TIANQI LITHIUM 2025 Revenue Drops Over 20% YoY, Net Profit Attributable to the Parent Company Reaches 460 Million Yuan in Turnaround | Earnings Insight

In 2025, with the lithium industry still in a low-prosperity cycle, TIANQI LITHIUM delivered an annual report characterized by "revenue pressure and profit recovery":

Full-year operating revenue reached 10.346 billion yuan, a year-on-year decrease of 20.80%. Net profit attributable to the parent company was 463 million yuan, turning positive compared to the massive loss of 7.905 billion yuan in 2024. Net profit attributable to the parent company after deducting non-recurring items also returned to positive territory at 359 million yuan.

From the perspective of profitability rhythm, the recovery was clearly "back-loaded". The company's net profit attributable to the parent company in the fourth quarter alone was 283 million yuan, accounting for over 60% of the full-year profit. The weighted average return on equity (ROE) rebounded to 1.10%, a significant improvement from -16.92% in 2024, though still a distance from the high profitability level of 2023.

The company proposes no cash dividends, no bonus shares, and no conversion of capital reserves into share capital for the 2025 fiscal year. Considering that the company is still in a phase where profit recovery, capacity ramp-up, and overseas equity variables are intertwined, this arrangement leans towards a prudent strategy of "retaining a sufficient cash safety cushion".

Performance: Revenue Continues to Decline, Net Profit Attributable to the Parent Company Returns to Positive but Remains a "Low-Level Recovery"

The core financial indicators disclosed in the annual report summary show that the keyword for TIANQI LITHIUM in 2025 was "turnaround" but not "strong recovery":

• Operating Revenue: 10.346 billion yuan (YoY -20.80%; 13.063 billion yuan in 2024, 40.503 billion yuan in 2023)
• Net Profit Attributable to the Parent Company: 463 million yuan (-7.905 billion yuan in 2024; 7.297 billion yuan in 2023)
• Net Profit Attributable to the Parent Company After Deducting Non-recurring Items: 359 million yuan (-7.923 billion yuan in 2024)
• Basic/Diluted Earnings Per Share: 0.28 yuan (-4.82 yuan in 2024)
• Weighted ROE: 1.10% (-16.92% in 2024)

With revenue continuing to decline year-on-year, the shift of net profit from a deep loss back to a small profit means the primary contradiction on the profit side has shifted from "clearing losses" to "validating profit resilience and sustainability."

Quarterly Performance: Fourth Quarter Takes the Lead, Full-Year Profit Highly Concentrated

By quarter, the company's profit improvement did not occur evenly:

• Q1 Net Profit Attributable to the Parent Company: 104 million yuan
• Q2 Net Profit Attributable to the Parent Company: -20 million yuan
• Q3 Net Profit Attributable to the Parent Company: 95 million yuan
• Q4 Net Profit Attributable to the Parent Company: 283 million yuan

The fourth quarter's profit accounted for more than 60% of the total, which on one hand highlights the improvement in operations in the second half of the year, and on the other hand alerts investors that if industry prices, operating rates, or cost ends fluctuate again, profit elasticity and volatility may amplify simultaneously.

Capacity and Projects: Zhangjiagang 30,000-ton Lithium Hydroxide Trial Run, Talison Phase III Expansion Enters Ramp-up

On the midstream (lithium salt) front, the "30,000 tons/year battery-grade lithium hydroxide project" at the Zhangjiagang base was one of the key increments in 2025:

• Total project investment not exceeding 2 billion yuan
• Construction completed and entered joint trial run on July 30, 2025
• Confirmed the first bag of products reached battery-grade lithium hydroxide standards on October 17, 2025
• Capable of flexibly switching to produce battery-grade lithium carbonate
• However, the company noted: The project has not yet reached full production capacity, and subsequent debugging and optimization are still required.

On the upstream (lithium concentrate) front, the Talison Phase III chemical-grade lithium concentrate expansion project corresponding to the Greenbushes mine has finally entered the production verification phase after delays:

• Construction completed and officially entered trial run with feedstock on December 18, 2025
• First batch of compliant chemical-grade lithium concentrate produced on January 30, 2026
• Subsequent capacity ramp-up and stable production debugging will follow.

From an investor's perspective, the common point of interest for these two projects is not "whether they are in production," but rather whether the ramp-up speed, yield, and stable continuous production capacity can be converted into sustainable shipment and cost advantages amidst industry fluctuations.

Share Capital and Incentives: Repurchase Share Usage Adjusted and Cancelled, Impact Scale is Limited

The company disclosed several adjustments to the use of shares repurchased in 2022: parts were used for employee stock ownership plans and restricted stock incentives, and the remaining portion was eventually changed to cancellation and capital reduction.

• 26,600 repurchased shares were cancelled in October 2025
• Cancellation amount approximately 2.9879 million yuan
• After cancellation, the total share capital decreased from 1,641,221,583 shares to 1,641,194,983 shares.

The scale of this cancellation is extremely small and has a limited impact on per-share indicators, reflecting more of a "closing action" for governance and incentive arrangements.