China Graphite Group (2237) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 7.4% YoY to RMB152.9m, driven mainly by unprocessed marble; net profit was RMB4.9m versus a RMB12.5m loss in FY2024, supported by cost controls and better receivables collections.

• Natural graphite remained at cyclical lows, with weak demand and intense competition from artificial graphite; operations focused on efficiency and a cautious pace of development.

Financial highlights

• Revenue was RMB152.9m, up 7.4% YoY; graphite product revenue was RMB138.0m, down 0.3%, while unprocessed marble revenue rose to RMB15.0m from RMB4.0m.

• Gross profit increased 8.1% to RMB44.9m; gross margin was 29.4%, up 0.2 percentage points YoY.

• Net profit was RMB4.9m versus a net loss of RMB12.5m in FY2024; drivers included lower G&A expenses, an impairment reversal and higher gross profit.

• Cost of sales rose 7.1% to RMB108.0m, including higher marble costs and subcontracting charges, partly offset by lower raw-material and electricity costs.

Outlook and guidance

• Development pace will remain cautious as natural graphite faces weak pricing and competition; longer-term prospects are supported by carbon-peaking policies and potential demand growth.

• Applications are underway to mine Beishan resources below 150 metres; plans seek to raise permitted capacity above 500,000 tonnes p.a., subject to government approvals and required documents.

• The new Beishan beneficiation and processing facilities are intended to support future capacity; RMB26.5m was invested in 2025 to rezone adjacent forest land for construction.