Turning losses into profits! Ganfeng Lithium expects a net profit attributable to shareholders of RMB 1.1 billion to 1.65 billion in 2025, with fair value changes contributing over RMB 1 billion | Financial Report Insights
Ganfeng Lithium is expected to achieve a net profit attributable to shareholders of RMB 1.1 billion to 1.65 billion in 2025, successfully turning a profit. The main reason for the growth is the fair value gain of RMB 1.03 billion and asset transfer income resulting from the rise in Pilbara's stock price. However, after excluding non-recurring items, there is still a loss of RMB 300 million to 600 million, indicating that the main business remains under pressure
Lithium industry leader Ganfeng Lithium expects to achieve a net profit of 1.1 billion to 1.65 billion yuan in 2025, turning from loss to profit year-on-year, but will still incur a loss of 300 million to 600 million yuan after deducting non-recurring gains and losses, as the company's main business continues to face pressure.
On January 28, Ganfeng Lithium released a performance forecast showing:
- Net profit attributable to shareholders of the listed company: The expected profit for this reporting period is 1.1 billion to 1.65 billion yuan. The loss in the same period last year was 2.074 billion yuan, an increase of 153.04% to 179.56% compared to the same period last year.
- Net profit after deducting non-recurring gains and losses: The expected loss for this reporting period is still in the range of 300 million to 600 million yuan. The loss in the same period last year was 888 million yuan.
- Basic earnings per share: The expected profit for this reporting period is 0.55 yuan/share to 0.82 yuan/share. The loss in the same period last year was 1.03 yuan/share.
The company stated that the turnaround to net profit mainly relies on the fair value change gains of approximately 1.03 billion yuan from the increase in the stock price of Pilbara Minerals Limited held, as well as investment income from the sale of subsidiary equity. These are all classified as non-recurring gains and losses.
Fluctuations in Financial Assets Contribute to Main Profits
The company also disclosed that, according to the provisions of enterprise accounting standards, the convertible corporate bonds issued in H-shares during the reporting period were overall designated as financial liabilities measured at fair value, with changes included in the current profit and loss. Due to the significant increase in the company's stock price and the exercise of conversion rights by the majority of bondholders, a corresponding fair value change loss was recognized in this period.
In addition, the company confirmed corresponding investment income by transferring part of the equity of its controlling subsidiary Shenzhen Yichu Smart Source Group Co., Ltd. and successfully introducing strategic investors
