Zhejiang Huayou Cobalt (603799) Q2 2025 earnings summary

Executive summary

• Achieved record-high operating income of RMB 37.197 billion and net profit attributable to shareholders of RMB 2.711 billion in H1 2025, both up significantly year-over-year.

• Maintained leading position in cobalt industry and rapidly expanded in the global nickel sector, with strong growth in nickel product shipments (up 83.91% YoY).

• Strengthened global resource integration, technological innovation, and ESG management, with notable progress in overseas projects and sustainability initiatives.

Financial highlights

• Operating income rose 23.78% YoY to RMB 37.20 billion; net profit attributable to shareholders increased 62.26% YoY to RMB 2.71 billion.

• Basic EPS was RMB 1.61, up from RMB 1.00 YoY; weighted average ROE reached 7.05%.

• Net cash flow from operating activities was RMB 1.62 billion, down 41.45% YoY due to advance payments for raw materials.

• Non-recurring gains totaled RMB 123.74 million, mainly from government subsidies and asset disposals.

Outlook and guidance

• Management remains confident in industry prospects, citing strong demand for high-nickel ternary materials and anticipated recovery in cobalt and nickel markets.

• Plans to deepen global resource integration, expand international manufacturing, and enhance technological leadership in new energy materials.