China Graphite Swings to Profit in FY2025 on Cost Controls; Revenue Up 7.4%

Bulletin Express03-26 23:04

China Graphite (02237) reported FY2025 revenue of RMB152.92 million, a 7.4% increase year-on-year, driven mainly by stronger sales of unprocessed marble.

\n\nNet profit reached RMB4.91 million, reversing the prior-year loss of RMB12.50 million. Gross profit rose 8.1% to RMB44.94 million, with gross margin edging up to 29.4% (2024: 29.2%). The turnaround was attributed to cost-reduction and efficiency measures that lowered administrative expenses and improved production economics.

\n\nSegment performance showed flake graphite concentrate contributing 71.5% of total revenue at RMB109.31 million, up 0.3% year-on-year, with a 37.8% gross margin. Spherical graphite and by-products generated RMB28.65 million, down 2.7%, posting an 11.3% margin after additional purification costs. Unprocessed marble revenue surged to RMB14.96 million from RMB3.97 million, lifting its segment to a 2.4% gross margin versus a loss a year earlier.

\n\nCash and cash equivalents stood at RMB50.46 million (2024: RMB32.48 million), while interest-bearing borrowings were RMB88.59 million. The gearing ratio improved to 8.0% from 9.8%, and net current assets totalled RMB73.20 million. Total assets increased to RMB598.24 million.

\n\nThe board recommended no final dividend, consistent with the previous year.

\n\nOperationally, graphite product output rose to 59,900 tonnes, as improved ore quality lifted flake graphite concentrate production and reduced unit costs. The company invested RMB26.5 million to advance its Beishan Mine beneficiation plant and processing facility, and continues preparations to expand annual permitted mining capacity beyond the current 500,000 tonnes.

\n\nLooking ahead, management will maintain cost discipline, pursue mine development approvals, and monitor market conditions while focusing on high-value natural graphite opportunities.

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