GEM (002340) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 results with revenue of ¥9.98 billion, up 5.12% year-over-year, and net profit attributable to shareholders of ¥522 million, up 2.18% year-over-year.

• Non-GAAP net profit (excluding non-recurring items) reached ¥476 million, up 6.71% year-over-year.

• Key business drivers included robust growth in nickel, cobalt, and battery recycling segments, despite temporary production disruptions in Indonesia.

Financial highlights

• Operating cash flow dropped 60.22% year-over-year to ¥252 million due to increased raw material reserves and higher working capital needs.

• Gross margin and EPS remained stable; basic and diluted EPS at ¥0.10, unchanged year-over-year.

• Total assets at quarter-end were ¥74.01 billion, down 0.17% from year-end 2025; shareholders’ equity rose 2.04% to ¥21.82 billion.

• Financial expenses surged 144.69% year-over-year due to RMB appreciation and increased debt.

• Credit impairment losses rose sharply (up 934.62%) due to higher accounts receivable and increased bad debt provisions.

Outlook and guidance

• Nickel production capacity in Indonesia fully restored in April, supporting full-year shipment targets.

• Continued focus on high-end battery materials, recycling, and global partnerships to drive growth.