Financial Performance - For the first half of 2025, the total revenue of China Graphite Group Limited was approximately RMB 398 million, representing a year-on-year increase of 9.3%[18]. - The net loss for the first half of 2025 was approximately RMB 119 million, an improvement compared to a net loss of RMB 162 million in the same period last year[18]. - The company recorded improved revenue and profit performance compared to the same period last year due to efforts from the sales team and cost control measures[17]. - The group’s revenue for the six months ended June 30, 2025, was RMB 39,795,000, an increase of 9.3% compared to RMB 36,437,000 for the same period in 2024[97]. - Gross profit for the same period was RMB 5,985,000, representing a significant increase of 104.5% from RMB 2,923,000 in 2024[97]. - The net loss attributable to the company's owners for the six months was RMB 11,890,000, compared to RMB 16,218,000 in the previous year, reflecting a reduction of 26.5%[97]. Revenue Breakdown - Revenue from the sale of spherical graphite and by-products was approximately RMB 48 million, a decrease of 52.9% year-on-year[18]. - Revenue from the sale of flake graphite concentrate was approximately RMB 303 million, an increase of 20.7% year-on-year[18]. - The sales of unprocessed marble contributed approximately RMB 46 million to the total revenue for the first half of 2025[18]. - Revenue from the sale of spherical graphite and its by-products decreased from approximately RMB 10.2 million in the first half of 2024 to about RMB 4.8 million in the first half of 2025[37]. - Revenue from the sale of flake graphite concentrate increased from approximately RMB 25.1 million in the first half of 2024 to about RMB 30.3 million in the first half of 2025[37]. - For the six months ended June 30, 2025, total revenue from the sale of flake graphite and its by-products was RMB 49,580,000, with external customer revenue contributing RMB 39,795,000[124]. Cost and Expenses - The gross profit for the first half of 2025 was approximately RMB 60 million, an increase of 106.9% year-on-year, with a gross margin of 15.0%, up 7.0 percentage points year-on-year[18]. - Total mining costs for the first half of 2025 amounted to RMB 13,999,000, compared to RMB 10,450,000 in the same period of 2024, reflecting increased operational expenses[30]. - The sales cost for the first half of 2025 was approximately RMB 33.8 million, a slight increase from about RMB 33.5 million in the first half of 2024, aligning with revenue growth[40]. - Selling and distribution expenses rose to approximately RMB 3.3 million in the first half of 2025, an increase of about 32.0% from RMB 2.5 million in the first half of 2024[44]. - General and administrative expenses decreased to approximately RMB 12.0 million in the first half of 2025, down about 8.4% from RMB 13.1 million in the first half of 2024[45]. - The total expenses for the six months ended June 30, 2025, were RMB 52,273,000, slightly down from RMB 52,377,000 in the same period of 2024[134]. Market and Industry Outlook - The rapid development of the new energy vehicle and new materials industries presents significant opportunities for the graphite industry, despite increased competition and cost pressures[17]. - The company maintains an optimistic outlook for the graphite market, despite current industry adjustments, due to the strategic importance of natural graphite in China's "dual carbon" policy[26]. - The company continues to face challenges such as low-price competition and inefficient resource utilization in the natural graphite industry[17]. Production and Operations - The company has adjusted its production strategy to focus on product quality and cost reduction measures in response to industry challenges[17]. - In the first half of 2025, spherical graphite sales volume was 705 tons, a year-on-year decrease of 23.6%, impacted by weak demand for downstream anode materials and price competition[20]. - Flake graphite concentrate sales volume reached 12,409 tons in the first half of 2025, representing a year-on-year increase of 22.8%, leading to a strategic reallocation of resources towards this segment[20]. - The company is actively constructing a new beneficiation and processing plant at North Mountain, funded by proceeds from its initial public offering[21]. Financial Position and Liquidity - As of June 30, 2025, the company's cash and cash equivalents were approximately RMB 61.4 million, an increase from RMB 32.5 million as of December 31, 2024[52]. - The current ratio remained stable at 1.7 for both the first half of 2025 and 2024, while the debt-to-asset ratio improved from 9.8% to 3.5%[54]. - The net loss margin improved from approximately 9.8% on December 31, 2024, to about 3.5% on June 30, 2025, due to an increase in cash and cash equivalents from approximately RMB 325 million to RMB 614 million[56]. - The group had no contingent liabilities as of June 30, 2025, and December 31, 2024, with no significant lawsuits affecting business performance[59]. - The group faced various financial risks, including interest rate risk, credit risk, and liquidity risk, but deemed these risks manageable[60][64][65]. Governance and Compliance - The company has complied with all applicable corporate governance codes, except for the separation of roles for the chairman and CEO as per code C.2.1[86]. - The audit committee consists of four members, including independent non-executive directors, ensuring oversight of financial reporting and risk management[90]. - The company has confirmed no significant violations of applicable laws and regulations during the first half of 2025[85]. - The board comprises two executive directors and four independent non-executive directors, maintaining a robust level of independence[87]. Shareholder Information - As of June 30, 2025, the company has a total of 1,600,000,000 shares issued, with Mr. Zhao holding 1,200,000,000 shares, representing 75.0% ownership[78]. - Sandy Mining Limited, wholly owned by Mr. Zhao, is the beneficial owner of 75.0% of the issued shares, equating to 1,200,000,000 shares[81]. - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the previous year[143].
中国石墨(02237) - 2025 - 中期财报