Canmax Technologies (300390) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 3.71 billion, down 44.09% year-over-year, mainly due to a sharp decline in lithium hydroxide prices.

• Net profit attributable to shareholders was RMB 834.89 million, a 39.26% decrease year-over-year.

• The company operates in three main segments: lithium battery materials, anti-static/cleanroom technology, and medical devices.

• Significant R&D and innovation efforts continued, with 397 patents held by the end of the period.

Financial highlights

• Operating income: RMB 3.71 billion, down 44.09% year-over-year.

• Net profit attributable to shareholders: RMB 834.89 million, down 39.26% year-over-year.

• Operating cash flow: RMB 706.25 million, down 73.52% year-over-year.

• Gross margin for lithium materials: 17.91%, down 12.59 percentage points year-over-year.

• Total assets at period end: RMB 18.11 billion, down 3.99% from year-end 2023.

Outlook and guidance

• The company expects continued pressure from lithium price volatility and intensified market competition.

• Focus remains on high-quality development, cost control, and expanding cooperation with leading customers.

• Ongoing investment in R&D and new energy materials, with plans to further strengthen market position.