2022-04-29 16:00Company 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].