Graphjet to receive new equipment to boost production capacity

KUALA LUMPUR - Graphjet Technology (NASDAQ:GTI), a developer of technologies to produce graphite and graphene from agricultural waste, announced today that new equipment and machinery are expected to arrive in Malaysia by the end of the week. The announcement comes as the company, currently trading at $0.09 per share with a market capitalization of $12.72 million, faces significant challenges, having lost over 90% of its value year-to-date according to InvestingPro data.

According to the company’s statement, the new equipment will increase production capacity approximately seven times compared to existing machinery. The upgraded technology is designed to improve both the quantity and quality of graphite produced from palm kernel shells. This expansion comes as InvestingPro analysis shows the company operating with negative EBITDA of $17.41 million and a concerning current ratio of 0.03, indicating potential liquidity challenges.

"Not only does this equipment increase our production volume, but it also enhances the quality of our products," said Chris Lai, CEO of Graphjet. "We are now in a better position to cater to our customers’ requirements and demand for our environmentally friendly graphite."

The company indicated that the new machinery is designed to support large-scale output while maintaining better control over processing conditions, which it describes as important for meeting requirements for EV battery and semiconductor applications.

Graphjet, which began trading on Nasdaq under the ticker GTI, utilizes a patented process to recycle palm kernel shells generated during palm seed oil production to create graphene and artificial graphite.

The company also stated it has begun generating revenue from product sales, though specific financial figures were not disclosed in the press release.

Founded in 2019 in Malaysia, Graphjet Technology focuses on sustainable production methods utilizing agricultural waste common in the region. InvestingPro analysis indicates the company currently trades above its Fair Value, with a WEAK overall financial health score. Subscribers can access detailed financial metrics, growth projections, and expert insights to better evaluate GTI’s potential.

In other recent news, Graphjet Technology is actively addressing several compliance challenges with Nasdaq. The company has filed its Form 10-K for the fiscal year ended September 30, 2024, with funding support from its new controlling shareholder, Aiden Lee, despite delays due to unforeseen circumstances. Graphjet has committed to filing overdue quarterly reports by mid-September 2025, as CEO Chris Lai assured during a Nasdaq Hearing Panel. The company is also appealing a Nasdaq notice for non-compliance with the minimum bid price requirement, with a hearing set for July 17, 2025. Additionally, a shareholders’ meeting is scheduled to vote on a reverse stock split to meet Nasdaq’s minimum bid price requirements. Graphjet’s future on Nasdaq remains uncertain, with no assurance of a favorable outcome from its appeal. The company has engaged an accounting firm to expedite the completion of overdue reports and is in discussions with potential funding partners to address compliance with Nasdaq’s market value requirements. Despite these efforts, the company acknowledges the risk of delisting if compliance is not achieved.

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