Tianqi Lithium (002466) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was RMB 13.06 billion, down 67.75% year-over-year due to a sharp decline in lithium product prices and a mismatch in pricing mechanisms between upstream and downstream segments.

• Net loss attributable to shareholders was RMB -7.90 billion, a 208.32% decrease compared to the previous year, driven by lower sales prices, reduced investment income from SQM, increased asset impairment, and foreign exchange losses.

• Operating cash flow was RMB 5.55 billion, down 75.52% year-over-year, reflecting lower revenue and gross margin.

• No cash dividend, bonus shares, or capital reserve to share capital conversion was proposed for 2024.

Financial highlights

• Gross margin for lithium mining was 63.71%, and for lithium compounds and derivatives was 35.21%.

• EBITDA to total debt ratio dropped to 27.32% from 198.13% last year.

• Basic and diluted EPS were both -4.82 yuan, compared to 4.45 yuan last year.

• Weighted average ROE was -16.92%, down from 14.61% in 2023.

• Total assets at year-end were RMB 68.68 billion, down 6.21% from the previous year.

Outlook and guidance

• The company will continue to expand upstream resource security, accelerate construction of key projects, and focus on R&D in next-generation battery materials and recycling.

• Plans to further digitalize operations, enhance EHS management, and pursue green, intelligent manufacturing.

• Cautious on lithium price volatility, global policy changes, and project ramp-up risks; will use hedging and flexible pricing to mitigate market swings.