Jinyuan EP (000546) Q4 2024 earnings summary

Executive summary

• Revenue surged 136.79% year-over-year to ¥6.73 billion, driven by strong growth in resource utilization business.

• Net profit attributable to shareholders was ¥39.71 million, reversing a loss of ¥678.33 million last year.

• Cash flow from operations turned negative at -¥517.18 million, mainly due to increased inventory and reduced customer prepayments.

• The company focused on environmental protection and new energy materials, with significant progress in lithium projects.

Financial highlights

• Operating income: ¥6.73 billion, up 136.79% year-over-year.

• Net profit attributable to shareholders: ¥39.71 million, up 105.85% year-over-year.

• Gross margin for resource utilization business remained stable; non-recurring gains boosted net profit.

• Basic and diluted EPS: ¥0.05, compared to -¥0.87 last year.

• Total assets at year-end: ¥5.63 billion, down 25.78% from prior year.

Outlook and guidance

• Plans to accelerate development of the Tibet Bachen Co Salt Lake lithium project and optimize production efficiency.

• Will continue to expand overseas lithium resources, especially in Argentina and Africa.

• Focus on cost reduction and efficiency improvement in environmental business, with potential divestment of underperforming subsidiaries.

• No cash dividend, bonus share, or capital reserve transfer planned for the year.