A single-quarter windfall of 2 billion RMB! Behind Tianqi Lithium’s projected 18-fold net profit surge

Last year’s loss: 7.9 billion RMB; this quarter’s profit alone exceeds last year’s full-year earnings by four times. ◜ Jaw-dropping data—clear at a glance Q1 2026 Net profit attributable to shareholders: 1.7–2.0 billion RMB — up 1,530%–1,818% year-on-year Non-recurring net profit: 1.6–1.96 billion RMB — up 3,501%–4,312% year-on-year Q4 2025 net profit (quarter-on-quarter): 283 million RMB — up 501%–607% quarter-on-quarter ◜ What happened? On the evening of April 20, “Lithium King” Tianqi Lithium (002466.SZ) dropped a deep-water bomb: Q1 net profit attributable to shareholders: 1.7–2.0 billion RMB — surging 1,530%–1,818% year-on-year! What does that mean? Last year’s entire net profit was only 463 million RMB — yet one quarter this year delivers nearly four times that amount. Upon release of the results, the stock surged nearly 9% on April 21, and lithium-mining概念股 rallied across the board. ◜ Who’s footing the bill for this earnings explosion? Reason 1: Lithium prices rebounded — products sold at higher prices Strong sales of new-energy vehicles boosted downstream demand, pushing lithium product prices significantly higher than a year earlier. This is the core engine behind the earnings surge. Reason 2: Surging dividends from associate company SQM Tianqi holds approximately 22% of SQM. With SQM’s explosive earnings growth, Tianqi’s dividend income doubled passively. SQM is one of the world’s largest lithium producers, operating the Atacama Salt Flat in Chile. Reason 3: New mines nearing production The Greenbushes spodumene mine CGP3 project in Australia commenced feedstock trial operation in December 2025 and produced its first batch of lithium concentrate in January 2026. As new capacity comes online, costs will continue falling. ◜ How do institutions view it? UBS initiated coverage with a “Buy” rating and set a target price of 78.3 RMB (the closing price on April 21 was ~66.82 RMB). UBS estimates: ~600 million RMB from SQM + ~720 million RMB from spodumene concentrate + ~350 million RMB from inventory gains.

Tianqi Lithium loses final appeal: Its stake in the world’s largest salt-lake lithium producer is subject to Chile’s ‘public-private partnership’ model

‘One step forward.’ She added that the current outcome is neither the best nor the worst possible result. 1 Origins of the operational dispute SQM is critically important to the global lithium industry. According to prior disclosures by Tianqi Lithium, SQM holds mining and operational rights over Chile’s Atacama Salt Flat—the world’s largest lithium-rich brine resource. The Atacama Salt Flat boasts exceptionally high lithium concentration, vast reserves, mature extraction conditions, and low operating costs—making it one of the world’s most advantaged brine resources and a key global lithium production hub. Public records show SQM was founded in the 1960s as a Chilean state-owned enterprise, later coming under control of the Ponce family—former Chilean President Pinochet’s son-in-law—and currently holding 25.76% of SQM via its Pampa Corporation, making it the largest shareholder. Leveraging long-standing expertise in lithium mining and a global strategic vision, Tianqi Lithium acquired a 23.77% stake in SQM in 2018 for USD 4.066 billion, becoming its second-largest shareholder. It currently holds approximately 22.16% of SQM. As the electric vehicle industry rapidly expanded, lithium—the critical upstream raw material for power batteries—surged in value, enabling Tianqi Lithium to reap substantial dividend income from SQM. Tianqi Lithium’s annual reports from 2019 to 2024 show investment income recognized from SQM totaled RMB 403 million, RMB 175 million, RMB 760 million, RMB 5.641 billion, RMB 2.931 billion, and -RMB 885 million, respectively. In 2022, SQM-related investment income accounted for roughly 23% of Tianqi Lithium’s net profit attributable to shareholders; in 2023, that share rose to 40%. Fueled by persistently rising lithium prices, SQM’s U.S.-listed shares have also climbed steadily. As of the close on January 28 (U.S. Eastern Time), SQM’s market capitalization stood at USD 23.871 billion. Based on Tianqi Lithium’s 22.16% stake, its equity value amounted to USD 5.289 billion—exceeding its original investment. However, amid shifting international dynamics, rare mineral resources have become a focal point for national strategic interests—and Chile has begun advancing the nationalization of such resources. In December 2023, SQM signed a Memorandum of Understanding with Chile’s state-owned copper company Codelco; in May 2024, both parties formalized a Partnership Agreement stipulating that, starting in 2031, SQM will relinquish control over the Atacama Salt Flat, and Codelco will consolidate SQM’s financial statements beginning in 2031. Regarding this Partnership Agreement, Tianqi Lithium stated it had not been granted voting rights and that the SQM Board acted beyond its authority. Concurrently, Tianqi Lithium pursued legal remedies to block the agreement. In June 2024, Tianqi Chile applied to Chile’s Financial Market Commission (CMF) for an injunction to suspend implementation of the agreement—but the application was rejected. In July 2024, Tianqi Chile filed suit in Chilean courts seeking annulment of the agreement. In November 2025, the Chilean court ruled in the first instance against Tianqi Chile, affirming the Board’s decision as lawful. Tianqi Chile then appealed to Chile’s Supreme Court. On January 27, 2026, Chile’s Supreme Court issued its final ruling, upholding the lower court’s decision and rejecting Tianqi Chile’s appeal. The judgment is definitive and no further appeal is permitted.