Jinyuan EP (000546) Q2 2025 earnings summary

Executive summary

• Revenue rose 59.05% year-over-year to ¥4.19 billion, driven by strong growth in environmental business income and new energy materials expansion.

• Net loss attributable to shareholders was ¥49.60 million, down from a profit of ¥173.83 million in the prior year, mainly due to higher raw material costs and compressed margins.

• Adjusted net loss (excluding non-recurring items) was ¥143.46 million, reflecting a further decline in core profitability.

• Cash flow from operations improved significantly, with a net outflow of ¥87.82 million versus ¥492.83 million last year, up 82.18% year-over-year.

Financial highlights

• Gross margin in the environmental segment declined by 5.37 percentage points year-over-year to -3.11%.

• Basic and diluted EPS were both -¥0.0638, compared to ¥0.23 last year.

• Total assets at period-end were ¥5.66 billion, up 0.53% from year-end 2024.

• Net assets attributable to shareholders decreased 1.21% to ¥4.11 billion.

• Significant government subsidies received, totaling ¥113.98 million, mainly benefiting the Jiangxi subsidiary.

Outlook and guidance

• Focus remains on ramping up production at the Xizang Bachen Co. lithium project and optimizing environmental business operations.

• The company will continue to divest underperforming assets and enhance resource management efficiency.

• Strategic expansion in overseas lithium resources, with ongoing evaluation of projects in Argentina and Africa.