CNGR Advanced Material Co., Ltd. (300919.SZ; 02579) released its 2025 annual report on the evening of March 30. The report indicates the company achieved annual revenue of 48.14 billion yuan, a year-on-year increase of 19.68%. Revenue has maintained consistent growth since its IPO, reflecting an expanding market presence. Net profit attributable to shareholders reached 1.567 billion yuan, a year-on-year increase of 6.84%, signaling a return to positive profit growth and an upward trend.

Amid an overall improvement in industry conditions during 2025, both production and sales volumes increased while profitability remained stable. The annual comprehensive gross margin was 12.34%, a slight increase of 0.2 percentage points compared to the previous year. The company's market share for its products further increased, effectively driving performance growth. In terms of sales, shipments of nickel, cobalt, phosphorus, and sodium-based product lines all achieved positive growth. Total product sales volume exceeded 420,000 tons, a significant expansion from the over 300,000 tons recorded in 2024. Revenue from nickel-based materials (ternary precursors), cobalt-based materials (cobalt tetroxide), and phosphorus-based materials (lithium iron phosphate) increased by 3.17%, 95.87%, and 130.30% respectively. Benefiting from strong demand for high-performance batteries in the 3C sector and robust growth in the energy storage market, the cobalt-based and phosphorus-based segments contributed significantly to performance. This highlights the increasing effectiveness of a diversified material portfolio as demand is no longer solely reliant on the new energy vehicle sector.

A clearer inflection point is visible on a quarterly basis, with a significant performance boost in the fourth quarter of 2025. Quarterly revenue reached 14.842 billion yuan, representing year-on-year and quarter-on-quarter growth of 47.54% and 23.95%, respectively. Net profit attributable to shareholders for Q4 was 455 million yuan, surging 217.24% year-on-year and increasing 19.65% quarter-on-quarter. According to an analysis by Soochow Securities, CNGR shipped 62,000 tons of ternary precursors in Q4 2025, up 13% from the previous quarter and over 50% year-on-year. Full-year ternary precursor shipments reached 214,000 tons, a 10% annual increase, with stable growth anticipated for 2026. Cobalt tetroxide shipments in Q4 2025 are estimated at 11,000 tons, up 22% quarter-on-quarter, with full-year shipments projected at 36,000 tons, a 17% annual increase. Regarding profitability, ternary precursor revenue for 2025 was 16.7 billion yuan, up 3% year-on-year, with a gross margin of 18.7%, an improvement of 1.3 percentage points. Profit per ton is estimated to exceed 6,000 yuan. For cobalt tetroxide, significant inventory gains were realized in 2025, with profit per ton estimated above 10,000 yuan, though profits had returned to reasonable levels by Q4. Soochow Securities forecasts that CNGR's ternary precursor business can maintain over 10% growth in 2026, while the cobalt tetroxide business remains stable. Overall, CNGR has largely navigated through the adjustment period in the new energy industry, with a confirmed inflection point towards an upward profit trend.

During the reporting period, CNGR's nickel and cobalt-based materials maintained a global leading position. The company has held the top market share for ternary precursors and cobalt tetroxide for six consecutive years. Breakthroughs were achieved in ultra-high nickel, medium-nickel high-voltage ternary materials, and high-voltage cobalt tetroxide technologies, ensuring self-sufficiency in key materials. Shipments of solid-state precursors reached the hundred-ton level, marking CNGR's entry into the large-scale application verification phase ahead of peers. The scale of phosphorus-based materials surged, with lithium iron phosphate production increasing over 200% year-on-year. The company secured the leading position in the merchant market for lithium iron phosphate shipments, established strategic partnerships with major battery manufacturers, secured upstream phosphate resources and commenced development. The rapid expansion of phosphorus-based material capacity coincides with booming downstream energy storage demand, positioning it as a major future profit growth driver. In sodium-based technology, a breakthrough was achieved as the "Development of Wide-Temperature-Range High-Performance Sodium-Ion Batteries" project was selected for a provincial major science and technology initiative. Two technical routes have achieved mass production, with annual shipments surpassing 1,000 tons, establishing a first-mover advantage ahead of the large-scale commercialization of sodium-ion batteries.

Based on its "New Four Modernizations" strategy, CNGR has successfully integrated its nickel-based material ecosystem. This enhances self-sufficiency in raw materials and provides flexibility to sell ferronickel, nickel matte intermediates, or further processed high-purity nickel plates based on market conditions. According to Soochow Securities analysis, the nickel segment achieved breakeven in 2025 with equity shipments of 100,000 tons of nickel metal from its smelting operations. Looking ahead to 2026, the gradual release of mining resources and the ramp-up of smelting capacity to full production are expected to create new profit growth points.

In the phosphorus-based materials sector, since entering the field in 2022, CNGR has leveraged its accumulated expertise and late-mover advantages. Significant progress has been made in establishing an integrated "mine-chemicals-materials-recycling" ecological loop. Soochow Securities estimates lithium iron phosphate shipments reached 167,000 tons in 2025, more than doubling year-on-year, with a loss of approximately 100 million yuan. Q4 shipments are estimated at 66,000 tons, up 28% year-on-year, with a loss of 20 million yuan. The supply-demand dynamic for lithium iron phosphate is expected to improve noticeably in 2026, with prices rising slightly, potentially leading to a turnaround to profitability. Shipments are forecast to reach 200,000 tons.

Rising nickel prices have contributed profit flexibility for CNGR, and the impending profitability of the phosphorus-based business, alongside multiple growth drivers, is expected to further enhance the company's profit performance in 2026. In the current era, characterized by technological and productivity innovation, intensified global resource competition, and energy transition accelerated by geopolitical conflicts, CNGR is at a critical turning point, shifting its focus from "volume growth" to "quality enhancement." Facing a new industrial cycle, the company is poised to achieve high-quality, leapfrog development by leveraging its comprehensive advantages in technology, resources, market presence, customer base, cost structure, and ecosystem.