Ge Long Hui·2025-09-19 04:34Core Viewpoint - The company experienced a significant decline in revenue and net profit in the first half of 2025, primarily due to falling lithium product prices, but is expected to recover in the second half as prices rebound and new projects progress [1][2]. Financial Performance - In the first half of 2025, the company achieved revenue of 8.258 billion yuan, a year-on-year decrease of 13.82% - The net profit for the same period was -536 million yuan, an improvement of 223 million yuan compared to the previous year - The comprehensive gross margin was 10.78%, down by 0.38 percentage points year-on-year - The net profits for Q1 and Q2 of 2025 were -356 million yuan and -180 million yuan, respectively, with Q2 losses decreasing by 175 million yuan quarter-on-quarter [1]. Market Dynamics - The lithium carbonate price started at approximately 76,000 yuan per ton at the beginning of 2025 but fell to a low of around 60,000 yuan per ton by the end of June - In August, the price rebounded to a peak of 86,000 yuan per ton, with the latest price in September at 72,500 yuan per ton - The demand for lithium carbonate is expected to expand due to the steady growth of the new energy vehicle market and the ongoing energy storage boom, leading to an improved supply-demand balance [2]. Project Development - The company’s Goulamina lithium spodumene project in Mali has officially commenced production, with efforts to accelerate capacity ramp-up - The Cauchari-Olaroz salt lake project in Argentina is in a stable capacity ramp-up phase, with a designed capacity of 40,000 tons/year for lithium carbonate - The Mariana project in Argentina also began production in early 2025, with a designed capacity of 20,000 tons/year for lithium hydroxide [2]. Product Diversification - The company’s business encompasses five major categories of lithium batteries, including solid-state batteries, power batteries, consumer batteries, polymer lithium batteries, and energy storage batteries - The company has established a comprehensive solid-state battery supply chain and possesses commercial capabilities in key areas such as sulfide electrolytes, oxide electrolytes, lithium metal anodes, cells, and battery systems [3]. Industry Positioning - The company is expected to solidify its leading position in the industry as signs of profitability recovery emerge - Multiple business segments are progressing simultaneously, with a target price set at 40.36 HKD based on a 1.8x PB valuation for 2025 [3].