Ganfeng Lithium, one of the world’s leading lithium producers, experienced a 19% decline in net profit during the first half of the year. The company’s operating costs outweighed its revenue growth, resulting in a net profit of approximately 5.9 billion yuan ($810.4 million). Despite this decline, Ganfeng Lithium saw a 26.5% increase in revenue, reaching CNY18.11 billion for the period ended June.
The rise in revenue can be attributed to the higher sales of lithium metal, compounds, and batteries. This boost in sales contributed to the company’s overall financial performance.
In addition to its financial update, Ganfeng Lithium provided an update on its joint-venture project, the Sonora lithium project, in Mexico. The company revealed that Mexico’s General Directorate of Mines had issued a notice to its subsidiaries, canceling nine lithium concessions previously granted to them. However, Ganfeng Lithium stated that it believes these subsidiaries have met the minimum investment obligations required by Mexican law.
The company acknowledges that these developments may result in potential asset impairment losses and could negatively impact its overall financial results. Ganfeng Lithium remains vigilant as it navigates through these uncertainties.