Tianqi Lithium Corporation disclosed its 2018 annual report on March 29, 2019.
In 2018, the Company reported revenue of RMB6.24 billion and net profit of RMB2.20 billion, representing a YOY increase of 14.2% and 2.6% respectively. In terms of business sectors, lithium minerals contributed RMB2.20 billion in sales revenue, and lithium compounds and derivatives delivered RMB4.04 billion, representing a YOY increase of 24.2% and 9.3% respectively. The revenue generated from overseas sales increased by 142.6%, further enhancing geographic diversification.
Despite the market fluctuation in 2018, the Company's gross profit margin reported as 67.6% commensurate with our industry leading position. The cash flow from operating activities in 2018 recorded RMB3.62 billion, representing an increase of 17.0% compared to that at the end of 2017, demonstrating very high quality of earnings.
In 2019, the second chemical-grade lithium concentrate plant (CGP2) of the Company's controlled subsidiary Talison will be commissioned to feed raw material for our operation sites in China and Australia. Existing plants in Shehong of Sichuan, Zhangjiagang of Jiangsu and Tongliang of Chongqing will maintain full utilization. Output from Phase One of Kwinana battery-grade lithium hydroxide plant in West Australia will gradually come online within this year.
The Company is also valuating all equity financing options to deleverage and maintain financial stability in the next 12-18 months. "We remain confident in the outlook of the fundamentals of the Company, and the industry." said Vivian Wu, President of Tianqi Lithium.