30 April 30 2019, Chengdu — Tianqi Lithium Corporation ("Tianqi Lithium" or “the Company", stock code: SZ.002466) today disclosed its 2019 Q1 Results.

In the first quarter of 2019, the Company reported revenue of RMB1.337 billion and net profit of RMB111 million, representing a YOY decrease of 19.89% and 83.14% respectively. The decrease was largely due to the significant increase in interest expenses arising from the rise in M&A loans, and the softening in lithium price compared to the same period in 2018.

Nonetheless, the sales volume of lithium chemicals in the first quarter has achieved a YOY increase of 27.8%, in line with the pace of production capacity's increase, and the inventory level remained low in the reporting period. Moreover, the Company has also maintained an industry-leading gross margin and a healthy operating cash flow. 

In view of the Company, given that the demand for lithium products will remain robust driven by the downstream market in the long run, it will continue to steadily expand its production capacity. In the second half of 2019,

the second chemical-grade lithium concentrate plant of Talison (CGP2) and Phase One of Kwinana battery-grade lithium hydroxide plant will gradually come online to meet ever-increasing customer demand. 

During the reporting period, Tianqi Lithium progressed smoothly post the investment into SQM. On April 25, the Company's three board directorship nominees were approved by SQM's shareholders. It has also recently reached a consensus on corporate governance with PAMPA Group, another major shareholder of SQM, in a joint effort to promote the long-term, healthy and efficient development of SQM to maximize the investment returns for all shareholders. On the same day, the SQM Annual General Meeting of Shareholders also approved the Company's dividend policy for 2019. SQM has maintained a 100% dividend payout ratio in the past three years.

Tianqi Lithium's priority in 2019 is to reduce its asset-liability ratio to a more reasonable level through diversified financing channels, so as to ensure its financial stability. As approved in the Annual General Meeting of Shareholders held on April 23, the Company will place no more than 343 million shares on the basis of no more than 3 new shares for every 10 existing shares and raise the maximum proceeds of RMB7 billion in total.

With its exceptional resource advantages, strong technology expertise and outstanding management, the Company remains fully confident of its future development.