Guangzhou Tinci Materials Technology (002709) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached RMB 3.49 billion, up 41.64% year-over-year, driven by higher lithium battery material sales.

• Net profit attributable to shareholders was RMB 149.62 million, a 30.80% increase compared to the same quarter last year.

• Basic EPS rose to RMB 0.08, up 33.33% year-over-year.

• Operating cash flow turned negative at -RMB 122.38 million, compared to RMB 21.99 million in Q1 2024.

Financial highlights

• Gross margin improved as revenue growth outpaced cost increases, with operating income up significantly.

• R&D expenses surged 66.55% year-over-year due to new project launches.

• Financial expenses increased 34.09% due to lower deposit interest and higher forex losses.

• Non-recurring gains totaled RMB 15.38 million, mainly from government subsidies and fair value changes.

Outlook and guidance

• Management attributes growth to robust demand for lithium battery materials and expects continued momentum.