China Graphite Group (2237) H1 2024 earnings summary

Executive summary

• H1 revenue fell 22.8% YoY to RMB36.4m; gross profit declined to RMB2.923m from RMB16.883m, and net loss widened to RMB16.218m from RMB3.342m.

• Seasonal shutdown, subdued downstream demand, intense graphite-market competition and December 2023 export controls weighed on sales and prices.

Financial highlights

• Revenue was RMB36.437m versus RMB47.211m YoY; graphite product revenue decreased 24.6% to RMB35.3m.

• Operating loss was RMB13.179m versus RMB4.802m; loss before tax was RMB15.814m versus RMB4.240m.

• Basic and diluted loss per share was RMB1.01 cents versus RMB0.21 cents.

• Operating cash flow was RMB62.640m versus RMB56.060m; investing cash outflow was RMB138.136m and financing cash inflow was RMB58.327m.

Outlook and guidance

• A prudent H2 approach is planned, with development direction to be adjusted to market conditions; industry capacity digestion is expected to sustain challenges.

• After completing a resource report and applying for mining rights below 150 metres, an application is planned to raise Beishan Mine capacity to over 500,000 tonnes per year.

• Own-mine supply and natural graphite’s lower energy consumption were cited as supply-stability advantages aligned with national dual-carbon policies.

• No earnings guidance was stated.