Company Overview - Ganfeng Lithium is a leading lithium ecological enterprise with over 40 lithium compounds and lithium metals products, providing a comprehensive product offering to meet diverse customer needs [5]. - The company has established a vertically integrated business model, covering upstream lithium resource development, midstream processing, and downstream lithium battery production and recycling [6]. - Ganfeng Lithium has secured high-quality lithium resources globally, including Australia, Argentina, Ireland, and China, ensuring a stable supply through long-term procurement agreements [10]. - Ganfeng Lithium's products are utilized in various industries, including electric vehicles, aerospace, functional materials, and pharmaceuticals, with most customers being industry leaders [6]. Product Segments - The lithium compounds segment includes battery-grade lithium hydroxide and lithium carbonate, widely used in electric vehicles and portable electronics, with major customers being global battery manufacturers [10]. - Ganfeng Lithium ranks No. 1 globally in lithium metals production capacity, producing various forms of lithium metals for battery manufacturers and pharmaceutical companies [10]. - Ganfeng Lithium's lithium battery recycling business addresses the growing demand for retired battery treatment, enhancing the supply chain for lithium and other metals [10]. Financial Performance - Ganfeng Lithium reported a total revenue of RMB 6.5 billion for the year 2021, representing a year-on-year increase of 50% [12]. - The company achieved a net profit of RMB 1.2 billion in 2021, which is a 70% increase compared to the previous year [12]. - Revenue for the year ended December 31, 2021, increased by 101.2% to RMB 11,043,007,000 [19]. - Gross profit rose by 275.1% to RMB 4,357,069,000, with a gross profit margin significantly improved [19]. - Profit attributable to owners of the parent surged by 409.7% to RMB 5,225,922,000, reflecting strong operational performance [19]. - Earnings per share increased by 373.2% to RMB 3.73, indicating robust profitability growth [19]. Market Position and Strategy - Ganfeng Lithium's market share in the lithium battery sector increased to 25% in 2021, up from 20% in 2020 [12]. - The company aims to strengthen strategic partnerships with customers and end-users through its integrated supply and production chain [7]. - Ganfeng Lithium plans to enter the European market by establishing a new production facility in Germany by 2023 [12]. - The company has signed long-term supply agreements with major electric vehicle manufacturers, securing over 100,000 tons of lithium supply for the next five years [12]. Research and Development - The company is actively advancing the research and development of solid-state lithium batteries for commercial applications [10]. - Ganfeng Lithium's R&D expenditure increased by 30% in 2021, focusing on sustainable lithium extraction methods [12]. - In 2021, Ganfeng applied for 225 patents, including 91 invention patents, and made advancements in management, R&D, and employee welfare [28]. - The company is committed to enhancing its research and development capabilities, focusing on solid-state lithium batteries and lithium battery recycling technologies [112]. Sustainability and Environmental Goals - Ganfeng Lithium aims to achieve carbon neutrality in its operations by 2025, aligning with global sustainability goals [12]. - The company has established the largest green recycling system for retired lithium batteries in China, with a recycling and disposal capability of 34,000 tons/year [92]. - The total lithium recovery from retired power batteries is projected to reach 75,000 tons of LCE by 2025 and 279,000 tons of LCE by 2030 [66]. Production Capacity and Expansion - The total production capacity of lithium products reached 30,000 tons in 2021, with plans to expand to 50,000 tons by 2023 [12]. - The designed production capacity for lithium carbonate is 43,000 tons/year, with an effective production capacity of 28,000 tons/year and a utilization rate of 68.79% [74]. - The designed production capacity for lithium hydroxide is 81,000 tons/year, with an effective production capacity of 70,000 tons/year and a utilization rate of 87.98% [74]. - The company plans to accelerate the capacity expansion of lithium compound and resource projects to produce a total of 300,000 tons of LCE per annum by 2025 [104]. Market Trends and Demand - The rapid development of new energy vehicles and energy storage systems has shifted the industry from a balanced supply and demand to a tight supply situation, leading to continuous price increases for lithium compounds since 2021 [42]. - Global demand for lithium hydroxide monohydrate was approximately 200,000 tons in 2021, with 175,000 tons used in lithium-ion batteries [43]. - It is projected that global demand for lithium hydroxide will increase to 704,000 tons by 2025, representing a CAGR of approximately 37% from 2021 to 2025 [44]. Acquisitions and Investments - The Group has acquired upstream high-quality lithium resources globally, including a tender offer for Bacanora and the acquisition of 100% interest in Ili Hongda [78]. - The company approved a resolution to acquire 100% equity interest in Ili Hongda for RMB 1.47 billion, resulting in a 99.82% ownership by Qinghai Liangcheng Mining Co., Ltd. [154]. - Shanghai Ganfeng acquired up to 53,333,333 new shares of Bacanora Lithium Plc at a price of 45 pence per share, totaling a transaction amount not exceeding £24 million, increasing its stake from 25.74% to 28.88% [152]. Management and Governance - Mr. Li Liangbin has nearly 30 years of experience in the lithium industry and is the largest shareholder and founder of the company [181]. - The management team has a strong educational background, with degrees in chemistry and industrial engineering management, as well as EMBA qualifications [181][184]. - The company has a strong governance structure with independent non-executive directors and supervisors to ensure compliance and oversight [198].

Financial Performance - The company's operating revenue for the first quarter reached ¥5,365,267,017.62, representing a 233.91% increase compared to ¥1,606,822,673.47 in the same period last year[2] - Net profit attributable to shareholders was ¥3,525,082,984.72, a significant increase of 640.41% from ¥476,096,554.72 year-on-year[2] - Basic earnings per share rose to ¥2.45, reflecting a 580.56% increase compared to ¥0.36 in the previous year[2] - The weighted average return on equity increased to 14.92%, up from 4.34% in the same period last year, marking a 10.58% improvement[2] - Total operating revenue for the current period reached ¥5,365,267,017.62, a significant increase from ¥1,606,822,673.47 in the previous period, representing a growth of approximately 233.5%[26] - Net profit for the current period was ¥3,560,026,630.63, a substantial rise from ¥493,662,227.08 in the previous period, reflecting an increase of approximately 620.5%[30] - Total comprehensive income for the period reached approximately CNY 3.39 billion, a significant increase from CNY 580.22 million in the previous period, reflecting a growth of over 484%[32] Assets and Liabilities - Total assets at the end of the reporting period were ¥44,921,545,488.61, a 15.02% increase from ¥39,056,652,559.96 at the end of the previous year[2] - The total liabilities increased to ¥14,724,411,075.01 from ¥12,889,954,121.27, marking a growth of about 14.3%[24] - Total equity rose to ¥30,197,134,413.60 from ¥26,166,698,438.69, showing an increase of approximately 15.5%[25] - Non-current assets totaled approximately CNY 28.94 billion as of March 31, 2022, compared to CNY 24.43 billion at the beginning of the year, indicating an increase of about 18.5%[22] Cash Flow - The company's net cash flow from operating activities was ¥3,102,770,915.08, a 956.40% increase compared to ¥293,712,457.33 in the previous year[2] - The net cash flow from operating activities improved to ¥1,134,889,135.18 from a negative ¥217,010,375.97, marking a 622.97% increase, driven by higher cash receipts from goods and services[11] - Cash inflow from operating activities amounted to CNY 4.77 billion, up from CNY 1.77 billion, representing a growth of 168.56%[34] - The net cash flow from investing activities worsened by 1,551.12% to -¥2,692,479,618.33 from -¥163,069,890.56, primarily due to increased cash payments for acquiring subsidiaries[11] - Net cash outflow from investing activities was CNY 2.69 billion, compared to a smaller outflow of CNY 163.07 million in the previous period, indicating a significant increase in investment expenditures[36] - The net increase in cash and cash equivalents for the period was CNY -1.48 billion, compared to an increase of CNY 254.56 million in the previous period, indicating a cash flow challenge[37] Investments and Expenditures - The company's long-term equity investments rose by 39.29% to ¥5,693,520,529.71, attributed to new external investments[7] - The company invested CNY 31.5 million in convertible bonds of Shanghai Jujin Gui, which will allow the company to potentially acquire an 80% stake in Xinyu Ganfeng Mining Co., Ltd.[19] - Research and development expenses surged by 477.87% to ¥211,864,208.36 from ¥36,662,880.63, reflecting increased investment in R&D initiatives[9] - Investment income skyrocketed by 13,128.70% to ¥443,368,450.47 from ¥3,351,565.98, mainly due to profit changes from joint ventures[9] Government and Strategic Initiatives - The company reported government subsidies of ¥24,518,574.89 related to its core business operations[4] - The company signed a strategic framework agreement with the Qinghai Provincial Government to enhance the comprehensive development and utilization of lithium resources in the region[18] - Ganfeng International acquired a 50% stake in Mali Lithium B.V., completing the transfer of mining rights for the Goulamina lithium project, which is projected to have an annual production capacity of 506,000 dry metric tons of 6% lithium concentrate[20] - The Goulamina project plans to expand its capacity to 831,000 dry metric tons of 6% lithium concentrate within 18 months after reaching the first phase's production capacity[20] Shareholder Information - The company has a total of 219,209 A-share shareholders and 29 H-share shareholders as of the reporting period[12]

Financial Performance - The company's operating revenue for 2021 was approximately ¥11.16 billion, representing a 102.07% increase compared to ¥5.52 billion in 2020[16]. - Net profit attributable to shareholders for 2021 reached approximately ¥5.23 billion, a significant increase of 410.26% from ¥1.02 billion in 2020[16]. - The net profit after deducting non-recurring gains and losses was approximately ¥2.91 billion, up 622.76% from ¥402 million in 2020[16]. - The basic earnings per share for 2021 was ¥3.73, reflecting a 372.15% increase compared to ¥0.79 in 2020[17]. - The total assets at the end of 2021 amounted to approximately ¥39.06 billion, a 77.37% increase from ¥22.02 billion at the end of 2020[17]. - The net assets attributable to shareholders at the end of 2021 were approximately ¥21.89 billion, up 104.51% from ¥10.71 billion at the end of 2020[17]. - The company reported a net cash flow from operating activities of approximately ¥2.62 billion, which is a 251.09% increase from ¥746 million in 2020[16]. - The total operating income for the fourth quarter is CNY 4,108,456,297.33, with a net profit of CNY 2,755,612,461.26, indicating strong performance in the last quarter[21]. - Non-recurring gains and losses for the year amount to CNY 2,321,334,844.78, a significant increase from CNY 622,440,951.82 in the previous year[22]. Market Trends and Demand - The lithium industry is experiencing increased demand driven by the rapid growth of electric vehicle and energy storage battery markets, with significant government support for the new energy vehicle sector in China[2]. - The demand for lithium is closely tied to the overall economic conditions and the performance of the electric vehicle market[2]. - The global demand for lithium in 2021 reached 606,200 tons LCE, with supply remaining tight due to limited new projects coming online[23]. - The price of lithium concentrate in China surged by 502%-565% from early 2021, reflecting the rising demand and limited supply[23]. - The global demand for lithium hydroxide is projected to grow from 200,000 tons in 2021 to 704,000 tons by 2025, with a compound annual growth rate of approximately 37%[27]. - Global sales of new energy vehicles reached 6.37 million units in 2021, doubling year-on-year, and are expected to continue growing at a compound annual growth rate of 30.8% through 2025[27]. - In 2021, China's new energy vehicle production and sales reached 3.545 million and 3.521 million units, respectively, representing a year-on-year growth of 160%[30]. - The market penetration rate for new energy vehicles in China was 13.4%, an increase of 8 percentage points year-on-year[30]. Risks and Challenges - The company faces risks related to fluctuations in lithium resource availability, competition, and changes in government policies affecting the lithium market[2]. - The company operates in multiple countries, including Australia, Argentina, Mexico, and Ireland, which exposes it to various legal and political risks[5]. - Exchange rate fluctuations may increase the company's costs in RMB or reduce revenue from overseas operations, impacting profit margins[5]. - The estimated lithium resources and reserves are subject to uncertainty, which may impact the company's ability to extract and process lithium economically[3]. - The company emphasizes the importance of compliance with environmental and safety regulations, which could affect its operations and financial performance[4]. Business Strategy and Operations - The company has successfully expanded its business model to include upstream lithium resource development, midstream lithium salt processing, and downstream lithium battery manufacturing[13]. - The company continues to focus on vertical integration to enhance operational efficiency and profitability[13]. - The company has established long-term political and economic relationships with countries where it operates, which may mitigate some operational risks[5]. - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management team[2]. - The company has established a vertically integrated business model covering upstream lithium resource development, midstream lithium salt processing, and downstream lithium battery manufacturing and recycling[37]. - The company is actively promoting the research and development of solid-state lithium batteries, aiming for commercialization in the near future[38]. - The company is focused on expanding its market presence through the industrialization of new lithium extraction methods and recycling technologies for used lithium batteries[92]. Research and Development - The company has established a research team of 668 personnel, including 4 national-level experts and 87 with master's or doctoral degrees[50]. - The company is developing new lithium products, aiming for industrial application and expected to add new profit growth points[91]. - Research on high-efficiency hydrogen storage materials and lithium preparation technology is underway, aimed at securing raw material supply and reducing procurement costs[91]. - The company is working on a technology for producing high-quality battery-grade lithium hydroxide, which is expected to optimize production processes and reduce costs[91]. - The company is investing heavily in R&D, with a budget increase of 25% for new technology development[167]. Environmental and Social Responsibility - The company has publicly disclosed its 2021 Sustainable Development Report, detailing its environmental and social responsibility efforts[198]. - The company invested nearly 6 million in social responsibility initiatives, including poverty alleviation and community support programs[199]. - The company has implemented environmental monitoring plans across subsidiaries, ensuring compliance with environmental regulations[195]. - The company maintains effective internal controls related to financial statements as of December 31, 2021[189]. - The company is classified as a key pollutant discharge unit by environmental protection authorities[191]. Corporate Governance - The company has established a complete governance structure in accordance with the Company Law and Articles of Association, ensuring no interference from the controlling shareholder[140]. - The independent directors have actively participated in board meetings, ensuring corporate governance and protecting minority shareholders' interests[169]. - The company has established an independent financial accounting department with a standardized financial management system, allowing for independent financial decision-making[140]. - The company has a performance evaluation system that enhances team efficiency and stimulates employee creativity[135]. - The company has established a risk assessment team to identify and evaluate potential risks, enhancing its risk management capabilities[135].

Industry Overview - The lithium industry is experiencing increased demand driven primarily by the rapid growth in electric vehicle and energy storage battery markets, supported by favorable government policies in China[1]. - The demand for lithium is closely tied to the overall economic conditions and the performance of the electric vehicle market, which is subject to government incentives and infrastructure development[1]. - Global sales of new energy passenger vehicles reached approximately 2.252 million units in the first half of 2021, representing a year-on-year growth of 151%[22]. - The price of lithium spodumene concentrate in China surged by 68%-72% from early 2021, reflecting a tight supply situation amid increasing downstream demand[20]. - The global lithium resource supply has increased significantly, with lithium ore production rising from 61,000 tons LCE in 2015 to 210,000 tons LCE in 2020, meeting the growing demand for lithium chemical products[20]. Company Financial Performance - The company's operating revenue for the first half of 2021 was CNY 4,064,281,030.32, representing a 70.27% increase compared to CNY 2,386,921,687.59 in the same period last year[12]. - Net profit attributable to shareholders for the same period was CNY 1,416,651,740.28, a significant increase of 805.29% from CNY 156,485,197.24 in the previous year[12]. - The net profit after deducting non-recurring gains and losses reached CNY 835,327,990.00, up 380.62% from CNY 173,802,306.64 year-on-year[12]. - The net cash flow from operating activities was CNY 630,355,228.96, reflecting a 232.15% increase compared to CNY 189,778,973.65 in the same period last year[12]. - Basic and diluted earnings per share were both CNY 1.04, marking a 766.67% increase from CNY 0.12 in the previous year[12]. Strategic Focus and Investments - The company plans to not distribute cash dividends or issue bonus shares, indicating a focus on reinvestment for growth[3]. - The company is focused on expanding its lithium product manufacturing and sales, with ongoing investments in resource extraction and processing capabilities[2]. - The company aims to achieve a total lithium product supply capacity of no less than 200,000 tons LCE by 2025, with a long-term goal of 600,000 tons LCE[29]. - The company has established long-term strategic relationships with leading global battery suppliers and automotive OEMs, enhancing its market stability and adaptability[19]. - The company is actively advancing the research, production, and commercialization of solid-state lithium batteries, enhancing its product offerings in the lithium battery sector[18]. Risks and Challenges - The company faces risks related to lithium resource development, including uncertainties in resource estimates and potential impacts from government policy changes[2]. - Exchange rate fluctuations may increase the company's costs in overseas operations or reduce revenue from foreign operations, potentially affecting profit margins[3]. - The company acknowledges the potential impact of natural disasters and geopolitical factors on its operations and resource availability[2]. - The company operates in multiple countries, exposing it to various legal and political risks that could adversely affect its financial performance[3]. - The company emphasizes compliance with environmental regulations, which are becoming increasingly stringent, potentially impacting operational costs[2]. Environmental and Social Responsibility - The company achieved a total chemical oxygen demand (COD) discharge of 12.057 tons from the recycling technology plant, with a concentration of 84.995 mg/L[70]. - The company’s environmental protection equipment operated normally throughout 2021, ensuring compliance with pollution control standards[71]. - In the first half of 2021, Jiangxi Ganfeng Lithium Co., Ltd. donated 1 million RMB to support impoverished villages in Jiangxi, including cash donations of 30,000 RMB and various supplies[74]. - The company provided assistance to 32 employees through its hardship relief fund, totaling 226,000 RMB in aid during the first half of 2021[74]. - The company has completed environmental self-monitoring plans for its subsidiaries, including the lithium salt factory and Ganfeng Battery, in compliance with environmental supervision requirements[73]. Research and Development - Research and development investment increased by 132.80% to ¥144,180,148.82, driven by enhanced R&D efforts in solid-state batteries and recycling materials[41]. - The company is committed to enhancing its R&D capabilities by collaborating with domestic and international research institutions to develop new products and technologies[31]. - The company is dedicated to developing solid-state lithium batteries and improving lithium extraction methods to maintain its technological leadership in the global lithium industry[31]. - The company has ongoing projects in lithium clay resources and lithium salt lake development, with some assets still under construction and not yet profitable[51]. - The company has a vertically integrated business model that spans upstream lithium resource development, midstream lithium salt processing, and downstream lithium battery manufacturing and recycling[34]. Shareholder and Capital Management - The company plans to issue up to 48,044,560 H-shares, with the issuance approved by the China Securities Regulatory Commission in June 2021[109]. - The company completed the placement of 48,044,400 H-shares at a price of HKD 101.35 per share on June 21, 2021[110]. - The company approved a capital increase of RMB 150 million for its wholly-owned subsidiary Qinghai Liangcheng to enhance its capital strength[114]. - The company approved a capital increase of RMB 50 million for its wholly-owned subsidiary Shanghai Ganfeng, raising its registered capital to RMB 120 million[115]. - The company reported a total guarantee amount of 397,611,000, with actual guarantees during the reporting period totaling 144,828,870, representing 14.36% of the company's net assets[103].

Financial Performance - Ganfeng Lithium reported a revenue of RMB 2.5 billion for the first half of 2021, representing a year-on-year increase of 45%[8]. - The company's net profit for the same period was RMB 1.1 billion, up 60% compared to the previous year[8]. - Revenue for the six months ended June 30, 2021, increased by 69.50% to RMB 4,025,024 thousand[17]. - Gross profit rose by 204.33% to RMB 1,405,313 thousand for the same period[17]. - Profit attributable to owners of the parent surged by 797.41% to RMB 1,415,176 thousand[17]. - Earnings per share reached RMB 1.04, reflecting a 766.67% increase[17]. - The gross profit margin improved to 34.91%, an increase of 15.46% from 19.45% for the six months ended June 30, 2020[88]. - Other income and gains amounted to RMB 676,479,000, an increase of RMB 542,341,000 (404.5%) compared to RMB 134,138,000 for the same period in 2020[93]. Production and Capacity Expansion - Lithium carbonate equivalent (LCE) production reached 15,000 tons, a 30% increase from the previous year[8]. - The company plans to expand its production capacity to 50,000 tons of LCE by the end of 2022[8]. - The company has achieved an annual production capacity of 40,500 tonnes of battery-grade lithium carbonate, 81,000 tonnes of battery-grade lithium hydroxide, and 2,000 tonnes of lithium metals[52]. - The production capacity of lithium hydroxide increased by 50,000 tonnes per annum at the end of 2020, reaching full-capacity operation in Q1 2021[52]. - The production line in Ningdu has been upgraded to achieve a capacity of 20,000 tonnes of battery-grade lithium carbonate per annum[52]. - The Cauchari-Olaroz lithium salt-lake project in Argentina plans to achieve a production capacity of 40,000 tons of lithium carbonate in phase I and no less than 20,000 tons in phase II[63]. - The Mariana lithium salt-lake project in Argentina aims for a phase I production capacity of 20,000 tons of lithium chloride[63]. - The Sonora lithium clay project in Mexico is set to have a phase I production capacity of 20,000 tons of lithium hydroxide[63]. - The company aims to achieve a total annual lithium product supply capacity of no less than 200,000 tons LCE by 2025, with a long-term goal of 600,000 tons LCE[64]. Market and Strategic Initiatives - Ganfeng Lithium aims to enter new markets in Europe and North America, targeting a 20% market share in these regions by 2025[8]. - The company expects a continued increase in demand for lithium products, projecting a growth rate of 25% annually over the next five years[8]. - Ganfeng Lithium has completed the acquisition of Bacanora Lithium, enhancing its resource base by 2.5 million tons of lithium[8]. - The company has established strategic partnerships with major electric vehicle manufacturers to secure long-term supply agreements[8]. - Global sales of new energy passenger vehicles reached approximately 2.252 million in the first half of 2021, a year-on-year increase of 151%[43]. Research and Development - Ganfeng Lithium is investing RMB 1 billion in research and development for new lithium extraction technologies[8]. - The company is committed to improving lithium extraction methods and high purity lithium processing techniques to maintain its technological edge in the global lithium industry[71]. - The company aims to develop solid-state lithium batteries and enhance production techniques to improve automation levels for existing products[71]. - The company has established lithium battery R&D and production bases across multiple locations, producing over 20 types of products for various applications[53]. Financial Position and Investments - Total assets at the end of the reporting period amounted to RMB 30,135,847 thousand, reflecting a growth of 36.85% from the end of last year[44]. - Net assets increased to RMB 21,169,149 thousand, representing a rise of 57.76% compared to the end of the previous year[44]. - The company holds a 28.88% equity interest in Bacanora and a 50% equity interest in the Sonora lithium-clay project[46]. - The company plans to acquire the remaining shares of Bacanora through a tender offer to increase its ownership[46]. - The company is actively seeking lithium resources in Mali, acquiring a 50% equity interest in a Netherlands SPV to indirectly hold rights in the Goulamina spodumene mine project[46]. Corporate Governance and Management - The Company has adopted all code provisions and principles of the Corporate Governance Code, except for a deviation from code provision A.2.1[172]. - The Board consists of four executive Directors, two non-executive Directors, and four independent non-executive Directors, ensuring a balance of power and authority[173]. - The Company is committed to maintaining high standards of corporate governance and transparency in information disclosure[172]. - The management team is motivated by the share option incentive scheme, which is expected to enhance the Company's overall performance[167]. Share Options and Incentive Scheme - The Board approved the adoption of a share option incentive scheme on April 2, 2021, intending to grant 15,794,000 share options, representing approximately 1.16% of the total share capital of 1,355,928,726 shares[143]. - The estimated total costs to be amortized for the share options is RMB 88,422.20 thousand in 2021, with subsequent annual costs of RMB 25,142.36 thousand in 2022, RMB 32,383.86 thousand in 2023, RMB 18,572.89 thousand in 2024, and RMB 9,649.57 thousand in 2025[165]. - The company anticipates that the share option incentive scheme will have a positive impact on operating performance by enhancing management motivation and operational efficiency[166]. - The total number of participants in the share option incentive scheme is 404, with 397 being core management and technical personnel[159].