Lithium-ion battery makers accelerated capacity expansion, and Tianqi Lithium's key lithium products saw significant increases in both sales volume and average sales price compared to the same period last year.
Tianqi Lithium expects a third-quarter net profit of RMB 5 billion ($695 million) to RMB 6.5 billion, up 1,026.10 percent to 1,363.92 percent from RMB 444 million a year earlier, the Shenzhen-listed Chinese lithium giant said in an October 15 announcement.
After deducting non-recurring gains and losses, Tianqi expects a third-quarter net profit of RMB 4.98 billion to RMB 6.48 billion. The company posted a loss of RMB 141 million in the same period of the previous year.
Tianqi expects third-quarter earnings of RMB 3.09 - 4.01 per share, up from earnings of RMB 0.3 per share in the same period last year.
For the first three quarters, Tianqi expects a net profit of RMB 15.2 billion - 16.9 billion, up 2,768.96 percent - 3,089.83 percent from earnings of RMB 530 million in the same period last year.
Tianqi expects its net profit after non-recurring gains and losses for the first three quarters to be RMB 14.2 billion – RMB 15.8 billion, compared to a loss of RMB 122 million for the same period last year.
Tianqi expects to earn RMB 9.97 - RMB 11.08 per share in the first three quarters, up from RMB 0.36 per share in the same period last year.
The performance mainly benefited from a number of positive factors, including an increase in the global new energy vehicle (NEV) boom, accelerated capacity expansion by lithium-ion battery makers and a rebound in orders for downstream cathode materials, Tianqi said.
During the reporting period, sales volume and average sales price of the company's main lithium products both increased significantly compared with the same period last year, it said.
The average spot price of battery-grade lithium carbonate rose RMB 4,000 per ton to RMB 535,500 per ton on October 17, according to data provider Mysteel.
This was up 7 percent from the same period last month and continued to set a new record high.
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