A robust recovery in lithium prices from cyclical lows, combined with sustained capacity expansion, has triggered an earnings surge for Tianqi Lithium Corporation (SZSE: 002466) in the first half of the year.
For the first six months of 2026, the company posted revenue of RMB 12.242 billion, a substantial year-on-year increase of 153.32%. Net profit attributable to shareholders of the listed company reached RMB 4.242 billion, skyrocketing 4,925.46% compared to the same period last year, representing nearly a 50-fold jump.
Examining earnings quality, net profit excluding non-recurring gains and losses also hit RMB 4.199 billion, with an extraordinary year-on-year surge of 318,054.90%. This underscores that the performance improvement is driven by fundamental operational strength rather than one-off gains. The weighted average return on equity leaped from 0.20% to 9.24% year-on-year, an increase of over nine percentage points, reflecting significantly enhanced capital efficiency. Net cash flow from operating activities stood at RMB 2.212 billion, up 21.51% year-on-year, indicating continued strengthening of cash generation capabilities.
Strategically, Tianqi Lithium has been highly active during the period: completing an H-share placement and convertible bond issuance, advancing the ramp-up of the Greenbushes Mine Phase 3 project, strategically investing in Sunwoda EVB to position in the downstream sector, and concluding a board of directors election to further optimize governance. These moves indicate the company is leveraging the current industry upswing to accelerate the construction of a fully integrated ecosystem spanning from mining operations to downstream applications.
Core Business Breakout: Revenue and Profit Reach Historic First-Half Peaks
The current period's revenue of RMB 12.242 billion more than doubled from RMB 4.833 billion in the prior year, driven primarily by higher sales volumes and prices for lithium concentrates. The company's crown jewel asset, the Talison mine at Greenbushes in Western Australia, stands as one of the world's largest hard-rock lithium operations, and its capacity release directly determines the company's performance ceiling.
On the profit side, while the near-50-fold increase partly reflects a low comparison base, the absolute figure of RMB 4.2 billion sufficiently demonstrates fundamental business improvement. The minimal gap between non-recurring-adjusted profit and net profit (approximately RMB 42 million) further confirms the quality of earnings, with no reliance on asset disposals or investment gains to inflate results. Basic earnings per share climbed from RMB 0.05 to RMB 2.51, with diluted EPS at RMB 2.46 (reflecting potential dilution from convertible bonds), both setting new records for the company's interim performance in recent years.
Greenbushes Phase 3: Key Incremental Asset Enters Ramp-Up Phase
The Talison Phase 3 chemical-grade lithium concentrate expansion project represents the most significant capacity development in this reporting period. After years of construction and several delays, the project was completed with trial operations commencing in December 2025, producing its first qualified products on January 30, 2026, and officially entering the ramp-up phase.
However, the journey has encountered challenges. On June 9, 2026, a localized fire incident occurred at the Phase 3 facility during maintenance, causing damage to certain equipment. The company disclosed that major equipment and production lines remained unaffected, with repairs completed and production resumed, while other operating lithium concentrate plants continued without disruption. This incident temporarily disturbed market sentiment but did not cause material damage to core production infrastructure.
Full capacity attainment at the Phase 3 project will deliver substantial incremental supply for Tianqi Lithium and further cement Greenbushes' position as one of the world's lowest-cost lithium concentrate producers.
Capital Raising: H-Share Placement and Convertible Bonds Bolster Future Ambitions
In February 2026, Tianqi Lithium completed a significant financing operation: placing 65.05 million new H-shares at HK$45.05 per share to no fewer than six independent investors, alongside issuing convertible corporate bonds with a principal amount of RMB 2.6 billion, which have been approved for listing on the Vienna Stock Exchange.
By the end of the reporting period, approximately 6.97 million H-shares had been converted from the convertible bonds, expanding the company's total share capital from 16.4119 million shares (pre-placement) to 1.713 billion shares. This financing exercise effectively strengthened liquidity, providing funding for mine expansions, strategic investments, and debt repayment.
Notably, subsequent to the reporting period, the company received approval to register RMB 6 billion in debt financing instruments (valid for two years), which will further diversify funding channels, optimize the debt structure, and provide ample financial resources for long-term strategic execution.
Strategic Investment in Sunwoda EVB: Key Step Toward Downstream Integration
During the reporting period, the company's wholly-owned subsidiary Shehong Tianqi subscribed for 79.2181 million new shares of Sunwoda EVB with RMB 150 million in self-owned funds, officially becoming a shareholder of this power battery manufacturer.
While the investment amount is relatively modest and will not materially impact current financials, its strategic significance cannot be overlooked. Sunwoda EVB is a significant player in the domestic power battery sector. Through this equity linkage, Tianqi Lithium deepens its integration with downstream battery makers, establishing more stable customer relationships on the demand side while opening possibilities for future exploration of lithium resource recycling (battery recovery). This aligns closely with the company's ongoing "vertical integration" strategy.
SQM Litigation Concluded: Legal Avenues Exhausted, Shifting to Dynamic Assessment
Regarding the cooperation between associated company SQM and Chile's state-owned copper company Codelco, Tianqi Lithium has engaged in a roughly two-year legal battle. In January 2026, Chile's Supreme Court upheld the lower court's ruling, rejecting the appeal filed by the company's wholly-owned subsidiary Tianqi Chile, with the judgment now constituting a final ruling. This effectively closes the door on preventing the SQM-Codelco partnership through Chilean judicial channels.
SQM subsequently disclosed that the conditions precedent for the merger of Nova Andino Litio SpA (formerly SQM Salar) with a Codelco subsidiary had been satisfied, and the Partnership Agreement officially took effect.
The company stated in its announcement that this ruling does not alter the previous assumptions used in impairment testing for its long-term equity investment in SQM and is not expected to have a material impact on current period profits. The company simultaneously reserves all possible avenues for rights protection and will continue to dynamically assess the value of its SQM investment. As a global leading lithium salt producer, SQM remains a significant component of Tianqi Lithium's balance sheet, and the future operational trajectory following the Codelco partnership warrants continued market attention.
Governance Upgrade: New Board Takes Office, Jiang Anqi Assumes Chairmanship
During the first half of 2026, Tianqi Lithium completed a significant governance transition. On April 28, the company held its first extraordinary shareholders' meeting of 2026, electing the seventh Board of Directors. Ms. Jiang Anqi assumed the role of Chairwoman, Mr. Jiang Weiping (the company's actual controller) remained as a non-independent director, and Mr. Xia Juncheng was appointed General Manager.
The composition of the new board preserves the strategic continuity of the founding team while introducing a new generation of management, facilitating professionalized management processes alongside maintained strategic focus. Concurrently, the company revised a series of internal governance documents, including the Articles of Association and Information Disclosure Management System, further refining its compliance framework.
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