Tianqi Lithium (002466) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB 4.83 billion, down 24.71% year-over-year; net profit attributable to shareholders was RMB 84.41 million, a turnaround from a loss of RMB 5.21 billion in H1 2024, mainly due to improved investment income from SQM and favorable FX movements.

• Gross margin for lithium mining remained robust at 54.23%, while lithium compounds and derivatives saw a margin of 25.58%.

• The company maintained a strong cash position, with cash and cash equivalents at RMB 7.13 billion at period end.

Financial highlights

• Operating cash flow was RMB 1.82 billion, down 18.58% year-over-year.

• Basic and diluted EPS were RMB 0.05, compared to -3.18 in H1 2024.

• Total assets increased 7.17% to RMB 73.6 billion; net assets attributable to shareholders were stable at RMB 41.91 billion.

• Investment income from associates (mainly SQM) contributed RMB 221 million.

• Non-recurring gains (mainly government subsidies) totaled RMB 128.54 million.

Outlook and guidance

• The company expects lithium demand to remain strong, driven by EV and energy storage growth, but notes ongoing price volatility and global supply competition.

• Ongoing expansion of lithium chemical capacity, with new projects in Jiangsu and Sichuan coming online in H2 2025.

• Focus on cost control, R&D, and vertical integration to mitigate market risks.