CN Energy Group Provides Preliminary Unaudited Financial Information for the First Three Months of Fiscal Year 2024 and Announces an Operations Update

Preliminary revenue for the first three months of fiscal year 2024 is approximately equal to revenue for the first six months of fiscal year 2023

Committed to continually improve operations and cost structure, combined with a focus on product optimization and innovative commercial strategies that leverage the growth potential of the product portfolio, to expand margins, reduce losses and return to profitability

LISHUI, China, Feb. 26, 2024 /PRNewswire/ -- CN Energy Group. Inc. (Nasdaq: CNEY) (the "Company" or "CN Energy Group"), a high-tech enterprise specializing in cogeneration of high-quality wood-activated carbon and clean energy, today announced certain preliminary financial information for the first three months of fiscal year 2024 , as well as an update on operations.

With a robust market and increasing end customer demand for our high-quality recyclable activated carbon and renewable energy, CN Energy Group anticipates the following results for its first three months of fiscal year 2024.

Steven Berman, President and CEO of CN Energy Group, commented "Building on the momentum established in fiscal year 2023, the Company's preliminary results demonstrate that we are off to a healthy start in fiscal year 2024. There is exciting work underway, and we expect to build on our accelerating momentum and profitable growth strategy in fiscal year 2024. We are seeing revenue growth as demand increases for our wood-based activated carbon. We are currently preparing for the expansion of our products into the U.S. market for the first time in company history. We are engaged in discussions with several U.S.-based environmental companies as well as pharmaceutical manufacturers."

Berman added, "We will continue to review and diligently work towards reducing the cost of goods sold to improve our margins and increase our net income for the current fiscal year. We plan to continue to invest in our marketing strategy, sales initiatives, customer and supplier relationship management, and in our commitment to the research and development of our products. Additionally, we are looking at acquisition opportunities of accretive businesses to expand our product portfolio and leverage best-in-breed cost reduction strategies."

Berman concluded, "I am very excited to lead the Company in this new chapter of growth and expand the management team by adding entrepreneurial, like-minded individuals who have a track record of building successful and profitable enterprises."

Preliminary Information

The foregoing preliminary financial estimates reflect management's current views and may change as a result of management's review of results and other factors, including a wide variety of significant business, economic and competitive risks and uncertainties. Such preliminary financial information is subject to the finalization and closing of the accounting books and records of the Company (which have yet to be performed) and should not be viewed as a substitute for full quarterly financial statements prepared in accordance with U.S. GAAP. In the course of preparing and finalizing the financial statements for the three months ended December 31, 2023, the preliminary estimates for the three months ended December 31, 2023 will be subject to change and the Company may identify items that will require it to make adjustments to the Company's preliminary estimates described above. Any such changes could be material. For these or other reasons, the preliminary financial estimates for the three months ended December 31, 2023 may not ultimately be indicative of the Company's results for such periods and actual results may differ materially from those described above. No independent registered public accounting firm has audited, reviewed or compiled, examined or performed any procedures with respect to these preliminary results, nor have they expressed any opinion or any other form of assurance on these preliminary estimated results.

About CN Energy Group. Inc.

With patented proprietary bioengineering and physiochemical technologies, the Company has pioneered and specialized in producing high-quality recyclable activated carbon and renewable energy from abandoned forest and agricultural residues, converting harmful wastes into a valuable product and delivering significant financial, economic, environmental, and ecological benefits. The Company's products and services have been widely used by food and beverage producers, industrial and pharmaceutical manufacturers, as well as environmental protection enterprises. For more information, please visit the Company's website at https://cneny.com

Forward-Looking Statements

Certain statements, other than statements of historical facts, made in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties, and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial conditions, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to refer to its filings with the U.S. Securities and Exchange Commission, including without limitation, the Company's registration statements and other filings with the U.S. Securities and Exchange Commission that set forth certain risks and uncertainties that may have an impact on future results and directions of the Company.