Lygend Resources & Technology (2245) H2 2024 earnings summary

Executive summary

• Revenue rose 38.8% YoY to RMB29,233.0m; profit for the year rose 86.4% to RMB3,208.8m, and profit attributable to owners increased 68.7% to RMB1,773.2m.

• Capacity ramp-up drove results: HPL, ONC and HJF reached full production; electrodeposited cobalt also reached full capacity.

• The Board recommended a final dividend of RMB0.35 per share, subject to shareholder approval, versus RMB0.20 for 2023.

Financial highlights

• Gross profit increased 58.3% YoY to RMB5,352.5m; gross margin rose 2.2 percentage points to 18.3%.

• Profit before tax increased to RMB3,817.0m from RMB1,761.5m; profit for the year reached RMB3,208.8m versus RMB1,721.5m.

• Net profit margin improved to 11.0% from 8.2%; basic and diluted EPS rose to RMB1.14 from RMB0.68.

• Income tax expense rose to RMB608.3m from RMB40.0m, mainly due to withholding tax based on project-company profitability.

Outlook and guidance

• KPS RKEF construction is progressing steadily; all production lines are expected to be completed in 2026.

• Priorities include completing existing Obi projects, expanding product lines, developing HPAL tailings utilization and advancing nickel and cobalt metal production techniques.

• Tailings-treatment technology development is nearly complete; a demonstration plant is planned to accelerate industrial application and potentially create a new profit growth point.