GEM (002340) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of ¥37.12 billion in 2025, up 11.82% year-over-year, with net profit attributable to shareholders rising 54.87% to ¥1.58 billion and operating cash flow up 23.82% to ¥3.78 billion.

• Key business drivers included strong growth in critical metal extraction and recycling (+28.10% revenue), full ramp-up of Indonesian nickel projects, and high-end battery materials market breakthroughs.

• Major technological innovations and global partnerships expanded market presence, with significant ESG and social responsibility initiatives.

Financial highlights

• Revenue: ¥37.12 billion (+11.82% YoY); Net profit attributable to shareholders: ¥1.58 billion (+54.87% YoY); Non-GAAP net profit: ¥1.37 billion (+5.87% YoY).

• Operating cash flow: ¥3.78 billion (+23.82% YoY); Total assets: ¥74.13 billion (+10.98% YoY); Net assets: ¥21.38 billion (+10.08% YoY).

• Gross margin for critical metals extraction: 16.88%; battery recycling: 8.15%; new energy battery materials: 15.60%.

• Quarterly net profit peaked in Q1 at ¥511 million, with strong cash flow in Q4.

• Non-recurring items contributed ¥214 million to net profit, mainly from government subsidies and financial asset gains.

Outlook and guidance

• 2026–2028 targets: revenue of ¥48–70 billion, core product shipment CAGR of 30%, overseas sales and capacity to exceed 50% by 2028.

• Focus on compliance, financial stability, quality improvement, and global expansion, with major investments in Indonesian projects and AI-driven upgrades.

• 2026 core product shipment growth target: 32% across nickel, cobalt, cathode materials, and battery recycling.