GEM (002340) Q4 2024 earnings summary

Executive summary

• Revenue reached RMB 33.2 billion in 2024, up 8.75% year-over-year, with net profit attributable to shareholders at RMB 1.02 billion, up 9.19%. Excluding non-recurring items, net profit surged 636.24% to RMB 1.29 billion.

• Operating cash flow increased 41.14% to RMB 3.05 billion; gross margin improved by 3.05 percentage points to 15.29%.

• The company maintained a dual-engine model: urban mining and new energy materials, with new energy materials accounting for 77.59% of revenue.

• 2024 dividend proposal: RMB 0.66 per 10 shares, with a payout ratio of 32.99% of audited net profit.

Financial highlights

• Revenue: RMB 33.2 billion (+8.75% YoY); net profit attributable to shareholders: RMB 1.02 billion (+9.19% YoY).

• Adjusted net profit (excluding non-recurring items): RMB 1.29 billion (+636.24% YoY).

• Operating cash flow: RMB 3.05 billion (+41.14% YoY); basic/diluted EPS: RMB 0.20 (+11.11% YoY).

• Gross margin: 15.29% (+3.05pp YoY); net assets: RMB 19.43 billion (+5.1% YoY).

• Total assets: RMB 66.8 billion (+26.91% YoY); asset-liability ratio: 64.82% (+6.06pp YoY).

Outlook and guidance

• 2025–2027 revenue targets: RMB 40+ billion, 50+ billion, and 60+ billion, with a CAGR of ~20%.

• Core product shipment CAGR planned at 36% through 2027; 2025 core product output targets: nickel 120,000+ tons, ternary precursor 200,000+ tons, cobalt products 40,000+ tons, cathode 25,000+ tons, battery recycling 50,000+ tons.

• Focus on global expansion, especially in Indonesia, and building a near-zero carbon industrial park with international partners.

• 2025 priorities: capacity release, alliance building, digital transformation, and quality upgrades.