Tianqi Lithium (002466) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw a significant net loss attributable to shareholders, mainly due to a sharp decline in lithium product prices and lower investment income from associates.

• Lithium compound and derivative sales volumes increased year-over-year and quarter-over-quarter, supported by new plant capacity ramp-up.

• Losses in Q2 and Q3 narrowed sequentially as lower-priced lithium concentrate procurement reduced production costs.

Financial highlights

• Q3 revenue: ¥3.65 billion, down 57.48% year-over-year; YTD revenue: ¥10.06 billion, down 69.87%.

• Q3 net loss attributable to shareholders: -¥495.64 million; YTD net loss: -¥5.70 billion.

• Q3 basic/diluted EPS: -0.30; YTD EPS: -3.48.

• Q3 gross margin and net margin declined sharply due to lower lithium prices and reduced investment income from SQM.

• Cash flow from operations: ¥4.19 billion YTD, down 79.07% year-over-year.

Outlook and guidance

• Sequential narrowing of losses expected to continue as cost structure improves with lower-priced lithium concentrate.

• Ongoing ramp-up of new production capacity and stable customer base for new products support future sales growth.