Lygend Resources & Technology (2245) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 66.8% YoY to RMB18,146.6 million; profit attributable to owners increased 143.0% to RMB1,426.3 million.

• Growth was supported by higher production and trading volumes, full-capacity HPAL operations and the KPS production ramp-up.

• Cost control, product-mix optimization and process improvements supported profitability amid volatile nickel prices.

Financial highlights

• Gross profit rose 95.9% YoY to RMB3,580.0 million; gross margin expanded 2.9 percentage points to 19.7%.

• Profit before tax rose 177.8% to RMB2,759.8 million; profit for the period increased 131.7% to RMB2,248.7 million.

• Basic and diluted EPS was RMB0.92, versus RMB0.38 in H1 2024.

• Income tax expense rose to RMB511.1 million from RMB22.9 million, including RMB206.4 million of Pillar Two top-up tax and higher withholding tax on profitable project companies.

Outlook and guidance

• Complete and commission the remaining eight KPS production lines; all 12 lines are expected to be completed and commissioned in 2026.

• Advance MHP processing into nickel/cobalt sulfate and electrodeposited products to increase higher-value output.

• Develop hydrometallurgical slag recovery, including conversion of iron-bearing slag into pig iron and rebar; expand R&D and process innovation.

• Priorities include overseas market expansion, cost reduction, productivity, technology upgrades and ESG development; no quantitative earnings guidance was stated.