(Yicai) Aug. 30 -- Ganfeng Lithium's shares rose despite the Chinese battery materials giant reporting it swung into the red in the first half of this year for the first time since going public in Shenzhen in 2010 due to lithium prices' downward cycle.

Ganfeng Lithium [SHE: 002460] rose 4.5 percent to CNY27.57 (USD3.89) a share as of 11 a.m. in Shenzhen today. Its Hong Kong-listed stock [HKG: 1772] jumped 5.2 percent to HKD18.62 (USD2.39).

Net loss was CNY760 million (USD100 million) in the six months ended June 30, compared with a net profit of CNY5.9 billion (USD831.7 million) a year earlier, the Xinyu-based company said in an earnings report yesterday. Revenue fell 47 percent to CNY9.6 billion (USD1.4 billion), it added.

Revenue from lithium series products tumbled 52 percent and from lithium battery ones dipped 34 percent, Ganfeng Lithium noted. The gross profit margin of lithium compounds and metal lithium products fell to 12 percent from 24 percent and that of lithium batteries and cell products dropped to 10 percent from 19 percent, it added.

The price of lithium carbonate plunged to as low as CNY70,000 (USD9,860) per ton at one point from CNY500,000 (USD70,445) per ton at the start of this year. The inventory impairment for related listed companies is also gradually becoming evident, but Ganfeng Lithium's pace of acquiring mines has not slowed.

Lithium product prices have risen to record highs since 2021 but have started declining, Ganfeng Lithium said. Sales of lithium products will likely continue benefiting from growing demand in the new energy vehicle, energy storage, and consumer electronics industries, it noted, but added that due to the influence of various changing factors, their prices show volatility.

For the first quarter, Ganfeng Lithium posted a net loss of CNY439 million.

In addition, a drop in the stock price of Ganfeng Lithium's financial asset Pilbara Minerals was the main reason for a fair value loss of CNY874 million in the first half, according to the company.

Despite the first-half loss, Ganfeng Lithium continues to acquire mines against the market trend and is not halting its expansion plans. On May 7, it announced plans to invest USD340 million to buy 40 percent of Mali Lithium from Leo Lithium, with its unit GFL International to fully own the West African firm, whose main asset is the Goulamina Lithium Project.

Editor: Martin Kadiev