TINCI(SZ:002709) Xin Lang Zheng Quan·2025-07-11 10:13Core Viewpoint - Tianqi Materials plans to publicly issue H-shares and list on the Hong Kong Stock Exchange, but faces significant challenges due to declining lithium carbonate prices and deteriorating financial performance [1][2]. Financial Performance - In 2024, Tianqi Materials reported revenue of 12.518 billion, a year-on-year decrease of 18.74%, and a net profit of 484 million, down 74.40%, marking the second consecutive year of significant decline in both revenue and profit [2]. - The company's cash collection ratio has remained below 50% for a long time and is on a downward trend, significantly lower than comparable companies like Xinzhou Bang [2][4]. Debt and Financing - Although the overall debt ratio has remained stable at around 45%, the interest-bearing debt ratio has increased from 6.27% in 2021 to 26.83% by the end of 2024, indicating increasing pressure on the company's cash flow [4][7]. - Tianqi Materials has raised over 5 billion through private placements and convertible bonds in recent years, yet this has not alleviated the ongoing financial pressure [7]. Mergers and Acquisitions - In December 2021, Tianqi Materials acquired assets from its controlling shareholder at a high premium of 250%, and in June 2023, it further acquired additional shares at a slightly lower valuation, despite the industry's downturn [8][9]. - The acquired company, Zhejiang Tianshu, failed to meet its profit commitments in 2024, achieving only 31.94% of the promised net profit [9]. Market Position and Legal Issues - Tianqi Materials' market share in the domestic electrolyte sector has declined from 36.4% in 2023 to 31.6% in 2024, raising concerns about its competitive position [13]. - The company is involved in ongoing litigation with competitors, including a lawsuit against Jinshi Resources for alleged technology theft, and a counterclaim from Yongtai Technology for defamation and abuse of market dominance [10][12].