Core Viewpoint - Tianqi Lithium Industries reported a significant turnaround in its financial performance for the first half of 2025, achieving a net profit of 84.41 million yuan compared to a loss of 5.206 billion yuan in the same period last year, despite a decline in revenue and lithium product prices [1] Financial Performance - The company achieved total revenue of 4.833 billion yuan in the first half of 2025, a year-on-year decrease of 24.71% [1] - The net profit attributable to shareholders was 84.41 million yuan, a significant recovery from a loss of 5.206 billion yuan in the previous year [1] - The non-recurring net profit was 132,000 yuan, compared to a loss of 52.21 million yuan in the same period last year [1] Product Pricing and Sales - The mainstream spot prices for lithium carbonate and lithium hydroxide ranged from 60,000 to 80,000 yuan per ton in the first half of 2025, with an overall downward trend despite a slight increase in January [1] - Revenue from lithium ore was 2.38 billion yuan, down 7.43% year-on-year, with a gross margin of 54.23%, a decrease of 11.41 percentage points [2] - Revenue from lithium compounds and derivatives was 2.442 billion yuan, a year-on-year decrease of 25.58%, with a gross margin of 25.58%, down 16.98 percentage points [2] Mining Operations - Tianqi Lithium holds mining rights for the world's largest lithium mine, the Greenbushes spodumene mine, which had a total ore extraction of 2.6941 million tons in the reporting period [2] - The average grade of chemical-grade ore was 1.89%, while the technical-grade ore had an average grade of 3.85% [2] - The total production capacity of lithium concentrate is approximately 1.62 million tons per year, with a planned capacity of 2.14 million tons per year [2] Strategic Investments - The company owns approximately 22.16% of SQM, which operates the world's largest lithium salt lake at the Salar de Atacama in Chile, known for its high lithium concentration and low operating costs [3] - Tianqi Lithium has established five lithium chemical product production bases in China and Australia, with a current production capacity of about 91,600 tons per year [3] Production Projects - The first phase of the lithium hydroxide project in Kwinana is currently ramping up, achieving an operational rate of 50% or more [3] - The Jiangsu Zhangjiagang project, with an annual production capacity of 30,000 tons of lithium hydroxide, has been completed and is in the trial operation phase [3] - An expansion project in Chongqing for the production of 1,000 tons of metallic lithium is underway, which will increase the company's total lithium chemical product capacity to 122,600 tons per year upon completion [3] Market Outlook - Starting from July 2025, macro policies have released positive signals, and lithium salt prices have rebounded due to supply disruptions caused by compliance issues in some regions [4]

Core Viewpoint - Despite the downturn in lithium carbonate prices, Tianqi Lithium's profitability is expected to grow significantly in the first half of 2025, with a projected net profit of 0 to 155 million yuan, marking a turnaround from a loss of 5.206 billion yuan in the same period last year [1][3]. Company Performance - Tianqi Lithium's revenue for 2024 was 13.063 billion yuan, a decrease of 67.75% year-on-year, with a net loss of 7.905 billion yuan, down 208.32% year-on-year [3]. - For the first quarter of 2025, the company reported revenue of 2.584 billion yuan, a slight decrease of 0.02% year-on-year, and a net profit of 104 million yuan, an increase of 102.68% year-on-year [4]. Market Dynamics - The lithium product market is currently experiencing a bottoming process, which is expected to facilitate industry clearing and restructuring [4][7]. - The lithium industry is characterized by high competition, and companies must continuously enhance their core competitiveness to navigate through cycles successfully [7]. Industry Outlook - The long-term outlook for the lithium industry remains positive, driven by the growth of the new energy vehicle and energy storage sectors [6]. - Emerging applications such as electric vertical takeoff and landing vehicles and drones are expanding the market for lithium batteries [6]. Pricing Trends - As of July 4, the average price of battery-grade lithium carbonate was reported at 62,300 yuan per ton, indicating a need for key catalysts for a market reversal, such as production cuts from large mines or increased downstream demand [7].