China Treasures New Materials (2439) H2 2025 earnings summary

Executive summary

• FY2025 revenue fell 37.8% YoY to RMB253.4m and profit for the year fell 73.8% to RMB29.5m, amid weaker domestic demand and fewer orders from existing customers.

• New Changchun production base construction was completed and passed acceptance inspections; trial production and the real estate ownership certificate application are in progress.

Financial highlights

• Revenue was RMB253.4m, down 37.8% YoY; gross profit was RMB98.3m, down 39.4%, and gross margin was 38.8% versus 39.8%.

• Profit before tax was RMB35.5m versus RMB131.8m; profit for the year was RMB29.5m versus RMB112.4m, and owners’ attributable profit was RMB29.1m versus RMB111.2m.

• Basic and diluted EPS was RMB2.91 cents versus RMB11.12 cents; other income declined to RMB2.7m from RMB20.3m, including prior-year one-off lease refund and grant income.

• Administrative and other operating expenses rose 45.7% to RMB60.9m, including higher R&D costs and disposal losses; selling and distribution expenses declined 33.3% to RMB3.6m.

Outlook and guidance

• Plans include introducing new product varieties and broadening online and offline sales channels to stimulate revenue growth.

• Management cited expanded production capacity, technological innovation, industry expertise, and supportive environmental policies as foundations for confidence in business prospects.

• The completed Changchun base is intended to consolidate operations, improve cost efficiency, serve core customers, and optimise resources; trial production is underway.