Shenzhen Dynanonic (300769) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was RMB 7.61 billion, down 55.15% year-over-year; net loss attributable to shareholders was RMB -1.34 billion, narrowing 18.25% from the previous year.

• Main product output of phosphate cathode materials reached 236,600 tons, up 15.31% year-over-year; sales volume was 225,700 tons, up 5.52%.

• The company faced significant margin pressure due to sharp declines in lithium raw material prices and intensified market competition, leading to lower product prices and gross margins.

• Strategic focus on cost reduction, expense control, turnover improvement, refined management, and risk control.

• Continued investment in R&D, with RMB 248 million spent in 2024, focusing on next-generation phosphate cathode materials and performance additives.

Financial highlights

• Revenue: RMB 7.61 billion, down 55.15% year-over-year.

• Net loss attributable to shareholders: RMB -1.34 billion, improved from RMB -1.64 billion last year.

• Gross margin for phosphate cathode materials: -4.60%, down 4.88 percentage points year-over-year.

• Operating cash flow: RMB 143 million, down 97.61% year-over-year.

• R&D expenses: RMB 248 million, down 55.05% year-over-year.

Outlook and guidance

• The company will continue to focus on product leadership, cost leadership, and global expansion.

• Plans to strengthen R&D, quality, manufacturing, cost, and organizational capabilities to drive long-term competitiveness.

• Emphasis on high-performance, high-adaptability, and low-cost product solutions to expand market share.