Yunnan Energy New Material (002812) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached ¥5.76 billion, up 20.48% year-over-year, with lithium battery separator sales as the main driver, accounting for 83.64% of total revenue.

• Net loss attributable to shareholders was ¥93.11 million, compared to a net profit of ¥291.03 million in H1 2024, mainly due to margin pressure and increased costs.

• Overseas business revenue grew 20.55% year-over-year, reflecting successful global market expansion.

Financial highlights

• Gross margin for lithium battery separators was 13.66%, down 5.82 percentage points year-over-year.

• Operating cash flow dropped 86.46% to ¥210 million, mainly due to reduced cash receipts from sales.

• Total assets increased 2.20% to ¥48.24 billion; net assets attributable to shareholders rose 1.32% to ¥24.79 billion.

• Basic EPS was -¥0.10, and ROE was -0.38%.

Outlook and guidance

• The company will continue to focus on high-value lithium battery separator products, optimize product mix, and enhance global market share.

• Plans include further R&D investment, cost control, and digital/automation upgrades to improve profitability.

• No interim dividend, bonus shares, or capital increase from reserves is planned.