Ganfeng Lithium Group Co.,Ltd. released its full-year 2025 financial report on March 30. The report indicates the company achieved annual operating revenue of 23.082 billion yuan, a year-on-year increase of 22.08%. Net profit attributable to shareholders of the listed company was 1.613 billion yuan, a significant turnaround from a loss of 2.074 billion yuan in the same period last year, representing a growth of 177.77%.
The core drivers of this performance reversal were twofold: firstly, a strong rebound in lithium product prices during the second half of the year, which restored the company's profitability; secondly, a substantial contribution from non-recurring gains and losses. During the reporting period, gains from the partial disposal of a stake in subsidiary Shenzhen Yi Chu and from associates, combined with fair value gains from the rising share price of held financial asset PLS, collectively contributed nearly 2 billion yuan in non-recurring items.
Quarterly performance showed a clear trend of sequential improvement. The company reported a net loss attributable to shareholders of 356 million yuan in the first quarter, which narrowed to a loss of 175 million yuan in the second quarter. A turnaround was achieved in the third quarter with a profit of 557 million yuan, further expanding to 1.587 billion yuan in the fourth quarter. Net profit after deducting non-recurring items also showed a quarterly recovery trend, reaching 557 million yuan in the fourth quarter, indicating a significant recovery in the profitability of its core operations against the backdrop of rising lithium prices.
Key financial data for 2025 is as follows: * Operating revenue: 23.082 billion yuan, up 22.08% year-on-year. * Net profit attributable to shareholders: 1.613 billion yuan, a turnaround from a loss of 2.074 billion yuan, up 177.77%. * Net profit after deducting non-recurring items: -385 million yuan, compared to -887 million yuan last year, a narrowing of the loss by 56.56%. * Net cash flow from operating activities: 2.945 billion yuan, down 42.94% year-on-year. * Basic earnings per share: 0.80 yuan.
Lithium prices declined initially but rose strongly later, with a powerful rebound in the second half driving the earnings recovery. The lithium industry underwent a deep adjustment in 2025. Prices fell continuously in the first half, with battery-grade lithium carbonate prices briefly falling below 60,000 yuan per ton in late June, hitting a new low since 2021. The market experienced a strong rebound in the second half; from mid-October to year-end, lithium carbonate prices surged over 60%. The core dynamic for the year's price trend revolved around the interplay between supply surplus and demand expectations, with energy storage emerging as the biggest demand highlight, driving rapid destocking of lithium salts.
The company's lithium series products business generated revenue of 12.876 billion yuan, up 7.16% year-on-year, with a gross margin of 15.52%, an improvement of 5.05 percentage points. The lithium battery series products business achieved revenue of 8.234 billion yuan, a sharp increase of 39.63%, with a gross margin of 14.60%, up 2.94 percentage points. Revenue from other businesses was 1.971 billion yuan, up 98.56%.
In terms of production and sales volume, the company sold 184,800 tonnes LCE of basic chemical materials, a year-on-year increase of 42.47%. Sales of power and energy storage batteries reached 17.82 GWh, surging 117.41%. Sales of consumer electronics batteries were 425 million units, up 27.32%.
The company is driven by both lithium batteries and solid-state batteries, with the low-altitude economy opening new opportunities. Its lithium battery business already covers over twenty products across five major categories, including solid-state lithium batteries, power batteries, consumer batteries, and energy storage batteries. In the power battery sector, a high-energy-density version of LFP commercial vehicle batteries broke through 193 Wh/kg, with battery system capacity covering 10 kWh to 1000 kWh. In energy storage, the 314Ah cell saw continuous volume shipments, and the company completed the development of large-capacity 392Ah and 588Ah cells.
Regarding solid-state batteries, the company has become the only player in the industry with integrated capabilities across the upstream and downstream solid-state battery chain. The cycle life of its 400 Wh/kg battery has surpassed 1,100 cycles, and the world's first 500 Wh/kg-class 10Ah product has achieved small-batch mass production. In the low-altitude economy sector, the high-specific-energy eVTOL battery developed by Zhejiang Feng Lithium has been installed on the Afeela AE200-100 model and completed its first phase of manned test flights in December 2025.
The company's energy storage business is also advancing, with mass production of the standard 5MWh energy storage cabin and the launch of a 6.25MWh containerized energy storage system. It has also reached a cooperation agreement with Électricité de France for an energy storage power station project.
The company is deepening its resource-side layout, with the self-sufficiency rate of lithium resources continuously improving. Adhering to a global resource strategy, the company held direct or indirect interests in lithium resources totaling over 100 million tonnes LCE globally by the end of the reporting period. Key projects include the Mount Marion spodumene project in Australia, in which it holds a 50% stake; a beneficiation process upgrade is planned for 2026, with capacity expected to increase to 600,000 tonnes of high-quality concentrate by the end of 2027. The first phase of the Cauchari-Olaroz lithium brine project in Argentina has an annual capacity of 40,000 tonnes of lithium carbonate, producing 34,100 tonnes in 2025; an environmental impact assessment application has been submitted for the second phase of 45,000 tonnes. The first phase of the Goulamina spodumene project in Mali is operational, producing 336,600 tonnes of concentrate in 2025, with the company holding a 65% stake.
Domestic resource development is also accelerating. The first-phase 600,000 tonnes per year mining and processing project at the Inner Mongolia Mengjin Mining Li-Ta mine has begun trial production and achieved designed monthly capacity, with full production expected in 2026. The mining permit change for the Jiangxi Shangrao Songshugang Ta-Nb mine project has been completed.
By the end of the reporting period, the company's existing lithium salt production capacity layout included: the 10,000-tonne Lithium Salt Plant with 81,000 tonnes/year lithium hydroxide and 15,000 tonnes/year lithium carbonate; Ningdu Ganfeng with 20,000 tonnes/year lithium carbonate; Argentina Cauchari-Olaroz with 40,000 tonnes/year lithium carbonate; and Sichuan Ganfeng with 25,000 tonnes/year lithium carbonate and 25,000 tonnes/year lithium hydroxide.
The company maintains a robust financial structure with ample cash. Total assets reached 113.258 billion yuan by the end of 2025, an increase of 12.32% from the end of the previous year. Net assets attributable to shareholders were 45.145 billion yuan, up 8.05% year-on-year. The asset-liability ratio was 54.23%, slightly higher than at the end of the previous year. Monetary funds stood at 8.422 billion yuan, an increase of 41.66%.
Net cash flow from operating activities was 2.945 billion yuan, a decrease of 42.94% year-on-year, mainly due to increased cash payments for goods and services. Net cash flow used in investing activities was -4.407 billion yuan, a narrowing of 64% compared to the previous year, primarily due to controlled capital expenditures and dividends received from associates. Net cash flow from financing activities was 3.720 billion yuan, an increase of 7.91%.
The company proposed a cash dividend of 1.5 yuan per 10 shares (tax inclusive) to all shareholders, with an expected total distribution of approximately 315 million yuan, accounting for 19.50% of the net profit attributable to shareholders. The company has also formulated a shareholder return plan for the next three years, stipulating that, provided conditions for cash dividends are met, the annual cash dividend will not be less than 10% of the distributable profit for the year.
Comments