Ganfeng Lithium Industry expects net profit of more than 2 billion in the first three quarters to continue to increase the distribution of overseas lithium resources.

On the evening of October 14, Ganfeng Lithium Industry (002460) announced its results that the company expects the net profit attributed to shareholders of listed companies in the first three quarters of 2021 to be 2.083 billion yuan to 2.573 billion yuan, an increase of 530.14% 678.41% over the same period last year. Among them, the net profit attributed to shareholders of listed companies in the third quarter was 915 million yuan to 1.092 billion yuan, an increase of 425.98% 527.59% over the same period last year.

Ganfeng Lithium said that during the reporting period, the company's product production and sales increased compared with the same period last year, and the average sales price of the product rose compared with the same period last year, resulting in an increase in the company's operating net profit compared with In addition, the financial assets held by the company produce fair value change income, which leads to the growth of non-recurrent income compared with the same period last year.

In recent years, with the explosive growth of new energy vehicles around the world, the demand for power batteries has increased, the demand for the supply of upstream raw materials has increased, and the price has also been rising, stimulating the performance of relevant listed companies to improve. In addition, with the tight supply of global lithium resources, domestic enterprises began to increase the layout of overseas investment, battery industry chain upstream and downstream enterprises have entered the bureau, Ganfeng lithium industry as a domestic lithium mining giant naturally began to step up lithium hoarding.

Data show that since the beginning of this year, Ganfeng Lithium Industry has continued to obtain high-quality lithium resources in the upper reaches of the world, constantly enriching and expanding diversified supply channels of raw materials. Overseas, the company continues to increase its stake in Bacanora and its Sonora lithium clay project, and currently owns 28.88% of Bacanora and 50% of Sonora lithium clay project.

At the same time, Ganfeng Lithium intends to acquire the remaining shares of Bacanora through tender offer in order to further increase its shareholding ratio; in order to speed up the construction of the Cauchari-Olaroz Salt Lake project in Argentina, the company has arranged technical experts to go to Argentina to support the project construction in batches to ensure that the project will be put into production in 2022. The company also actively distributes lithium resources in Africa and Mali, indirectly holds the rights and interests of the Goulamina spodumene project and obtains the underwriting right through the acquisition of a 50 per cent stake in SPV of the Netherlands.

However, in the second half of the year, Ganfeng Lithium Company invested in acquiring 100% stake in Canadian Millennial Lithium Company, but it was cut off by Ningde Times. On September 30th, Ganfeng Lithium Industry announced that Canadian lithium company Millennial had received a "better offer" from its offer competitor, and Ganfeng International did not choose to raise the offer price within the agreed time limit. Canadian lithium company Millennial has unilaterally terminated the tender acquisition cooperation agreement with Ganfeng International. And paid a cooperation termination fee of US $10 million to Ganfeng International, and the company decided not to raise the tender offer after careful consideration.

In addition, the battery network learned that Ganfeng Lithium Industry issued a price adjustment notice on October 10, raising the unit price of the company's full range of metal lithium products (industrial grade metal lithium, battery grade metal lithium, lithium lithium belt products) by 100000 yuan per ton, and butyl lithium products by 10%. The main reason is the continuous rise in the price of raw materials and the impact of power supply, and the substantial increase in the production cost of lithium metal.

It is worth noting that, as another domestic lithium industry leader, Tianqi Lithium Industry also issued a third-quarter performance forecast. The company expects a net profit of 420 million yuan to 620 million yuan in the first three quarters, a year-on-year return to profit, and a loss of 1.103 billion yuan in the same period last year. Among them, the company is expected to make a profit of 340 million-510 million yuan in the third quarter, an increase of 218% compared with the same period last year.

Tianqi Lithium Industry said that thanks to the improvement in the global new energy vehicle boom, lithium-ion battery manufacturers accelerated capacity expansion, downstream cathode material orders picked up, the company's main lithium compound product sales and sales prices increased compared with the same period last year. In addition, the investment income confirmed by the associate SQM increased significantly compared with the same period last year.