Chengxin Lithium Group (002240) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 2.58 billion, down 45.80% year-over-year due to lithium salt price declines and industry downturn.

• Net loss attributable to shareholders was RMB -186.95 million, a decrease of 130.58% compared to the same period last year.

• Lithium product output reached 32,200 tons, up 7.91% year-over-year; sales volume was 34,300 tons, up 20.21%.

• Indonesian 60,000-ton lithium salt project began trial production in June 2024, expanding total lithium salt capacity to 137,000 tons/year.

Financial highlights

• Gross margin for lithium products was 3.15%, down 16.28 percentage points year-over-year.

• Operating cash flow was RMB 411.58 million, down 74.52% year-over-year.

• Total assets at period end were RMB 21.88 billion, up 5.42% from year-end 2023.

• Net assets attributable to shareholders were RMB 12.48 billion, down 3.69% from year-end 2023.

• Basic and diluted EPS were both -0.20 yuan, compared to 0.67 yuan in the prior year.

Outlook and guidance

• The company will continue to expand lithium resource reserves, optimize cost control, and enhance global competitiveness.

• Short-term focus is on cost management and efficiency improvement amid industry oversupply and price volatility.