Lopal Tech 2025 Unaudited Results: Revenue Up 16.4%, Lithium Carbonate Processing Soars 7-Fold While Net Loss Narrows

Jiangsu Lopal Tech. Group Co., Ltd. (Lopal Tech, 02465) released its unaudited consolidated results for the year ended 31 December 2025.

Financial Performance • Revenue increased 16.4% year on year to RMB 8.94 billion, driven chiefly by a 722.3% jump in lithium carbonate processing income to RMB 575.63 million. • Gross profit more than doubled to RMB 1.14 billion, lifting the overall gross margin to 12.7% from 6.5% in 2024. • Net loss attributable to shareholders narrowed sharply to RMB 149.22 million, versus a RMB 805.67 million loss a year earlier. Loss per share improved to RMB 0.25 (basic) from RMB 1.11. • Operating cash and cash equivalents rose 30.2% to RMB 3.27 billion.

Segment Highlights • LFP cathode materials: Revenue climbed 10.3% to RMB 6.20 billion; segment gross margin rebounded to 8.1% (2024: 0.01%) on lower lithium-carbonate input costs and a higher share of customer-supplied raw-material orders. Sales volume reached 202,115 tonnes, up 13.4%. • Automotive specialty chemicals: Revenue grew 7.4% to RMB 1.97 billion; gross margin edged up to 28.6% (2024: 27.8%) amid new coolant launches and raw-material price declines. • Lithium carbonate processing: Revenue expanded to RMB 575.63 million, contributing a 15.8% gross margin.

Cost and Expenses • Cost of sales rose 8.7% to RMB 7.80 billion, below the pace of revenue growth. • Administrative expenses fell 17.8% to RMB 389.33 million on lower impairment and amortisation charges. • R&D spending eased 4.9% to RMB 460.92 million. • Finance costs increased 15.6% to RMB 299.09 million, reflecting higher borrowing-related expenses.

Balance Sheet and Liquidity • Total assets reached RMB 18.67 billion; total liabilities rose to RMB 14.89 billion, lifting the liability-to-asset ratio to 79.8%. • Net current liabilities narrowed to RMB 1.22 billion (2024: RMB 1.43 billion). • Interest-bearing borrowings inched up 1.6% to RMB 8.15 billion; gearing ratio rose to 394.3%, influenced by the issuance of convertible redeemable preferred shares.

Capital Expenditure and Investments • 2025 capex rose 57.5% to RMB 966.06 million, mainly for the 90,000-tonne LFP project in Indonesia. • Outstanding wealth-management and unlisted fund investments stood at RMB 501.20 million, or 2.68% of total assets.

Corporate Actions and Post-Balance-Sheet Events • PT LBM raised USD 200 million from Indonesian sovereign wealth fund INA and Aisis Alliance L.P., earmarked largely for Indonesia Phase 2 LFP capacity. • LG Energy Solution subscribed USD 15.97 million for a 20% stake in PT LBM to support Indonesia Phase 1 operations. • In June 2025, Lopal Tech placed 20 million new H shares, netting HKD 116.89 million for working capital, debt repayment and coolant-line upgrades. • After year-end, the Board approved a RMB 2.00 billion high-compaction LFP project in Jintan, Jiangsu, and granted 6.85 million share options under the 2025 incentive scheme.

Dividends No final dividend was proposed for 2025.

Governance The company reported full compliance with the Hong Kong Corporate Governance Code, save for combining the chairman and general manager roles, which the Board views as conducive to operational efficiency.

Audit & Review The Audit Committee reviewed the unaudited results; figures have been agreed with auditor Ernst & Young, though no formal audit opinion has yet been issued.

Outlook Management highlighted continued focus on R&D investment, overseas capacity ramp-up—particularly in Indonesia—balance-sheet optimisation and expansion of the high-performance LFP product line to support future growth.