Performance Forecast - The company expects a net loss attributable to shareholders of approximately 300 million yuan for the current reporting period, compared to a loss of 550 million yuan in the same period last year [1] - The net profit after deducting non-recurring gains and losses is projected to be a loss of 50 million yuan, an improvement from a loss of 950 million yuan in the previous year [1] - Basic earnings per share are expected to be a loss of 0.27 yuan per share, compared to a loss of 0.38 yuan per share in the same period last year [1] Reasons for Performance Change - The battery segment has seen orderly capacity release and sales growth, but overall operating performance has faced certain impacts [1] - The company has made provisions for asset impairment related to inventory and other assets according to accounting standards, contributing to the losses [1] - The decline in the fair value of financial assets, primarily related to Pilbara Minerals Limited, has resulted in fair value change losses, although the company has employed options strategies to hedge some of these losses [1]

Group 1 - The company emphasizes the importance of using simple, liquid, and low-risk foreign exchange derivatives for hedging against currency fluctuations [1][2] - The company has established management systems for futures and derivatives trading, detailing organizational structure, responsibilities, and risk management [1][3] - The company aims to mitigate adverse impacts from raw material price and exchange rate fluctuations through hedging operations in futures and derivatives markets [3][27] Group 2 - The company will hold its 2024 annual shareholders' meeting on May 20, 2025, with both on-site and online voting options available [5][6] - The meeting will take place at the company's administrative building in Guangzhou, and shareholders must register to attend [7][15] - The company has outlined the voting procedures for various types of shareholders, including those participating through margin trading and the Shanghai-Hong Kong Stock Connect [8][10] Group 3 - The company has announced a provision for asset impairment and recognition of fair value changes for non-current financial assets, totaling a reduction in profit of 614.25 million yuan for the year 2024 [19][27] - The impairment provisions include amounts for receivables, inventory, fixed assets, and goodwill, reflecting a cautious approach to financial reporting [19][21][26] - The company has confirmed fair value losses for non-current financial assets amounting to 38.12 million yuan, indicating a need for careful asset management [20][27] Group 4 - The company has implemented a change in accounting policy in accordance with the Ministry of Finance's new guidelines, which will not significantly impact its financial results [29][30] - The new accounting policy, effective from January 1, 2024, relates to the measurement of investment properties and quality assurance guarantees [31][32] Group 5 - The company has reported its fourth-quarter operational data for 2024, including production and sales figures for modified plastics, green petrochemicals, and new materials [34][38] - The sales volume for modified plastics reached 699,300 tons, while green petrochemical products and new materials also showed significant sales figures [34][39] - The company has noted no other significant operational impacts during the reporting period [38][39]

Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 22.62 and RMB 37.01, maintaining the "Buy" rating [7]. Core Views - The company reported a significant decline in revenue and net profit for 2024, with revenue at RMB 18.906 billion (down 42.66% year-on-year) and a net loss of RMB 2.074 billion (down 141.93% year-on-year). The performance aligns with the company's profit warning [1][2]. - Despite the downturn, the company is expanding its upstream resources and midstream refining capacity, positioning itself for potential recovery when industry conditions improve [1][4]. Summary by Sections Financial Performance - In Q4 2024, the company achieved revenue of RMB 49.81 billion (down 31.67% year-on-year, up 14.87% quarter-on-quarter) and a net loss of RMB 14.34 billion (down 34.86% year-on-year, down 1294.81% quarter-on-quarter) [1]. - The lithium price has significantly decreased, with a reported 65% year-on-year drop in lithium carbonate prices, impacting profitability despite increased sales volume [2]. Production Expansion - The company is ramping up production at various projects, including the Cauchari-Olaroz project, which reached approximately 85% of its nominal design capacity in Q4 2024, and the Mariana lithium salt lake project, which commenced production in February 2025 [3]. - The Goulamina spodumene project is also progressing, with an initial capacity of 506,000 tons of lithium concentrate expected to be gradually released in 2025 [3]. Earnings Forecast and Valuation - Due to the unexpected decline in lithium prices, the earnings forecast for 2025-2027 has been revised downwards, with expected EPS of RMB 0.32, RMB 0.90, and RMB 1.71 for the respective years [4][6]. - The company is assigned a price-to-book (PB) ratio of 1.77 for 2025, with a book value per share (BPS) of RMB 20.88, reflecting a premium of 78% over the average A/H share price in the last three months [4].