Defanano H1 Revenue RMB10.4b, Up 168%, Turns Profitable

In the first half of 2026, the lithium iron phosphate industry saw both volume and price increases, driven by the new energy vehicle and energy storage sectors. Defanano disclosed its interim results on the evening of August 27, reporting revenue of RMB10.4 billion for the first half, up 167.92% year-on-year, and net profit attributable to shareholders of RMB455 million, turning around from a loss a year earlier.

Sales data showed robust production and sales, with production lines running at full capacity. From January to June 2026, the company's main product, phosphate-based cathode materials, reached a production volume of 215,300 tonnes, up 71.86% year-on-year, and sales of 202,000 tonnes, up 64.95%, with capacity utilization at 106.12%. During the same period, the gross margin for phosphate-based cathode materials was 11.28%, up 12.77 percentage points year-on-year, turning positive.

Product mix optimization was a key driver of profit growth. Shipments of high-compaction lithium iron phosphate products continued to rise, becoming a major contributor to sales, while fifth-generation ultra-high-density materials progressed well in validation. The company also achieved a technological breakthrough and commercial production of lithium manganese iron phosphate materials, and became the world's first to mass-produce lithium-replenishing additive materials.

In the first half of 2026, the company announced two investment plans totaling approximately RMB8.7 billion. One project, a green phosphorus-based new energy materials industrial chain integration initiative in Luquan, Kunming, plans to build a 300,000-tonne-per-year phosphate-based cathode material facility and a 270,000-tonne nitric acid supporting project, with a total investment of RMB6.3 billion. The other, a lithium battery new materials integration project in Qujing High-tech Zone, involves a 200,000-tonne-per-year phosphate-based new materials production line, with a total investment of RMB2.4 billion. The company is advancing refinancing, proposing a private placement to raise up to RMB2.9 billion for the first phase of the lithium battery new materials integration project and working capital.