Core Viewpoint - The report from Haitong International indicates that Ganfeng Lithium (01772) maintains a strong industry position, with multiple business developments progressing simultaneously, and assigns a target price of HKD 40.36 based on a 1.8x PB for 2025, rating it as outperforming the market [1] Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of CNY 8.258 billion, a year-on-year decrease of 13.82%, and a net profit of -CNY 536 million, which is a reduction in losses by CNY 223 million [2] - The comprehensive gross margin was 10.78%, down by 0.38 percentage points year-on-year; net profits for Q1 and Q2 were -CNY 356 million and -CNY 180 million respectively, with Q2 losses decreasing by CNY 175 million quarter-on-quarter [2] Group 2: Market Dynamics - The price of battery-grade lithium carbonate hit a low of CNY 60,000 per ton by the end of June 2025, contributing to the company's weak profitability; however, prices rebounded to CNY 86,000 per ton in August and were CNY 72,500 per ton in September [3] - The report suggests that the current lithium carbonate prices have passed the low point, with demand expected to expand due to steady growth in the electric vehicle sector and ongoing energy storage developments [3] Group 3: Project Development - The Goulamina lithium spodumene project in Mali has officially commenced production, and the company is accelerating the ramp-up of this project's capacity [4] - The Cauchari-Olaroz salt lake project in Argentina is in a stable capacity ramp-up phase, with a designed capacity of 40,000 tons/year for lithium carbonate; the Mariana project also commenced production in early 2025, with a designed capacity of 20,000 tons/year for lithium hydroxide [4] Group 4: Product Development - The company has developed a comprehensive range of products across five categories, including solid-state batteries, power batteries, consumer batteries, polymer lithium batteries, and energy storage batteries [5] - The company possesses a complete integrated layout for solid-state batteries and has commercial capabilities, with research and production capabilities in key areas such as sulfide electrolytes, oxide electrolytes, metallic lithium anodes, battery cells, and battery systems [5]

Core Viewpoint - The global lithium salt industry is undergoing significant adjustments in the first half of 2025, with a decline in lithium product prices due to changes in supply and demand dynamics, yet Ganfeng Lithium has managed to substantially reduce its losses during this period [1] Group 1: Financial Performance - Ganfeng Lithium reported a revenue of 8.376 billion yuan in the first half of 2025, with a net loss attributable to shareholders of 531 million yuan, a significant reduction from a loss of 760 million yuan in the same period last year [1] - The gross margin for lithium compounds remained positive at 8.36%, despite the overall downward trend in lithium compound prices, which fell from $850-$900 per ton at the beginning of the year to $620-$640 per ton by June, representing a decline of 25% to 31% [2][3] Group 2: Market Dynamics - The lithium compound prices have been affected by supply-demand mismatches, with increased production of lithium salts and declining prices of Australian lithium ore contributing to the downward price trend [2] - Ganfeng Lithium's vertical integration across the lithium value chain—from upstream resource development to downstream battery manufacturing—has enhanced operational efficiency and profitability [2] Group 3: Resource Management - The company has established a stable and diversified raw material supply system by securing high-quality lithium resources globally, including spodumene, lithium brine, and lithium mica [3] - Ganfeng Lithium's self-sufficiency in lithium resources is expected to exceed 50% in 2025, which is above the industry average, thereby improving cost control and profitability [3] Group 4: Battery Business Growth - The lithium battery segment of Ganfeng Lithium achieved a revenue of 2.975 billion yuan in the first half of 2025, marking a year-on-year growth of 9.89%, and accounting for 35.52% of total revenue [4] - The company has successfully scaled up the production of its 587Ah large-capacity energy storage cell, which has become a benchmark product in the large-scale energy storage sector due to its long cycle life and high energy density [4] Group 5: Technological Advancements - Ganfeng Lithium has made significant progress in solid-state battery technology, completing the development of a 304Ah square solid-state energy storage battery that outperforms traditional liquid batteries in key safety and performance metrics [5] - The company is also collaborating with well-known drone and eVTOL companies to develop high-energy batteries, with products already passing regulatory compliance checks [6]

Core Viewpoint - Ganfeng Lithium (01772) reported a decline in revenue and a narrowed net loss for the first half of 2025, reflecting the challenges faced in the global lithium salt industry due to market fluctuations and changes in supply-demand dynamics [1] Financial Performance - The company achieved a revenue of 8.376 billion RMB, representing a year-on-year decrease of 12.65% [1] - The net loss attributable to shareholders was 531 million RMB, which is a 30.13% improvement compared to the previous year [1] - Basic loss per share was reported at 0.27 RMB [1] Industry Context - The global lithium salt industry experienced a significant adjustment in the first half of 2025, influenced by shifts in supply-demand balance and volatility in lithium product prices [1] - The decline in sales prices of lithium salt and lithium battery products contributed to the company's decreased operational performance compared to the previous year [1]

Core Viewpoint - Ganfeng Lithium (01772) expects a net loss attributable to shareholders for the six months ending June 30, 2025, to be in the range of RMB 300 million to RMB 550 million, representing a decrease in net loss of approximately 27.67% to 60.55% compared to the same period last year [1] Group 1 - The expected net loss range for the company is RMB 300 million to RMB 550 million, a significant improvement from the previous year's loss [1] - The expected loss after excluding non-recurring items is projected to be between RMB 500 million and RMB 950 million, which is an increase of approximately 211.74% to 492.30% compared to the previous year [1] - The basic loss per share is anticipated to be between RMB 0.15 and RMB 0.27, compared to a loss of RMB 0.38 per share in the same period last year [1] Group 2 - The primary reason for the performance change is the continuous decline in sales prices of lithium salts and lithium battery products, which has impacted overall operational performance despite growth in the battery segment's production capacity and sales [1] - The company has made provisions for asset impairment related to inventory and other assets according to Chinese accounting standards [1] - The company generated significant non-recurring income during the reporting period, mainly due to investment income and fair value changes [2] - The investment income was derived from the disposal of certain energy storage projects by its subsidiary Shenzhen Yichu Energy Technology Co., Ltd., as well as the disposal of shares in other companies [2] - The company experienced fair value losses due to the continuous decline in the price of financial assets primarily held in Pilbara Minerals Limited (PLS) [2] - A hedging strategy using options was employed to mitigate the risk exposure from the decline in PLS stock price, which helped offset some of the fair value losses [2]