Ganfeng Lithium Profit Rebounds 178% to 1.6B Yuan

Edgen Stock

·Mar 30 2026, 13:11

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Key Takeaways

Ganfeng Lithium announced a significant financial turnaround for its 2025 fiscal year, reversing a substantial loss from the previous year. The recovery was primarily fueled by a strong rebound in lithium prices during the second half of the year, coupled with significant growth in its battery manufacturing division and a one-time gain from asset sales. The results highlight improving fundamentals in the lithium market and the company's successful expansion into downstream products.

Massive Profit Swing: The company reported a net profit of 1.613 billion yuan, a 177.77% year-over-year increase that completely reverses a 2.074 billion yuan loss from the prior year.
Price-Driven Recovery: The turnaround was driven by a rebound in lithium carbonate prices, which climbed over 60% from mid-October to year-end, boosting the lithium product segment's gross margin to 15.52%.
Battery Business Expansion: Sales volume for power and storage batteries grew 117.41% to 17.82 GWh, demonstrating strong execution in its downstream strategy and capturing growing demand.

Ganfeng Swings to 1.61B Yuan Profit After Year-End Recovery

Ganfeng Lithium reported a decisive return to profitability in its 2025 annual report released on March 30, posting a net profit of 1.613 billion yuan. This marks a 177.77% increase from the 2.074 billion yuan loss recorded in the previous year. Total revenue for the year climbed 22.08% to 23.08 billion yuan. The company's performance demonstrated a strong quarterly progression, recovering from a first-quarter net loss of 356 million yuan to generate a 1.587 billion yuan profit in the fourth quarter, signaling powerful momentum entering 2026.

H2 Lithium Price Rebound Fuels Margin Expansion

The financial turnaround was primarily driven by a sharp recovery in lithium prices in the second half of 2025. After hitting a multi-year low below 60,000 yuan per ton in June, battery-grade lithium carbonate prices rebounded more than 60% from mid-October through the end of the year. This price recovery directly improved Ganfeng's core business, with the gross margin for its lithium products segment rising 5.05 percentage points to 15.52%. The bottom line was also substantially supported by nearly 2 billion yuan in non-recurring gains, which stemmed from the disposal of a subsidiary stake and favorable fair-value changes in its financial asset holdings.

Battery Sales Grow 117% as Company Eyes New Markets

Operational growth in Ganfeng's downstream business provided another powerful tailwind. Sales volume for power and storage batteries grew 117.41% to 17.82 GWh, while lithium chemical sales rose 42.47%. This highlights the company's successful vertical integration strategy. Ganfeng is also pushing the technological frontier, achieving small-batch production of its 500Wh/kg solid-state battery and supplying high-energy batteries for eVTOL aircraft used in China's emerging low-altitude economy. As a sign of renewed financial health, the company proposed a dividend of 1.5 yuan per 10 shares, reinforcing its confidence in sustained profitability.