GEM (002340) Q3 2024 earnings summary

Executive summary

• Achieved record operating income of RMB 24.87 billion for the first three quarters of 2024, up 22.96% year-over-year; net profit rose 65.06% to RMB 904 million; operating cash flow surged 282.19% to RMB 2.05 billion.

• Core product shipments and capacity utilization rates exceeded 95%, with significant growth in ternary precursor, cobalt tetroxide, MHP, and ternary cathode shipments.

• Major expansion in Indonesian nickel projects, with Phase II of QMB Nickel Resources commencing production, reinforcing global supply chain leadership.

• Strategic alliances formed with ECOPRO BM to secure precursor sales and build a global nickel-to-cathode value chain.

Financial highlights

• Operating revenue for Q1–Q3 2024 reached RMB 24.87 billion, up 22.96% year-over-year; net profit attributable to shareholders was RMB 903.89 million, up 65.06%.

• Basic and diluted EPS were RMB 0.18, up 63.64% year-over-year; weighted average ROE was 4.67%.

• Net cash flows from operating activities increased 282.19% to RMB 2.05 billion; net cash flows from investing activities decreased 120.72% due to higher capital expenditures.

• Total assets grew to RMB 62.06 billion, up from RMB 52.63 billion at year-end 2023.

Outlook and guidance

• Committed to achieving annual business objectives, leveraging high capacity utilization and strong demand for core products.

• Focus on expanding global recycling, nickel resource projects, and strategic partnerships to maintain industry leadership.