Company Overview - Tianqi Lithium Corporation has been deeply engaged in the lithium industry for nearly 30 years, evolving from a small lithium salt factory to a world-class leader in lithium battery materials [3]. - The company aims to enhance its international management team and promote industrial integration and upgrading on a global scale [4]. - Tianqi Lithium Corporation does not plan to distribute cash dividends or issue bonus shares for the reporting period [5]. - The company holds a 21.90% stake in Sociedad Química y Minera de Chile S.A. (SQM), a significant player in the global lithium market [8]. - The company holds a 51% stake in Tianqi UK Limited, which was renamed Energy Australia Pty Ltd on December 6, 2020 [9]. - Tianqi Lithium Australia Pty Ltd (TLA) was renamed from TLH in June 2021 and is a wholly-owned subsidiary of Tianqi Lithium [9]. - The company has a 20% stake in Tibet Rikaze Zabuye Lithium High-Tech Co., Ltd. as of the end of the reporting period [9]. - The company has a 9.91% stake in Shanghai Aerospace Power Technology Co., Ltd. at the end of the reporting period [9]. - The company has a 49% stake in Windfield Holdings Pty Ltd, which is a significant lithium product producer globally [9]. Financial Performance - The company's operating revenue for 2021 was ¥7,663,320,941.87, representing a 136.56% increase compared to ¥3,239,452,205.58 in 2020 [16]. - The net profit attributable to shareholders for 2021 was ¥2,078,857,302.44, a significant turnaround from a loss of ¥1,833,765,744.87 in 2020, marking a 213.37% increase [16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥1,333,782,795.29, compared to a loss of ¥1,294,492,840.35 in 2020, reflecting a 203.04% increase [16]. - The net cash flow from operating activities for 2021 was ¥2,094,448,935.69, up 200.74% from ¥696,434,171.49 in 2020 [16]. - The basic earnings per share for 2021 was ¥1.41, a recovery from a loss of ¥1.24 in 2020, representing a 213.71% increase [16]. - The total assets at the end of 2021 were ¥44,165,325,659.12, a 5.07% increase from ¥42,035,564,445.32 at the end of 2020 [16]. - The company's net assets attributable to shareholders increased by 145.12% to ¥12,761,280,130.72 in 2021 from ¥5,206,126,193.53 in 2020 [17]. - The company reported a quarterly operating revenue of ¥3,790,602,361.53 in Q4 2021, contributing significantly to the annual total [19]. - The company achieved a weighted average return on equity of 23.15% in 2021, up 53.29 percentage points from -30.14% in 2020 [16]. - The company reported non-recurring gains totaling ¥745,074,507.15 in 2021, compared to a loss of -539,272,904.52 in 2020 [21]. Production and Capacity - The company reported a significant increase in its lithium production capacity, aligning with the growing demand for electric vehicle batteries [11]. - The company has a total lithium concentrate production capacity of 1.34 million tons per year and a lithium compound and derivative production capacity of 44,800 tons as of December 31, 2021 [58]. - The company has established a resource base at the Greenbushes lithium mine in Western Australia and has strategic holdings in SQM and Zhabuye lithium resources [55]. - The company is constructing a battery-grade lithium hydroxide production line in Australia with a total annual capacity of 48,000 tons, with the first phase already in trial production [60]. - The company has achieved 100% self-sufficiency in lithium concentrate supply, which enhances operational efficiency and profitability [90]. - The company’s lithium products are widely used in electric vehicles, energy storage systems, ceramics, and glass [58]. Market Trends and Demand - The global demand for lithium batteries is expected to continue rising, with the share of lithium battery demand in 2020 reaching 37% for power batteries, 29% for consumer batteries, and 3% for energy storage batteries [38]. - The lithium market is experiencing increased demand due to the rapid growth of electric vehicle penetration and the development of the energy storage industry [38]. - The demand for lithium compounds, particularly lithium carbonate and lithium hydroxide, has surged due to the rapid growth in the production of downstream materials such as ternary materials and lithium iron phosphate, leading to a supply-demand imbalance and rising prices [39]. - The company emphasizes the production of battery-grade lithium hydroxide, with a new plant in Australia dedicated solely to this product [30]. - The company is focused on expanding its lithium business and aims to optimize production capacity through effective technological means, supporting the sustainable development of lithium-ion battery technology [56]. Research and Development - The company has maintained its commitment to research and development of new lithium products and technologies to enhance market competitiveness [11]. - The company has established a strong R&D team focused on energy conservation and product quality improvement, with multiple research centers across China and Australia [72]. - The company has received several awards for technological progress, including the first prize from the China Nonferrous Metals Industry Science and Technology Award [73]. - In 2021, the company conducted research on "modular technology for direct lithium extraction from brine," aiming to provide efficient, clean, and low-consumption solutions for various salt lake brines [74]. - The company achieved a significant milestone by developing low-cost preparation technology for lithium sulfide, a key raw material for solid-state electrolytes, and successfully established continuous sample production capabilities for ultra-thin lithium metal strips for next-generation high-energy lithium batteries [74]. Sustainability and ESG Commitment - The company emphasizes its commitment to sustainable development, adhering to advanced ESG standards and focusing on energy efficiency and pollution reduction [3]. - The company is committed to corporate social responsibility and actively engages in community welfare projects [4]. - The company is dedicated to creating more value for shareholders and partners while contributing to sustainable development and ecological balance [4]. - The company has established an ESG and Sustainability Committee aims to enhance the company's commitment to environmental and social governance [169]. - The management team emphasized the importance of sustainability initiatives, with a goal to reduce carbon emissions by 30% by 2025 [194]. Strategic Partnerships and Acquisitions - The company has established strategic partnerships with major battery material manufacturers and multinational electronics companies, providing customized services to clients [56]. - The company is pursuing a global cooperation strategy, considering expansion into North America and Northern Asia, with Hong Kong as a trade and innovation platform [71]. - The company is exploring partnerships with electric vehicle manufacturers to secure long-term supply agreements, potentially increasing revenue by 500 million RMB over the next three years [194]. - The company has identified potential acquisition targets in the lithium sector to enhance its market position and resource base [198]. Risk Management and Challenges - The company faces potential risks from reduced downstream demand due to rising raw material costs, which could pressure financial liquidity and production capacity [84]. - National policies aimed at stabilizing lithium product prices may impact the company's operational performance in the short term [85]. - The company acknowledges the potential for significant adverse impacts from trade tensions and economic conflicts, particularly between major economies [163]. - The ongoing COVID-19 pandemic has created substantial uncertainty and economic disruption, affecting labor, operations, and demand for the company's products [161]. - The company has implemented measures to comply with local pandemic control policies to ensure safe operations in both domestic and overseas factories [162].

Financial Performance - The company's revenue for Q1 2022 reached ¥5,257,158,413.95, representing a 481.41% increase compared to ¥904,210,248.68 in the same period last year[3] - Net profit attributable to shareholders was ¥3,327,975,300.41, a significant increase of 1,442.65% from a loss of ¥247,866,438.13 in the previous year[3] - Basic and diluted earnings per share were both ¥2.25, compared to a loss of ¥0.17 per share in the previous year, marking an increase of 1,423.53%[7] - Operating profit for the current period was ¥5,051,728,868.10, compared to a loss of ¥152,246,648.53 in the previous period, indicating a turnaround in profitability[19] - Net profit for the current period was ¥3,935,679,380.35, a substantial improvement from a net loss of ¥181,920,728.65 in the previous period[19] - Total comprehensive income for the current period was ¥4,578,221,576.67, compared to a loss of ¥206,641,743.53 in the previous period[19] Cash Flow and Assets - The net cash flow from operating activities was ¥3,836,609,528.29, up 980.62% from ¥355,038,106.40 in the same period last year[3] - Cash flow from operating activities generated ¥3,836,609,528.29, a significant increase from ¥355,038,106.40 in the previous period[20] - The company's current assets reached CNY 7.23 billion, up from CNY 6.47 billion, indicating a growth of about 11.7%[15] - Cash and cash equivalents increased to CNY 2.49 billion from CNY 1.99 billion, representing a rise of approximately 25%[15] - The ending balance of cash and cash equivalents reached ¥2,225,533,454.21, up from ¥1,178,590,311.37 at the end of the previous period[21] Investments and Financing - The company recognized investment income from its associate SQM, which is expected to show significant growth in Q1 2022 compared to the previous year[5] - Tianqi Lithium Holdings sold part of its stake in SQM, raising approximately $159 million through a financing scheme involving 2,575,318 and 2,700,000 shares of SQM B shares as collateral[12] - The company has completed the delivery of part of the financing, repaying Morgan approximately $88.35 million and delivering 2,079,125 shares of SQM B shares[12] - Tianqi Lithium plans to issue H-shares not exceeding 20% of the total share capital post-issue, with proceeds aimed at debt repayment, capacity expansion, and operational capital[13] - The company is actively progressing with its H-share issuance application, having received acceptance from the China Securities Regulatory Commission[13] - Cash inflow from financing activities was ¥1,198,159,057.97, while cash outflow totaled ¥4,418,296,152.10, leading to a net cash flow from financing activities of -¥3,220,137,094.13[21] Shareholder Equity and Assets - Total assets at the end of the reporting period were ¥46,726,529,153.73, a 5.80% increase from ¥44,165,325,659.12 at the end of the previous year[3] - Shareholders' equity attributable to the parent company increased by 29.78% to ¥16,561,213,956.94 from ¥12,761,280,130.72 at the end of the previous year[3] - The company's equity attributable to shareholders rose to CNY 16.56 billion, compared to CNY 12.76 billion, marking an increase of approximately 29.5%[17] Legal and Operational Stability - The company successfully resolved all litigation and arbitration matters with MSP, concluding all judicial processes related to the disputes[14] - The company has maintained a focus on strategic negotiations to mitigate potential adverse impacts from legal disputes, ensuring operational stability[14] - The company is committed to maintaining its operational capabilities while managing its financial obligations effectively[12] Expenses - Sales expenses increased to ¥5,814,334.27 from ¥4,241,692.18, reflecting a rise in marketing efforts[18] - Research and development expenses were slightly up to ¥5,681,707.25 from ¥5,491,674.91, indicating continued investment in innovation[18] - The company reported a tax expense of ¥1,115,051,405.53 for the current period, compared to ¥37,711,439.38 in the previous period, reflecting higher profitability[19]

Financial Performance - Tianqi Lithium reported a revenue of RMB 1.2 billion for the year 2020, representing a decrease of 30% compared to the previous year[15]. - The company's operating revenue for 2020 was ¥3,239,452,205.58, a decrease of 33.08% compared to ¥4,840,615,283.61 in 2019[20]. - The net profit attributable to shareholders for 2020 was -¥1,833,765,744.87, an improvement of 69.35% from -¥5,983,362,461.57 in 2019[20]. - The net cash flow from operating activities was ¥696,434,171.49, down 70.43% from ¥2,354,927,020.67 in 2019[20]. - The total assets at the end of 2020 were ¥42,035,564,445.32, a decrease of 9.79% from ¥46,596,854,830.11 at the end of 2019[20]. - The basic earnings per share for 2020 was -¥1.24, an improvement of 76.34% from -¥5.24 in 2019[20]. - The company's financial expenses increased significantly due to a $3.5 billion acquisition loan for a 23.77% stake in SQM, resulting in interest expenses of approximately 1.409 billion RMB during the reporting period[58]. - The company reported a net cash outflow of ¥3.36 billion in cash and cash equivalents, a significant decline of 210.56% compared to an increase of ¥3.04 billion in 2019[125]. - The company's total assets at the end of 2020 included cash and cash equivalents of ¥994.15 million, a decrease of 7.16% from ¥4.44 billion at the beginning of the year[129]. Market Expansion and Strategy - The company plans to expand its market presence in Europe and North America, targeting a 15% market share in these regions by 2025[15]. - The company is exploring potential mergers and acquisitions to enhance its resource base and production capabilities[15]. - The company aims to become a global influencer in energy transformation, supporting the sustainable development of lithium-ion battery technology for electric vehicles and energy storage[31]. - The company is focused on technology transformation as a key development strategy, with a dedicated R&D team responsible for technological advancements and new product development[47]. - The company plans to gradually implement long-term contracts for domestic products to overseas customers, while continuing to execute short-term contracts to mitigate risks associated with long-term pricing and volume commitments[46]. Production and Capacity - The total lithium production capacity reached 24,000 tons of lithium carbonate equivalent (LCE) by the end of 2020[15]. - The company is constructing a total of 48,000 tons of battery-grade lithium hydroxide production lines in Kwinana, Australia, with the first phase entering the commissioning stage[33]. - The company’s lithium carbonate production capacity exceeds 110,000 tons per year, with Talison lithium concentrate capacity reaching 134,000 tons per year, showcasing significant scale advantages[65]. - The company has a lithium hydroxide production technology that is shorter, more energy-efficient, and has a higher yield compared to traditional methods, enhancing product competitiveness[67]. - The company is focusing on expanding its production capacity in lithium carbonate and lithium hydroxide to meet increasing market demand[140]. Research and Development - Research and development expenses increased by 20% year-on-year, focusing on new lithium extraction technologies[15]. - The total R&D expenditure for 2020 was approximately ¥27.84 million, a decrease of 53.13% compared to ¥59.39 million in 2019, with R&D expenditure as a percentage of revenue dropping from 1.23% to 0.86%[123]. - In 2020, the company conducted five key R&D projects, including the development of a new lithium hydroxide production method, which significantly reduces costs and improves product purity[122]. - The company has received 12 authorized invention patents, 12 utility model patents, and 3 design patents during the reporting period, maintaining a total of 153 effective patents as of December 31, 2020[47][49]. Quality and Safety - The company emphasizes high-end and differentiated product strategies, continuously optimizing production processes to enhance product quality[32]. - The quality management system has been continuously improved, achieving IATF16949 certification for domestic factories, enabling the company to meet the quality standards required by international electric vehicle manufacturers such as BMW, Mercedes-Benz, and Volkswagen[40]. - The company has implemented a three-tier safety inspection policy, resulting in a significant improvement in safety awareness, with the LTIFR (Lost Time Injury Frequency Rate) below DuPont standards across all production bases[39]. - The company has established a quality management function at headquarters to oversee and unify quality strategies across subsidiaries, enhancing product quality and industry reputation[42]. Risks and Challenges - The company has identified risks related to fluctuating lithium prices and plans to implement hedging strategies to mitigate these risks[15]. - The company faces significant liquidity risks due to high debt levels and increased financial expenses, which could adversely affect its operations and financial status[165]. - The ongoing construction of lithium hydroxide projects in Australia may face delays and cost overruns, impacting future operational performance[166]. - The decline in government subsidies for new energy vehicles poses risks to the lithium battery supply chain, affecting market demand[168]. Environmental and Regulatory Compliance - The company has maintained ISO14001 and ISO45001 certifications, continuously promoting EHS (Environment, Health, and Safety) management improvements[39]. - The company is committed to high standards in project management and safety to mitigate environmental and operational risks associated with mining and production[169]. - The company has established a foreign exchange hedging policy to mitigate risks associated with currency fluctuations[170]. - The company has committed to timely communication regarding any changes in mining rights or project viability[185]. Stakeholder Engagement and Governance - The company has actively engaged with investors to discuss operational updates and future plans, including potential strategic investments[172]. - The company has established a global governance structure to optimize management processes and enhance internal controls across its international operations[171]. - The company has committed to ensuring that its subsidiaries will not engage in mining activities until the final resolution of certain asset sales[188]. - The company has received a clean audit report with explanatory notes from its accounting firm, indicating no significant issues[190].