GEM (002340) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB 17.99 billion, up 2.43% year-over-year; net profit attributable to shareholders was RMB 1.08 billion, up 34.68% year-over-year.

• Key business segments: critical metal recycling and extraction, power lithium battery recycling, and core new energy materials manufacturing.

• Overseas nickel projects faced challenges from geopolitical events and natural disasters, impacting production but recovery is underway.

• Company continues to expand global partnerships and innovation, with significant R&D breakthroughs and new product launches.

Financial highlights

• Operating cash flow was RMB 608 million, down 58.02% year-over-year.

• Gross margin for critical metal recycling and extraction was 13.77%; for power battery recycling 9.69%; and for new energy materials manufacturing 15.30%.

• EBITDA to total debt ratio improved to 8.56% from 6.40% year-over-year.

• Basic and diluted EPS were both RMB 0.21, up 31.25% year-over-year.

• Non-recurring gains totaled RMB 597 million, mainly from asset disposals and government subsidies.

Outlook and guidance

• H2 2026 will see ramp-up of high-purity scandium, ultra-fine nickel powder, and nano-calcium powder production.

• Nickel output from overseas projects expected to increase 134% sequentially in H2 as production recovers.

• Company aims to further expand critical metal recycling, globalize battery recycling, and commercialize solid-state battery materials.