2 1 Shi Ji Jing Ji Bao Dao·2025-04-24 10:37Core Viewpoint - Tianqi Lithium has successfully turned a profit in the first quarter of the new fiscal year, with expected earnings between 0.82 billion and 1.23 billion yuan, a significant recovery from a loss of 3.9 billion yuan in the same period last year [3]. Group 1: Factors Contributing to Profit Turnaround - The company has seen a reduction in various profit-dragging factors, including improvements in its main business and the elimination of certain one-off impacts [4]. - The pricing cycle mismatch for lithium ore has been alleviated, leading to a decrease in production costs for lithium salt products [4][6]. - The tax arbitration issue with SQM has been resolved, which is expected to enhance Tianqi Lithium's investment income [3][5]. Group 2: Market Conditions and Performance - Despite a continued decline in lithium prices, the company has managed to improve its operational situation due to the gradual consumption of inventory and the arrival of newly purchased lithium ore [3][4]. - The average market price for battery-grade lithium carbonate has stabilized, reducing the pressure from inventory devaluation [5]. Group 3: Competitive Advantages - Tianqi Lithium remains one of the most competitive players in the global lithium market, with a revenue of 13.06 billion yuan in 2024, where lithium ore and lithium salt accounted for approximately 38% and 62% of total revenue, respectively [7]. - The company has maintained high gross margins for its lithium products, achieving 63.71% for lithium ore and 35.21% for lithium salt, despite market fluctuations [8]. - Tianqi Lithium's production costs for lithium ore are among the lowest in the industry, with cash production costs at approximately 206 USD per ton [8]. Group 4: Financial Stability - The company has a strong liquidity position, with cash and cash equivalents nearing 5.8 billion yuan and total current assets reaching 12.85 billion yuan as of the end of 2024 [9]. - Tianqi Lithium has maintained a low debt ratio of 28.4%, significantly below the industry median of 43.3%, indicating strong financial health [9].