Core Viewpoint - Tianhua New Energy's stock price continues to rise despite significant pressure on its operating performance, indicating a divergence between stock performance and financial results [2][4][8]. Financial Performance - For the first three quarters of 2025, Tianhua New Energy reported revenue of approximately 5.57 billion yuan, a year-on-year increase of about 2% [4][8]. - The net profit attributable to shareholders was 32.87 million yuan, a dramatic decline of 96.44% year-on-year, with a non-recurring net profit showing a loss of 97.75 million yuan [4][8]. - The company's revenue for 2023 and 2024 also showed a downward trend, with revenues of 8.91 billion yuan and 5.45 billion yuan respectively, reflecting declines of 29.13% and 38.80% year-on-year [8][9]. Stock Performance - On November 5, 2025, Tianhua New Energy's stock closed at 33.88 yuan per share, marking a 1.38% increase [3][6]. - Since September 4, 2025, the stock price has surged from 19.84 yuan to 33.88 yuan, representing a total increase of 70.77% [4][6]. Market Dynamics - The decline in profitability is primarily attributed to falling lithium salt prices, with battery-grade lithium carbonate prices dropping from around 100,000 yuan per ton at the beginning of 2024 to approximately 73,000 yuan per ton by September 2024 [10]. - Despite the overall decline in performance, there has been a recent recovery trend in the third quarter of 2025, with revenue and net profit showing year-on-year increases of 21.47% and 113.22% respectively [10]. Strategic Partnerships - Tianhua New Energy is deeply connected with CATL (Contemporary Amperex Technology Co., Limited), which is seen as a positive factor by the market [5][11]. - The company plans to transfer 12.95% of its shares to CATL, making CATL the second-largest shareholder [5][16]. - Tianhua New Energy is also in the process of acquiring a 75% stake in Suzhou Tianhua Times, which will further integrate its operations with CATL [13][15].