Supported by a recovery in lithium prices and a resurgence in demand, Ganfeng Lithium Group Co.,Ltd. has seen a significant improvement in its first-half performance, moving from a loss to profitability.
Simultaneously, the optimization of lithium resource costs, increased output from its lithium battery business, and investment gains from the sale of a portion of its PLS Group Ltd shares have collectively driven a notable rise in the company's profits.
On July 14th, Ganfeng Lithium released its preliminary financial results for the first half of 2026, forecasting a net profit attributable to shareholders of between 3.65 billion and 4.6 billion yuan.
This marks a substantial turnaround from a loss of 531 million yuan in the same period last year.
The company also expects its adjusted net profit, which excludes non-recurring gains and losses, to range from 3 billion to 4.2 billion yuan, compared to a loss of 913 million yuan a year earlier.
According to the announcement, the performance growth is primarily attributed to increased demand for lithium compounds driven by the ongoing development of the global new energy industry, leading to a significant rise in the selling prices of lithium products compared to the previous year.
Additionally, the company's lithium resource projects have continued to ramp up production capacity with further cost optimization, and its lithium battery business has also achieved growth in both production and sales volume.
Furthermore, the recognition of investment income from the sale of some PLS shares, along with increased investment income from associates and joint ventures, also contributed to the profit growth.
Primary Business Sees Clear Profit Recovery
The announcement cites the rebound in lithium product prices as the primary reason for the improved performance.
Following a previous industry downturn, the lithium market's sentiment has notably improved due to sustained demand growth from downstream sectors like electric vehicles and energy storage, leading to significantly higher product prices and a restoration of the company's profitability.
At the same time, Ganfeng Lithium has been steadily advancing its global lithium resource portfolio in recent years, with several lithium mining and salt lake projects entering a phase of increased output.
This has gradually led to economies of scale and a further reduction in resource-side costs.
The combined effect of higher selling prices and lower costs has resulted in a clear recovery in the profitability of its lithium compounds business.
Beyond the lithium compounds segment, the lithium battery division has also become a significant pillar of performance growth.
The announcement states that during the reporting period, the production and sales volume of the company's lithium battery products increased significantly, with growing downstream demand in areas like energy storage further boosting the contribution from this business.
Investment Gains Provide Additional Profit Boost
Apart from the improvement in its core operations, investment income served as another important source of profit growth during this period.
The announcement disclosed that the company sold a portion of its held PLS shares during the reporting period, recognizing corresponding investment gains.
The company stated that this move was aimed at optimizing its asset structure and strengthening cash management.
Concurrently, investment income from associates and joint ventures also increased year-on-year, further adding to the overall profit.
Judging from the preliminary results, the projected net profit attributable to shareholders ranges from 3.65 billion to 4.6 billion yuan, while the adjusted net profit is forecast between 3 billion and 4.2 billion yuan.
The difference between these two figures mainly reflects the contribution of non-recurring gains, such as the sale of PLS shares, to the profit.
Overall, the company's performance improvement stems from both the recovery in profitability of its main business and the increase in investment income, with both factors jointly driving the return to profitability.
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