LOPAL TECH (02465) saw its shares rise more than 6% during the trading session. At the time of writing, the stock was up 2.15%, trading at HK$16.67, with a turnover of HK$251 million.

The company issued a positive profit alert, forecasting first-quarter revenue between RMB 3.3 billion and RMB 3.6 billion, a year-on-year increase of 107.25% to 126.09%. It also expects net profit attributable to shareholders of the listed company to range from RMB 200 million to RMB 250 million, marking a turnaround from a loss in the same period last year.

A company representative stated that this is the first time since its listing that LOPAL TECH has achieved a genuine turnaround to profitability. Currently, the lithium iron phosphate business is operating at full capacity, with significant production and sales volumes in the first quarter. Rising prices of raw materials such as lithium carbonate, coupled with synchronized increases in product selling prices, along with gains from inventory cycle price differences, have contributed to improved processing fees and profitability.