Summary of Tianqi Co., Ltd. Conference Call Company Overview - **Company**: Tianqi Co., Ltd. - **Industry**: Chemical manufacturing, specifically focusing on hexafluoropropylene (六氟) production Key Points and Arguments Financial Performance - **Q3 Performance**: The company reported poor performance in Q3, primarily due to low sales prices, particularly in July, which hit a historical low. Sales prices improved in August and September, but contracts with major clients limited immediate price adjustments [2][4][10]. - **Sales Volume**: Q3 sales volume was approximately 12,500 tons, with October sales around 4,200 tons. The forecast for November and December is around 4,000 tons per month [4][5]. - **Inventory Levels**: Inventory has been significantly reduced to a few hundred tons, indicating strong demand and production capacity utilization [2][5]. Market Trends - **Price Trends**: The price of hexafluoropropylene has seen a significant increase, reaching around 100,000 to 110,000 CNY per ton. The expectation is for prices to remain stable or increase slightly through the end of the year [6][10][12]. - **Demand Forecast**: The demand for hexafluoropropylene is projected to exceed 300,000 tons next year, with supply expected to be tight due to production capacity constraints [7][10]. Production Capacity and Expansion - **Current Production Capacity**: The company currently operates at a production capacity of 3,600 to 3,800 tons per month, with plans to expand capacity by an additional 15,000 tons by the end of next year [15][16]. - **New Production Line**: A new production line is expected to contribute an additional 6,000 tons by September next year, enhancing overall supply capabilities [16]. Cost Structure - **Cost Management**: The new production line is expected to reduce costs by approximately 6,000 to 7,000 CNY per ton compared to older lines due to improved automation and efficiency [18][62]. - **Raw Material Prices**: The cost of raw materials, particularly lithium carbonate, has increased, but the overall impact on production costs is expected to be manageable [38][59]. Long-term Strategy - **New Product Development**: The company is actively developing new products, including lithium sulfide and solid-state electrolytes, with plans for production lines to be operational by early next year [65][66]. - **Market Positioning**: The company aims to maintain a competitive edge by aligning production capacity with market demand and ensuring cost efficiency through technological advancements [52][53]. Risks and Considerations - **Market Volatility**: The company acknowledges the potential for market fluctuations and the need for careful management of pricing strategies, especially in light of recent price increases [10][12]. - **Regulatory Environment**: The approval process for new production capacity is stringent, which may limit the speed of expansion in response to market demand [52][56]. Additional Important Information - **Profitability**: The company reported a net loss of approximately 40 million CNY in Q3, primarily attributed to losses in the hexafluoropropylene segment and an unsuccessful hedging strategy involving lithium carbonate [32][34]. - **Long-term Contracts**: The company has a long-term contract structure that may limit immediate price adjustments but provides stability in revenue [10][12]. This summary encapsulates the key insights from the conference call, highlighting the company's current performance, market dynamics, production strategies, and future outlook.

Sales and Production - The sales volume of lithium hexafluorophosphate (LiPF6) in Q3 exceeded 10,000 tons, with monthly production expected to be around 3,600-4,000 tons in November and December [2][3] - Current inventory is very low, only a few hundred tons, with production lines operating at full capacity [2] - The company anticipates a 25% market growth next year, leading to an expected shipment volume of over 50,000 tons [5] Pricing Trends - The average selling price of LiPF6 in Q3 was approximately 50,000 [11] - The price of scattered orders has reached 110,000, with expectations for continued price increases through November and December [3][4] - The company aims to maintain an average price of around 80,000 for long-term contracts [3] Market Demand and Supply - Demand forecasts suggest that LiPF6 demand could exceed 300,000 tons next year, driven by optimistic projections from battery cell manufacturers [3] - Current production capacity is around 350,000-360,000 tons, with additional capacity expected to reach approximately 380,000 tons next year [3] - The company is cautious about rapid price increases, preferring a stable and gradual rise [3] Financial Performance - Q3 losses were primarily attributed to the LiPF6 segment, with a reported loss of over 8 million due to high inventory levels and concerns about price depreciation [11] - The company has achieved breakeven in other segments, such as small household appliances [11] Expansion Plans - The company plans to invest in an additional 15,000 tons of production capacity, with equipment installation expected to take about 10 months [5][12] - New production lines are projected to contribute 4,000-6,000 tons of output by September next year [5] Raw Material Costs - The cost of raw materials, particularly lithium fluoride, is expected to rise, but the increase will not be significant [14][15] - The company has strategies in place to manage costs, including automation improvements and new production lines that reduce costs by several thousand [5][16] New Business Developments - The company is advancing in solid-state lithium products and plans to scale up production of lithium sulfide by the end of the year [17][18] - Ongoing trials for lithium-sulfur and lithium-ion phosphate products are in progress, with plans for larger-scale production [17][18]

Core Viewpoint - The solid-state battery concept stocks have seen significant gains, with Tianji Co., Ltd. experiencing a surge of over 160% since September, closing at 28.04 yuan per share and a market capitalization of 14.1 billion yuan [1] Group 1: Company Developments - Tianji Co., Ltd. announced the industrialization of its lithium sulfide material preparation patent, although the technology is still in the early development stage, requiring extensive optimization and verification before commercial production [1] - The company confirmed that there are no undisclosed matters affecting its operations, and the current business environment remains stable [1] - Tianji's subsidiary, Jiangsu Tairui Lanteng Material Technology Co., Ltd., has received a patent for lithium sulfide materials, which are essential for producing solid-state battery electrolytes [1] Group 2: Research and Development Progress - The project has passed small-scale tests and will proceed to larger-scale trials to analyze costs and industrial feasibility, followed by a pilot phase to validate production stability and equipment compatibility [2] - Tianji plans to conduct kilogram-scale tests of lithium sulfide by the end of the year, with a pilot line for tens of tons expected to be operational in the first half of next year [2] - The company has sent samples to CATL, weighing approximately 100 grams, and is also developing lithium-sulfur-phosphorus-chlorine materials and lithium supplementing agents [2] Group 3: Market Conditions - The market for lithium hexafluorophosphate, Tianji's main product, has seen a price increase of nearly 60% in just over two weeks, with current spot prices reaching 110,000 yuan per ton [3] - The company anticipates that price increases will continue into November and December, with a tight supply expected next year due to product qualification issues [3] - Tianji's long-term contracts account for about 70% of sales, primarily with CATL, with November prices around 70,000 yuan per ton, while spot prices fluctuate with the market [3]

Group 1: Sales and Production - Q3 sales volume of lithium hexafluorophosphate (LiPF6) reached 12,000 tons, with October sales at 4,200 tons and plans for 4,000 tons in November and December [2] - Current production capacity is 3,600-3,800 tons per month, with an expected total shipment of 39,000 tons for the year [5] - Anticipated market growth of 25% next year, projecting shipments to exceed 50,000 tons [5] Group 2: Pricing Trends - Current average price for LiPF6 is around 50,000 RMB per ton, with expectations for prices to rise to approximately 80,000 RMB for long-term contracts [9] - Short-term prices are expected to increase in November and December, with scattered orders currently priced between 80,000 and 90,000 RMB [7] - Long-term contracts are concentrated with major clients, with November prices set at 70,000 RMB [4] Group 3: Inventory and Supply Chain - Inventory levels are critically low, with only a few hundred tons remaining, indicating a tight supply situation [2] - The company is operating at full capacity, and small factories are contributing limited additional supply [7] - The supply-demand balance remains tight, with existing capacity at 350,000-360,000 tons and projected demand exceeding 300,000 tons [3] Group 4: Financial Performance - Q3 losses were primarily attributed to low sales prices of LiPF6, with a reported loss of approximately 60 million RMB for the first nine months of the year [11] - The company expects to recover losses in Q4 due to rising prices and improved sales [11] - The average price for Q3 was around 50,000 RMB, with expectations for profitability in Q4 [11] Group 5: Expansion Plans - New capacity of 15,000 tons is expected to be operational by September next year, following a 10-month installation period [5] - Expansion projects face regulatory hurdles, with new capacity requiring 2.5-3 years for approval and construction [12] - The company is cautious about rapid expansion due to market uncertainties and investment costs [12] Group 6: Raw Material Costs - The cost of lithium fluoride is expected to rise, influenced by the price trends of lithium carbonate [14] - The company has its own lithium fluoride production capacity, which mitigates some cost pressures [15] - Overall, costs are stable, with improvements expected from new production lines [16]

Core Viewpoint - The article highlights the upcoming 2025 Solid-State Battery Industry Annual Conference and the Golden Ding Award Ceremony, emphasizing the focus on new technologies and the establishment of a new ecosystem in the solid-state battery sector [2][6]. Event Overview - The event will take place on November 8, 2025, at the Guangzhou Nansha International Convention and Exhibition Center, featuring over 1000 participants and various industry leaders [6][8]. - The conference will include a series of presentations and discussions on advancements in solid-state battery technology, with notable speakers from leading companies and research institutions [8][10]. Company Highlights - Shenzhen Boyue New Materials Technology Co., Ltd. is a key supporter of the event, focusing on the research, production, and sales of solid-state electrolytes and lithium-ion battery materials [2][3]. - The company has developed a high-purity lithium oxide product with a purity of 99.5% and plans to establish the world's first fully automated lithium oxide production line with a capacity of thousands of tons [3]. - Boyue's sulfide electrolyte products, particularly lithium phosphorus sulfide chloride (LPSC), are positioned to address production cost challenges, with anticipated costs dropping below 300,000 yuan per ton and purity reaching 99.9% [4]. Product Innovations - The company is advancing its lithium supplementing agents, which have been integrated into most domestic lithium supplement manufacturers, significantly reducing costs and enhancing efficiency [3]. - The development of oxide electrolytes focuses on lithium aluminum titanium phosphate (LATP), utilizing proprietary precursor development to achieve low impurity levels and high ionic conductivity [3]. - Boyue is also innovating in the area of sulfide electrolytes, improving air stability and ionic conductivity through advanced doping techniques and nanomaterial processing [4]. Forum Agenda - The agenda includes various specialized sessions on solid-state battery technologies, with topics ranging from manufacturing challenges to material innovations, featuring experts from different sectors [8][10]. - Key discussions will cover the latest advancements in solid-state battery materials and manufacturing processes, aiming to foster collaboration and innovation within the industry [10]. Awards and Recognition - The event will culminate in the Golden Ding Award Ceremony, recognizing outstanding contributions in the solid-state battery field, including categories for innovation in materials and technology [10].

Core Viewpoint - The company maintains a strong leadership position in lithium cobalt oxide, with robust downstream demand expected to drive both volume and profit growth [1][2]. Group 1: Financial Performance - In the first half of 2025, the company achieved approximately 7.534 billion yuan in revenue, representing an 18.04% year-on-year increase, and a net profit attributable to shareholders of around 307 million yuan, up 27.76% year-on-year [2]. - The company has adjusted its EPS forecasts for 2025-2027 to 1.55 yuan, 1.87 yuan, and 2.26 yuan, respectively, reflecting stable growth in performance [2]. - The target price has been revised upwards to 54.11 yuan, based on a 35 times PE ratio for 2025 [2]. Group 2: Market Demand and Product Performance - The demand for lithium cobalt oxide has surged, with sales reaching 28,800 tons in the first half of 2025, a significant increase of 56.64% year-on-year, driven by national subsidy policies and the enhanced battery capacity of 3C consumer electronics [2]. - The company continues to strengthen its competitive advantage in high voltage and high power ternary materials, achieving a 20.76% year-on-year increase in sales of power battery cathode materials, totaling 31,900 tons in the first half of 2025 [3]. Group 3: Technological Advancements - The company has made significant progress in new technology development, including the successful batch supply of high-stability lithium supplementation materials and advancements in NL new structure cathode materials, which offer improved stability and energy density [3]. - The development of a new synthesis process for lithium sulfide has shown promising results in pilot tests, indicating potential cost reduction [3].