Core Viewpoint - Tianli Lithium Energy reported significant revenue growth and a reduction in losses for Q3 2025, demonstrating strong operational resilience [1] Financial Performance - In Q3, the company achieved revenue of 569 million yuan, a year-on-year increase of 33.25%, indicating robust expansion in its core business [1] - The net profit attributable to shareholders narrowed to a loss of 29 million yuan, improving by 67.68% year-on-year, reflecting a faster recovery in profitability [1] - For the first three quarters, total revenue reached 1.535 billion yuan, up 11.18% year-on-year, maintaining steady growth amid industry fluctuations [1] - The net profit attributable to shareholders for the first three quarters was a loss of 89.74 million yuan, significantly reduced by 47.42% compared to the same period last year, with a non-recurring net profit improvement of 49% [1] Profitability and Cost Management - The gross profit margin for the first three quarters was 4.58%, an increase of 4 percentage points year-on-year, indicating improved profitability quality [1] - Operating expenses decreased by 32.69 million yuan year-on-year, with the expense ratio declining by 3.39 percentage points, showcasing effective cost control and operational efficiency [1] - Cash flow also improved during the first three quarters, further supporting the company's financial health [1]

Core Insights - Tianli Lithium Energy executed a block trade of 2 million shares on October 23, with a transaction value of 63.74 million yuan, accounting for 13.03% of the total trading volume for the day [1][2]. - The transaction price was 31.87 yuan per share, which represents a discount of 1.7% compared to the market closing price of 32.42 yuan [1]. Summary by Categories Transaction Details - Date of transaction: October 23, 2025 [2]. - Security code: 301152 [2]. - Security name: Tianli Lithium Energy [2]. - Transaction price: 31.87 yuan [2]. - Transaction volume: 200,000 shares [2]. - Transaction amount: 63.74 million yuan [2]. - Buyer: Institutional special account [2]. - Seller: CITIC Securities Company, Beijing headquarters [2].

Core Viewpoint - Tianli Lithium Energy (301152.SZ) announced that its shareholder, Anhui High-tech Investment New Materials Industry Fund Partnership (Limited Partnership), plans to reduce its holdings by up to 3% of the company's total share capital, which amounts to 3.5622 million shares, through centralized bidding and block trading within three months after the announcement [1] Summary by Category - **Shareholder Actions** - The shareholder intends to reduce its stake in Tianli Lithium Energy by up to 3.5622 million shares [1] - This reduction represents 3% of the company's total share capital [1] - **Timeline** - The reduction will take place within three months following the announcement, starting 15 trading days after the disclosure [1]

Core Viewpoint - The announcement details the share reduction plan by Anhui High-tech Investment New Materials Industry Fund Partnership, which intends to reduce its holdings in Tianli Lithium Energy Group Co., Ltd. by up to 3,562,200 shares, representing 3% of the total share capital [1][2]. Group 1: Share Reduction Plan - The shareholder plans to reduce its holdings from June 11, 2025, to September 10, 2025, with a maximum of 1,187,400 shares through centralized bidding and 2,374,800 shares through block trading [1]. - As of June 19, 2025, the fund has reduced its holdings by 1,187,400 shares, decreasing its ownership from 6.48% to 5.48% [2]. Group 2: Compliance and Commitments - The fund has committed to comply with relevant laws and regulations, including the Company Law and Securities Law, and has adhered to its share lock-up commitments [2][5]. - The fund's share reduction plan has been executed in accordance with the applicable regulations and has been disclosed in a timely manner [5]. Group 3: Impact on Company - The share reduction will not lead to a change in the company's control or significantly impact its governance structure and ongoing operations [5]. - The fund has confirmed that it has fulfilled its commitments without any violations [4].

Financial Performance - The company reported a total revenue of 966 million yuan for the first half of 2025, representing a year-on-year increase of 1.3% [1] - The net profit attributable to the parent company was -60.89 million yuan, showing a year-on-year improvement of 25.23% [1] - In Q2, total revenue reached 548 million yuan, up 6.14% year-on-year, while the net profit attributable to the parent company was -20.34 million yuan, an increase of 42.23% year-on-year [1] Profitability Metrics - The gross profit margin was 5.01%, down 5.81% year-on-year, while the net profit margin was -6.45%, an increase of 25.86% year-on-year [1] - The total of selling, administrative, and financial expenses was 54.98 million yuan, accounting for 5.69% of revenue, a decrease of 3.76% year-on-year [1] Cash Flow and Debt Analysis - The company had a significant amount of accounts receivable, which accounted for 47.01% of total revenue as per the latest annual report [1] - The cash flow per share was -0.22 yuan, but this represented a year-on-year increase of 91.7% [1] - The company’s cash flow situation is concerning, with a cash and cash equivalents to current liabilities ratio of only 30.75% and a negative average operating cash flow to current liabilities ratio of -38.62% over the past three years [2] Historical Performance and Investment Returns - The historical median Return on Invested Capital (ROIC) since the company’s listing is 6.23%, indicating average investment returns, with the worst year being 2024 at -17.13% [2] - The company has reported losses in two out of its four years since listing, suggesting a fragile business model [2]

Core Viewpoint - The company aims to enhance its risk management capabilities by increasing the margin for its commodity hedging business, specifically in lithium carbonate, to mitigate the adverse effects of price volatility on its operations [1][2][6] Group 1: Background and Necessity - The company, through its subsidiary Sichuan Huati Lithium Energy Co., Ltd., is engaged in lithium carbonate-related products, which have experienced significant price fluctuations in recent years [1] - To reduce the negative impact of these price fluctuations on its operations, the company has decided to conduct commodity futures and derivatives trading for hedging purposes [1][2] Group 2: Feasibility Analysis - The increase in the margin for the hedging business is necessary due to the rising volume of lithium carbonate business and heightened market volatility [1][3] - The company has established a hedging policy and formed a leadership team to oversee the operations, ensuring compliance with risk management protocols [2][3] Group 3: Trading Details - The trading activities will focus solely on lithium carbonate futures and derivatives that are directly related to the company's operations, conducted on legally operating domestic exchanges [2][3] - The maximum margin and premium for these trading activities will not exceed RMB 30 million, which can be recycled within the effective period [3] Group 4: Risk Management - The company acknowledges the inherent risks associated with hedging, including potential losses from price discrepancies and market volatility [4][5] - To mitigate these risks, the company has implemented strict approval processes, operational guidelines, and risk control measures [5][6] Group 5: Accounting Principles - The company will adhere to relevant accounting standards for financial instruments and hedging activities, ensuring accurate reporting in financial statements [5][6] Group 6: Conclusion - The decision to engage in hedging activities and increase the margin is deemed practical and aligned with the company's operational needs, supported by a robust internal control framework [6]