Lithium Prices Recover and Non-Recurring Gains Contribute, Ganfeng Lithium Turns Profitable in 2025 with Net Profit Attributable To Parent Company Surging 178% | Earnings Insights

On March 30, Ganfeng Lithium released its 2025 annual report. The report shows that the company achieved an 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, turning a profit compared to a loss of 2.074 billion yuan in the same period last year, a year-on-year increase of 177.77%.

The core drivers of the performance turnaround came from two aspects: first, the strong rebound in lithium product prices in the second half of the year, which drove the recovery of the company's profitability; second, significant contributions from non-recurring gains and losses. During the reporting period, the disposal of part of the equity in its subsidiary Shenzhen Yichu and gains from associates, combined with fair value change gains from the rising stock price of its financial asset PLS, contributed nearly 2 billion yuan in non-recurring gains and losses.

From the perspective of quarterly performance, the company's operations showed a clear trend of sequential improvement quarter by quarter. Net Profit Attributable To Parent Company in the first quarter was a loss of 356 million yuan, the loss narrowed to 175 million yuan in the second quarter, it turned a profit of 557 million yuan in the third quarter, and the profit further expanded to 1.587 billion yuan in the fourth quarter. Net Profit After Deducting Non-Recurring Gains and Losses also showed a sequential recovery trend, reaching 557 million yuan in the fourth quarter, indicating that the profitability of the main business recovered significantly against the backdrop of rising lithium prices.

Core financial data are as follows:

• Realized operating revenue of 23.082 billion yuan in 2025, a year-on-year increase of 22.08%;
• Net profit attributable to shareholders of the listed company was 1.613 billion yuan, turning a profit compared to -2.074 billion yuan in the same period last year, a year-on-year increase of 177.77%;
• Net Profit After Deducting Non-Recurring Gains and Losses was -385 million yuan, compared to -887 million yuan in the same period last year, with the loss narrowing by 56.56%;
• Net cash flow from operating activities was 2.945 billion yuan, a year-on-year decrease of 42.94%. Basic earnings per share was 0.80 yuan.

Lithium prices fell then rose, with a strong rebound in the second half driving performance recovery

The lithium industry underwent a deep adjustment in 2025. Lithium prices continued to fall in the first half of the year, with battery-grade lithium carbonate prices briefly dropping below 60,000 yuan/ton in late June, a new low since 2021. The market saw a strong rebound in the second half, with lithium carbonate prices rising over 60% from mid-October to the end of the year. The core conflict in lithium price trends throughout the year revolved around the game between oversupply and demand expectations, with energy storage becoming the biggest demand highlight of the year, driving rapid inventory reduction of lithium salts.

The company's lithium series products business achieved operating revenue of 12.876 billion yuan, a year-on-year increase of 7.16%, with a gross profit margin of 15.52%, up 5.05 percentage points from the previous year. The lithium battery series products business achieved operating revenue of 8.234 billion yuan, a significant year-on-year increase of 39.63%, with a gross profit margin of 14.60%, up 2.94 percentage points. Other business revenue was 1.971 billion yuan, a year-on-year increase of 98.56%.

In terms of production and sales, the company's sales volume of basic chemical materials was 184,800 tons of LCE, a year-on-year increase of 42.47%; sales volume of power and energy storage batteries was 17.82 GWh, a year-on-year surge of 117.41%; and sales volume of consumer electronics batteries was 425 million units, a year-on-year increase of 27.32%.

Dual drive of lithium batteries and solid-state batteries, low-altitude economy opens new space

The company's lithium battery business now covers five major categories and over twenty types of products, including solid-state lithium batteries, power batteries, consumer batteries, and energy storage batteries. In the power battery sector, the high-energy-density version of lithium iron phosphate commercial vehicle batteries broke through 193 Wh/kg, with battery system capacities ranging from 10 kWh to 1000 kWh. In the energy storage sector, 314 Ah cells continued to be shipped in large volumes, and the company completed the development of large-capacity 392 Ah and 588 Ah cells.

Regarding solid-state batteries, the company has become the only enterprise in the industry with integrated upstream and downstream capabilities for solid-state batteries. The cycle life of 400 Wh/kg batteries has exceeded 1,100 cycles, and the world's first 500 Wh/kg-class 10 Ah 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 Aerofugia AE200-100 model and completed its first phase of manned test flights in December 2025.

The company's energy storage business is also gaining momentum, with mass production of 5 MWh standard energy storage containers and the launch of a 6.25 MWh containerized energy storage system, along with a partnership with Électricité de France (EDF) on energy storage power station projects.

Deepening resource-end layout, lithium resource self-sufficiency rate continues to rise

The company adheres to a global resource layout, holding direct or indirect interests in lithium resources totaling over 100 million tons of LCE globally as of the end of the reporting period. Among major projects, the company holds a 50% stake in the Mount Marion spodumene project in Australia, where a mineral processing technology upgrade is planned for 2026, with capacity expected to reach 600,000 tons of high-quality concentrate by the end of 2027. Phase I of the Cauchari-Olaroz lithium salt lake project in Argentina has an annual capacity of 40,000 tons of lithium carbonate, producing 34,100 tons in 2025, while Phase II (45,000 tons) has submitted its environmental impact assessment application. Phase I of the Goulamina spodumene project in Mali has entered production, outputting 336,600 tons of concentrate in 2025, with the company holding a 65% stake.

The company's domestic resource layout is also accelerating, with trial production and a single-month target achievement at Phase I (600,000 tons/year mining and processing) of the Mengjin Mining Kalix-Tantalum project in Inner Mongolia, expected to reach full capacity in 2026. The Songshugang tantalum-niobium mine project in Shangrao, Jiangxi, has completed the modification of its mining permit.

As of the end of the reporting period, the company's existing lithium salt capacity layout includes: 81,000 tons/year of lithium hydroxide and 15,000 tons/year of lithium carbonate at the Wanhui Lithium Salt Plant; 20,000 tons/year of lithium carbonate at Ningdu Ganfeng; 40,000 tons/year of lithium carbonate at Cauchari-Olaroz, Argentina; and 25,000 tons/year of lithium carbonate and 25,000 tons/year of lithium hydroxide at Sichuan Ganfeng, among others.

Stable financial structure, ample cash flow

As of the end of 2025, the company's total assets were 113.258 billion yuan, an increase of 12.32% from the end of the previous year; net assets attributable to shareholders of the listed company were 45.145 billion yuan, a year-on-year increase of 8.05%. The asset-liability ratio was 54.23%, up slightly from the end of the previous year. Cash and bank balances were 8.422 billion yuan, a year-on-year increase of 41.66%.

Net cash flow from operating activities was 2.945 billion yuan, a year-on-year decrease of 42.94%, mainly due to an increase in cash paid for purchasing goods and receiving labor services. Net cash flow from investing activities was -4.407 billion yuan, narrowing by 64% year-on-year, mainly due to controlled capital expenditures and dividends received from associates. Net cash flow from financing activities was 3.720 billion yuan, a year-on-year increase of 7.91%.

The company plans to distribute a cash dividend of 1.5 yuan (including tax) for every 10 shares to all shareholders, with an estimated total dividend of approximately 315 million yuan, accounting for 19.50% of the Net Profit Attributable To Parent Company. The company has also formulated a shareholder return plan for the next three years, specifying that, provided cash dividend conditions are met, the annual cash dividend will be no less than 10% of the distributable profit realized in that year.