Jiangsu Lopal Tech. Group Co., Ltd. (Lopal Tech) posted a sharp turnaround in the first quarter of 2026, driven by surging demand for lithium iron phosphate (LFP) cathode materials.

Revenue climbed 119.61 % year-on-year to RMB 3.50 billion, reflecting a significant increase in shipment volumes from the LFP cathode business. Gross sales growth fed directly into the bottom line: net profit attributable to shareholders swung to RMB 214.26 million from a RMB 25.95 million loss a year earlier, delivering a net margin of 6.13 %. Excluding non-recurring items of RMB 17.77 million, core net profit reached RMB 196.49 million. Basic and diluted earnings per share both stood at RMB 0.31, versus a loss of RMB 0.04 in the prior-year period.

Profitability improvement translated into a weighted average return on equity of 7.30 %, an 8.16-percentage-point increase year-on-year. Total assets expanded 13.35 % to RMB 21.16 billion, while equity attributable to shareholders rose 7.63 % to RMB 3.04 billion.

Liquidity was pressured by rapid expansion. Operating cash outflow reached RMB 1.73 billion, compared with an inflow of RMB 163.05 million in Q1 2025, as Lopal Tech accelerated raw-material purchases to secure future orders. Cash and equivalents fell to RMB 2.46 billion from RMB 3.79 billion at December-end. Inventories increased 54.68 % to RMB 2.47 billion, and prepayments nearly doubled.

The balance sheet shows higher leverage supporting growth: short-term borrowings rose to RMB 5.20 billion and long-term borrowings to RMB 3.60 billion. Financial assets held for trading increased 53.53 %, while derivative financial liabilities dropped 89.44 %, reflecting mark-to-market movements in hedging positions.

Corporate actions during the quarter included: 1. Approval to cancel 2.08 million previously repurchased shares, reducing registered capital once creditor-notification procedures conclude. 2. Regulatory clearance for a private share placement, with proceeds already received but final issuance steps still in process. 3. Overseas expansion—agreements to subscribe for shares in Global Lithium Resources Ltd., secure offtake rights for Manna spodumene concentrate, and acquire Australian lithium exploration leases for AUD 14.85 million through subsidiary Lopal Tech Perth Pty Ltd.

Founder Shi Junfeng remains the largest shareholder with a 31.04 % stake; combined holdings with related parties total 34.77 %. HKSCC Nominees Limited holds 17.52 % on behalf of Hong Kong investors.

The first-quarter figures are unaudited and prepared under China Accounting Standards.