LB Group (002601) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 was ¥13.33 billion, down 3.34% year-over-year; net profit attributable to shareholders was ¥1.39 billion, down 19.53% year-over-year, mainly due to lower titanium dioxide prices.

• Production and sales of titanium dioxide and sponge titanium reached new highs, with market share and industry leadership further consolidated.

• The company maintained a global presence, exporting to over 110 countries, and continued to expand its full industrial chain in titanium, zirconium, and lithium materials.

Financial highlights

• Operating income: ¥13.33 billion, -3.34% year-over-year.

• Net profit attributable to shareholders: ¥1.39 billion, -19.53% year-over-year.

• Basic and diluted EPS: ¥0.58, -19.44% year-over-year.

• Operating cash flow: ¥1.52 billion, +10.84% year-over-year.

• Gross margin for titanium dioxide: 27.11%, down 6.40 percentage points year-over-year.

Outlook and guidance

• The company will focus on increasing market share, controlling inventory and receivables, optimizing asset-liability structure, and ensuring stable cash flow.

• Plans to further expand overseas production to mitigate anti-dumping risks and enhance global competitiveness.

• No interim dividend, bonus shares, or capital increase from reserves planned for the half-year.