Lithium producer Ganfeng Lithium Group Co. Ltd. (1772.HK; 002460.SZ) said on Tuesday that it expects to report its profit last year ranged between 1.1 billion yuan ($158 million) and 1.65 billion yuan, reversing a net loss of about 2.07 billion yuan in 2024.
Excluding non-recurring items of between 300 million yuan and 600 million yuan, the company still expects to report a loss for last year. But the figure will still be between 32% and 66% narrower than the roughly 887 million yuan loss recorded in the previous year.
The company said the improvement was mainly driven by several non-recurring factors. These included fair value gains of approximately 1.03 billion yuan from share price gains for Pilbara Minerals Ltd., which the company used as a hedge under its risk management strategy. Ganfeng also recorded investment gains from the partial disposal of its controlling stake in Shenzhen Yichu Shuzhi Energy Group and the introduction of strategic investors.
However, the company also pointed out that it recognized fair value losses related to its H-share convertible bonds, attributable to a sharp rise in its share price and the conversion of most of the bonds by holders during the period.
Ganfeng Lithium’s stock opened higher on Wednesday but later moved lower, closing at HK$66.8 by the midday break, down 3.47%. The stock has more than tripled over the past year.
By Lee Shih Ta
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