On September 3rd, the Lithium Division released its semi-annual report analysis for lithium salt listed companies for the 2026 fiscal year. The first half of 2026 witnessed a substantial improvement in earnings across the sector. The 13 sample companies reported an average operating revenue of 6.724 billion yuan and an average net profit attributable to shareholders of 2.035 billion yuan, an increase of 1.745 billion yuan compared to the same period last year. The average gross margin stood at 46.34%, a year-on-year rise of 20.1 percentage points, with the average return on equity reaching 10.25% and the average debt-to-asset ratio at 34.19%. These figures indicate a significant enhancement in corporate profitability, continuing the positive momentum established in the first quarter.
Overview of First-Half Operations
Regarding revenue and operating costs, the average operating revenue for the 13 companies in the first half was 6.724 billion yuan, with the highest figure reaching 23.097 billion yuan. Growth rates ranged from -1.87% to 402.35% year-on-year, with 12 companies achieving positive revenue growth. On the cost side, the average operating cost was 4.215 billion yuan, with a maximum of 18.2 billion yuan. Cost growth rates varied between -24.01% and 139.31%, generally aligning with revenue growth trends.
In terms of profitability, the average net profit attributable to shareholders was 2.035 billion yuan, a notable increase of 1.745 billion yuan from the prior year's average, with the top performer reaching 6.169 billion yuan. Among the 13 companies, 12 were profitable, while one reported a loss. Notably, 12 companies saw their profits increase year-on-year, with 12 of these achieving over 100% growth in net profit attributable to shareholders.
The average gross margin improved to 46.34%, up 20.1 percentage points year-on-year, with the highest margin at 76.36%. Eleven companies reported margins above 30%, and six exceeded 50%. All 13 companies experienced year-on-year improvements in their gross margins.
The average return on equity was 10.25%, with the highest at 24.58%. Twelve companies posted ROE above 2%, and five exceeded 10%. While growth rates varied, 12 companies saw their ROE improve compared to the same period last year.
The average debt-to-asset ratio was 34.19%, an increase of 2.17 percentage points year-on-year, with the highest at 58.85%. Six companies maintained ratios below 30%, and nine companies saw their leverage ratios increase from the prior year.
Analysis of First-Half Performance by Company
Looking at individual companies, Tianqi Lithium Corporation achieved revenue of 12.2 billion yuan and net profit attributable to shareholders of 4.24 billion yuan in the first half, representing year-on-year growth of 153% and a remarkable 4925%, respectively. This surge was driven by the rebound in lithium prices, which boosted margins and profit scale for its lithium concentrate and lithium salt products. Additionally, the rally increased profits from its associate company, Chile's SQM, further amplifying Tianqi's earnings sensitivity to price movements.
Ganfeng Lithium Co Ltd reported revenue of 23.1 billion yuan, up 176% year-on-year, with lithium product sales contributing 14.2 billion yuan, a 199% increase. Its net profit attributable to shareholders reached 4.3 billion yuan, surging 901%, primarily due to higher selling prices for lithium series products and increased sales volumes of lithium batteries. The company continues to invest heavily in capital projects, including Goulamina in Mali and the Cauchari-Olaroz and Mariana projects in Argentina.
Salt Lake Industry Co Ltd and Zangge Mining Co Ltd posted net profits of 6.17 billion yuan and 3.64 billion yuan, ranking first and fourth among the 13 companies, with year-on-year growth of 145% and 102%, respectively. As leading representatives of salt lake brine extraction, both companies benefited from the low costs associated with this method and the release of their own production capacity, fully demonstrating the competitive advantage of salt lake lithium extraction during an upcycle in lithium prices.
Sinomine Resource Group Co Ltd achieved revenue of 3.7 billion yuan and net profit attributable to shareholders of 1.1 billion yuan, up 12% and 1147% year-on-year, respectively. The core driver of this substantial profit growth was the significant year-on-year increase in lithium carbonate prices, which averaged 159,400 yuan per tonne in the first half, a 128% rise from the same period last year and briefly exceeding 200,000 yuan per tonne in May. In this rising price environment, lithium carbonate production also increased. According to statistics from the Lithium Division of the China Nonferrous Metals Industry Association, national lithium carbonate production reached approximately 563,000 tonnes in the first half, a year-on-year increase of 33.9%.
The industry exhibited several key characteristics during the period: first, simultaneous growth in volume and price, with robust downstream demand for lithium salts keeping inventories in a prolonged destocking state and improving capacity utilisation rates, leading to higher revenues from strong production and sales; second, an optimised cost structure as self-owned lithium resource capacity was gradually released, leading to continuous cost improvements; and third, a substantial improvement in gross margins, reflecting a tangible recovery in corporate profitability.
Market Review for the First Half
During the first half of 2026, lithium carbonate prices experienced wide fluctuations with an overall upward shift in the price centre. January saw a significant rise, followed by a slight pullback in February and another increase in March. April witnessed a V-shaped reversal, while May saw fluctuating gains that broke through the 200,000 yuan per tonne mark. Since June, prices have trended downwards. These movements reflect the ongoing market dynamics of shifting supply and demand fundamentals.
Four main factors drove the substantial price volatility in the first half: First, tightening supply-side constraints. Domestically, the suspension of lepidolite mining in Yichun, Jiangxi Province, due to changes in mining rights, made near-term production resumption difficult. Internationally, Zimbabwe's sudden suspension of spodumene concentrate exports disrupted supply; China had imported about 15.5% of its spodumene concentrate from Zimbabwe last year. Although export quotas were granted from May onwards, complex export review processes meant actual shipments fell short of expectations, raising market expectations of supply contraction. Second, accelerating energy storage demand. By the end of June 2026, China's cumulative new energy storage installations reached 168.3 GW/448.7 GWh, representing year-on-year growth of 59% in power and 71% in capacity, consistently outpacing other new energy sectors and establishing itself as a second growth engine for lithium demand. Third, increasing overseas demand. Ongoing US-Iran and Russia-Ukraine conflicts have disrupted global oil supplies, while rising natural gas prices in Europe have strengthened expectations for future new energy substitution. In the first half, overseas order signings by domestic energy storage companies grew 83% year-on-year, with global expansion becoming a key pillar for incremental growth and efficiency gains in the storage sector. Fourth, the export tax rebate reduction triggered a rush to export. Following the reduction in battery export tax rebates effective April 1st, downstream manufacturers accelerated the completion of export orders, creating a first-quarter rush. After the policy announcement, lithium carbonate futures contracts rallied continuously, breaking through the 170,000 yuan per tonne mark within half a month, transforming the lithium battery export season from a slow period to a peak.
Entering the second half of the year, lithium carbonate prices have undergone a small cycle of decline followed by recovery. Since July, expectations of increased future supply strengthened due to progress in resuming some lithium mining projects in Jiangxi, signals of production resumption or expansion from some overseas mines, and the arrival of imported spodumene concentrate shipments at ports, leading to a temporary weakening in prices. In August, however, as the pace of production resumption at Jiangxi and overseas mines fell short of expectations, downstream demand remained robust, and market inventories continued to decline, lithium carbonate prices reversed course after dipping to 130,000 yuan per tonne, gradually recovering to 160,000 yuan per tonne.
From a supply-demand perspective, the fundamental tight balance in the lithium industry for the second half remains unchanged. On the supply side, key factors to monitor include the arrival of spodumene concentrate from Zimbabwe and domestic lithium carbonate production levels. Demand is expected to remain strong. On the policy front, the imposition of a consumption tax on lithium batteries and the complete cancellation of battery export tax rebates effective January 1st next year will impact the cost structures and production schedules of downstream battery manufacturers.
Overall, the lithium salt industry is poised to sustain its positive performance from the first half into the second, with continued improvements in corporate profitability anticipated.