Tianqi Lithium (002466) H2 2025 earnings summary

Executive summary

• Revenue for 2025 was RMB 10.35 billion, down 20.8% year-over-year; net profit attributable to shareholders was RMB 462.6 million, a turnaround from a RMB 7.9 billion loss in 2024.

• Gross margin improved in mining (52.88%) but declined in chemical manufacturing (28.59%) compared to 2024.

• Cash flow from operations was RMB 2.96 billion, down 46.7% year-over-year.

• Major cost reductions and improved pricing mechanisms contributed to profitability recovery.

Financial highlights

• EBITDA margin and interest coverage improved significantly; EBITDA/total debt ratio at 26.27%, interest coverage at 7.29x.

• Total assets at year-end were RMB 72.11 billion, up 5% from 2024.

• Net assets attributable to shareholders reached RMB 42.36 billion.

• Basic and diluted EPS were RMB 0.28, up from -4.82 in 2024.

• No cash dividend, bonus shares, or capital increase from reserves for 2025.

Outlook and guidance

• Focus on expanding upstream resource security, ramping up new lithium projects, and enhancing global customer base.

• Ongoing optimization of cost structure and digital transformation to support long-term growth.

• Continued investment in R&D, with emphasis on next-generation battery materials and recycling.

• No cash dividend planned; profits to be retained for future investment and growth.