Zhejiang Huayou Cobalt Co (603799) investor relations material

Executive summary

• Revenue reached RMB 37.20 billion, up 23.78% year-over-year; net profit attributable to shareholders was RMB 2.71 billion, up 62.26% year-over-year.

• Operating income and net profit both hit historical highs for the first half-year period.

• Significant growth in nickel product shipments (+83.91% YoY), while cobalt product shipments declined (-9.89% YoY).

• Company maintained industry leadership in cobalt and rapidly expanded its presence in the global nickel sector.

• Enhanced global footprint with new projects in Indonesia and Zimbabwe, and deepened integration in the European EV supply chain.

Financial highlights

• Operating income: RMB 37.20 billion, up 23.78% year-over-year.

• Net profit attributable to shareholders: RMB 2.71 billion, up 62.26% year-over-year.

• Basic EPS: RMB 1.61, up 61% year-over-year; diluted EPS: RMB 1.51, up 51% year-over-year.

• Net cash flow from operating activities: RMB 1.62 billion, down 41.45% year-over-year due to increased prepayments for raw materials.

• Gross margin improved, and both total assets and net assets increased by over 7% and 5.8% respectively from year-end.

Outlook and guidance

• Management remains confident in the long-term prospects of the new energy materials and cobalt-nickel industries.

• Company will continue to expand global resources, international manufacturing, and global market presence.

• Focus on high-end, global, and differentiated product strategies, with ongoing investment in R&D and new applications.