TMD(SZ:000762) Xin Lang Cai Jing·2025-06-03 06:56Core Viewpoint - The company is struggling to sell its subsidiary, Baiyin Zabuye Lithium Industry Co., Ltd., despite significantly reducing the asking price by 75% from the initial valuation of 684 million yuan to 176.92 million yuan, indicating severe challenges in the lithium market [1][2]. Financial Performance - In 2024, the company reported total revenue of 622 million yuan, a decrease of 22.76% year-on-year, and a net profit of 112 million yuan, down 31.79% [2]. - The core lithium product business, which accounts for 52.46% of total revenue, saw a revenue decline of 40.76%, with gross margin dropping from 75.53% to 31.85%, a reduction of 43.68 percentage points [2]. - The company experienced a significant quarterly loss of 40.47 million yuan in Q4 2024, marking a 179.77% year-on-year decline, the lowest quarterly performance in recent years [2]. Operational Challenges - Both major subsidiaries are facing losses, with Zhakaze Zabuye Lithium Industry reporting a net loss of 10.02 million yuan, a 104.93% year-on-year decline, and Baiyin Zabuye recording a loss of 12.21 million yuan [3]. - Environmental compliance issues have added pressure, with the company facing criticism for ecological damage and resource wastage [3]. Market Conditions - The price of battery-grade lithium carbonate has fallen to 61,000 yuan per ton, an 18.72% decrease since the beginning of the year, approaching the marginal cash cost of domestic production [4]. - The lithium market is experiencing oversupply, with social inventory exceeding 90,000 tons for three consecutive months, and new lithium projects in Argentina expected to increase annual production capacity by nearly 80% [5]. Strategic Direction - The company aims to optimize its asset structure and reduce investment risks through the sale of underperforming assets, but faces challenges due to valuation declines and liquidity issues in the current market environment [6]. - The company acknowledges the need to balance resource endowment with market realities as it navigates its transformation path [7].