Following a significant financial loss in 2024, Tianqi Lithium Corporation (002466.SZ) presented a turnaround performance in 2025. On the evening of March 27, 2026, the company released its 2025 annual report, showing operating revenue of 10.346 billion yuan, a decrease of 20.8% year-over-year. However, net profit attributable to shareholders of the listed company was 463 million yuan, marking a return to profitability compared to the substantial net loss of 7.905 billion yuan incurred in 2024. Notably, Ganfeng Lithium (002460.SZ) also returned to profit, with its net profit attributable to the parent company rising from a loss of -2.074 billion yuan in 2024 to a profit of 1.613 billion yuan in 2025. This may indicate that domestic lithium mining companies are emerging from the most challenging period for the industry.
Tianqi Lithium has established a "vertically integrated" industrial chain, creating a significant cost advantage. Upstream, the company controls Australia's Windfield Holdings Pty Ltd, which owns the world-class Greenbushes spodumene mine. Tianqi Lithium also holds a stake in SQM of Chile, the world's largest lithium producer from salt lakes, building a strong resource barrier. In the midstream segment, the company is steadily advancing capacity ramp-up at its Kwinana lithium hydroxide plant in Australia, the 1,000-tonnes-per-year metallic lithium project in Chongqing, and the lithium hydroxide project in Zhangjiagang, Jiangsu province. Downstream, Tianqi Lithium is expanding into areas such as new energy materials, solid-state batteries, and battery recycling through methods like signing long-term supply agreements with leading customers.
The company's "V-shaped" earnings recovery was primarily driven by the strong performance of three overseas subsidiaries. In Australia, Windfield Holdings reported 2025 revenue of 7.758 billion yuan and a net profit of 2.868 billion yuan, with 1.048 billion yuan attributable to Tianqi Lithium. In Chile, SQM reported 2025 revenue of 56.609 billion yuan and a net profit of 4.181 billion yuan, a turnaround from a net loss of -2.885 billion yuan the previous year. In Australia, TLA reported 2025 revenue of 588 million yuan and a net loss of 320 million yuan, a significant reduction in losses compared to the net loss of 2.285 billion yuan in the prior year. The robust performance of these three overseas subsidiaries transformed Tianqi Lithium's investment income from a loss of -8.397 billion yuan in 2024 to a gain of 547 million yuan in 2025.
However, behind the positive results, Tianqi Lithium faces some complex challenges abroad. In Australia, the local tax authority issued a preliminary opinion letter regarding the transaction structure of the 2021 introduction of IGO into TLEA, a former wholly-owned subsidiary of Tianqi Lithium, potentially creating a tax liability of approximately 170 million Australian dollars. Tianqi Lithium has submitted defense materials and has not yet made a provision for the potential liability. In Chile, a lawsuit filed by a wholly-owned subsidiary concerning the "Partnership Agreement" between SQM and Codelco has been appealed to the Supreme Court, with the outcome remaining uncertain.
Shortly after returning to profitability, Tianqi Lithium's board of directors moved to reward executives with substantial salary increases. The board consists of 11 members, with 7 remaining after excluding 4 independent directors. Honorary Chairman Jiang Weiping's total pre-tax compensation for 2025 was 5.76 million yuan, a 66.67% increase from 3.456 million yuan in 2024. Chairperson Jiang Anqi's total pre-tax compensation was 5.1908 million yuan, up 44.68% from 3.5878 million yuan. General Manager Xia Juncheng's total pre-tax compensation was 5.2268 million yuan, a 46.27% increase from 3.5733 million yuan. Vice President Guo Wei's total pre-tax compensation was 3.836 million yuan, surging 92.78% from 1.9898 million yuan. Vice President Xiong Wanyu's total pre-tax compensation was 2.7095 million yuan, up 90.02% from 1.4259 million yuan. Board Secretary and Vice President Zhang Wenyu's total pre-tax compensation was 2.7032 million yuan, an increase of 43.66% from 1.8816 million yuan. Vice President Zhu Hui, newly appointed in 2025, cannot be compared to the previous year. Calculations indicate that the average salary increase for the aforementioned six executives was 1.5853 million yuan.
In contrast, the average employee salary at Tianqi Lithium saw little change, at 403,700 yuan in 2024 and 405,700 yuan in 2025. It is noteworthy that although Tianqi Lithium achieved profitability in 2025, its board made a decision that surprised the market: no dividend distribution, no bonus share issue, and no capital reserve conversion for the year. As of the end of 2025, the company's retained earnings stood at 15.778 billion yuan. Some minority shareholders believe there is a serious issue with Tianqi Lithium's capital allocation logic, where executives receive substantial pay raises while shareholders get zero returns.
Comments