Ganfeng Lithium's revenue in the first half of the year decreased by 12.65% year-on-year, net profit loss narrowed, and lithium battery revenue increased by 9.89% | Financial Report Insights

Ganfeng Lithium's revenue in the first half of 2025 decreased by 12.65% year-on-year, with a net profit of -531 million yuan, an improvement of 30.13% year-on-year. The lithium compound business accounted for 56.78% of operating revenue, a year-on-year decrease of 27.16%, mainly affected by the decline in lithium prices. Revenue from the lithium battery business increased by 9.89% year-on-year.

On the 22nd, Ganfeng Lithium released its semi-annual financial report for 2025:

• Operating Revenue: 8.376 billion yuan, a year-on-year decrease of 12.65%
• Net Profit Attributable to Shareholders: -531 million yuan, a year-on-year improvement of 30.13%
• Net Profit Excluding Non-recurring Items: -913 million yuan, a significant year-on-year decline of 469.14%
• Gross Margin: 11.14%, a slight increase from 10.78% in the same period last year
• Net Assets: 40.221 billion yuan, a decrease of 3.74% from the beginning of the year

Core Business Progress

• Lithium Salt Production Capacity: Designed capacity exceeds 200,000 tons LCE, with the Sichuan Ganfeng 50,000-ton lithium salt project put into production
• Lithium Battery Business: Designed capacity of approximately 67 GWh, with 587 Ah large-capacity energy storage cells achieving mass production
• Resource Self-sufficiency Rate: Expected to exceed 50% in 2025, covering multiple high-quality lithium resource projects globally
• Solid-state Batteries: Comprehensive layout of three major categories of cells, with orders obtained in fields such as low-altitude economy

Sharp Decline in Lithium Prices Impacting Revenue

In the first half of 2025, the global lithium salt industry underwent deep adjustments. Affected by changes in supply and demand dynamics, lithium compound prices showed an overall downward trend, falling from $850-900/ton at the beginning of the year to $620-640/ton in June, a decline of 25%-31%. This market environment directly impacted the company's operating performance.

Despite facing industry challenges, the company's vertical integration advantage remains evident. As the only company in the world with industrialized technologies for "brine lithium extraction," "ore lithium extraction," and "recycling lithium extraction," the company maintains a leading position in cost control and technological barriers.

The financial report shows that the company's lithium compound business accounted for 56.78% of operating revenue, a year-on-year decrease of 27.16%, mainly affected by the decline in lithium prices. However, the company actively responded through technological upgrades and process optimization, maintaining a gross margin at the level of 8.36%.

The lithium battery business performed relatively well, with operating revenue of 2.975 billion yuan, a year-on-year increase of 9.89%, and its proportion rising to 35.52%. In particular, the mass production of 587 Ah large-capacity energy storage cells demonstrated the company's technological strength in the energy storage field.

Building a "Moat" with Solid-state Batteries and Resource Advantages

The company's global lithium resource layout has been further improved, with direct or indirect rights to lithium resources exceeding 60 million tons LCE. The first phase of the Mali Goulamina project has been put into production, and the Argentine Mariana project is ramping up capacity, with the resource self-sufficiency rate expected to exceed 50% in 2025, significantly higher than the industry average The company has made significant breakthroughs in solid-state battery technology:

• The room temperature ionic conductivity of sulfide electrolytes has reached >8mS/cm
• The thickness of the oxide solid electrolyte ceramic membrane is controlled to be below 25μm
• The energy density of high specific energy batteries covers the range of 320-550Wh/kg
• Collaborations have been established with well-known drone and eVTOL companies

It is important to note that the lithium price volatility risk remains the biggest challenge. The company manages price risks through futures hedging, but during the reporting period, the lithium carbonate hedging business still incurred a loss of 74.13 million yuan