Ganfeng Lithium Group Co., Ltd. — Earnings Release 2019

Feb 27, 2019

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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(A joint stock company incorporated in the People’s Republic of China with limited liability)

(Stock Code: 1772)

ANNOUNCEMENT ON PRELIMINARY FINANCIAL DATA FOR THE YEAR OF 2018

This announcement is issued by Ganfeng Lithium Co., Ltd. (the “ Company ”) pursuant to the disclosure obligations under Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions.

Important notes: The financial data for the year of 2018 contained in this announcement has been prepared in accordance with the China Accounting Standards for Business Enterprises and is only preliminary accounting data which has been reviewed by the internal audit department of the Company but has not been audited by an accounting firm. There may be discrepancies between the information contained herein and the final data to be disclosed in the annual report. Investors are advised to be cautious of the investment risks.

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I. MAJOR FINANCIAL DATA AND INDICATORS FOR THE YEAR OF 2018 (PREPARED IN ACCORDANCE WITH THE CHINA ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES)

Unit: RMB

	This reporting	Same period
Item	period	last year	Change
			(%)
Total operating revenue	5,071,794,627.70	4,383,446,140.42	15.70%
Operating profit	1,398,763,781.01	1,754,687,253.23	-20.28%
Total profit	1,414,009,001.10	1,738,439,615.22	-18.66%
Net profit attributable to shareholders of
the listed company	1,216,460,123.60	1,469,078,129.30	-17.20%
Basic earnings per share (RMB)	1.07	1.32	-18.94%
Weighted average rate of return on
net assets (%)	20.96%	46.37%	-25.41%
		As at the
	As at the	beginning of
	end of this	this reporting
	reporting period	period	Change
			(%)
Total assets	13,333,598,779.04	7,999,100,056.47	66.69%
Owners’ equity attributable to shareholders
of the listed company	7,938,305,620.39	4,037,204,430.12	96.63%
Total share capital	1,315,081,930.00	741,771,379.00	77.29%
Net assets per share attributable to
shareholders of the listed company	6.04	5.44	11.03%

Note: The above data are based on the data of the consolidated statements of the Company.

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II. EXPLANATION OF THE OPERATING RESULTS AND FINANCIAL POSITION

1. Explanation of the operating results

During the reporting period, the Company achieved total operating revenue of RMB5,071,794,627.70, representing a year-on-year increase of 15.70%. Operating profit amounted to RMB1,398,763,781.01, representing a year-on-year decrease of 20.28%; total profit amounted to RMB1,414,009,001.10, representing a year-on-year decrease of 18.66%; and net profit attributable to shareholders of the listed company amounted to RMB1,216,460,123.60, representing a year-on-year decrease of 17.20%. The decrease of the results for the period as compared to the same period last year was mainly attributable to the following reasons:

According to the announcement (No.: Lin 2018–125) on the changes in accounting policies published by the Company on the Securities Times, Securities Daily and on the website of CNINFO (www.cninfo.com.cn) on December 29, 2018, upon changes in the accounting policies, equity instruments would be classified as financial assets at fair value through profit or loss with the changes in fair value recognised in profit or loss. As a result of the drop of share prices of the financial assets, the operating results of the Company were adversely affected.

2. Explanation of financial position

As at the end of reporting period, total assets of the Company amounted to RMB13,333,598,779.04, representing an increase of 66.69% as compared to the beginning of the year; owner’s equity attributable to shareholders of the listed company amounted to RMB7,938,305,620.39, representing an increase of 96.63% as compared to the beginning of the year; share capital was 1,315,081,930 shares, representing an increase of 77.29% as compared to the beginning of the year; and net assets per share attributable to shareholders of the listed company was RMB6.04, representing an increase of 11.03% as compared to the beginning of the year.

III. EXPLANATION OF THE DIFFERENCE WITH THE PREVIOUS RESULTS FORECAST

There is no difference between the operating results disclosed under the preliminary financial data and the estimated results as set out in the Announcement Regarding the Revision of the Forecast for the Annual Results of 2018 published by the Company on January 30, 2019.

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IV. OTHER EXPLANATIONS

The preliminary financial data are arrived at merely based on the preparatory calculation of the financial department of the Company and have not been audited by an accounting firm. Details of the financial information will be disclosed in the 2018 annual report. Investors are advised to pay attention to the investment risks.

V. DOCUMENTS AVAILABLE FOR INSPECTION

1. The comparative balance sheet and income statement signed and stamped by the legal representative, chief accountant and head of accounting department;

2. The internal audit report signed by the head of the internal audit department.

By order of the Board GANFENG LITHIUM CO., LTD. LI Liangbin Chairman

Jiangxi, PRC February 28, 2019

As at the date of this announcement, the Board comprises Mr. LI Liangbin, Mr. WANG Xiaoshen, Mr. SHEN Haibo, Ms. DENG Zhaonan and Mr. XU Xiaoxiong as executive directors of the Company; Mr. HUANG Daifang as non-executive director of the Company; and Mr. GUO Huaping, Mr. HUANG Huasheng, Mr. LIU Jun and Ms. WONG Sze Wing as independent non-executive directors of the Company.

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