Ganfeng Lithium Group Co., Ltd. (01772) reported a robust turnaround for the six months ended 30 June 2026, converting last year’s interim loss into a profit, driven by stronger lithium prices and expanded battery shipments.
• Revenue surged 177.2% year on year to RMB22.88 billion, compared with RMB8.26 billion in the prior-year period.
• Gross profit jumped to RMB7.14 billion (H1 2025: RMB0.89 billion), lifting the gross margin to 31.2% from 10.8%.
• Profit attributable to equity holders reached RMB4.26 billion, versus a RMB0.54 billion loss a year earlier; basic earnings per share were RMB2.04.
Segment performance • Lithium metal and compounds remained the core earnings driver, contributing RMB14.47 billion in external sales and RMB5.92 billion in gross profit, with segment margin expanding to 42.0%.
• Lithium battery revenue rose to RMB8.07 billion, generating RMB0.93 billion in gross profit; segment margin eased to 11.9% amid capacity ramp-ups.
Cash and balance sheet • Net cash from operating activities increased to RMB1.33 billion.
• Cash and cash equivalents stood at RMB10.96 billion, while interest-bearing borrowings totalled RMB35.53 billion. The gearing ratio was 55%.
• Capital expenditure amounted to RMB2.44 billion, focused on expanding lithium-salt, battery and recycling capacities.
Dividend The board did not recommend an interim dividend.
Post-period event On 24 August 2026, subsidiary GFL International agreed to subscribe for a USD180 million six-year convertible debenture issued by Lithium Argentina AG, potentially lifting its stake in the TSX- and NYSE-listed company to approximately 16.1% on full conversion.
Share-based incentives All remaining options under the 2022 Share Option Scheme (0.55 million units) were cancelled in May 2026 after performance conditions were not met. Under the RSU Scheme, 20,000 H-share RSUs were granted on 18 June 2026; 118,050 RSUs were exercised during the period.
Outlook indicators Management cites continued capacity ramp-ups at the Mount Marion, Cauchari-Olaroz and Goulamina projects and sustained demand from electric-vehicle and energy-storage markets as key operational focuses for the second half.