Lithium producer Ganfeng Lithium Group Co. Ltd. (1772.HK; 002460.SZ) announced on Thursday it returned to profitability in the first quarter, and expects to report a net profit of between 1.6 billion yuan ($235 million) and 2.1 billion yuan for the period, reversing a loss of about 356 million yuan a year earlier.
The company attributed the improvement mainly to continued expansion of the global new energy sector, which drove a strong rebound in demand for lithium salts. Higher product prices compared with the same period last year also supported the rebound. Meanwhile, the gradual ramp-up of lithium resource projects helped improve the company’s cost structure. In addition, rising demand from the power battery and energy storage sectors boosted sales volumes in its lithium battery segment.
Ganfeng also said gains from changes in the fair value of its holdings in Australian lithium miner PLS Group contributed about 259 million yuan to profit.
The company’s shares opened higher on Friday but gave up gains, falling 1.66% to HK$82.75 by midday. The stock is up about 59.3% year to date.
By Lee Shih Ta
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