Canmax Technologies (300390) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was RMB 6.61 billion, down 36.87% year-over-year, with net profit attributable to shareholders at RMB 847.65 million, a 48.91% decrease from 2023.

• The lithium battery materials segment accounted for 87.07% of revenue, but sales and production volumes dropped sharply due to lower product prices.

• Cash flow from operations fell 65.58% year-over-year, reflecting reduced sales scale in lithium products.

• The company maintained a strong R&D focus, investing RMB 91.45 million (1.38% of revenue) and advancing multiple next-generation battery material projects.

• A cash dividend of RMB 6.00 per 10 shares is proposed, totaling RMB 498.45 million.

Financial highlights

• Gross margin for lithium materials fell to 21.08%, down 6.56 percentage points year-over-year.

• Overseas revenue dropped 57.85% year-over-year, while domestic revenue declined 28.88%.

• Non-recurring gains (mainly government grants) contributed RMB 406.82 million to net profit.

• Total assets at year-end were RMB 17.55 billion, down 7% from 2023; net assets attributable to shareholders were RMB 11.35 billion, down 5.08%.

• Inventory increased 69% year-over-year, reflecting higher lithium material stockpiling.

Outlook and guidance

• The company expects continued growth in new energy vehicles and energy storage, with China’s NEV sales projected to reach 16 million units in 2025.

• Strategic focus remains on lithium battery materials, with plans to deepen supply chain integration, expand overseas mining resources, and accelerate R&D in high-nickel and solid-state battery materials.

• Emphasis on cost control, digital transformation, and green manufacturing to enhance competitiveness.