Tianqi Lithium's 2025 revenue fell by more than 20% year-on-year, net profit attributable to parent company turned positive at 460 million yuan | Financial Report Insight

Tianqi Lithium's 2025 revenue fell by more than 20% year-on-year, net profit attributable to parent company turned positive at 460 million yuan | Financial Report Insight

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In 2025, when the lithium industry still remains at a low point, Tianqi Lithium delivered an annual report marked by "revenue under pressure and profit recovery":

Full-year operating revenue was 10.346 billion yuan, a year-on-year decrease of 20.80%; net profit attributable to shareholders was 463 million yuan, turning positive compared to a huge loss of 7.905 billion yuan in 2024; after deducting non-recurring items, net profit attributable to shareholders was 359 million yuan, also returning to positive territory.

In terms of profitability rhythm, the recovery was noticeably "delayed". In the fourth quarter alone, net profit attributable to shareholders was 283 million yuan, accounting for over 60% of annual profit; the weighted average ROE rebounded to 1.10%, a significant improvement from -16.92% in 2024, but still some distance from the high-profit level in 2023.

The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for 2025. Given that the company is still in a stage of profit recovery, capacity ramp-up, and overlapping overseas equity variables, this arrangement leans more toward a prudent strategy of "reserving a sufficient cash safety cushion".

Performance: Revenue continues to decline; net profit attributable to shareholders turns positive but is still a "low-level recovery"

Core financial indicators disclosed in the annual report summary show that Tianqi Lithium's main keyword for 2025 is "turning losses around" rather than a "strong recovery":

  • Operating revenue: 10.346 billion yuan (YoY -20.80%; 2024: 13.063 billion yuan, 2023: 40.503 billion yuan)
  • Net profit attributable to shareholders: 463 million yuan (2024: -7.905 billion yuan; 2023: 7.297 billion yuan)
  • Net profit after deducting non-recurring items: 359 million yuan (2024: -7.923 billion yuan)
  • Basic/diluted EPS: 0.28 yuan (2024: -4.82 yuan)
  • Weighted ROE: 1.10% (2024: -16.92%)

Despite continued year-on-year revenue decline, net profit has returned from a deep loss to a small gain. This means the main contradiction at the profit end has shifted from "clearing losses" to "testing resilience and sustainability of profits".

Quarterly performance: Q4 “takes the lead”, annual profits highly concentrated

By quarter, profit improvement did not occur evenly:

  • Q1 net profit attributable to shareholders: 104 million yuan
  • Q2 net profit attributable to shareholders: -20 million yuan
  • Q3 net profit attributable to shareholders: 95 million yuan
  • Q4 net profit attributable to shareholders: 283 million yuan

With over 60% of profits in the fourth quarter, this both highlights improvement in the second half of the year, and reminds investors: if industry prices, capacity utilization, or costs fluctuate again, profit elasticity and volatility may be amplified together.

Capacity and Projects: 30,000 ton Zhangjiagang lithium hydroxide trial run; Talison Phase III expansion enters ramp-up

For midstream (lithium salt), the "annual output of 30,000 tons battery-grade monohydrate lithium hydroxide project" at Zhangjiagang is one of the key increments in 2025:

  • Total project investment not to exceed 2 billion yuan
  • Project completed and entered joint trial run on July 30, 2025
  • First product verified to meet battery-grade lithium hydroxide standard on October 17, 2025
  • Capable of flexible switch to produce battery-grade lithium carbonate
  • But the company indicates: the project has not reached full production, with continuous debugging and optimization needed

For upstream (lithium concentrate), the Greenbushes-associated Talison Phase III chemical-grade lithium concentrate expansion, after delays, finally entered the production validation period:

  • Construction completed and officially trialed on December 18, 2025
  • First batch of standard-compliant chemical-grade lithium concentrate produced on January 30, 2026
  • Capacity ramp-up and stable production tuning to follow

From an investor's perspective, the focus of both projects lies not in "whether they come online", but in: the ramp-up speed, yield rate, and capacity for stable, continuous production—whether these can turn into sustainable shipments and cost advantages amid industry volatility.

Share capital and incentives: Repurchased shares re-designated and cancelled, limited scale impact

The company announced multiple adjustments to its 2022 repurchased share usage: some were used for employee shareholding plans and restricted stock incentives, with the remainder ultimately cancelled to reduce capital.

  • Repurchased 26,600 shares officially cancelled in October 2025
  • Cancelled amount about 2.9879 million yuan
  • Total share capital decreased from 1,641,221,583 shares to 1,641,194,983 shares after cancellation

This cancellation scale is very small, with limited impact on per-share metrics, mainly representing a "finishing move" in governance and incentive arrangements.

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