Chengxin Lithium Group (002240) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was ¥4.58 billion, down 42.38% year-over-year; net loss attributable to shareholders was ¥622 million, a decrease of 188.51% compared to 2023.

• Gross margin for the year was 2.84%, down 9.06 percentage points year-over-year.

• The lithium salt industry remained in a downturn, with product prices at low levels, significantly impacting profitability.

• Total assets at year-end were ¥21.75 billion, up 4.81% from the previous year.

Financial highlights

• Operating cash flow was ¥1.32 billion, down 13.93% year-over-year.

• Basic and diluted EPS were both -0.69, compared to 0.77 in 2023.

• Net assets attributable to shareholders were ¥12.03 billion, down 7.21% year-over-year.

• Gross profit for lithium products was ¥130 million, with a gross margin of 2.84%.

• Non-recurring gains totaled ¥276 million, mainly from government subsidies and hedging gains.

Outlook and guidance

• Focus on stabilizing production at key mines and accelerating the development of the Mu Rong lithium mine.

• Plan to expand lithium salt production capacity and enhance global resource reserves, especially in Sichuan, Africa, and South America.

• Continue to invest in R&D and technology upgrades, with a new 2,500-ton metal lithium project planned.

• No cash dividend, bonus shares, or capital increase from reserves planned for 2024.