(Yicai Global) Feb. 28 -- China's Ganfeng Lithium has posted a fall in profit for last year despite rising revenue at the world' largest producer of the metallic element widely used in electric car batteries.
Ganfeng's net income contracted 17.2 percent to CNY1.2 billion (179.6 million) for 2018 even though revenue rose 15.7 percent to CNY5.1 billion, the Jiangxi-based firm said in a statement.
The company attributed the results to changes in national accounting policy, meaning that equity instruments are classified as financial assets measured at fair values and their changes are now included in profits or losses. A fall in stock prices also had a negative influence on results.
Sales of lithium compounds accounted for a little of two-thirds of Ganfeng's turnover in 2017. These are used in new energy vehicle batteries, portable electronics and other battery materials, as well as in the chemical and pharmaceutical fields. Driven by industry changes, market prices for its battery-grade carbonate and hydroxide compounds fell in the second half of the year, adversely affecting the firm.
Ganfeng's cooperation agreements with major auto suppliers such as Tesla and BMW will ease pressure on its performance decline, the firm added.
Editor: William Clegg