GEM (002340) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw record highs in revenue, net profit, and operating cash flow, driven by robust production and sales in both urban mining and new energy material manufacturing.

• Core product capacity utilization exceeded 97%, with an average shipment volume growth of 42% year-over-year.

• The company completed a new management team selection, focusing on younger, globalized talent to support strategic goals.

• Mass production of next-generation ultra-high nickel 9-series core-shell ternary precursors began, solidifying global technological leadership.

• Strategic global alliances and supply chain partnerships were deepened to address tariff and trade challenges.

Financial highlights

• Operating revenue reached RMB9.50 billion, up 13.67% year-over-year.

• Net profit attributable to shareholders was RMB511 million, up 12.10% year-over-year.

• Net profit excluding non-recurring items was RMB446 million, up 17.70% year-over-year.

• Operating cash flow was RMB634 million, up 77.92% year-over-year.

• Basic and diluted EPS both at RMB0.10, up 11.11% year-over-year.

• Total assets increased to RMB72.32 billion, up 8.27% from year-end 2024.

• Owners' equity rose to RMB20.31 billion, up 4.54% from year-end 2024.

Outlook and guidance

• The company aims to attract 100 global elite talents in 2025 to further globalize management.

• Mass production of ultra-high nickel precursors is expected to add over 50,000 tons to the market in 2025.

• Strategic alliances and supply chain initiatives are positioned to stabilize global market presence despite trade barriers.