China Graphite Group (2237) H1 2025 earnings summary

Executive summary

• 1H 2025 revenue rose 9.3% YoY to RMB39.8m; gross profit more than doubled to RMB5.985m, and net loss narrowed to RMB11.890m from RMB16.218m.

• Production and sales shifted toward flake graphite concentrate amid weak spherical graphite demand and price competition; cost controls supported margin improvement.

Financial highlights

• Revenue was RMB39.795m versus RMB36.437m YoY; cost of sales rose 0.9% to RMB33.810m.

• Gross margin expanded to 15.0% from 8.0%; operating loss narrowed to RMB10.766m from RMB13.179m.

• Net cash generated from operating activities was RMB54.353m; investing activities used RMB20.885m and financing activities used RMB4.568m.

• Production utilities savings of RMB1.7m were partly offset by RMB0.9m higher machinery and workplace maintenance costs.

Outlook and guidance

• Development pace will be adjusted prudently to market conditions; plans include higher-value-added products, R&D commercialization and industry partnerships.

• Beishan beneficiation and processing plant construction is advancing, funded by IPO proceeds; nearby forest land for the project was acquired in February 2024.

• Permitted Beishan reserves at elevations of 150–274 metres were ~7.0m tonnes at 30 June 2025; an application is underway for mining rights below 150 metres.

• Management remained optimistic on medium- to long-term natural graphite prospects, citing dual-carbon policies and graphite's strategic importance; no quantified earnings guidance was stated.