Jiangxi Special Electric Motor (002176) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached ¥500.92 million, up 67.74% year-over-year, mainly due to increased lithium salt sales volume.

• Net loss attributable to shareholders was ¥43.08 million, a 42.24% increase in loss compared to the same quarter last year, primarily due to lower lithium salt prices and reduced gross margin.

• Operating cash flow was negative ¥141.16 million, a significant decline from a positive ¥34.53 million in Q1 2024, mainly due to higher prepayments for lithium salt materials.

Financial highlights

• Gross margin declined as operating costs rose 73.28% year-over-year, outpacing revenue growth.

• Basic and diluted EPS were both -0.0252, down from -0.0178 in Q1 2024.

• Total assets at quarter-end were ¥6.56 billion, down 1.24% from year-end 2024.

• Shareholders’ equity decreased 1.19% to ¥3.46 billion.

• Non-recurring gains totaled ¥11.37 million, mainly from government subsidies and fair value changes.

Outlook and guidance

• Revenue growth is expected to continue, driven by lithium salt sales volume, but profitability remains under pressure from declining product prices and gross margin.