Tianqi Lithium (002466.SZ) recorded a net loss of 5.206 billion yuan in the first half of the year, changing from profit to loss over the previous year

According to the Zhitong Finance App, Tianqi Lithium (002466.SZ) released its 2024 semi-annual report, with revenue of 6.419 billion yuan, a year-on-year decrease of 74.14%. Net loss attributable to shareholders of listed companies was 5.206 billion yuan, compared to profit of 6.452 billion yuan in the same period last year. Net loss attributable to shareholders of listed companies after deducting non-recurring profit and loss was $5.22 billion. Basic earnings per share - $3.18.

The analysis of changes in the company's performance during the reporting period was as follows: (1) Affected by fluctuations in the lithium product market, the sales price of the company's lithium products fell sharply compared to the same period last year, and the gross profit of lithium products dropped sharply. Affected by a time cycle mismatch between the pricing mechanism of the company's holding subsidiary Thalison chemical grade lithium concentrate and the company's lithium chemical product sales pricing mechanism, the company's operating performance experienced phased losses during the reporting period. However, in the first half of 2024, the market price of chemical-grade lithium concentrate dropped. As the company gradually stored low-price lithium concentrate newly purchased from Thalison and gradually digested existing lithium concentrate stocks, the shipping costs of chemical-grade lithium concentrate at the company's production sites gradually became close to the latest purchase prices, and the phased mismatch of the lithium concentrate pricing mechanism gradually weakened, and the company's losses decreased sequentially in the second quarter of 2024. At the same time, production and sales of lithium compounds and derivatives achieved year-on-year and month-on-month growth in the first half of 2024 and the second quarter of 2024 due to the positive impact of the smooth climbing of in-house production plants and outsourced processing. Among them, sales of lithium compounds and derivatives increased 30.13% year-on-year from January to June 2024, and sales in the second quarter of 2024 increased 46.18% month-on-month compared with sales in the first quarter.

(2) SQM's January-June 2024 results declined sharply year over year. Furthermore, SQM revealed in its 2024 first quarter results report that the Santiago de Chile court ruled on its tax lawsuit for the 2017 and 2018 tax years in April 2024, revoking the tax and customs court's ruling on the case on November 7, 2022, which led it to confirm income tax expenses of about 1.1 billion US dollars and reduce net profit by about 1.1 billion US dollars accordingly. As a result, the investment income confirmed by the company in this reporting period fell sharply compared to the same period in 2023.