Jiangxi Special Electric Motor (002176) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 was ¥1.96 billion, down 7.01% year-over-year; net loss attributable to shareholders widened to ¥369 million, a 15.72% increase in loss from 2024.

• Both main business segments—electric motors and lithium mining/salts—faced revenue declines, with lithium segment revenue down 17.16% and electric motors up 5.51%.

• Gross margin pressure persisted due to raw material price volatility and lithium price swings; cost control and efficiency measures were implemented.

• The company maintained its position as a leading supplier in wind power motors and lithium extraction, with significant market share in key segments.

Financial highlights

• Operating income: ¥1.96 billion (down 7.01% YoY); net loss: ¥369 million (net loss margin -18.9%).

• Gross profit margin for lithium mining/salts dropped to -24.26%; electric motors segment margin improved to 23.63%.

• Cash flow from operations was negative ¥169 million, a 40.24% decline from 2024, mainly due to lower sales and collections.

• Total assets at year-end: ¥5.96 billion (down 10.27% YoY); equity attributable to shareholders: ¥2.96 billion (down 15.62%).

• R&D investment was ¥72.9 million, 3.73% of revenue.

Outlook and guidance

• 2026 focus: restore lithium segment profitability, ramp up self-owned mine production, and deepen cost controls.

• Electric motor segment to pursue high-end markets (wind, robotics, aviation), strengthen international partnerships, and accelerate innovation.

• Lithium segment to leverage price recovery, optimize supply chain, and expand resource base.

• Strategic plan emphasizes AI-driven manufacturing, vertical integration, and expansion into high-growth sectors.