CNGR Advanced Material (02579) 2025 Annual Report: Significant results in diversified material systems, transitioning from "incremental" development to "quality improvement" development.

On the evening of March 30, CNGR Advanced Material (300919.SZ; 02579) released its annual report for 2025. Data shows that CNGR Advanced Material achieved a total revenue of 48.14 billion yuan in the whole year, a year-on-year increase of 19.68% compared to the previous year. Since its listing, the revenue has continued to grow year on year, expanding its development space. The net profit attributable to the parent company reached 1.567 billion yuan, a year-on-year increase of 6.84%. The profit growth rate has returned to a positive trend, trending upwards once again. As the overall production and sales warmed up in 2025, the profitability remained stable. The comprehensive gross profit margin for the whole year was 12.34%, an increase of 0.2 percentage points compared to the previous year. The market share of products further increased, effectively driving performance growth. On the sales side, the shipment volume of nickel, cobalt, phosphorus, and sodium products achieved positive growth, with product sales exceeding 420,000 tons, a significant increase from the over 300,000 tons level in 2024. The sales revenue of nickel materials (tri-element precursor), cobalt materials (cobalt oxide), and phosphorus materials (iron phosphate) increased by 3.17%, 95.87%, and 130.30%, respectively. This was due to the high-performance battery demand in the 3C field and the high level of activity in the energy storage market. The cobalt and phosphorus material sectors made significant contributions to performance, as the diversified material system became more prominent in the face of demand no longer solely relying on new energy vehicles. Looking at the quarterly data, signs of a turning point became clearer, with a significant boost in performance in Q4 of 2025. The revenue for the quarter was 14.842 billion yuan, with a year-on-year/half-year increase of 47.54%/23.95%. The net profit attributable to the parent company in Q4 was 0.455 billion yuan, with a year-on-year/half-year increase of 217.24%/19.65%. According to a research report by Soochow, in Q4 of 2025, CNGR Advanced Material shipped 62,000 tons of tri-element precursors, an increase of 13% compared to the previous quarter and over 50% year-on-year. The total shipment of tri-element materials for the year was 214,000 tons, a 10% increase from the previous year, with expectations of maintaining stable growth in 2026. The estimated shipment of cobalt oxide in Q4 of 2025 was 11,000 tons, an increase of 22% compared to the previous quarter. The total estimated shipment for the year was 36,000 tons, a 17% increase year-on-year. Soochow also predicted that in 2026, CNGR Advanced Material's tri-element precursors could maintain growth of over 10%, while cobalt oxide would remain stable. Overall, CNGR Advanced Material has largely passed through the adjustment period of the new energy industry, with the turning point of profitability trending upwards established. The material system shows effectiveness, with multiple profit drivers in the future During the reporting period, CNGR Advanced Material's nickel and cobalt materials took the lead globally, with tri-element precursors and cobalt oxide market shares ranking first in the industry for six consecutive years. Breakthroughs were made in ultra-high nickel, medium nickel high-voltage tri-element materials, and high-voltage cobalt oxide technologies, achieving independent control over key materials. Shipments of solid-state precursors reached the hundred-ton level, marking CNGR Advanced Material's entry into the large-scale application validation stage in the industry. The scale of phosphorus materials surged, with iron phosphate production increasing by over 200% year-on-year. Shipments of iron phosphate products led the foreign sales market, with strategic partnerships established with multiple leading battery companies in the upstream phosphorus mine resources and development initiated. The rapid expansion of phosphorus material production capacity coincides with the outbreak of downstream energy storage demand, becoming an important profit growth driver in the future. Sodium technology breakthroughs were achieved, with "wide-temperature high-performance sodium-ion battery research and development" included in provincial major scientific research projects. Both technology routes have already achieved mass production, with total shipments exceeding a thousand tons for the year, establishing a leading position in sodium-ion battery large-scale commercial applications before actual commercialization. Based on the "New Four Modernizations" strategy, CNGR Advanced Material's nickel material ecological chain was the first to be established, elevating the self-supply level of raw materials and allowing for flexible selection of nickel-iron, nickel-cobalt intermediate products, or further processing into high-purity nickel plates for external sales according to market conditions. According to Soochow's analysis, the nickel sector in 2025 saw a shipment of 100,000 tons of metallic nickel from the smelting end, reaching a breakeven point. Looking forward to 2026, with the gradual release of the company's mineral resource layout and smelting end capacity climbing to full production, new profit growth points are expected. In terms of phosphorus materials, CNGR Advanced Material entered the phosphorus materials field in 2022, leveraging its accumulated advantages in the materials sector. Exploiting the advantages of being a latecomer, progress has been made in the "mine-chemical-material-recycling" ecological closed loop. According to Soochow's statistics, iron phosphate shipments reached 167,000 tons in 2025, more than doubling year-on-year, with a loss of approximately 100 million yuan. Q4 is expected to see shipments of 66,000 tons, a 28% increase year-on-year, with a loss of 20 million yuan. The supply and demand for iron phosphate have significantly improved in 2026, with prices expected to rise slightly, leading to a reversal of losses and an estimated shipment volume of 200,000 tons. The rise in nickel prices has contributed to profit elasticity for CNGR Advanced Material, and the phosphorus business is on the verge of turning losses around. With multiple drivers in play, the profit performance in 2026 is expected to further improve. In the current era of technological and productivity innovation, intensifying global resource competition, and geopolitical conflicts driving energy transition, CNGR Advanced Material has reached a key turning point from "incremental" to "qualitative" growth. Facing a new industrial cycle, CNGR Advanced Material will leverage its comprehensive advantages in technology, resources, market, customers, costs, and ecology to achieve high-quality, leapfrog development.