GEM (002340) Q2 2024 earnings summary

Executive summary

• Operating revenue for H1 2024 reached RMB 17.34 billion, up 33.99% year-over-year, with net profit attributable to shareholders at RMB 701 million, up 69.70% year-over-year.

• Gross profit margin improved to 13.51%, up 0.93 percentage points year-over-year, and net cash flows from operating activities increased 111.34% to RMB 1.32 billion.

• Production and sales of new energy materials and urban mining businesses surged, with capacity utilization rates of mainstream products at 100%.

• Strategic partnerships and capacity expansions, especially in Indonesia, drove growth and operational resilience.

• The company continued to invest in R&D, ESG initiatives, and global expansion, enhancing its industry leadership.

Financial highlights

• Operating revenue: RMB 17.34 billion, up 33.99% year-over-year.

• Net profit attributable to shareholders: RMB 701 million, up 69.70% year-over-year.

• Net profit excluding non-recurring items: RMB 703 million, up 103.13% year-over-year.

• Basic and diluted EPS: RMB 0.14, up 75% year-over-year.

• Net cash flows from operating activities: RMB 1.32 billion, up 111.34% year-over-year.

Outlook and guidance

• The company expects continued growth in urban mining and new energy materials, supported by national policies and global electrification trends.

• Plans to further expand nickel smelting capacity in Indonesia to 150,000 tons by end-2024.

• Ongoing focus on cost reduction, innovation, and ESG leadership to maintain competitiveness amid global industry challenges.