2022-10-30 16:00Key Financial Data Key Accounting Data and Financial Indicators In the first three quarters of 2022, the company achieved explosive growth, with operating revenue increasing nearly threefold to CNY 27.61 billion and net profit attributable to shareholders surging nearly fivefold to CNY 14.79 billion, driven by increased sales volume and prices of lithium products Key Financial Indicators for Q1-Q3 2022 | Indicator | Year-to-Date (2022 Q1-Q3) (CNY) | YoY Change | Current Period (2022 Q3) (CNY) | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 27,611,656,306.11 | 291.45% | 13,168,047,349.34 | 340.48% | | Net Profit Attributable to Shareholders of Listed Company | 14,794,841,018.06 | 498.31% | 7,541,321,783.38 | 614.05% | | Net Cash Flow from Operating Activities | 7,959,572,180.33 | 757.77% | — | — | | Basic Earnings Per Share (CNY/share) | 7.35 | 315.25% | 3.75 | 413.70% | | Weighted Average Return on Net Assets | 48.44% | 31.64% | 24.69% | 17.51% | | Total Assets (CNY) | 69,587,349,398.47 | 78.17% (vs. end of prior year) | — | — | | Owners' Equity Attributable to Shareholders of Listed Company (CNY) | 38,794,842,401.45 | 77.20% (vs. end of prior year) | — | — | Non-Recurring Gains and Losses In the first three quarters of 2022, the company's non-recurring gains and losses totaled CNY 912 million, primarily from fair value changes of financial assets, with the third quarter contributing CNY 1.69 billion significantly to current profit Non-Recurring Gains and Losses for Q1-Q3 2022 | Item | Current Period Amount (CNY) | Year-to-Date Amount (CNY) | Explanation | | :--- | :--- | :--- | :--- | | Fair value changes from holding transactional financial assets and liabilities, etc | 1,683,202,556.51 | 877,536,114.14 | Primarily fair value changes from financial assets held in the current period | | Government Grants | 26,095,067.73 | 72,777,417.31 | | | Total | 1,691,333,079.08 | 912,363,286.33 | | Analysis of Changes in Key Accounting Data and Financial Indicators Significant changes in the company's financial indicators reflect rapid business expansion, with asset growth driven by operational scale, strategic investments, and raw material prices, while strong profit and cash flow improvements stem from increased product sales and collections Balance Sheet Item Changes As of the reporting period, total assets increased by 78.17% year-to-date, driven by improved operating cash flow, expanded sales, strategic inventory, and M&A, while liabilities grew due to increased procurement and project financing Key Balance Sheet Item Changes (vs. End of 2021) | Item | Change Percentage | Reason Analysis | | :--- | :--- | :--- | | Monetary Funds | 104.44% | Increase in net cash flow from operating activities and funds prepared for PPG project closing | | Accounts Receivable | 156.21% | Significant increase in operating revenue led to a corresponding increase in accounts receivable | | Inventories | 159.59% | Increased production capacity, higher revolving inventory, and rising raw material prices | | Long-term Equity Investments | 105.83% | New investments in projects such as Mali, Africa, and Ximei Resources | | Construction in Progress | 36.33% | Increased investment in lithium salt and lithium battery project construction | | Accounts Payable | 261.36% | Increased production capacity, larger procurement scale, and rising material prices | | Long-term Borrowings | 111.96% | New long-term borrowings for project construction | Income Statement Item Changes Q1-Q3 income statement metrics showed substantial growth, with revenue up 291.45% due to product volume and price increases, R&D expenses surging 373.80% for solid-state batteries, investment income soaring 150-fold from joint ventures, and financial expenses turning significantly negative due to exchange gains Key Income Statement Item Changes (Q1-Q3 2022 vs Q1-Q3 2021) | Item | Change Percentage | Reason Analysis | | :--- | :--- | :--- | | Operating Revenue | 291.45% | Increased product sales volume and prices | | Research and Development Expenses | 373.80% | Increased R&D investment in areas such as solid-state batteries and materials, and recycling | | Investment Income | 15030.77% | Changes in profits from the company's joint ventures and associates | | Financial Expenses | -167.67% | Increase in exchange gains | | Non-operating Income | 5350.64% | Received compensation for the termination of the Zimbabwe Bikita project cooperation | | Income Tax Expense | 718.81% | Increase in total profit led to a corresponding increase in income tax expense | Cash Flow Statement Item Changes Q1-Q3 operating cash flow surged 757.77% to CNY 7.96 billion due to increased sales collections, while investing cash outflow expanded 97.50% reflecting active expansion, and financing cash inflow decreased 43.79% compared to the prior year's H-share placement Key Cash Flow Statement Item Changes (Q1-Q3 2022 vs Q1-Q3 2021) | Item | Change Percentage | Reason Analysis | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 757.77% | Increase in cash received from sales of goods and provision of services | | Net Cash Flow from Investing Activities | -97.50% | Increase in cash outflow from investing activities | | Net Cash Flow from Financing Activities | -43.79% | Prior period received H-share private placement funds, no such inflow in current period | Shareholder Information Total Common Shareholders, Restored Voting Rights Preferred Shareholders, and Top Ten Shareholders As of the reporting period, the company had 311,248 common shareholders, with HKSCC NOMINEES LIMITED, Li Liangbin, and Wang Xiaoshen as the top three shareholders holding 20.01%, 18.76%, and 7.00% respectively Top Ten Shareholders' Holdings | Shareholder Name | Holding Percentage | Number of Shares Held | | :--- | :--- | :--- | | HKSCC NOMINEES LIMITED | 20.01% | 403,555,556 | | Li Liangbin | 18.76% | 378,377,819 | | Wang Xiaoshen | 7.00% | 141,258,466 | | Hong Kong Securities Clearing Company Limited | 5.62% | 113,427,314 | | Huang Wen | 0.81% | 16,349,805 | Other Significant Matters Strategic Investments and Collaborations During the reporting period, the company actively pursued a vertical integration strategy, strengthening its full industry chain from upstream lithium resources to downstream battery applications through significant investments and collaborations, including acquiring Lithea, partnering with GAC Aion and Fulin Precision, and co-building industrial ecosystems with local governments - Completed the acquisition of 100% equity in Lithea, Argentina, for a total consideration not exceeding USD 962 million, to secure upstream lithium mineral resources12 - Signed a strategic cooperation agreement with GAC Aion for in-depth collaboration in lithium resource development, lithium salt deep processing, and battery recycling12 - Established a joint venture with Fulin Precision to co-invest in a new integrated project with an annual output of 200,000 tons of lithium dihydrogen phosphate, with the company holding a 40% stake14 - Signed a strategic cooperation framework agreement with Yichun Municipal People's Government to jointly build a full industry chain system from lithium resources to battery applications15 Capacity Expansion Plans To meet market demand and long-term orders, the company significantly increased the construction scale of its new lithium battery projects under Ganfeng Lithium Battery, raising the combined capacity of Jiangxi Xinyu and Chongqing Liangjiang New Area projects from 15GWh to 30GWh, and adding new 6GWh and 2 billion small polymer lithium battery projects with substantial total investment, demonstrating its ambition in battery manufacturing - Increased the construction scale of the Jiangxi Xinyu project from an annual output of 5GWh to 10GWh13 - Increased the construction scale of the Chongqing Liangjiang New Area project from an annual output of 10GWh to 20GWh1314 - Approved Ganfeng Lithium Battery's investment of no more than CNY 3.5 billion to construct a new 6GWh lithium battery production project14 - Approved Ganfeng Lithium's subsidiary to invest no more than CNY 2 billion to construct a project with an annual output of 2 billion small polymer lithium batteries14 Quarterly Financial Statements Consolidated Balance Sheet As of September 30, 2022, the company's total assets reached CNY 69.59 billion, a 78.17% increase year-to-date, with total liabilities at CNY 25.70 billion and owner's equity at CNY 43.89 billion, resulting in a 36.93% asset-liability ratio, reflecting rapid asset and equity growth driven by strong profitability and business expansion Balance Sheet Overview (2022-09-30 vs 2022-01-01) | Item | September 30, 2022 (CNY) | January 1, 2022 (CNY) | | :--- | :--- | :--- | | Total Assets | 69,587,349,398.47 | 39,056,652,559.96 | | Total Liabilities | 25,697,576,592.22 | 12,889,954,121.27 | | Total Owners' Equity Attributable to Parent Company | 38,794,842,401.45 | 21,893,749,372.90 | | Total Owners' Equity | 43,889,772,806.25 | 26,166,698,438.69 | Consolidated Income Statement (Year-to-Date) In the first three quarters of 2022, the company achieved total operating revenue of CNY 27.61 billion, a 291.45% increase year-on-year, with operating profit reaching CNY 17.21 billion (up 509.59%) and net profit attributable to parent company shareholders at CNY 14.79 billion (up 498.31%), primarily driven by core business and significant investment income Income Statement Overview (Q1-Q3 2022 vs Q1-Q3 2021) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Total Operating Revenue | 27,611,656,306.11 | 7,053,758,123.88 | | III. Operating Profit | 17,208,602,176.06 | 2,823,055,243.54 | | IV. Total Profit | 17,233,630,346.68 | 2,815,942,163.65 | | V. Net Profit | 14,987,163,481.81 | 2,541,586,132.68 | | Net Profit Attributable to Parent Company Shareholders | 14,794,841,018.06 | 2,472,792,255.27 | Consolidated Cash Flow Statement (Year-to-Date) In the first three quarters of 2022, net cash flow from operating activities was CNY 7.96 billion, a 757.77% year-on-year increase, indicating strong internal cash generation, while net cash outflow from investing activities was CNY 5.30 billion for projects and investments, and net cash inflow from financing activities was CNY 3.94 billion, with cash and cash equivalents increasing to CNY 12.32 billion by period-end Cash Flow Statement Overview (Q1-Q3 2022 vs Q1-Q3 2021) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 7,959,572,180.33 | 927,936,788.00 | | Net Cash Flow from Investing Activities | -5,299,495,936.70 | -2,683,294,134.64 | | Net Cash Flow from Financing Activities | 3,940,476,867.47 | 7,010,063,164.56 | | Net Increase in Cash and Cash Equivalents | 7,090,709,044.73 | 5,150,108,420.73 | | Ending Balance of Cash and Cash Equivalents | 12,324,320,050.94 | 6,859,698,365.03 |