12-16	Mr. Yongjiang Shi's employment agreement was renewed for an additional two-year term.
2025-12-30	The Company filed a Registration Statement on Form S-1 (File No. 333-292500) for the offering of common stock.
2026-01-05	The Company entered into an Exchange Agreement with Bucktown Capital, LLC, partitioning a $200,000 Promissory Note from the Original Note dated April 2, 2021, in exchange for 148,588 shares of Common Stock.
2026-02-10	The Company entered into an Exchange Agreement with Bucktown Capital, LLC, partitioning a $200,000 Promissory Note from the Original Note dated April 2, 2021, in exchange for 169,491 shares of Common Stock.
2026-02-13	The Registration Statement on Form S-1 (File No. 333-292500) was declared effective.
2026-03-16	The Company entered into an Exchange Agreement with Bucktown Capital, LLC, partitioning a $200,000 Promissory Note from the Original Note dated April 2, 2021, in exchange for 164,473 shares of Common Stock.
2026-03-18	The Company entered into an Exchange Agreement with Bucktown Capital, LLC, partitioning a $1,400,000 Promissory Note from the Original Note dated April 2, 2021, in exchange for 1,000,000 shares of Common Stock.
2026-03-19	The Company entered into an Exchange Agreement with Bucktown Capital, LLC, partitioning a $524,698 Promissory Note from the Original Note dated April 2, 2021, in exchange for 524,698 shares of Common Stock, fully completing the Promissory Note entered on April 2, 2021.
2026-03-31	Date of the Annual Report on Form 10-K.

Recommendation

strong sell

The company's financial performance shows a significant deterioration with a doubling of net loss and operating expenses in 2025, despite a minimal increase in revenue. Smart Powerr Corp. faces substantial and complex regulatory risks in China, including potential delisting threats from the HFCAA and uncertainties with new PRC overseas listing rules. Ongoing legal proceedings carry significant financial liabilities, and the company has not paid an estimated one-time transition tax. While the strategic shift to energy storage is a long-term positive, the immediate financial health and high operational and regulatory risks present a highly unfavorable investment profile. The recent reverse stock split and continued need for capital raises further underscore underlying weaknesses, making it a strong sell for seasoned investors.

Keywords

Energy storage, Waste energy recycling, China, SEC filing, 10-K, Smart Powerr Corp., CREG, Renewable energy, Corporate governance, Financial results, PRC regulations, Nasdaq, Stock split, Litigation, Financial leasing, Clean technology, Build-Operate-Transfer, Electrochemical energy storage

Disclaimer:The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.