Driven by Volume and Price Growth, Ganfeng Lithium Q1 Revenue Surges 144% YoY; Net Profit of RMB 1.84 Billion Marks Turnaround | Financial Report Insights

The recovery in the lithium industry's prosperity is fully reflected in Ganfeng Lithium's financial report.

On April 29, Ganfeng Lithium released its first-quarter report for 2026. During the period, the company achieved operating revenue of RMB 9.196 billion, a year-on-year increase of 143.81%; net profit attributable to shareholders of the listed company was RMB 1.837 billion, compared to a loss of RMB 356 million in the same period last year, representing a year-on-year increase of 616.34%. Net profit deducting non-recurring gains and losses was RMB 1.419 billion, compared to a loss of RMB 242 million in the same period last year, a year-on-year increase of 685.83%.

The core driver of this performance reversal lies in the simultaneous rise in volume and prices of lithium series products and lithium battery series products, with the company's financial report attributing the significant revenue growth to this factor. Basic earnings per share turned from a loss of RMB 0.18 in the same period last year to a profit of RMB 0.88; weighted average return on equity rose from -0.86% to 4.02%, indicating a significant repair in profitability.

From a cash flow perspective, the net cash flow from operating activities in the first quarter was RMB 787 million, compared to a net outflow of RMB 1.571 billion in the same period last year, a year-on-year improvement of 150.05%, mainly due to a substantial increase in cash received from sales of goods.

Revenue Increases 144% to RMB 9.2 Billion, Gross Margin Improves

Revenue for the quarter reached RMB 9.196 billion, an increase of 143.81% from RMB 3.772 billion in the same period last year. The company attributed this to the dual drivers of recovering lithium product prices and expanded sales volume. Notably, operating costs increased by 96.86% year-on-year to RMB 6.463 billion, a growth rate significantly lower than that of revenue, indicating a substantive improvement in gross margin and the gradual emergence of scale effects.

R&D investment maintains high-intensity expansion, with R&D expenses for the quarter amounting to RMB 359 million, a year-on-year increase of 88.57%, demonstrating the company's strategic determination to continue investing in battery technology and lithium resource development. Taxes and surcharges rose in sync with the surge in revenue, increasing by 309% year-on-year to RMB 105 million; selling expenses grew by 47.73%, both being natural reflections of business scale expansion.

Significant Contribution from Investment Side, Financial Asset Appreciation Boosts Profit Recovery

In addition to the recovery of the core business, the contribution from the investment side cannot be ignored. Investment income for the quarter reached RMB 317 million, a significant turnaround from a loss of RMB 6.59 million in the same period last year, representing a nearly 50-fold year-on-year increase, mainly stemming from a significant recovery in investment income from joint ventures and associates, as well as proceeds from the disposal of certain financial assets. Among these, investment income from associates and joint ventures alone amounted to RMB 189 million.

Gains from changes in fair value were RMB 217 million, also reversing from a loss of RMB 225 million in the same period last year, primarily due to the rise in the fair value of financial assets held by the company. Non-recurring gains and losses totaled approximately RMB 418 million, with gains from changes in fair value and disposal of financial assets contributing RMB 339 million, providing additional support to the overall net profit.

Balance Sheet: Significant Increase in Trading Financial Assets, Expansion of Short-term Financing Scale

On the asset side, trading financial assets at the end of the first quarter were RMB 307 million, an increase of 118.63% from the beginning of the year, mainly due to an increase in USD-denominated trading financial assets to hedge against exchange rate fluctuation risks. Receivables financing was RMB 2.737 billion, an increase of 76.73% from the beginning of the year, mainly due to an increase in bank acceptance bills received. Other receivables were RMB 829 million, a decrease of 42.68% from the beginning of the year, mainly due to the recovery of some receivable dividends.

On the liability side, other current liabilities were RMB 2.386 billion, an increase of 36.73% from the beginning of the year, mainly due to the issuance of new short-term financing bills during the period. Other non-current liabilities were RMB 1.177 billion, an increase of 52.34% from the beginning of the year, mainly due to changes in the fair value of derivative financial liabilities. Short-term borrowings were RMB 9.892 billion, a slight increase from the beginning of the year; long-term borrowings were RMB 17.970 billion, an increase of 11.31% from the beginning of the year.

Regarding owners' equity, net assets attributable to shareholders of the listed company were RMB 46.459 billion, an increase of 2.91% from the beginning of the year. Other comprehensive income was RMB 543 million, a decrease of 42.95% from the beginning of the year, mainly due to changes in foreign currency financial statement translation differences.

Operating Cash Flow Turns Significantly Positive, Investment and Financing Activities Remain Active

In the first quarter, the net cash flow from operating activities was RMB 787 million, compared to a net outflow of RMB 1.571 billion in the same period last year, mainly due to a substantial year-on-year increase in cash received from sales of goods. Cash received from sales of goods and provision of labor services was RMB 9.361 billion, compared to RMB 4.009 billion in the same period last year.

In terms of investment activities, the net outflow was RMB 727 million, compared to a net outflow of RMB 293 million in the same period last year, mainly due to an increase in cash paid for investments. Among these, cash received from recovery of investments was RMB 1.069 billion, and cash received from investment income was RMB 600 million.

In terms of financing activities, the net inflow was RMB 2.234 billion, compared to RMB 2.776 billion in the same period last year. Among these, cash received from borrowings was RMB 7.688 billion, and cash paid for debt repayment was RMB 5.171 billion.