Tianqi Lithium Industry: a loss of 1.834 billion in 2020 compared with the same period last year significantly reduced the loss and opened the trading limit today.

On the evening of April 27th, Tianqi Lithium Industry released its 2020 financial results, which showed that the company achieved operating income of 3.239 billion yuan in 2020, down 33.08% from the same period last year, and realized a net profit loss of 1.834 billion yuan belonging to shareholders of listed companies, significantly reducing losses compared with the same period last year. 5.983 billion yuan in the same period last year; basic earnings per share loss of 1.24 yuan.

As for the reasons for the decline in revenue in 2020 compared with previous years, the company said that the price of lithium chemical products continued to decline in the first three quarters of 2020, superimposed by the expansion of overseas COVID-19 epidemic factors leading to a decline in export share.

Take domestic battery-grade lithium carbonate as an example, according to the historical price of SMM, its price began to encounter Waterloo in mid-2019, falling to the lowest point in mid-late July 2020, and the low price did not rise until mid-late October. The hardships of Tianqi lithium industry in the first three quarters of 2020 can be imagined.

"Click to see more historical metal prices.

However, even if lithium chemical products have rebounded since the fourth quarter of 2020, the company's average sales price and sales volume in 2020 have declined to a certain extent compared with 2019 due to excessive losses in the early stage and failure to make up for the previous losses in the later stage.

Public data show that: Tianqi Lithium Industry was founded in 1995, after more than 20 years of development, such as today Qi Lithium Industry has been far ahead in the new energy materials enterprises with lithium as the core in China and even around the world. The company's business covers key stages of the lithium industry chain, including the development of hard rock lithium ore resources, the processing and sales of lithium concentrates and the production and sales of lithium chemical products.

As one of the world's largest manufacturers of lithium chemicals for electric vehicle batteries, Tianqi Lithium Industry is also making frequent moves in battery construction. According to its 2020 annual report, Tianqi Lithium Industry is building two phases of 48000 tons of battery-grade lithium hydroxide production lines in Quinana, Western Australia, and the first phase of the project has entered a stage of commissioning. At present, the company's current product sources mainly rely on Shehong Tianqi, Jiangsu Tianqi and Chongqing Tianqi to provide lithium carbonate, lithium hydroxide, lithium chloride and metal lithium products, with a total planned production capacity of more than 110000 tons / year.

It is worth mentioning that on the night of the release of the annual report, the company once again disclosed its financial results for the first quarter of 2021. It is reported that the company achieved operating income of 904 million yuan in the first quarter of this year, down 6.63% from the same period last year, and realized a net profit loss of 248 million yuan belonging to shareholders of listed companies, compared with a loss of 500 million yuan in the same period last year.

As for the main reason for the decline in revenue, the company said it was due to the decline in lithium ore sales and unit prices in the first quarter of this year compared with the previous period. The loss of 248 million yuan is not much different from the 1.9-280 million yuan expected by Tianqi lithium industry before.

It seems to benefit from the positive impact of the earnings data and the popularity of the lithium mining plate. In early trading on April 28, Tianqi lithium opened its trading limit, and then hit the high again after experiencing a slight decline, with a brief limit of 44.83 yuan per share. As of press time, Tianqi Lithium Industry reported an increase of 7.14% to 43.7 yuan per share.

SMM spot prices show that as of April 28, the average price of CIF Chinese spodumene concentrate was $610 / ton, the same as yesterday.

"Click to see more SMM metal spot prices.