Guangzhou Tinci Materials Technology (002709) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 reached ¥6.67 billion, up 91.29% year-over-year, driven by higher lithium battery material prices and sales volume.

• Net profit attributable to shareholders was ¥1.65 billion, a 1,005.75% increase year-over-year.

• Basic EPS rose to ¥0.82 from ¥0.08 in Q1 2025, reflecting a 925% increase.

• Significant non-recurring income included an ¥80 million compensation for commercial secret infringement, recognized as non-recurring profit.

Financial highlights

• Gross profit surged to ¥2.58 billion, up 181.51% year-over-year, with gross margin improvement due to higher lithium battery material margins.

• Operating cash flow improved to -¥21.39 million from -¥122.38 million, mainly due to increased sales collections.

• Total assets at quarter-end were ¥29.88 billion, up 10.97% from year-end 2025.

• Owner's equity attributable to shareholders rose 6.89% to ¥19.08 billion.

Outlook and guidance

• Management attributes growth to robust demand and price increases in lithium battery materials.

• Continued focus on expanding production and optimizing product mix to capture market opportunities.