Profit Rebounds to 463M RMB as Revenue Falls 20.8%
Tianqi Lithium has achieved a significant turnaround, swinging to a net profit of 463 million RMB in 2025 after suffering a staggering 7.905 billion RMB loss in 2024. This return to profitability occurred even as full-year revenue fell 20.8% to 10.346 billion RMB, reflecting the persistent pricing pressure within the global lithium sector. The result marks a critical shift from managing deep losses to demonstrating earnings resilience in a low-price environment.
The improved performance is reflected across key metrics. Basic earnings per share returned to a positive 0.28 RMB, compared to -4.82 RMB in the prior year. Similarly, the company's return on equity (ROE) recovered to 1.10% from -16.92% in 2024. However, these figures remain well below the high-profitability levels seen in 2023, signaling that the recovery is still in its early stages.
Q4 Profit of 283M RMB Drives Year-End Recovery
The company's path to profitability was not linear, with financial performance improving substantially in the latter half of the year. After posting a net profit of 104 million RMB in the first quarter and a small loss of 20 million RMB in the second, Tianqi's earnings accelerated. The fourth quarter alone generated a net profit of 283 million RMB, accounting for over 60% of the entire year's earnings.
This back-loaded performance highlights an improvement in operating conditions or cost controls toward the end of 2025. However, it also suggests that Tianqi's profitability is highly sensitive to market fluctuations. Any renewed volatility in lithium prices or production costs could significantly impact the company's ability to sustain its earnings recovery.
New Plants Begin Trials as Firm Withholds Dividend
Looking forward, Tianqi's growth hinges on the successful ramp-up of two major projects. The Zhangjiagang facility, a battery-grade lithium hydroxide plant with a 30,000-ton annual capacity, began trial runs on July 30, 2025, and produced its first qualified product on October 17. In the upstream segment, the Talison lithium concentrate expansion project started commissioning on December 18, 2025. For investors, the critical variables for these projects are not just their launch, but the pace of their production ramp-up, output quality, and ultimate cost-effectiveness.
Reinforcing a cautious operational stance, the company's board decided not to issue a cash dividend or bonus shares for 2025. This move aims to preserve a "cash safety net" to navigate ongoing market uncertainty and fund the capital-intensive phase of bringing its new capacity fully online. The strategy prioritizes financial stability and self-funded growth over immediate shareholder returns.
