According to the Zhitong Finance App, China Graphite (02237) issued an announcement. The Group expects to obtain net profit after tax of about RMB 19 million to about RMB 22 million for the year ended December 31, 2023, a decrease of about 72.2% to 75.9% compared with net profit after tax of about RMB 79 million for the year ended December 31, 2022. The board of directors believes that the above is mainly due to competition in the Chinese automobile market. The lithium-ion battery industry grew rapidly throughout 2022, while growth leveled off throughout 2023, and the strategy of downstream customers to absorb their inventories, leading to increased market competition and price fluctuations for graphite products throughout 2023.
In the second half of 2023, in the context of the natural graphite industry entering an adjustment period, the Group actively increased sales and continued to promote cost reduction and efficiency. Revenue and profit performance in the second half of the year improved compared to the first half of the year, and changed from losses in the first half of the year to profits in the second half of the year. In the future, considering the characteristics of natural graphite's low cost of ownership and low energy consumption, while being more in line with China's “dual carbon” policy requirements, the Group remains optimistic about the long-term development of natural graphite, and will do its best to seize market opportunities, improve operating performance, and create greater value for shareholders.