Data from Zhitong Finance APP indicates that driven by a recovering lithium product market with substantial volume and price increases, lithium mining giant Youngy Co.,Ltd. (002192.SZ) has seen explosive earnings growth. In the first half of the year, the company's revenue surged 402.35% year-on-year, while net profit skyrocketed 1076.14%. According to a research report from Essence Securities, the lithium carbonate market is expected to see demand recovery in 2026, with supply-demand dynamics and prices poised for a corrective rebound. Short-term prices face favorable support, and the industry's high-profit cycle is likely to persist.

On the evening of August 17, Youngy Co.,Ltd. released its semi-annual report for 2026. During the first half of the year, the company achieved operating revenue of RMB 1.524 billion, up 402.35% year-on-year; net profit reached RMB 1.002 billion, up 1076.14%; and net cash flow from operating activities stood at RMB 442 million, an increase of 145.71% year-on-year. As a core domestic spodumene mining enterprise in production, the lithium concentrate business serves as the primary source of revenue and profit for Youngy Co.,Ltd. During the reporting period, the company's total lithium concentrate output hit 146,100 tons, a year-on-year increase of 108.80%, with second-quarter production reaching 86,700 tons, up 45.99% quarter-on-quarter. Meanwhile, the company's mining capacity continued to expand.

Youngy Co.,Ltd. holds the mining rights to the No. 134 vein of the Jiajika spodumene mine in Kangding City, having established an open-pit mining capacity of 1.05 million tons per year and ore processing capacity of 450,000 tons per year at the site. It is currently one of the few large-scale spodumene mines in China that is continuously in production and supplying the market. The surge in lithium prices is the core driver behind Youngy Co.,Ltd.'s rapid earnings growth. From January to February this year, lithium prices experienced a sharp one-way rally, with battery-grade lithium carbonate climbing from approximately RMB 120,000 per ton to around RMB 180,000 per ton, and lithium concentrate prices rising from USD 1,500 per ton to roughly USD 2,300 per ton. Subsequently, lithium prices maintained high-level volatility, with battery-grade lithium carbonate breaking through RMB 200,000 per ton in mid-to-late May, marking a new high for this rebound cycle.

This round of lithium price increases results from combined efforts on both the supply and demand sides. On the demand front, the dual tracks of energy storage and new energy vehicles provide rigid demand support, while policy changes have triggered a notable demand-pull-forward effect. According to SMM estimates, domestic lithium carbonate consumption in 2026 is projected to increase to 1.7716 million tons, up 44.07% year-on-year. From a demand structure perspective, power batteries and energy storage batteries are the main growth drivers for lithium carbonate consumption. In the power battery sector, benefiting from the continued rise in new energy vehicle penetration, lithium carbonate demand is steadily expanding; in the energy storage battery sector, electricity market reforms and green power direct-connection policies have driven rapid growth in energy storage battery installations, making it the second growth engine for lithium carbonate demand. Additionally, in January 2026, the Ministry of Finance and the State Taxation Administration issued an announcement on adjusting export tax rebate policies for photovoltaic and other products, implementing a tiered reduction in export tax rebates for lithium batteries. This prompted companies to accelerate shipments before the policy took effect and stockpile raw materials like lithium carbonate, fueling rapid short-term increases in lithium product demand and prices.

On the supply side, expectations of contraction have become another pillar of support for lithium prices. In the first half of the year, domestic lepidolite mines underwent concentrated production halts for license renewal, coupled with Zimbabwe's introduction of lithium ore export control policies overseas. Market expectations of tighter lithium resource supply continued to heat up, serving as an important catalyst for the upward price trend in the first half. Haizheng Futures believes that the high-prosperity fundamentals guiding lithium carbonate prices in the second half are not yet over. Specifically, historical data suggests that new energy vehicle sales in the second half will outperform the first half (especially in Q4), energy storage remains in a high-prosperity phase, and the pre-export rush triggered by the cancellation of battery tax rebates next year supports an optimistic outlook for overall demand. Furthermore, although significant new capacity is expected in the future, the pace of production ramp-up carries considerable uncertainty amid rising resource protectionism, and incremental supply releases may fall short of expectations. The firm maintains its view of range-bound lithium carbonate price fluctuations in Q3, with a gradual upward trend in Q4.

Goldman Sachs indicates that this industry cycle closely mirrors the 2020-2021 period, with 2025 marking the tail end of the lithium price downturn. Lithium carbonate prices fell to industry cost lines, and combined with trade environment impacts, the first half saw weak market conditions. In 2026, as demand recovers, supply-demand dynamics and prices are set for a corrective rebound. Essence Securities' research report states that the supply-demand gap provides favorable short-term support for lithium carbonate prices, and the industry's high-profit cycle is expected to continue. China's lithium carbonate industry maintains a structural tight-balance pattern. According to the firm's estimates, China's lithium carbonate supply-demand gap is projected to be approximately 46,782 tons in 2026. Meanwhile, the upward trajectory of oil prices and deepening electricity market reforms in 2026 will further boost new energy vehicle penetration and energy storage installation capacity expansion, potentially strengthening downstream demand support for lithium carbonate prices. The firm recommends focusing on companies with strong cost control capabilities, ample mine production capacity, and relatively well-developed global resource layouts.

Related concept stocks include Jiangsu Lopal Tech. Group Co.,Ltd. (02465): The company expects to achieve net profit attributable to shareholders of approximately RMB 373 million to RMB 448 million for the first half of 2026, with non-recurring items excluded net profit of roughly RMB 375 million to RMB 450 million, both achieving a year-on-year turnaround from losses to profits. Benefiting from the development of power batteries and energy storage batteries, the company's lithium iron phosphate business has seen varying degrees of growth in revenue and sales volume driven by upstream and downstream industry demand, with economies of scale emerging and profitability recovering.

CNGR (02579): The company expects net profit attributable to shareholders of RMB 1.25 billion to RMB 1.35 billion for the first half of 2026, up 70.58%-84.23% year-on-year. During the reporting period, the company seized the opportunities presented by the global new energy industry's high prosperity and leveraged its leading position in the battery materials sector. Combined sales of core products, including nickel-based, cobalt-based, phosphorus-based, and sodium-based materials, surpassed 250,000 tons. Overall, the company's "resources + smelting + materials" full industry chain integration advantages continue to deepen, with various business segments working in synergy to build the company's safety margin and anti-cyclical resilience.

Ganfeng Lithium Group Co.,Ltd. (01772): The group expects net profit attributable to shareholders for the six months ending June 30, 2026 to range between RMB 3.65 billion and RMB 4.6 billion, achieving a year-on-year turnaround. The group's expected unaudited results under Chinese Accounting Standards for the reporting period are anticipated to show a significant increase compared to the same period in 2025, primarily due to the rapid development of the global new energy industry, increased downstream demand for lithium salts, and significantly higher selling prices for the company's lithium salt products compared to the previous year. Additionally, as lithium resource project capacity gradually ramps up, the company's cost structure has been effectively optimized. Coupled with sustained growth in energy storage market demand, lithium battery production and sales volumes have improved notably, collectively driving year-on-year growth in the company's operating performance.