Ganfeng Lithium (stock code: 002460) is a global leading lithium product supplier, mainly engaged in lithium resource development, lithium salt and metal lithium production, lithium battery manufacturing and other businesses. The company has a strong competitive advantage in the lithium industry, and its products are widely used in the fields of new energy, electric vehicles, and energy storage. In the first quarter of 2024, Ganfeng Lithium released its latest financial report data, demonstrating the company's financial performance in the market fluctuations.

Firstly, looking at the asset-liability data, as of March 31, 2024, Ganfeng Lithium's total assets were RMB 95.563 billion, an increase of 4.22% from the end of the previous year. This growth was mainly due to the increase in debt investments, which increased from RMB 411 million to RMB 1.051 billion, a 155.85% increase. In addition, the deferred income tax liability and long-term employee compensation payable also increased by 33.10% and 41.12%, respectively. However, the asset-liability ratio rose from 42.95% at the end of the previous year to 43.22%, indicating that the company has increased its liabilities while expanding its assets. The owner's equity attributable to shareholders of the listed company was RMB 47.978 billion, an increase of 2.01% from the end of the previous year.

In terms of profit data, Ganfeng Lithium's performance is not satisfactory. In the first quarter of 2024, the company achieved operating income of RMB 5.058 billion, a year-on-year decrease of 46.41%. The net profit attributable to shareholders of the listed company was -RMB 439 million, a year-on-year decrease of 118.31%. The net profit after deducting non-recurring gains and losses was -RMB 254 million, a year-on-year decrease of 111.89%. The gross profit margin decreased from 37.33% in the same period of the previous year to 6.19%, and the net profit margin decreased from 22.93% to -11.78%. These data indicate that the company faces significant profit pressure in the market fluctuation, mainly due to the decline in the market price of lithium products and lithium batteries. In addition, the increase in management expenses and financial expenses has also had a negative impact on profits, with management expenses increasing by 102.27% year-on-year and financial expenses increasing by 50.48% year-on-year.

In terms of cash flow, Ganfeng Lithium's performance in the first quarter of 2024 has improved somewhat. The net cash flow from operating activities was RMB 119 million, while it was -RMB 3.169 billion in the same period last year, an increase of 103.75%. This improvement was mainly due to the decrease in cash paid for purchasing goods and services and taxes paid. However, the net cash flow from financing activities was RMB 1.574 billion, a year-on-year decrease of 65.64%, mainly due to the decrease in cash received from borrowing and the increase in cash paid for debt repayment.

Overall, Ganfeng Lithium faced significant market challenges in the first quarter of 2024, mainly manifested in the significant decline in revenue and profit. However, the company still showed certain positive performance in assets expansion and cash flow management. In the future, Ganfeng Lithium needs to find new growth points in market fluctuations, optimize cost structure, improve operational efficiency, and respond to market uncertainty.