Lithium prices rebound coupled with non-recurring gains, Ganfeng Lithium turns profitable by 2025, with net profit attributable to shareholders soaring 178% | Financial Report Insights

March 30, Ganfeng Lithium released its 2025 annual report. The financial statement shows that for the full year, the company achieved operating revenue of 23.082 billion yuan, up 22.08%; net profit attributable to shareholders of listed companies was 1.613 billion yuan, compared with a loss of 2.074 billion yuan in the same period last year, turning a loss into a profit, up 177.77%.

The core driving forces behind the turnaround in performance come from two aspects: first, lithium product prices rebounded strongly in the second half, driving the company’s profitability recovery; second, non-recurring gains and losses contributed significantly. During the reporting period, the company disposed of part of its equity in Shenzhen Yichu and generated gains from an associate company, and these were combined with fair value changes in the financial assets held, brought by the rise in the PLS stock price, resulting in a total contribution to non-recurring gains and losses of nearly 2 billion yuan.

In terms of quarterly performance, the company’s operations show a clear trend of sequential improvement. In the first quarter, net profit attributable to shareholders was a loss of 356 million yuan; in the second quarter, the loss narrowed to 175 million yuan; in the third quarter, the company turned a loss into a profit with 557 million yuan; and in the fourth quarter, profit expanded further to 1.587 billion yuan. Net profit after excluding non-recurring items also shows a similar sequential recovery trend: in the fourth quarter, it was 557 million yuan, indicating that the company’s core business profitability recovered significantly in the context of lithium price rebounds.

Key financial data are as follows:

In 2025, operating revenue was 23.082 billion yuan, up 22.08%;

Net profit attributable to shareholders of listed companies was 1.613 billion yuan, turning a loss into a profit compared with -2.074 billion yuan in the same period last year, up 177.77%;

Net profit after deducting non-recurring gains and losses was -385 million yuan, compared with -887 million yuan in the same period last year, with losses narrowing by 56.56%;

Net cash flow from operating activities was 2.945 billion yuan, down 42.94% year over year. Basic earnings per share were 0.80 yuan.

Lithium prices suppressed first, then rebounded; performance recovery driven by a strong rebound in the second half

In 2025, the lithium industry underwent a deep adjustment. Lithium prices fell continuously in the first half; the battery-grade lithium carbonate price once dipped below 60,000 yuan per ton in the latter part of June, reaching the lowest level since 2021. In the second half, the market saw a strong rebound. From mid-October to year-end, the lithium carbonate price rose by more than 60%. The key contradiction in the full-year lithium price trend revolved around the tug-of-war between oversupply and demand expectations. Energy storage became the brightest demand highlight of the year, driving rapid inventory destocking of lithium salts.

The company’s lithium-series product business achieved operating revenue of 12.876 billion yuan, up 7.16%, with a gross margin of 15.52%, up 5.05 percentage points from the previous year. The lithium battery series product business achieved operating revenue of 8.234 billion yuan, up significantly 39.63% year over year, with a gross margin of 14.60%, up 2.94 percentage points. Revenue from other businesses was 1.971 billion yuan, up 98.56%.

In terms of production and sales, the company’s sales volume of basic chemical materials was 1.848 million tons of LCE, up 42.47%; sales volume of motive power and energy storage batteries was 17.82 GWh, surging 117.41% year over year; sales volume of consumer electronics batteries was 425 million units, up 27.32%.

Lithium batteries and solid-state batteries as dual engines; low-altitude economy opens new space

The company’s lithium battery business already covers five major categories, including solid-state lithium batteries, motive power batteries, consumer batteries, and energy storage batteries, among more than 20 types of products. In the motive power battery sector, the commercial vehicle battery for lithium iron phosphate, high-energy-density version, broke through 193Wh/kg, with battery system electric capacity covering 10kWh–1000kWh. In the energy storage sector, the 314Ah cells continued to ramp up shipments, and the company completed development of high-capacity cells of 392Ah and 588Ah.

In the solid-state battery segment, the company has become the only enterprise in the industry that possesses integrated upstream-and-downstream capabilities for solid-state batteries. The 400Wh/kg battery’s cycle life exceeded 1,100 cycles. The world’s first 10Ah product in the 500Wh/kg class achieved small-batch production. In the low-altitude economy sector, the high–energy-density eVTOL battery developed by Zhejiang Fengli has been installed on the Wofei Changkong AE200-100 model and completed the first-stage manned test flight in December 2025.

The company is also strengthening its energy storage business in parallel: large-scale mass production of the 5MWh standard energy storage container, the launch of the 6.25MWh containerized energy storage system, and collaboration with EDF Group on an energy storage power station project.

Deepening deployment at the resource end; lithium resource self-sufficiency continues to rise

The company adheres to global resource allocation. As of the end of the reporting period, the company directly or indirectly held total lithium resource interests of more than 100 million tons of LCE worldwide. Among the major projects, the Mount Marion lithium spodumene project in Australia has a 50% stake. In 2026, it plans to upgrade the beneficiation process, and it is expected that by the end of 2027, capacity will be increased to 600,000 tons of high-quality concentrate. The Cauchari-Olaroz lithium salt lake project in Argentina’s Phase I has an annual output of 40,000 tons of lithium carbonate; in 2025 it produced 34.1 thousand tons. The Phase II, 45,000 tons, has had an environmental impact assessment application submitted. The Goulamina lithium spodumene project in Mali has already commenced operations for Phase I. In 2025, it produced 3.366 million tons of concentrate, and the company holds a 65% stake.

The company is also accelerating resource deployment in China. In Inner Mongolia Mengjin Mining Co., Ltd., the Phase I 600,000-ton-per-year mining and beneficiation project of the lithium-tantalum ore project has entered trial production and achieved full production on a monthly basis. It is expected to achieve full capacity in 2026. The mining permit change has been completed for the Songshugang tantalum-niobium mine project in Shangrao, Jiangxi.

As of the end of the reporting period, the company’s existing layout for lithium salt production capacity includes: the 81,000 tons/year lithium hydroxide plant; 15,000 tons/year lithium carbonate plant; Ningdu Ganfeng lithium carbonate 20,000 tons/year; Argentina’s Cauchari-Olaroz lithium carbonate 40,000 tons/year; Sichuan Ganfeng lithium carbonate 25,000 tons/year and lithium hydroxide 25,000 tons/year, etc.

Robust financial structure; ample cash flow

As of the end of 2025, the company’s total assets were 113.258 billion yuan, up 12.32% from the end of the prior year; net assets attributable to shareholders of listed companies were 45.145 billion yuan, up 8.05%. The asset-liability ratio was 54.23%, slightly higher than at the end of the prior year. Cash and cash equivalents were 8.422 billion yuan, up 41.66%.

Net cash flow from operating activities was 2.945 billion yuan, down 42.94% year over year, mainly due to an increase in cash paid for the purchase of goods and receipt of services. Net cash flow from investing activities was -4.407 billion yuan, with a 64% year-over-year narrowing, mainly due to controlling capital expenditures and receiving dividends from associate companies. Net cash flow from financing activities was 3.720 billion yuan, up 7.91%.

The company plans to distribute a cash dividend of 1.5 yuan for every 10 shares to all shareholders (including tax). The total expected dividend amount is approximately 315 million yuan, accounting for 19.50% of net profit attributable to the parent. The company has also formulated a shareholder return plan for the next three years, specifying that, while meeting the conditions for cash dividends, the company will pay cash dividends of no less than 10% of the distributable profit realized in the current year each year.

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