Advanced Graphene Products S.A., in 2Q 2022, implemented consistently a strategy aimed at the commercialisation of graphene which is produced by our Company
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The sale of filaments for 3D printers (PROGRAFEN) is developed regularly on the European markets and the activities of launching this product on the USA market have been commenced.
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The first supplies of graphene have been performed for the production of anticorrosion powder paint for the Automotive sector – as per the agreement concluded with Nanosphere.
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The cooperation with the European Organization for Nuclear Research (CERN) and with the European Space Agency was continued.
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In the first half-year (1H 2022) of this year, the Company recorded the revenues from the sale of products in the amount of PLN 335,000, which is more than seven times higher
as compared to the revenues from the sale of products in the analogous period of 2021. Revenues from the sale of products in 1H 2022 were 130% higher than the revenues from the sale of products generated in the entire 2021. -
The revenues from the Company’s sale of products in the second quarter of this year (2Q 2022) rose dynamically, they amounted to PLN 136,000 as compared to PLN 18,000 of revenues from the sale of products in the second quarter of 2021.
Advanced Graphene Products, in the second quarter of 2022, cooperated constantly with hitherto partners and customers, both in the field of produced graphene
and projects aimed at the joint preparation and commercialisation of new graphene applications.
In the second quarter of this year, the Company opened its own shop and the product website of PROGRAFEN brand (https://prografen.com/), which is used to distribute, promote and sell the filament for 3D printing produced by the Company.
Filament is a thermoplastic material used for creating models and objects on 3D printers. The use of graphene in 3D filaments is developed by the Company on its own. PROGRAFEN is the first in Poland and one of the first in the world widely available filament for 3D printing with graphene addition, dedicated both to applications in home and industrial conditions.
Furthermore, the Company developed cooperation initiated in the first quarter of this year with Amazon platform, by means of which 3D filament was sold on the German, French, Spanish, Italian and Polish markets. Another step is introducing PROGRAFEN brand products to more European markets, and also to the USA. Moreover, cooperation was developed successively with the distributors and industrial recipients of PROGRAFEN filament, i.a. by means of Pro3DShop company which sells PROGRAFEN 3D filament in Great Britain.
“We are really proud that we performed this huge work in order to establish the recognisability, range and positioning of PROGRAFEN brand and website. We focused on activities in social, business and branch media, which are to improve the positioning of our PROGRAFEN shop and website. We also made use of tools to support the positioning and promoting of our brand and product. I am convinced that all these activities will bring in specific effects in the forthcoming quarters in the form of increased revenues from the sale of PROGRAFEN filaments and better recognisability and positioning of PROGRAFEN products in the Internet and on the market. I would like to underline that Advanced Graphene Products is the first company, which commercialises graphene by offering filament for 3D printing with graphene on a commercial scale” – says Maciej Gałązka, the President of the Management Board of Advanced Graphene Products S.A.
Apart from specialised filaments with graphene addition, in the second quarter of 2022, the Company also extended its offer of filaments for 3D printing with coloured PLA and PET-G materials without graphene addition. In this way, the offer is comprehensive and it may satisfy the demand of PROGRAFEN brand customers also for high quality 3D filaments without graphene addition. A filament for 3D printing with graphene addition has also been prepared and produced – it has the properties of conducting electric current and it will soon be available for sale.
As part of the implementation of the accepted business model, in 2Q 2022 the Company continued its long-term cooperation with Nanosphere sp. z o.o. consisting in the production and delivery of flake graphene which will be used for the production of anticorrosion powder paint for the Automotive sector. A long-term agreement with Nanosphere on the delivery of the industrial quantities of graphene was concluded by the end of 2028. As part of the agreement, Advanced Graphene Products will deliver graphene every year. This graphene will be used ultimately for the production of 60 tonnes of anticorrosion paint,
used in the production of innovative car half-shafts of a new generation. They will be installed in the vehicles of the most important European manufacturers, among other things, of the following brands: BMW, Mini, Mercedes-Benz Group AG, Volkswagen and FORD.
Also in 2Q 2022, the Company commenced the fulfilment of an order for the European Organization for Nuclear Research (CERN), consisting in the production of free-standing carbon foils based on graphene. The European Organization for Nuclear Research is the second international partner of Advanced Graphene Products with such a prestigious nature, right after the European Space Agency. The project commenced in 1Q 2022 for the European Space Agency (ESA-ESTEC), consisting in inventing a cryogenic sensor based on the graphene semi-conductor sensory element (based on HSMG graphene), was continued in the second quarter.
In the first half-year (1H 2022) of this year, Advanced Graphene Products recorded the revenues from the sale of products in the amount of PLN 335,000, which is more than seven times higher
as compared to the revenues from the sale of products in the analogous period of 2021. Revenues from the sale of products in 1H 2022 were 130% higher than the revenues from the sale of products generated in the entire 2021.
The revenues from the sale of the Company’s products grew dynamically in the second quarter of this year (2Q 2022). Advanced Graphene Products, in 2Q 2022, obtained the revenues from the sale of products in the amount of PLN 136,000 as compared to PLN 18,000 of the revenues from the sale of products in the second quarter of 2021.
In 1H 2022, the Company recorded a net loss in the amount of PLN 949,000 as compared to the loss incurred in 1H 2021 in the amount of PLN 776,00. In 2Q 2022, the Company’s net loss amounted to PLN 833,000; in the same period of the previous year, the net loss was PLN 431,000.
“The second quarter was a period of very intensive work on the development of the sale structures of the filament for 3D printing and building the PROGRAFEN brand recognisability. We already sell this filament directly in our Internet shop and at Amazon platform on a few European markets, and we are at the advanced stage of commencing the sale in the USA. Furthermore, we extend constantly our cooperation with the distributors of PROGRAFEN brand products. We really hope for the development of the sale of our filament which is an innovative product on a worldwide scale. Moreover, we commenced tests on the filament with graphene, which has the properties of conducting electric current
and which may be used in the manufacture of electronic appliances. We also introduce coloured filaments, pastes and dispersions to our offer. The filament sale volumes, in the second quarter, are not as high as we would wish them to be, because we had to go through the stage of preparation for sale, which lasted a little longer than we expected; moreover, the commencement of sale took place in the summer holiday period, but I believe that our work done so far, in the forthcoming quarters will bring in financial results which will be satisfactory for the Stockholders and Investors. We also perform a long-term agreement with Nanosphere on the delivery of flake graphene for anticorrosion paints. In accordance with the agreement, we have the guaranteed delivery of graphene this and next year, and we are able to increase production, if our contracting party expects this. Nevertheless, we are aware that we encountered a period which is difficult for the global economy and which forces the enterprises to reduce investments in innovative solutions. However, we are convinced that innovations have special time this year because they are a source of savings in the process of production and, for example, anticorrosion paints are such a solution which provides a competitive and technological advantage in the automotive sector” – comments Maciej Gałązka, the President of the Management Board of Advanced Graphene Products S.A.
Based on the analytical data concerning the worldwide graphene market, its average annual growth dynamics in 2020-2027 will be around 40%, and the market will be worth USD 877 m. in 2027. (According to: Allied Market Research). According to the research company, Reports n Reports, the global value of the graphene market will increase from USD 200 m. in 2018 to USD 1 bil. in 2023.