Ganfeng Lithium Group (01772) announces profit increase expectation with expected net profit attributable to the parent company for the year 2025 to be between 1.1 billion to 1.65 billion yuan, turning from a loss to a profit year-on-year.

Ganfeng Lithium Group (01772) released an announcement, expecting that for the 12 months ending December 31, 2025 (the reporting period), the net profit attributable to the company's shareholders is expected to be in the range of RMB 1.1 billion to RMB 1.65 billion, an increase of approximately 153.04% to 179.56% compared to the net loss attributable to the company's shareholders of RMB 2.074 billion in the same period of the previous year. The loss net amount after deducting non-recurring gains and losses is expected to be in the range of RMB 300 million to RMB 600 million, a decrease of approximately 32.38% to 66.19% compared to the net loss after deducting non-recurring gains and losses of RMB 887 million in the same period of the previous year; and the basic earnings per share are expected to be in the range of RMB 0.55 to RMB 0.82 per share (compared to a basic loss per share of RMB 1.03 in the same period of the previous year). Based on the information currently available, the group's unaudited annual performance under international accounting standards for the current reporting period is expected to increase significantly compared to the same period of the previous year, mainly due to the following factors in the current reporting period: the fair value change income generated by the increase in the stock price of Pilbara Minerals Limited (PLS) held by the company, with an overall fair value change income of approximately 1.03 billion yuan after hedging of certain risks related to equity options; in accordance with Accounting Standard No. 22, the company has designated the convertible bonds issued in H shares during the reporting period as "measured at fair value and changes recognized in current period profit or loss." As a result of a significant increase in the company's stock price and the exercise of conversion rights by the majority of bondholders, fair value change losses were recognized in the current period; the company sold a portion of the equity interests of its subsidiary Shenzhen Yichu Intelligent Energy Group Co., Ltd. and successfully introduced a strategic investor, resulting in the recognition of corresponding investment income; and in accordance with Accounting Standard No. 8, the company conducted impairment tests on assets (including long-term assets) showing signs of impairment and made corresponding provisions for impairment losses.