HANRUI COBALT(SZ:300618) Chang Jiang Shang Bao·2025-08-28 08:50Core Viewpoint - The company, Hanrui Cobalt, reported significant growth in its financial performance for the first half of 2025, with a notable increase in both revenue and net profit, indicating a recovery from previous downturns in the cobalt market [1] Financial Performance - In the first half of 2025, Hanrui Cobalt achieved an operating income of 3.168 billion yuan, representing a year-on-year growth of 23.77% [1] - The net profit for the same period was 127 million yuan, showing a substantial year-on-year increase of 102.94% [1] - The company's first quarter of 2025 saw a non-recurring net profit of 22.23 million yuan, a decline of 63.59% year-on-year, but it rebounded to 83.07 million yuan in the second quarter, demonstrating strong profit elasticity post-capacity ramp-up [1] Historical Performance - From 2023 to 2024, Hanrui Cobalt experienced a performance cycle from pressure to recovery, with a net profit of 138 million yuan in 2023, down over 34% year-on-year due to falling cobalt prices [1] - In 2024, the net profit recovered to 201 million yuan, driven by tightened supply from the extended cobalt export ban in the Democratic Republic of Congo and improved capacity utilization [1] Shareholder Activity - Significant shareholder reductions have been noted, with the controlling shareholders, Liang Jiankun and Liang Jie, having reduced their holdings since the lifting of the lock-up period in 2020, cashing out a total of 952 million yuan over three years [2][3] - In July 2025, other shareholders announced plans to reduce their holdings by up to 3% due to personal funding needs [3] Strategic Initiatives - The company provided a bank credit guarantee of up to 120 million USD for its wholly-owned subsidiary in Hong Kong, aimed at funding the construction of a nickel project in Indonesia, which is expected to generate annual revenue of 2.37 billion yuan and a gross margin of 29.2% upon its completion in March 2026 [3] - The nickel project is crucial for addressing the company's supply chain gaps in the "cobalt powder - precursor" segment and is projected to meet the demand for 400,000 electric vehicles [3] Challenges - Despite the recovery in performance, the company faces challenges, as evidenced by a decline in gross profit margin to 11.2% in the first quarter of 2025, down from 16.57% in the same period of 2024, highlighting the ongoing impact of price fluctuations in copper and cobalt on profitability [3] - The ongoing shareholder sell-offs and fluctuating gross margins reflect the vulnerabilities of resource-based companies amid cyclical market changes [3]