Guangzhou Tinci Materials Technology (002709) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was ¥12.52 billion, down 18.74% year-over-year; net profit attributable to shareholders was ¥484 million, down 74.40% year-over-year.

• Gross margin declined to 18.89%, a decrease of 7.03 percentage points from the prior year.

• The company maintained strong market share in lithium battery materials, with over 500,000 tons of electrolyte sold, up 26% year-over-year.

• Day-to-day chemical materials sales volume grew 6% and revenue increased 9% year-over-year.

Financial highlights

• Operating income: ¥12.52 billion, down 18.74% year-over-year.

• Net profit attributable to shareholders: ¥484 million, down 74.40% year-over-year.

• Operating cash flow: ¥882 million, down 61.24% year-over-year.

• Basic EPS: ¥0.25; diluted EPS: ¥0.29.

• Gross margin: 18.89%, down 7.03 percentage points year-over-year.

• R&D investment: ¥668 million, 5.34% of revenue.

Outlook and guidance

• Lithium battery material industry expected to remain highly competitive in the next 1-2 years, with industry consolidation and increased export focus.

• Company will focus on global market expansion, especially in North America, Europe, and Southeast Asia, and continue to invest in new technologies such as solid-state and sodium-ion batteries.

• 2025 plans include further capacity expansion, new product launches, and continued cost control.