Tianqi Lithium (09696) expects net profit of 82 million yuan to 123 million yuan in the first quarter

According to Zhitong Finance App News, Tianqi Lithium (09696) announced that for the three months ending March 31, 2025, the net profit range attributable to the Group's shareholders is estimated to be RMB 82 million to RMB 123 million (unaudited), while the net loss amount attributable to the company's shareholders during the same period last year was RMB 3,897 million; the net profit range after deducting non-recurring profit and loss is estimated to be RMB 32 million to RMB 48 million (unreviewed). $3,917 million; and the estimated basic earnings range per share is RMB 0.05 to RMB 0.08 (same period last year: basic loss per share is RMB 2.38).

The board of directors believes that the main reason for the changes in the company's performance during the reporting period is that although the sales price of lithium products fell in the first quarter of 2025 compared to the same period of the previous year due to the shortening of the lithium price cycle of the company's holding subsidiary Windfield Holdings Pty Ltd. (Thalison), the chemical grade lithium concentrate pricing mechanism and the company's lithium chemical product sales pricing mechanism in previous years has greatly weakened. With the gradual digestion of newly purchased lithium concentrate in China and the gradual digestion of stored lithium concentrate, the cost of chemical-grade lithium concentrate consumed in the production costs of the company's various production bases is basically close to the latest purchase price. At the same time, the company achieved year-on-year growth in production and sales of lithium compounds and derivatives in the first quarter of 2025 due to the positive impact of the climbing of in-house production plants and technical reforms.

As of the date of this announcement, Sociedad Químicay Minerade Chile S.A. (SQM), an important affiliate of the company, has yet to announce its results report for the first quarter of 2025. The company comprehensively considers the reliable information it can obtain, and uses a consistent method to calculate the company's investment income in SQM for the same period based on information such as SQM's earnings per share for the first quarter of 2025 predicted by Bloomberg. Since the impact of the SQM tax dispute ruling on its net profit was confirmed in 2024, according to the aforementioned Bloomberg forecast data, SQM's performance for the first quarter of 2025 is expected to increase year-on-year, so the investment income confirmed by the company in this reporting period increased compared to the same period last year.