Financial Performance - Tianqi Lithium reported a revenue of RMB 1.5 billion for the first half of 2024, representing a 25% increase compared to the same period last year[8]. - The company reported a net profit of RMB 300 million for the first half of 2024, a 40% increase year-over-year[8]. - Revenue for the first half of 2024 was RMB 6,401,143, a decrease of 74.18% compared to RMB 24,787,359 in the same period of 2023[21]. - The Group's gross profit was RMB 3,315,656 thousand, a decrease of RMB 18,269,004 thousand or 84.64% from RMB 21,584,660 thousand for the six months ended June 30, 2023[199]. - The basic loss per share for the Group was RMB 3.17, with a loss attributable to equity shareholders of RMB 5,198,402 thousand, a decrease of RMB 11,645,192 thousand or 180.64% compared to a profit of RMB 6,446,790 thousand for the same period in 2023[199]. Market Demand and Trends - User data showed a 15% increase in lithium product demand, driven by the growing electric vehicle market[8]. - Future guidance estimates a revenue growth of 30% for the full year 2024, supported by strong market trends[8]. - Future outlook indicates a strong growth trajectory in the lithium market, driven by the electric vehicle and renewable energy sectors[12]. - The demand for lithium-ion batteries is expected to increase significantly due to the wide application in electric vehicles and energy storage[28]. - The lithium market is strategically important for the global energy transition, with significant policy support from major markets like China, Europe, and the U.S.[28]. Production Capacity and Expansion - Tianqi Lithium plans to expand its production capacity by 20% in the next year to meet rising demand[8]. - The company aims to increase its production capacity and improve operational efficiency in response to growing demand for lithium products[12]. - The current established production capacity of lithium concentrates at the Greenbushes mine is 1.62 million tons per year, with plans to exceed 2.1 million tons per year upon the operation of Chemical-Grade Plant No. 3 in 2025[104]. - The Group has established a 100% self-sufficiency in lithium resources through strategic investments in high-quality hard rock and brine lithium resources[93]. - The Group currently has an in-house lithium chemical products nameplate capacity of 88,600 tons per year, expected to reach a total of 143,600 tons per year with planned capacity[128]. Research and Development - The company is investing RMB 500 million in R&D for new lithium extraction technologies aimed at reducing costs by 10%[8]. - The Group has a highly skilled R&D team and has established a market-oriented R&D management system focusing on four major research areas: comprehensive utilization of mineral resources, new lithium extraction technology, new lithium materials, and battery recycling[156]. - The Company has integrated research and development, production, and sales of lithium metal to meet the increasing future demand for solid-state battery technology[135]. - The Company has established 10 new cooperation projects with universities and research institutions in 2024, focusing on the entire lifecycle of lithium resource development and recycling[157]. Strategic Partnerships and Acquisitions - Tianqi Lithium is exploring potential acquisitions to enhance its supply chain and market presence in Asia[8]. - The Group has initiated cooperation with OEMs since 2023, integrating into the supply chain of leading companies in the global new energy vehicle industry[92]. - The Company has established strategic cooperation agreements with Geely Holding and Mercedes-Benz to enhance its market position[138]. - The partnership agreement between SQM and Codelco is expected to take effect in 2025, with SQM's operational rights for lithium extraction in the Salar de Atacama proposed to be extended from 2030 to 2060[189]. Sustainability and Corporate Governance - The Company is committed to sustainable practices and innovation in its operations to meet environmental standards[12]. - The Company has established a transparent supply chain with clauses against commercial bribery, money laundering, and terrorist financing in contracts with customers and suppliers[164]. - The Company aims to enhance its corporate governance structure by adding monitoring functions to its existing audit department[164]. - The Company has integrated 22 ESG indicators into senior management's remuneration performance, linking it to short-term, medium-term, and long-term goals[164]. Risks and Challenges - The cyclical fluctuations in the lithium product market pose challenges to the company's cost control, corporate governance, and profitability[182]. - A significant or sustained decline in lithium prices could result in a reduction in operating revenue and profitability[183]. - The company faces risks related to fluctuations in exchange rates, primarily with U.S. dollars and Australian dollars, which may adversely affect profitability[198]. - The Company is committed to enhancing employee training on safety and environmental protection, emphasizing the importance of standardized production operations[196].

Investment Rating - The investment rating for the company is "Add" [1] Core Views - The report indicates that Tianqi Lithium is a leading player in the upstream integrated lithium salt industry, focusing on strengthening upstream operations, enhancing midstream capabilities, and penetrating downstream markets. The company faced significant losses in H1 2024 due to high-priced inventory and substantial tax provisions from its associate SQM. However, as high-priced inventory is gradually consumed and new low-cost lithium concentrate is added, the company's performance is expected to improve in H2 2024. Long-term, the company benefits from the low-cost equity mine advantage of Talison, positioning it among the top in profitability within the industry. The report maintains the "Add" rating and encourages investors to pay attention [1]. Financial Performance Summary - In H1 2024, the company's revenue decreased by 74.2% year-on-year to 6.4 billion yuan, with lithium salt revenue down 56.3% to 3.83 billion yuan and lithium concentrate revenue down 84.0% to 2.57 billion yuan. The production of lithium concentrate from the Talison mine, in which Tianqi holds a 26.01% stake, saw a year-on-year decline of 18% in output to 612,000 tons and a 7% decline in sales volume to 713,000 tons, with an average selling price down 82% to 1,024 USD/ton [1][2]. - The net profit attributable to shareholders for H1 2024 was -5.2 billion yuan, a sharp decline compared to 6.45 billion yuan in H1 2023 and 830 million yuan in H2 2023. The losses were attributed to falling lithium prices and high-priced inventory, alongside a net loss of 1.14 billion yuan from SQM due to price declines in lithium and fertilizer products [1][2]. - The company’s lithium resource advantage is highlighted, with all lithium concentrate used for lithium salt production sourced from Talison. The report notes ongoing development of the Yajiang Cuola mine and investments in SQM's Atacama and Zhabuye salt lakes [1]. Production Capacity and Expansion - As of the end of H1 2024, Tianqi Lithium's annual lithium salt production capacity was 88,600 tons, with plans for further expansion including 24,000 tons from the second phase of the Kwinana lithium hydroxide project and 30,000 tons from Zhangjiagang [1][2]. - The report emphasizes the company's strategy to deepen cooperation with downstream industries through investments in new energy materials, power batteries, solid-state batteries, and electric vehicles [1].

Financial Performance - Tianqi Lithium Corporation reported unaudited interim results for the six months ending June 30, 2024[1]. - The company reported a revenue of RMB 1.2 billion for the first half of 2024, representing a 15% increase compared to the same period last year[8]. - The company achieved a lithium carbonate equivalent (LCE) production of 15,000 tons, up 20% year-over-year[9]. - The company has set a revenue guidance of RMB 2.5 billion for the full year 2024, reflecting a projected growth of 18%[11]. - Tianqi Lithium reported a significant increase in revenue, reaching US$1.2 billion for the first half of 2024, representing a 25% year-over-year growth[13]. - Revenue for the six months ended June 30, 2024, was RMB 6,401,143,000, a decrease of 74.18% compared to RMB 24,787,359,000 in the same period of 2023[19]. - The company reported a net profit margin of 12%, an improvement from 10% in the previous year, indicating better cost management[12]. - The Group's revenue for the reporting period was RMB 6,401,143 thousand, a decrease of RMB 18,386,216 thousand or 74.18% from RMB 24,787,359 thousand for the six months ended June 30, 2023[157]. - The loss attributable to equity shareholders of the Company was RMB 5,198,402 thousand, a decrease of RMB 11,645,192 thousand or 180.64% compared to a profit of RMB 6,446,790 thousand for the six months ended June 30, 2023[157]. Market Trends and Demand - User data indicates a 25% increase in demand for lithium products, driven by the growing electric vehicle market[10]. - User data indicates a growing demand for electric vehicle batteries, with a projected market growth of 30% annually over the next five years[15]. - The demand for lithium-ion batteries is expected to significantly increase due to the wide application in electric vehicles and energy storage[24]. - The share of lithium batteries in global lithium resource applications is projected to keep rising due to the growing demand in electric vehicles and portable electronic devices[24]. - The demand for lithium is expected to continue growing due to policy support and evolving market demand in the U.S. energy storage market[28]. - The energy storage demand is projected at 425 GWh, corresponding to a lithium carbonate demand of approximately 306,000 tons of LCE by 2025[78]. Production Capacity and Expansion - The company is focused on expanding its lithium production capacity through initiatives like the CGP3 project[5]. - Future outlook includes plans to expand production capacity by 50% by the end of 2025, aiming for a total output of 45,000 metric tons[16]. - The company is investing US$200 million in new technology for lithium extraction, expected to improve efficiency by 20%[15]. - The company is exploring potential acquisitions in the lithium mining sector to enhance its resource base and production capacity[10]. - The company achieved a production volume of 30,000 metric tons of lithium hydroxide, a 15% increase compared to the previous year[14]. - The current established production capacity of lithium concentrates at Greenbushes is 1.62 million tons per year, with planned capacity expected to exceed 2.1 million tons per year by 2025[87]. Research and Development - Research and development expenses increased by 5% to RMB 150 million, focusing on sustainable lithium extraction technologies[10]. - The company is focusing on strategic cooperation with leading enterprises in the upstream and downstream sectors of the new energy industry chain[111]. - The Company focuses on four major research areas: comprehensive utilization of mineral resources, new lithium extraction technology, new lithium materials for next-generation batteries, and battery recycling[123]. - The Company has established relevant systems for foreign exchange hedging to mitigate risks associated with fluctuations in exchange rates, primarily related to U.S. dollars and Australian dollars[176]. Corporate Governance and Compliance - The Board of Directors includes executive and independent non-executive directors, ensuring diverse governance[2]. - The company is committed to maintaining compliance with corporate governance standards as outlined in the Hong Kong Listing Rules[7]. - The Company has linked senior management's remuneration performance with a total of 22 ESG indicators, forming a multi-dimensional database of short-term, medium-term, and long-term indicators[130]. - The Company has established five special committees under the Board, all chaired by independent non-executive Directors, to assist in governance[129]. Strategic Partnerships and Collaborations - Tianqi Lithium aims to enhance its market position by leveraging strategic partnerships and technological advancements[6]. - A new strategic partnership with a leading electric vehicle manufacturer aims to secure long-term supply contracts, potentially increasing sales by 30%[11]. - The Group has initiated cooperation with OEMs since 2023, integrating into the supply chain of leading companies in the global new energy vehicle industry[79]. - The Company has established strategic partnerships with major battery material producers and new energy vehicle manufacturers globally, providing customized services[101]. Environmental, Health, and Safety (EHS) - The Company established a Safety Production Committee and an Environment, Health and Safety (EHS) department to enhance safety management and compliance[154]. - EHS indicators were incorporated into the key performance indicators for management, departments, and production bases during the reporting period[154]. - The Company aims for full automation and intelligent production lines to increase operational stability and reduce safety risks[154]. Financial Guidance and Risk Management - The company is committed to enhancing its intrinsic value and innovation capabilities to strengthen market competitiveness[147]. - The Company will continue to conduct commodity futures hedging business with a maximum margin limit of no more than RMB200 million to mitigate potential risks from price fluctuations[146]. - The Company recognizes the impact of various factors on lithium prices, including global economic growth and supply-demand dynamics[145]. - The Company is enhancing its risk awareness and predictive ability to adapt to internal and external environmental changes[152].

Financial Performance - Revenue for Q1 2024 was CNY 2,584,634,945.21, a decrease of 77.42% compared to CNY 11,448,674,607.22 in the same period last year[2] - Net profit attributable to shareholders was a loss of CNY 3,896,784,834.74, down 179.93% from a profit of CNY 4,875,226,485.40 in the previous year[2] - Net profit excluding non-recurring items was a loss of CNY 3,916,733,916.55, a decline of 180.99% compared to CNY 4,836,318,922.00 last year[2] - Basic earnings per share were CNY -2.38, a decrease of 180.13% from CNY 2.97 in the previous year[3] - The significant decline in net profit was primarily due to a sharp drop in lithium product sales prices and margins[6] - The company anticipates a potential reduction in net profit of approximately USD 1.1 billion for Q1 2024 due to tax litigation outcomes affecting its joint venture SQM[6] Assets and Liabilities - Total assets at the end of the reporting period were CNY 69,948,471,891.85, a decrease of 4.48% from CNY 73,228,464,437.61 at the end of the previous year[2] - Total equity attributable to shareholders was CNY 47,818,229,068.92, down 7.18% from CNY 51,519,658,068.18 at the end of the previous year[3] - Total liabilities decreased from CNY 18.99 billion to CNY 17.12 billion, a reduction of approximately 10%[26] - Current assets decreased from CNY 19.63 billion to CNY 16.64 billion, representing a reduction of about 15%[23] - Non-current assets slightly decreased from CNY 53.60 billion to CNY 53.31 billion, a decline of around 0.54%[24] Cash Flow - Operating cash flow for the period was CNY 3,144,368,451.35, down 36.30% from CNY 4,936,111,237.93 in the same period last year[3] - Cash flow from operating activities generated CNY 3,144,368,451.35, a decrease from CNY 4,936,111,237.93 in the previous period[31] - Cash flow from investing activities resulted in a net outflow of CNY 2,093,395,447.41, compared to a net outflow of CNY 708,887,294.68 last period[32] - Cash flow from financing activities showed a net outflow of CNY 1,041,782,552.67, improving from a net outflow of CNY 4,902,867,794.62 in the previous period[32] - The net increase in cash and cash equivalents for the period was approximately -$756.38 million, compared to the previous period[33] - The ending balance of cash and cash equivalents was approximately $11.53 billion, down from $12.29 billion at the beginning of the period[33] Shareholder Information - Major shareholders include Chengdu Tianqi Industrial Group Co., Ltd. with 416,316,432 shares, representing a significant portion of the company's equity[10] - The top ten unrestricted shareholders collectively hold a substantial number of shares, indicating strong institutional interest[11] - The company has a diverse shareholder base, including major banks and investment funds, which enhances its financial stability[12] - The company has not reported any changes in the participation of major shareholders in margin financing and securities lending activities[12] Projects and Operations - The Kwinana plant's first phase lithium hydroxide project has achieved commercial production capacity since November 30, 2022, with stable production from January to April 2023, and is currently in the capacity ramp-up stage[16] - The second phase of the Kwinana plant, also with an annual production capacity of 24,000 tons of battery-grade lithium hydroxide, is in the engineering design phase, with completion expected in the second half of 2024[17] - The Suining Anju plant's lithium carbonate project, with an annual capacity of 20,000 tons, has completed construction as of October 27, 2023, and is currently in the trial operation phase[18] - The total investment for the Suining Anju project is approximately RMB 1.48 billion, with the budget approved at RMB 1.4778 billion[18] - The company has successfully distributed lithium hydroxide samples to potential buyers, with certifications received from SK On Co. Ltd and Northvolt ETT AB, and shipments expected to commence in January 2024[17] Strategic Initiatives - The company plans to issue debt financing tools up to RMB 6 billion to optimize its debt structure and ensure cash flow stability[13] - The company successfully issued the first phase of short-term financing bonds totaling RMB 300 million with an interest rate of 2.35% and a one-year term[13] - The company has established a hedging leadership team to manage commodity futures and options operations, ensuring compliance with risk management protocols[15] - The company intends to engage in lithium carbonate commodity futures hedging to mitigate price volatility risks associated with its main products[14] - The maximum trading margin and premium for hedging activities will not exceed RMB 20 million, with a maximum contract value of RMB 80 million per trading day[14] - The company has not yet commenced actual commodity futures hedging as of the date of this announcement[15] Regulatory and Legal Matters - The company is actively monitoring the progress of the MoU with Codelco and assessing its potential impact on shareholder interests[22] - The company has requested multiple shareholder meetings to obtain more detailed information regarding the MoU and its implications[21] - SQM, in which the company holds approximately 22.16% equity, has signed a non-binding memorandum of understanding with Codelco for the operation and development of the Atacama salt flat from 2025 to 2060[20] - The partnership with Codelco aims to establish a joint venture for the sustainable production of lithium products, contingent upon several regulatory approvals[20] - SQM's lithium mining rights in the Atacama salt flat are expected to be extended from 2030 to 2060, with Codelco holding the core lithium business from 2031 onwards[21] Other Financial Metrics - The company reported an operating profit loss of CNY 514,352,993.81, contrasting with an operating profit of CNY 11,755,837,513.92 last period[28] - Other comprehensive income after tax for the current period is a loss of CNY 478,337,129.18, compared to a loss of CNY 592,736,031.35 last period[29] - The company reported a significant investment loss of CNY 1,327,208,450.82, contrasting with an investment gain of CNY 1,412,343,884.49 in the previous period[28] - The first quarter report was not audited[33] - The company will implement new accounting standards starting in 2024[33]

Production Capacity and Resources - Tianqi Lithium Corporation has a lithium concentrate production capacity of 1.62 million tons per year, making it one of the largest producers globally[3]. - The company has established a lithium chemical production capacity of 88,800 tons per year across five operational and two under-construction production bases[3]. - The company is positioned to achieve 100% self-sufficiency in lithium resources through its diversified global resource layout[3]. - The Jiangsu Zhangjiagang facility is noted as the world's first fully automated battery-grade lithium carbonate production plant currently in operation[3]. - The company has a significant presence in Australia, Chile, and China, ensuring a robust supply chain for lithium resources[3]. - The Greenbushes lithium spodumene mine, controlled by the company's Australian subsidiary, had a production capacity of 1.62 million tons, with an output of approximately 1.52 million tons in 2023[19]. - The company plans to add 520,000 tons of new capacity through the construction of a new chemical-grade lithium concentrate processing plant[19]. - The company is the fifth largest lithium compound supplier globally and the second largest in Asia and China, with a current lithium chemical product capacity of 88,800 tons per year[19]. - The total resource amount of the Greenbushes mine is 16 million tons of LCE, while the Zabuye salt lake has a resource amount of 1.79 million tons of LCE[45]. - The company holds a 20% stake in the Zabuye salt lake, which has a lithium resource of 1.79 million tons and is recognized as the third largest lithium salt lake in the world[57]. Financial Performance - The company's revenue for the year ended December 31, 2023, was RMB 40,448,303 thousand, representing a 0.70% increase compared to RMB 40,168,923 thousand in 2022[14]. - Gross profit for the same period was RMB 34,347,819 thousand, reflecting a 0.57% increase from RMB 34,154,295 thousand in 2022[14]. - Net profit attributable to equity shareholders decreased significantly by 69.60% to RMB 7,278,343 thousand, down from RMB 24,000,000 thousand in 2022[14]. - Earnings per share fell by 71.19% to RMB 4.44, compared to RMB 15.40 in the previous year[14]. - Lithium concentrate revenue surged by 76.43% to RMB 27,196,479 thousand, accounting for 67.24% of total revenue[15]. - Lithium compounds and derivatives revenue dropped by 46.47% to RMB 13,251,824 thousand, representing 32.76% of total revenue[15]. - The gross margin for the group was 84.92%, down from 85.03% in 2022, primarily due to a decline in sales prices of lithium compounds and derivatives[92]. - The total sales amount from the top 5 customers reached RMB 31,048,426 thousand, accounting for 76.76% of total sales, up from 60.50% in 2022[95]. - Other net income decreased to RMB 702,918 thousand from RMB 1,286,972 thousand in 2022, a reduction of RMB 584,054 thousand[96]. - Cash flow from operating activities was RMB 22,688,074 thousand, an increase of 11.78% compared to the previous year[99]. Market Trends and Demand - The demand for lithium in the battery industry increased significantly, with its share rising to 87% in 2023, driven by the growth of the electric vehicle market[22]. - The global demand for lithium is primarily driven by the electric vehicle and energy storage sectors, with energy storage expected to grow rapidly in the coming years[34]. - In 2023, global sales of new energy vehicles reached 13.71 million units, a year-on-year growth of approximately 32%[35]. - In China, new energy vehicle sales reached 9.587 million units, a year-on-year increase of 35.8%[36]. - The global energy storage battery shipments in 2023 were 173 GWh, representing a year-on-year growth of 60%[38]. - The cumulative production of power and energy storage batteries in China in 2023 was 778.1 GWh, a year-on-year increase of 42.5%[36]. - The global demand for power batteries is expected to reach 930 GWh in 2024, with a potential breakthrough of 1,100 GWh by 2025[37]. - The cumulative installed capacity of new energy storage globally reached approximately 81 GW by the end of 2023, with a forecasted increase of over 50 GW in 2024[38]. Strategic Partnerships and Investments - The company has strategic partnerships with top global battery manufacturers and electric vehicle companies, enhancing its market position[5]. - The company is actively exploring opportunities in the solid-state battery sector and has invested in leading companies in this field[5]. - The company aims to integrate domestic and international lithium mining and lithium compound supply chains to adapt to international market changes[3]. - The company plans to continue strategic investments in the value chain of new energy materials and next-generation battery technologies[21]. - The company will actively participate in international industrial chain cooperation to promote green and low-carbon energy transformation[21]. - The company has signed long-term supply agreements with several lithium battery and material manufacturers, enhancing its strategic partnerships within the supply chain[68]. - The company is actively involved in the lithium market expansion and technology development[8]. - The company has established partnerships with multiple universities and research institutions to foster innovation across the lithium resource industry chain[74]. Sustainability and ESG Initiatives - Tianqi Lithium Corporation emphasizes sustainable development and ESG principles in its operational strategy[5]. - The company has linked executive compensation performance to 22 ESG indicators, achieving a 100% coverage rate for ESG-linked performance metrics[79]. - The company’s ESG rating from MSCI improved from BB to BBB due to its efforts in environmental, social, and governance aspects[79]. - The company is committed to creating greater value for shareholders and society through high-quality development in energy transition and green development[21]. - The establishment of the EHS department aims to enhance safety and environmental management, with a focus on high-quality, high-standard project construction and operation[153]. - A safety production committee has been established to oversee and guide the company's safety management across various aspects, ensuring stable operations and sustainable development[154]. - The company has implemented a responsible mineral supply chain management system to mitigate risks associated with suppliers[161]. - The company has established a comprehensive employee compensation and benefits system, focusing on both external competitiveness and internal equity[159]. Corporate Governance and Management - The company has undergone a board and supervisory committee restructuring, with new appointments made effective from April 14, 2023[116]. - The company has a strong board of independent non-executive directors providing expertise in finance, corporate governance, and risk management[130][132]. - The company is focused on strategic planning and investment, with key management members involved in decision-making processes[128][129]. - The company has established a strong governance structure with experienced professionals in key positions, enhancing operational oversight and strategic direction[134][135][136][137]. - The company has confirmed the independence of all independent non-executive directors as of December 31, 2023, in compliance with listing rules[172]. - The company has a service contract with its directors and supervisors, with terms extending until April 14, 2026, allowing for re-election[170]. - The company has a performance assessment system for the employee stock ownership plan, which includes both company performance and individual performance evaluations[200]. Risks and Challenges - The company faces risks from lithium price volatility, which could significantly impact business performance and financial condition[148]. - Geopolitical factors and resource nationalism pose risks to the company's long-term strategic layout and adaptability in the lithium industry[151]. - The company faces potential delays in project revenue realization due to falling lithium prices and the time required for capacity ramp-up, which may adversely affect operational performance[150]. - The company faces foreign exchange risks primarily related to fluctuations in USD and AUD, which could impact overseas business costs and revenues[156]. Future Outlook and Plans - The company plans to expand upstream lithium resources and increase lithium chemical processing capacity as part of its strategic plan for 2023-2027[117]. - The company aims to achieve a total lithium chemical product capacity of 90,000 tons (equivalent) by the end of 2024[200]. - The company is actively seeking strategic partnerships to expand its layout of high-quality lithium resources and explore new lithium resource development opportunities[152]. - The company plans to continue technological innovation and market expansion, focusing on new lithium extraction technologies and optimizing battery recycling processes[87].

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 40,448,303 thousand, a slight increase of 0.7% compared to RMB 40,168,923 thousand in 2022[2] - Gross profit for the same period was RMB 34,347,819 thousand, up from RMB 34,154,295 thousand, reflecting a stable gross margin[2] - Net profit for the year was RMB 25,644,135 thousand, down 17% from RMB 30,912,939 thousand in 2022[2] - Basic earnings per share decreased to RMB 4.44 from RMB 15.41 in the previous year, indicating a significant decline in profitability[2] - The company reported a total adjusted profit before tax of RMB 36,262,330 thousand for 2023, compared to RMB 39,726,613 thousand in 2022, indicating a decrease of approximately 8.5%[16] - The net profit before tax decreased to RMB 36,262,330 thousand in 2023 from RMB 39,726,613 thousand in 2022, a decline of approximately 6%[23] - The group's other net income for the year ended December 31, 2023, was RMB 702,918 thousand, a decrease of RMB 584,054 thousand compared to RMB 1,286,972 thousand in 2022, primarily due to reduced gains from the sale of associates[105] Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 68,309,202 thousand, compared to RMB 65,002,910 thousand in 2022, showing growth in asset base[4] - Non-current assets increased to RMB 55,360,641 thousand from RMB 46,597,759 thousand, driven by investments in property, plant, and equipment[4] - The company’s total equity rose to RMB 55,955,603 thousand from RMB 54,758,242 thousand, indicating a solid capital position[5] - The total assets reported for the company in 2023 were RMB 74,969,069 thousand, a decrease from RMB 72,558,017 thousand in 2022[16] - The group's total liabilities to total equity ratio was 33.98% as of December 31, 2023, an increase of 1.47 percentage points from the previous year[114] Revenue Breakdown - Revenue from lithium compounds and derivatives sales was RMB 13,251,824 thousand in 2023, down 46% from RMB 24,754,462 thousand in 2022[12] - Revenue from lithium concentrate sales increased significantly to RMB 27,196,479 thousand in 2023, up 76% from RMB 15,414,461 thousand in 2022[12] - Revenue from mainland China increased to RMB 34,284,424 thousand in 2023, up from RMB 33,612,173 thousand in 2022, representing a growth of 2%[18] - Revenue from overseas markets, including Australia and Chile, reached RMB 50,585,626 thousand in 2023, compared to RMB 43,445,816 thousand in 2022, marking an increase of 16%[18] Research and Development - Research and development expenses increased to RMB 30,375 thousand from RMB 26,703 thousand, reflecting ongoing investment in innovation[2] - Research and development expenses increased by 13.75% to RMB 30,375 thousand in 2023 from RMB 26,703 thousand in 2022, accounting for 0.08% of the group's revenue[106] Cash Flow and Expenditures - The company reported a significant increase in cash and cash equivalents, totaling RMB 9,330,480 thousand, down from RMB 12,289,948 thousand in the previous year[4] - Capital expenditures for 2023 amounted to RMB 5,961,686 thousand, a substantial increase from RMB 2,217,569 thousand in 2022, representing a growth of about 168%[16] - The net cash flow from operating activities for the year ended December 31, 2023, was RMB 22,688,074 thousand, an increase of 11.78% from RMB 20,297,583 thousand in 2022[107] Market and Industry Trends - The battery industry accounted for 87% of global lithium demand in 2023, reflecting a structural shift in demand towards energy applications[41] - The Chinese government has implemented a series of policies to support the lithium battery industry, focusing on downstream applications in power batteries and energy storage batteries[45] - The global lithium resource supply reached 1.05 million tons of lithium metal equivalent, a 7% increase from January 2023, with Bolivia, Argentina, the USA, Chile, Australia, and China accounting for over 80% of the total[48] - The global lithium-ion battery shipment volume reached 1,202.6 GWh in 2023, a 25.6% increase year-on-year, with automotive power batteries accounting for 865.2 GWh, up 26.5%[54] Strategic Initiatives - The company plans to continue its exploration activities in Australia and expand its sales operations in both Australia and China[13] - The company aims to enhance its production efficiency and environmental standards through high-level automation and management practices in its manufacturing processes[78] - The company is actively pursuing strategic partnerships with leading enterprises in the upstream and downstream value chain to strengthen collaboration[94] - The company has established a joint laboratory with Chengdu University of Technology focused on green and efficient separation technology for salt lake resources, enhancing its innovation capabilities[85] Governance and Compliance - The company has adhered to all principles and applicable provisions of the corporate governance code during the reporting period[136] - The audit and risk committee has approved the audited consolidated financial results for the year ending December 31, 2023, ensuring compliance with applicable accounting standards and regulations[138] - The company's ESG rating improved from BB to BBB by MSCI in August 2023, reflecting its efforts in environmental, social, and governance practices[88] Future Outlook - The company plans to continue expanding lithium salt production capacity while enhancing automation in manufacturing processes[93] - The new energy vehicle sales forecast for 2024 is projected to exceed 17 million units globally, with 2025 expected to surpass 21 million units[57] - The company is exploring investment opportunities in the electric vehicle and energy storage sectors to prepare for future trends in lithium applications[95]

Core Viewpoint - The lithium industry is experiencing significant profit declines due to market fluctuations and reduced demand, impacting major companies like Tianqi Lithium and Ganfeng Lithium [1] Group 1: Tianqi Lithium - Tianqi Lithium expects a net profit of 6.62 billion to 8.95 billion yuan for 2023, representing a year-on-year decline of 62.9% to 72.56% [1] - The decrease in profit is attributed to the decline in sales prices of lithium chemical products compared to the previous year, leading to reduced gross margins [1] Group 2: Ganfeng Lithium - Ganfeng Lithium anticipates a net profit of 4.2 billion to 6.2 billion yuan for 2023, reflecting a year-on-year decrease of 69.76% to 79.52% [1] - The company's profit decline is influenced by the cyclical nature of the lithium industry, with slowing end-user demand and significant price drops in lithium salt products [1] - The price drop of lithium ore raw materials is less than that of lithium salt and downstream products, resulting in a decrease in gross margin [1]

Core Viewpoint - Tianqi Lithium Industries (09696) expects a significant decline in net profit for the fiscal year ending December 31, 2023, with estimates ranging from 6.62 billion to 8.95 billion RMB, representing a decrease of approximately 62.90% to 72.56% compared to the previous year's profit of 24.125 billion RMB [1] Summary by Relevant Sections Financial Performance - The expected net profit attributable to shareholders is projected to be between 6.62 billion and 8.95 billion RMB, down from 24.125 billion RMB in the previous year, indicating a decline of about 62.90% to 72.56% [1] - The net profit after excluding non-recurring gains and losses is anticipated to be between 6.5 billion and 8.82 billion RMB, a decrease of approximately 61.75% to 71.81% from 23.059 billion RMB last year [1] - The basic earnings per share are expected to range from 4.04 RMB to 5.46 RMB, compared to 15.52 RMB per share in the previous year [1] Reasons for Performance Change - The decline in performance is primarily attributed to fluctuations in the lithium chemical product market, leading to a decrease in sales prices and gross margins for lithium chemical products [1] - An increase in the price of lithium concentrate has resulted in higher net profits for the subsidiary Windfield Holdings Pty Ltd, but also led to increased tax expenses and minority shareholder losses [1] - The company has not yet received the fourth-quarter performance report for 2023 from its significant associate, Sociedad Química y Minera de Chile S.A. (SQM), and anticipates a decline in investment income from SQM based on Bloomberg's forecasts [1] - The company lost significant influence over SES Holdings Pte. Ltd due to passive dilution of its stake after SES's listing on the New York Stock Exchange, resulting in a decrease in investment income by approximately 1.2 billion RMB [1] - The company plans to conduct impairment tests on assets showing signs of impairment as of the balance sheet date, with preliminary estimates indicating an increase in impairment losses compared to the previous year [1]

Financial Performance - The company's operating revenue for Q3 2023 was CNY 8,575,931,902.40, a decrease of 17.14% compared to the same period last year[2]. - The net profit attributable to shareholders, excluding non-recurring gains and losses, was CNY 1,572,484,555.67, down 72.12% year-on-year[2]. - Basic and diluted earnings per share were both CNY 1.00, reflecting a decline of 71.35% compared to the previous year[2]. - The weighted average return on equity decreased to 3.17%, down 12.57 percentage points from the previous year[2]. - Operating revenue for the period reached CNY 33,399,166,232.91, a 35.52% increase compared to CNY 24,645,952,756.05 in the same period last year, primarily due to higher sales volume and average selling price of lithium products[9]. - Net profit attributable to shareholders was CNY 8,098,513,756.30, a decrease of 49.33% from CNY 15,981,408,779.72 year-on-year, mainly due to a decline in average selling prices of lithium chemical products[9]. - Basic and diluted earnings per share were CNY 4.93, down 52.96% from CNY 10.48 in the same period last year, reflecting the decrease in net profit attributable to shareholders[9]. - The weighted average return on equity was 15.79%, down 49.40% from 65.19% year-on-year, attributed to the decrease in net profit and an increase in net assets[9]. - Total operating revenue for the current period reached CNY 33.40 billion, a 35.5% increase from CNY 24.65 billion in the previous period[26]. - Net profit for the current period was CNY 22.37 billion, up 14.5% from CNY 19.55 billion in the previous period[27]. - Operating profit increased to CNY 31.68 billion, representing a growth of 25.0% compared to CNY 25.17 billion in the previous period[27]. Cash Flow and Assets - The net cash flow from operating activities for the year-to-date was CNY 20,035,216,823.45, an increase of 70.73%[2]. - Net cash flow from operating activities increased by 70.73% to CNY 20,035,216,823.45, driven by higher sales revenue and gross profit compared to the previous year[9]. - As of September 30, 2023, current assets totaled RMB 22,421.96 million, down from RMB 25,989.78 million at the beginning of the year, indicating a decrease of approximately 10.5%[22]. - Non-current assets increased to RMB 52,009.64 million from RMB 44,856.71 million, reflecting a growth of about 15.5%[23]. - Total liabilities rose to RMB 22,768.26 million from RMB 17,778.73 million, marking an increase of approximately 28.0%[25]. - As of September 30, 2023, cash and cash equivalents decreased to RMB 8,124.42 million from RMB 12,461.01 million, a decline of about 34.0%[22]. - The company reported a significant increase in inventory, which rose to RMB 3,375.90 million from RMB 2,143.94 million, an increase of approximately 57.5%[22]. - The company’s total equity decreased to RMB 51,663.34 million from RMB 53,067.76 million, a decline of about 2.6%[25]. - The net increase in cash and cash equivalents was -¥4,594,897,326.67, compared to an increase of ¥4,934,914,988.58 in the prior period[30]. - The ending balance of cash and cash equivalents was ¥7,695,051,066.63, up from ¥6,701,010,842.19 in the previous period[30]. Investments and Projects - The company confirmed a significant decrease in investment income from its joint venture SQM, which is expected to decline year-on-year in Q3 2023[7]. - The company’s investment income from joint ventures decreased significantly due to the anticipated decline in performance from SQM compared to the previous year[9]. - The company plans to invest $150 million in the Series A equity financing of Smart Mobility Pte. Ltd., acquiring 17,605,633 Class A ordinary shares, representing 2.83% of the total share capital post-investment[14]. - The total financing amount for Smart Mobility's Series A round is between $250 million and $300 million[14]. - The total investment for the Anju project, which involves building a lithium carbonate factory with an annual capacity of 20,000 tons, is approximately RMB 1.43 billion[19]. - The company plans to gradually resume the construction pace of the Anju project after improving its financial situation and optimizing project planning[19]. - The lithium hydroxide project in Australia aims for an annual production capacity of 24,000 tons, with commercial production achieved since December 2022[17]. - The company has distributed lithium hydroxide samples to potential customers, with SK On's samples already certified, while awaiting feedback from other customers[17]. - The project budget was increased to RMB 148,419.28 million, later finalized at RMB 147,780.71 million, and has now entered the trial operation phase[20]. - The company has authorized management to handle the application process for the lithium carbonate delivery warehouse, indicating a strategic move to enhance operational capabilities[16]. Challenges and Risks - The decline in net profit was primarily due to lower sales volume and average selling prices of lithium compounds compared to the same period last year[7]. - The company has faced challenges in the lithium hydroxide project due to high quality requirements from downstream battery manufacturers, which may delay revenue realization[18]. - Lithium product prices have shown volatility due to various factors, which may adversely affect project economics if prices decline significantly[20]. - The company emphasizes the need for rational investment and awareness of investment risks due to potential delays in project revenue realization[20]. - The impact of exchange rate changes on cash and cash equivalents was -¥498,399,308.34, contrasting with a positive impact of ¥491,289,171.24 in the previous period[30]. Shareholder Information - The company completed the 2022 profit distribution, distributing a cash dividend of CNY 30.00 per 10 shares, totaling CNY 4,429,894,251.00 for A-shares and CNY 492,366,600.00 for H-shares[13]. - The company’s major shareholder, Chengdu Tianqi Industrial (Group) Co., Ltd., holds a 25.35% stake, with 416,043,732 shares, of which 11,500,000 shares are pledged[10]. - The total number of ordinary shareholders at the end of the reporting period was 331,561, with 46 preferred shareholders[10]. - The company completed a capital increase by introducing strategic investor Zijin Mining Group, maintaining control over its subsidiary Sichuan Tianqi Shenghe Lithium Industry Co., Ltd. with a 39.20% stake[21]. Other Financial Metrics - Research and development expenses rose to CNY 20.94 million, compared to CNY 18.36 million in the previous period, indicating a focus on innovation[26]. - The total operating costs amounted to CNY 4.96 billion, an increase from CNY 4.51 billion in the previous period[26]. - The company recorded investment income of CNY 3.13 billion, a decrease from CNY 5.96 billion in the previous period[26]. - Other comprehensive income after tax totaled CNY 523.09 million, down from CNY 1.38 billion in the previous period[27]. - Cash inflow from investment activities totaled ¥1,939,354,865.11, up from ¥1,218,516,319.58 in the previous period, representing a significant increase[30]. - Cash outflow from investment activities was ¥2,840,874,577.84, compared to ¥1,152,946,277.83 in the prior period, indicating a substantial rise in investment expenditures[30]. - Net cash flow from investment activities was -¥901,519,712.73, a decline from a positive cash flow of ¥65,570,041.75 in the previous period[30]. - Cash inflow from financing activities amounted to ¥7,540,421,688.89, down from ¥15,272,321,616.93 in the prior period, reflecting a decrease in financing received[30]. - Cash outflow from financing activities reached ¥30,770,616,817.94, compared to ¥22,629,627,565.77 in the previous period, indicating increased cash distributions[30]. - Net cash flow from financing activities was -¥23,230,195,129.05, worsening from -¥7,357,305,948.84 in the prior period[30]. - The third quarter report was not audited, indicating that the financial results are preliminary and subject to change[31].

Financial Performance - Tianqi Lithium reported a revenue of RMB 3.5 billion for the first half of 2023, representing a 25% increase compared to the same period last year[8]. - The company achieved a net profit of RMB 1.2 billion, which is a 30% increase year-over-year[8]. - Revenue for the first half of 2023 reached RMB 24,787,359 thousand, representing a 74.95% increase compared to the same period last year[10]. - Gross profit for the same period was RMB 21,584,660 thousand, reflecting an 81.07% year-over-year growth[10]. - Net profit attributable to equity shareholders decreased by 36.98% to RMB 6,446,790 thousand[10]. - The company's revenue increased by 74.95% from RMB 14,167,992 thousand in 2022 to RMB 24,787,359 thousand in 2023[43]. - Gross profit rose by 81.07%, from RMB 11,920,512 thousand in 2022 to RMB 21,584,660 thousand in 2023[43]. - Basic earnings per share for the period were RMB 3.93, while the profit attributable to equity shareholders decreased by RMB 3,783,515 thousand or 36.98% to RMB 6,446,790 thousand[89]. - Operating profit increased to RMB 21,612,886 thousand, a rise of 70.4% compared to RMB 12,661,318 thousand in the prior year[159]. - The company reported a total comprehensive income of RMB 17,830,993 thousand for the period, compared to RMB 12,141,080 thousand in the same period last year[161]. Production and Capacity - Lithium carbonate equivalent (LCE) production reached 15,000 tons, up 20% from the previous year[8]. - The company plans to expand its production capacity by 50% by the end of 2024, targeting a total capacity of 30,000 tons of LCE[10]. - The company holds approximately 14.2936 million tons of lithium carbonate equivalent (LCE) resources as of the report date[44]. - The total resource amount across all lithium projects is 6,079,200 tons LCE, with equity resources totaling 1,429,360 tons LCE[45]. - The Greenbush lithium mine produced 750,000 tons of lithium concentrate in the reporting period, with a total production capacity of 1,620,000 tons per year, accounting for 26% of global lithium concentrate production capacity and 41% of global production in 2022[48]. - The company plans to complete the construction of the chemical-grade three processing plant with a design capacity of 520,000 tons per year by mid-2025, and is also planning a four processing plant for 2027[49]. - The company has a total lithium product processing capacity of 214,100 tons per year, with plans to add 52,000 tons by 2025, reaching a future total of 266,000 tons per year[65]. Market Position and Demand - Tianqi Lithium's market share in the lithium industry has increased to 18%, positioning it as one of the top producers globally[10]. - The company expects to achieve a revenue growth of 20% for the full year 2023, driven by increased demand in the EV sector[10]. - The company reported a significant increase in user data, with a 40% rise in customer inquiries for lithium products in Q2 2023[10]. - The demand for new energy vehicles in Europe and the US is projected to continue rising, with a 43.3% year-on-year increase in US new energy vehicle sales in May 2023[37]. - The global electric vehicle sales are projected to reach 14 million units by the end of 2023, marking a 35% year-on-year growth and accounting for 18% of total vehicle sales[40]. - The company is focused on expanding its strategic investments in emerging industries to align with national carbon neutrality goals[19]. Research and Development - Tianqi Lithium is investing RMB 500 million in R&D for new lithium extraction technologies aimed at improving efficiency by 15%[10]. - The company has established a wholly-owned subsidiary focused on the resource recycling of industrial solid waste, enhancing the economic value of the industry chain[70]. - The company is accelerating the construction of a world-class R&D platform, having established the Tianqi Lithium Innovation Research Institute in March 2023[70]. - The company aims to enhance its R&D capabilities and strengthen the core technology reserves of the lithium battery value chain to improve competitiveness[79]. - The company has developed a 20μm ultra-thin lithium metal strip, which has passed CNAS certification and supports the development of high-energy density lithium batteries exceeding 700Wh/kg[69]. Strategic Investments and Acquisitions - The company is exploring potential acquisitions to enhance its resource base and expand its market presence[10]. - The company has initiated a capital increase to introduce Zijin Mining Group as a strategic investor in its wholly-owned subsidiary, Shenghe Lithium, which will enhance the project construction of the Zola lithium mine[53]. - The company plans to seek strategic partnerships to expand its high-quality lithium resource layout and explore new development opportunities in collaboration with leading mining enterprises[88]. - The company has increased capital by RMB 5.7 billion to its wholly-owned subsidiary Tianqi Xinlong to enhance its capital strength for the acquisition of SQM shares[116]. Risks and Challenges - The company faces risks from lithium price volatility, which could significantly impact business, financial condition, and operating performance[82]. - The company faces foreign exchange risks primarily related to fluctuations in the USD and AUD, which could adversely affect profit levels due to increased costs or reduced revenues from overseas operations[87]. - Geopolitical factors and rising protectionism in key resource countries may hinder access to lithium markets, presenting new challenges for the company[88]. - The production capacity ramp-up of the lithium hydroxide project at the Kwinana plant has not met expectations, delaying project revenue and negatively impacting the company's operating performance[85]. Corporate Governance and Compliance - The company maintains high standards of corporate governance and has complied with all applicable code provisions during the reporting period[123]. - The company has established an Audit and Risk Committee, which reviewed the unaudited interim results for the six months ended June 30, 2023[128]. - The company has adopted the standard code of conduct for securities trading as per the Hong Kong Listing Rules, and all directors and supervisors complied with it during the reporting period[124]. Shareholder Information - The total number of issued shares is 1,641,221,583[131]. - The company did not recommend any interim dividend for the six months ended June 30, 2023[138]. - The employee stock ownership plan (ESOP) was approved by shareholders on October 17, 2022, and is in compliance with the new Hong Kong Listing Rules effective from January 1, 2023[151].