Jiangxi Special Electric Motor (002176) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥717.83 million, down 60.09% year-over-year, mainly due to a sharp decline in lithium salt prices.

• Net loss attributable to shareholders was ¥64.07 million, a 21.20% increase in loss compared to the same period last year.

• Cash flow from operating activities was negative ¥275.02 million, a significant deterioration from last year.

Financial highlights

• Operating income: ¥717.83 million, down 60.09% year-over-year.

• Net loss attributable to shareholders: ¥64.07 million, compared to a loss of ¥52.86 million last year.

• Gross margin for lithium business dropped sharply; overall gross margin for electric motor business remained positive.

• Basic and diluted EPS: -¥0.04, down from -¥0.03 year-over-year.

• Total assets at period end: ¥6.55 billion, up 3.33% from year-end 2023.

• Net assets attributable to shareholders: ¥3.75 billion, down 1.70% from year-end 2023.

Outlook and guidance

• Company expects continued volatility in lithium prices but remains optimistic about long-term demand due to new energy vehicles and storage sectors.

• Will focus on cost control, R&D investment, and leveraging resource advantages to enhance competitiveness.