On January 15, Guangdong TONZE Electric CO., LTD released its 2025 annual performance forecast, projecting a net profit attributable to shareholders of the listed company to be between Yuan 70 million-105 million, compared to a net loss of Yuan 1.361 billion in the same period last year.
Driven by rapidly growing demand in the electric vehicle and energy storage markets, the company's main product, LiPF6, experienced a sales price increase in the fourth quarter of 2025. This helped restore the company's profitability, with Q4 not only generating profits but also offsetting the losses incurred in the first three quarters, resulting in a full-year turnaround to profitability. Meanwhile, adhering to the principle of honoring contracts, the company executed some long-term low-price orders as agreed, which to some extent impacted its overall profitability.
Additionally, the market conditions for sodium hypophosphite, a key product of the company's subsidiary Changshu New-Tech Chemicals Co., Ltd., improved in the fourth quarter of 2025. The increase in sales price and higher gross margin helped end the loss-making situation for this major product, contributing significantly to the company's overall performance.
Note: The net loss in Q3 was Yuan 49.11 million. Based on this, the estimated net profit for Q4 ranges from Yuan 172 million to 207 million, indicating a quarter-on-quarter turnaround to profitability.
Edited by Cassie Li, lixiangying@mysteel.com
