GEM (002340) Q2 2025 earnings summary

Executive summary

• Achieved record-high operating revenue of RMB 17.56 billion in H1 2025, up 1.28% year-over-year; net profit attributable to shareholders reached RMB 799 million, up 13.91% year-over-year; net cash flow from operating activities increased 9.69% year-over-year to RMB 1.45 billion.

• Growth driven by critical metal recycling, full production of Indonesian nickel resources, and breakthroughs in high-end new energy materials.

• Share repurchase of 20.36 million shares (RMB 137 million) and dividend payout of RMB 337 million (33% payout ratio) to enhance shareholder value.

Financial highlights

• Operating revenue: RMB 17.56 billion (+1.28% YoY); net profit: RMB 799 million (+13.91% YoY); basic and diluted EPS: RMB 0.16 (+14.29% YoY).

• Net cash flow from operating activities: RMB 1.45 billion (+9.69% YoY); total assets: RMB 73.71 billion (+10.35% from end-2024); net assets: RMB 20.13 billion (+3.61%).

• Gross profit margin: 12.48% (down 1.03 percentage points YoY); R&D investment: RMB 752 million (+13.40% YoY, 94.09% of net profit).

• Non-recurring gains and losses: RMB 89.62 million, mainly from government grants and fair value changes.

Outlook and guidance

• Plans to deepen the green industry strategy, expand global alliances, and continue innovation in critical metal recycling, battery recycling, and new energy materials.

• Ongoing construction of Indonesia Green Industrial Park and further international expansion.

• Actively preparing for H-share listing in Hong Kong to enhance global financing and competitiveness.