"Profit Alert" TIANQI LITHIUM forecasts a turnaround, expecting to earn at least 369 million RMB for the year

TIANQI LITHIUM (09696.HK) issued a profit warning, expecting a net profit for the fiscal year 2025 to be between RMB 369 million and RMB 553 million, compared to a loss of RMB 7.905 billion in the previous year; after deducting non-recurring gains and losses, the net profit is expected to be between RMB 240 million and RMB 360 million, with a loss of RMB 7.923 billion in the previous year.

In 2025, the company's lithium product sales prices are expected to decline, but benefiting from the shortened pricing cycle of its subsidiary Windfield's lithium mines, the impact of the previous year's timing mismatch in the pricing mechanism has significantly weakened; the performance of important associate SQM is expected to grow, and the company confirms a corresponding increase in investment income from SQM; exchange rate fluctuations are expected to lead to increased foreign exchange gains; and the expected impairment losses for this period are anticipated to decrease compared to the fiscal year 2024