Summary and Analysis of Key Points

Overview of the Company’s Financial Performance:

• For the fiscal year ending December 31, 2024, Clean Energy Technologies, Inc. (CETY) reported a net loss of $4,416,319, an improvement from the net loss of $5,782,666 in 2023. This was driven by a shift in the revenue mix, with lower-margin business from China and an increased focus on higher-margin opportunities in the waste-to-energy segment.

• CETY’s total revenue declined from $6,693,844 in 2023 to $2,424,659 in 2024, primarily due to a significant drop in revenue from the natural gas trading business in China. However, the company’s gross profit increased from $460,835 in 2023 to $846,555 in 2024, reflecting improved operational efficiencies and a stronger revenue mix.

• The company’s equity decreased from $4,444,038 in 2023 to $2,938,502 in 2024, driven by ongoing investments in the waste-to-energy business, the impact of lower-margin revenue from China, and continued financing costs.

Segment Performance:

• The Engineering and Manufacturing segment saw a decline in revenue from $47,091 in 2023 to $9,341 in 2024, as the company shifted its focus towards becoming a turnkey provider of technology energy solutions.

• The Heat Recovery Solutions (HRS) segment revenue decreased from $497,584 in 2023 to $158,141 in 2024, primarily due to project delays and longer sales cycles associated with supply chain disruptions and extended customer decision-making processes.

• The CETY Renewables segment, the company’s newly launched waste-to-energy business, saw a significant increase in revenue from $429,999 in 2023 to $1,064,757 in 2024, driven by the continued development and progress of the VRG project.

• The CETY HK segment, which includes the natural gas trading operations in China, experienced a substantial drop in revenue from $5,719,170 in 2023 to $1,192,420 in 2024, due to lower demand and increased competition in the Chinese market.

Strengths and Weaknesses:

Strengths:

• Expansion of the higher-margin waste-to-energy business, which contributed to improved gross profit
• Efforts to manage costs and optimize operations despite the revenue decline

Weaknesses:

• Significant drop in revenue from the lower-margin natural gas trading business in China
• Ongoing financing costs and the need to rely on more expensive debt during the year
• Decline in the company’s equity position due to investments and the impact of lower-margin revenue

Outlook:

• CETY has a clear strategy in place and the capability to successfully restructure its existing debt and secure additional financing.
• The management’s focus on diversifying the product and solution portfolio, with an emphasis on higher-margin opportunities in the renewable energy and waste-to-energy sectors, positions the company for stronger long-term growth and improved financial performance.
• The company’s strategic shift towards larger-scale projects in the waste-to-energy segment is expected to generate higher future revenues, despite the longer development timelines.