Lithium prices rebound and investment returns boost, Ganfeng Lithium expects to turn profitable in the first half of the year, with net profit up to 4.6 billion yuan｜Financial Report News

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Driven by the rebound in lithium prices and demand recovery, Ganfeng Lithium's performance in the first half of the year improved significantly, achieving a turnaround from losses to profits. Meanwhile, the optimization of lithium resource costs, increased volume in the lithium battery business, and investment gains from the partial sale of PLS equity together contributed to a notable increase in the company’s profits.

On July 14, Ganfeng Lithium released its 2026 half-year performance forecast, expecting net profit attributable to shareholders of 3.65 billion to 4.6 billion yuan in the first half of the year, compared to a loss of 531 million yuan in the same period last year; net profit after excluding non-recurring gains and losses is expected to be 3 billion to 4.2 billion yuan, compared to a loss of 913 million yuan in the same period last year.

According to the announcement, the growth in performance this period is mainly due to the ongoing development of the global new energy industry driving the growth in lithium salt demand, with lithium salt product prices rising significantly compared to the same period last year, and the company’s lithium resource projects continuously releasing capacity and further optimizing costs, with lithium battery business production and sales also increasing. In addition, the company confirmed investment gains from selling part of PLS Group Ltd (PLS) stock, and earnings from associated and joint ventures also contributed to the profits.

Lithium Price Recovery and Cost Optimization Drive Significant Profit Recovery in Core Business

The announcement attributes the primary reason for the performance improvement to the rebound in lithium salt product prices. After deep industry adjustment, with continued growth in downstream demand from new energy vehicles and energy storage, the lithium salt market has seen a clear improvement in prosperity, product prices have increased markedly compared to last year, and the company’s profitability has thus recovered.

At the same time, Ganfeng Lithium has continued to expand its global lithium resource layout in recent years, with multiple lithium mines and salt lake projects entering the ramp-up phase, producing scale effects and further reducing resource-side costs. With both product price recovery and cost optimization, the company’s lithium salt business profitability has notably recovered.

Besides the lithium salt business, the lithium battery sector has also become a key support for performance growth. The announcement notes that during the reporting period, the company’s lithium battery product output and sales increased significantly, with growth in downstream demand from energy storage further boosting related business contributions.

Sale of PLS Equity Boosts Profits, Non-Recurring Gains Increase

In addition to improvement in core business, investment income is also an important source of profit growth this period.

The announcement discloses that the company sold some of its holdings in PLS stock during the reporting period, realizing corresponding investment gains. The company stated that this move aims to optimize asset structure and strengthen cash management. Meanwhile, investment income from associated and joint ventures increased year-on-year, further enhancing overall profit.

From the performance forecast, net profit attributable to shareholders is expected to be 3.65 billion to 4.6 billion yuan, while net profit after exclusions is 3 billion to 4.2 billion yuan, with the difference mainly reflecting the contribution of non-recurring gains such as the sale of PLS equity. Overall, the company’s performance improvement this period stems both from recovery in core business profitability and increased investment income, both factors jointly driving the company’s return to profitability.

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