Sinomine Resource Group (002738) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached ¥1.54 billion, up 36.37% year-over-year, while net profit attributable to shareholders fell 47.38% to ¥134.78 million due to lower lithium product prices and copper smelting losses.

• Lithium salt sales volume increased 13% year-over-year, but average selling prices dropped sharply, impacting gross margin.

• Rare light metals (cesium, rubidium) business saw strong growth, with revenue up 94% and gross profit up 92% year-over-year.

• The Namibia Tsumeb copper smelting business posted a net loss of ¥100.45 million due to lower processing fees amid global supply tightness.

Financial highlights

• Operating income: ¥1,536,394,281.81, up 36.37% year-over-year.

• Net profit attributable to shareholders: ¥134,780,160.94, down 47.38% year-over-year.

• Net profit excluding non-recurring items: ¥42,732,890.88, down 81.28% year-over-year.

• Basic and diluted EPS: ¥0.1868, down 46.83% year-over-year.

• Net cash flow from operating activities: -¥796,640,098.91, a significant decrease from -¥51,788,961.74 last year.

Outlook and guidance

• The company is implementing cost reduction and efficiency measures to counteract lithium price volatility and copper smelting losses.

• Plans to leverage resource advantages and expand in rare light metals to maintain global market leadership.