Jinyuan EP (000546) investor relations material

Executive summary

• Q3 revenue was RMB 2.479bn, down 3.04% YoY; 9M revenue reached RMB 9.342bn, up 38.51% YoY.

• Q3 net income attributable to shareholders was RMB 10.92m, up 120.89% YoY; 9M attributable net loss was RMB 224.58m.

• 9M operating cash flow was negative RMB 151.00m, versus negative RMB 85.04m in the prior-year period.

Financial highlights

• Q3 adjusted net income attributable to shareholders was RMB 6.93m, up 107.16% YoY; 9M adjusted net loss was RMB 228.52m, 4.89% wider YoY.

• 9M operating costs rose 35.30% YoY to RMB 9.443bn, while management expenses fell 42.30% to RMB 51.81m.

• 9M income tax expense increased 494.02% YoY to RMB 25.63m, mainly due to income tax paid under deemed assessment by a Jiangxi subsidiary.

• Non-recurring gains totaled RMB 3.94m for 9M, including government grants, financial asset gains, interest income on funds occupied by Zhejiang Huayue, and impairment reversals.

Outlook and guidance

• The Baqiansuo Salt Lake lithium-extraction project remains in trial production; efforts are focused on completing permits, commissioning equipment and optimizing technology to pursue commercial production.