Vertical Integration Strategy Delivers Remarkable Results as Tinci Materials Reports 181.43% Year-on-Year Surge in Net Profit for 2025

On March 6, Tianshi Materials released its 2025 annual report. According to the financial data, Tianshi Materials achieved a revenue of 16.65 billion yuan in 2025, an increase of 33% year-on-year; the net profit attributable to shareholders of the company was 1.362 billion yuan, a significant increase of 181.43% year-on-year, successfully reversing the previous year's decline in performance. The net profit excluding non-recurring items was 1.36 billion yuan, an increase of 256.32% year-on-year. The net cash flow from operating activities was 1.182 billion yuan, an increase of 34.11% year-on-year, indicating that the company's operating quality and "blood production" capability are steadily improving.

Looking at the business segments, the core main business of lithium-ion battery materials achieved revenue of 15.051 billion yuan, an increase of 37.14% year-over-year, accounting for 90.39% of total revenue. During the reporting period, the company's core product, electrolyte, saw strong sales growth, with annual sales exceeding 720,000 tons, an increase of about 44% year-over-year, and market share further increased.

The daily chemical materials and specialty chemicals business achieved revenue of RMB 1.285 billion, representing a year-on-year growth of 10.69%; sales volume exceeded 120,000 tons, up 10% year-on-year, maintaining steady growth.

Regarding resource recycling operations, the company continues to advance its global lithium resource strategic layout, systematically conducting lithium ore exploration and channel development in key resource countries such as Nigeria and Zimbabwe. Meanwhile, leveraging its status as a designated delivery warehouse for battery-grade lithium carbonate at the Guangzhou Futures Exchange, the company continuously engages in lithium carbonate futures hedging activities to effectively mitigate risks associated with raw material price volatility.

During the reporting period, the company’s core competitiveness continued to strengthen. Leveraging its leading liquid lithium hexafluorophosphate process technology, the company’s per-unit capacity investment cost and production cost are both significantly lower than the industry average. Through endogenous development and external investment, the company has established two major advantages: stable vertical supply chain integration and horizontal business synergy, thereby building a circular economy system.

In terms of global layout, OEM plants in North America and Europe have commenced operations smoothly and secured orders from local customers, marking a historic breakthrough in localized overseas production capacity. Construction of projects in the United States and Morocco has already begun, laying a solid foundation for the Company’s continued expansion into overseas markets.

The company consistently regards innovation and R&D as its core driving force. In 2025, its R&D investment amounted to RMB 847 million, representing a 26.75% year-on-year increase. As of the end of the reporting period, the company had accumulated 692 authorized patents and filed 134 international patent applications via the PCT route, significantly strengthening its overseas intellectual property portfolio.

In the field of cutting-edge technology, the company has focused on increasing R&D investment in new lithium battery materials such as sodium-ion batteries and solid-state batteries. It has completed the relevant technical reserves and patent landings, with systematic patent layouts formed for solid electrolyte materials, establishing a solid technical barrier for the company in the next-generation battery material track.

While performance is improving, the company is actively rewarding its shareholders. The 2025 profit distribution plan is as follows: it is proposed to distribute cash dividends of 3 yuan per 10 shares (including tax) to all shareholders, which includes a regular dividend of 2 yuan and a special shareholder return dividend of 1 yuan. The total expected cash dividend is approximately 608 million yuan.

Looking ahead, Tinci Materials stated that it will continue to deepen its strategy of “technological innovation + global expansion + circular economy + smart manufacturing,” focusing on new energy materials centered on lithium-ion battery materials, developing battery recycling and integrated resource businesses, building a complete industrial chain covering lithium, phosphorus, sulfur, and fluorine, and establishing itself as a global platform leader in lithium battery materials.