Hubei Wanrun New Energy Technology Co.,Ltd. (688275.SH) has released its annual performance forecast for 2025, anticipating a net profit attributable to the parent company's owners in the range of -480 million yuan to -400 million yuan.
Compared with the same period last year, the loss has decreased by 390.3709 million yuan to 470.3709 million yuan, representing a year-on-year improvement of 44.85% to 54.04%.
During the reporting period, the analysis of the company's performance fluctuations is as follows.
Regarding the volume and price of main products, the company actively developed new products and expanded its sales market during the reporting period, achieving a substantial year-on-year increase in the sales volume of its main product, lithium iron phosphate.
Although the average annual price of its key raw material, lithium carbonate, decreased year-on-year, leading to a corresponding reduction in product selling prices, the company's capacity utilization rate improved significantly, and the scale effect of its production lines became apparent, driving the cost reduction per ton to slightly exceed the decline in revenue, thereby causing the gross profit margin of its main product, lithium iron phosphate, to recover compared to the same period last year.
In terms of inventory management, since the second half of 2025, the market price of the company's main raw material, lithium carbonate, has shown an upward trend.
By strengthening inventory management and continuously promoting cost reduction and efficiency enhancement measures, the company expects the provision for inventory decline in 2025 to decrease year-on-year, leading to a narrowing of the overall performance loss compared to the same period last year.
For some of its lithium carbonate procurement businesses, the company adopts a price-point settlement model.
At the time it obtains control of the goods, the company records the raw material procurement amount based on the price on the date of control transfer, calculated according to the mutually agreed price adjustment mechanism; after obtaining control of the raw materials, changes in payments calculated according to the price adjustment mechanism are recorded in the current period's profit or loss.
Influenced by the rapid rise in lithium carbonate prices during the fourth quarter, the company recognized the aforementioned fair value change losses in accordance with the provisions of the Chinese Accounting Standards for Business Enterprises and reported them as non-recurring gains or losses.
Comments