Ganfeng Lithium Co., Ltd.

1772
Failed

Company Overview

The company is the world's leading lithium ecological enterprise. It has the production capacity of more than 40 kinds of lithium compounds and lithium metal products in five categories. It is one of the manufacturers with the most complete supply of lithium series products, and the perfect product supply portfolio can meet the unique and diverse needs of customers. The company started with midstream lithium compounds and lithium metal manufacturing and successfully expanded to the upstream and downstream of the industrial chain. The company has formed a vertically integrated business model. The business covers all important aspects of the industrial ecological chain such as upstream lithium resource development, midstream lithium compounds and lithium metal processing, downstream lithium battery manufacturing and comprehensive recycling of decommissioned lithium batteries, so that we can gather the latest market information and develop top technology to effectively exert synergy between various business sectors and consolidate market position to enhance operational efficiency and profitability. The company's products are widely used in applications such as electric vehicles, aerospace products, functional materials and pharmaceuticals, and most customers are global leaders in their respective industries. Ganfeng ecosystem continues to promote the company's launch of new products and services, enabling us to form strategic partnerships with customers and end users. The company's integrated supply and production chain and the business and related relationships of various business segments within the Ganfeng ecosystem are as follows: Upstream lithium resources: Through the global distribution of lithium ore resources, the company has controlled many high-quality lithium resources in Australia, Argentina, Ireland, Qinghai, Jiangxi, etc., respectively, and has formed a stable, high-quality, and diversified raw material supply system. The company has signed long-term purchase agreements for most lithium resources. The main lithium resource currently used by the company is the Mount Marion project in Australia. The company has secured and consolidated the stable supply of upstream high-quality lithium raw materials through continuous investment in upstream lithium resource companies and the signing of long-term strategic procurement agreements. Lithium compounds: The core of the Ganfeng ecosystem is the lithium compounds business segment. The main products include (1) battery-grade lithium hydroxide, (2) battery-grade lithium carbonate, (3) lithium chloride, and (4) lithium fluoride, etc., which are widely used in lithium battery materials, chemistry and pharmaceutical fields such as electric vehicles and portable electronic devices. Customers mainly include global battery cathode material manufacturers, battery suppliers, and automotive original equipment manufacturers. Lithium metal: The company's lithium metal product production capacity ranks first in the world. The company can produce lithium metal ingots, lithium foil, lithium bars, lithium particles, lithium alloy powder and copper-lithium or lithium aluminum alloy foil according to customer needs, mainly for (1) lithium battery anode materials; (2) pharmaceutical reaction catalysts; (3) alloys and other industrial materials. Customers include battery manufacturers and pharmaceutical companies. The raw material for lithium metal is mainly lithium chloride, which comes from internal supply from the company's lithium compounds business segment and lithium battery recycling business segment, and lithium chloride recovered from lithium-containing catalyst solutions from pharmaceutical companies. Lithium batteries: Most of the company uses anode materials, cathode materials, and electrolytes purchased from customers in the lithium compounds business segment to produce lithium-ion batteries. They are mainly used in electric vehicles, various energy storage devices, and various consumer electronic devices, including mobile phones, tablets, laptops, TWS headsets, drones, etc. At the same time, the company actively promotes R&D, production and commercial application of solid-state lithium batteries. Lithium battery recycling: The use of electric vehicles and consumer electronic products will surely drive increasing social demand for decommissioned lithium battery disposal. The company's lithium battery recycling business has broad market prospects, huge economic potential, and can further enrich diversified supply channels for lithium raw materials to achieve comprehensive recycling of resources such as lithium, nickel, cobalt, and manganese. The company's recycling and decommissioned lithium battery business provides sustainable value-added solutions for battery manufacturers and electric vehicle manufacturers, and further strengthens relationships with customers from the battery production business.

Country
HK
Market Cap
$7.64B
Last Fiscal Year
2023
Final Shariah Status
Failed
Compliance Analysis Overview

Shariah Compliance Benchmarks:

  • Business Compliance: Non-Shariah compliant revenue must be less than 5% of total revenue
  • Liabilities Compliance: Interest-bearing debt must be less than 33% of market capitalization
Business Compliance
1.07% passed
5% Threshold
1.1%
Liabilities Compliance
46.18% failed
33% Threshold
46.2%
Final Shariah Status
Failed

This stock does not meet all Shariah compliance criteria according to AAOIFI standards.

Stock Information
Name Ganfeng Lithium Co., Ltd.
Ticker 1772
Main Business Chemicals
Type Common Stock
Industry Chemicals
Country HK
Market Cap $7.64 B

Shariah Analysis Breakdown

Business compliance Breakdown
Revenue Segment Value ($M) Non-Compliant ($M) Reason
Lithium metal and lithium compounds $14,030.0 $0.0 -
Lithium battery $4,090.0 $0.0 -
Interest income $197.4 $197.4 -
Total $18,317.4 $197.4 1.07% (passed)
Liabilities Compliance Breakdown
Liability Item Value ($M) % of Market Cap
bank loans and overdrafts $1,338,935,574.2 17.53%
long term bank loan $2,189,075,630.3 28.65%
Total Interest-Bearing Debt $3,528,011,204.5 46.18%
Market Capitalization $7,639,743,589.7 100.00%
Compliance Status Threshold: 33% failed