TIANQI LITHIUM: Successfully Launched Pilot Project with Annual Production of 50 Tons of Lithium Sulfide
TIANQI LITHIUM (09696.HK) Overview
- Stock Performance: TIANQI LITHIUM's stock increased by 0.120, reflecting a 0.300% rise.
- Short Selling Activity: The company experienced short selling amounting to $929.04K, with a short selling ratio of 0.384%.
Industrialization of Lithium Sulfide
- Next-Generation Battery Material: During the 2025 interim results briefing, TIANQI LITHIUM announced the successful completion of industrialization preparations for lithium sulfide, a core material for next-generation solid-state batteries.
- Production Capacity: The company has initiated a pilot project for lithium sulfide with an annual production capacity of 50 tons, which is now effectively underway.
Technological Advancements
- Innovative Production Techniques: The lithium sulfide project utilizes newly developed technology and equipment, emphasizing low risk and rapid mass production capabilities.
- Location of Construction: The project is set to be constructed in Meishan City, Sichuan Province, aligning with the growing demand for lithium sulfide from downstream solid-state electrolytes.
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TIANQI LITHIUM Plans to Divest Approximately 3.566 Million Class A Shares in SQM
Disposal Proposal: TIANQI LITHIUM's board has approved a proposal to dispose of part of its equity interest in SQM, planning to sell up to approximately 3.566 million Class A shares, which is about 1.25% of SQM's total shares.
Regulatory Compliance: The share disposal will be conducted in a manner that avoids triggering the need for shareholder approval under the relevant Listing Rules and regulations.
JPM Predicts Increased M&A Potential for TIANQI LITHIUM Following Successful Shr Placement and CB Issuance, Cautions About Possible Equity Dilution
New Fundraising Plans: TIANQI LITHIUM plans to raise approximately USD375 million through the placement of new H-shares and the issuance of zero-coupon convertible bonds due in 2027.
Equity Dilution Impact: The share placement is expected to cause an equity dilution of about 3.7-3.8%, while full conversion of the convertible bonds could lead to an additional dilution of 2.9-3.2%.
M&A Activity Speculation: JPMorgan suggests that the likelihood of TIANQI LITHIUM pursuing mergers and acquisitions has increased following the fundraising activities.
Stock Price Outlook: The broker has set a target price of HKD52 for TIANQI LITHIUM, maintaining a Neutral rating, while cautioning investors about potential short-term pressure on the stock due to combined dilution effects.
Trading of TIANQI LITHIUM H Shares Halted This Morning
Trading Halt: TIANQI LITHIUM's H shares trading was halted at 9:04 a.m. for an unannounced reason, with short selling amounting to $9.31 million and a ratio of 6.206%.
New Share Issuance: The company plans to issue 65.05 million new H shares at a 9% discount and zero-coupon convertible bonds, aiming to raise approximately HKD5.83 billion.
TIANQI LITHIUM Aims to Divest Stake in Chilean Mining Company SQM
Share Disposal Proposal: TIANQI LITHIUM's Board approved a proposal to dispose of up to 3.566 million Class A shares in SQM, representing 1.25% of SQM's total shares.
Recent Share Sales: The company has already sold over 748,000 Class B shares in SQM, amounting to 0.29% of SQM's total shares, through its subsidiary Tianqi Lithium HK.
Current Holdings: TIANQI LITHIUM currently holds approximately 62.5566 million Class A shares in SQM, which is about 21.9% of SQM's total shares.
Management Authorization: The Board has authorized management to sell all of its SQM Class A shares within the next year.
TIANQI LITHIUM Offers Shares at 9% Discount and Plans Zero-Coupon Convertible Bond Issuance, Aiming to Raise Approximately HKD5.83 Billion
Share Placement Announcement: TIANQI LITHIUM plans to place 65.05 million new H-shares at HKD45.05 per share, a 9% discount from the previous closing price of HKD49.5.
Convertible Bonds Issuance: The company intends to issue USD-settled zero-coupon convertible bonds due 2027, with a total principal amount of RMB2.6 billion and an initial conversion price of HKD49.56 per share.
Impact of Conversion: Full conversion of the bonds will result in approximately 59.09 million new shares, representing 3.48% of the enlarged total issued shares.
Expected Proceeds: The net proceeds from both the share placement and convertible bond issuance are anticipated to be nearly HKD5.829 billion.
BofAS: TIANQI LITHIUM (09696.HK) Results Mostly Meet Expectations; Maintains Buy Rating
Profit Forecast: TIANQI LITHIUM issued a positive profit alert, projecting a net profit for 2025 between RMB369-553 million, with a quarterly improvement expected in Q4 2025.
Broker Rating: BofA Securities maintained a Buy rating for TIANQI LITHIUM, citing the company's readiness for higher lithium prices and improved profit margins.
Industry Outlook: BofA Securities anticipates lithium prices to rise to RMB126,000 per ton by 2026, driven by low inventory levels.
Target Price: The broker set a target price of $70 for TIANQI LITHIUM, reflecting confidence in the company's future performance amidst favorable market conditions.
TIANQI LITHIUM Plans to Divest Approximately 3.566 Million Class A Shares in SQM
Disposal Proposal: TIANQI LITHIUM's board has approved a proposal to dispose of part of its equity interest in SQM, planning to sell up to approximately 3.566 million Class A shares, which is about 1.25% of SQM's total shares.
Regulatory Compliance: The share disposal will be conducted in a manner that avoids triggering the need for shareholder approval under the relevant Listing Rules and regulations.
JPM Predicts Increased M&A Potential for TIANQI LITHIUM Following Successful Shr Placement and CB Issuance, Cautions About Possible Equity Dilution
New Fundraising Plans: TIANQI LITHIUM plans to raise approximately USD375 million through the placement of new H-shares and the issuance of zero-coupon convertible bonds due in 2027.
Equity Dilution Impact: The share placement is expected to cause an equity dilution of about 3.7-3.8%, while full conversion of the convertible bonds could lead to an additional dilution of 2.9-3.2%.
M&A Activity Speculation: JPMorgan suggests that the likelihood of TIANQI LITHIUM pursuing mergers and acquisitions has increased following the fundraising activities.
Stock Price Outlook: The broker has set a target price of HKD52 for TIANQI LITHIUM, maintaining a Neutral rating, while cautioning investors about potential short-term pressure on the stock due to combined dilution effects.
Trading of TIANQI LITHIUM H Shares Halted This Morning
Trading Halt: TIANQI LITHIUM's H shares trading was halted at 9:04 a.m. for an unannounced reason, with short selling amounting to $9.31 million and a ratio of 6.206%.
New Share Issuance: The company plans to issue 65.05 million new H shares at a 9% discount and zero-coupon convertible bonds, aiming to raise approximately HKD5.83 billion.
TIANQI LITHIUM Aims to Divest Stake in Chilean Mining Company SQM
Share Disposal Proposal: TIANQI LITHIUM's Board approved a proposal to dispose of up to 3.566 million Class A shares in SQM, representing 1.25% of SQM's total shares.
Recent Share Sales: The company has already sold over 748,000 Class B shares in SQM, amounting to 0.29% of SQM's total shares, through its subsidiary Tianqi Lithium HK.
Current Holdings: TIANQI LITHIUM currently holds approximately 62.5566 million Class A shares in SQM, which is about 21.9% of SQM's total shares.
Management Authorization: The Board has authorized management to sell all of its SQM Class A shares within the next year.
TIANQI LITHIUM Offers Shares at 9% Discount and Plans Zero-Coupon Convertible Bond Issuance, Aiming to Raise Approximately HKD5.83 Billion
Share Placement Announcement: TIANQI LITHIUM plans to place 65.05 million new H-shares at HKD45.05 per share, a 9% discount from the previous closing price of HKD49.5.
Convertible Bonds Issuance: The company intends to issue USD-settled zero-coupon convertible bonds due 2027, with a total principal amount of RMB2.6 billion and an initial conversion price of HKD49.56 per share.
Impact of Conversion: Full conversion of the bonds will result in approximately 59.09 million new shares, representing 3.48% of the enlarged total issued shares.
Expected Proceeds: The net proceeds from both the share placement and convertible bond issuance are anticipated to be nearly HKD5.829 billion.
BofAS: TIANQI LITHIUM (09696.HK) Results Mostly Meet Expectations; Maintains Buy Rating
Profit Forecast: TIANQI LITHIUM issued a positive profit alert, projecting a net profit for 2025 between RMB369-553 million, with a quarterly improvement expected in Q4 2025.
Broker Rating: BofA Securities maintained a Buy rating for TIANQI LITHIUM, citing the company's readiness for higher lithium prices and improved profit margins.
Industry Outlook: BofA Securities anticipates lithium prices to rise to RMB126,000 per ton by 2026, driven by low inventory levels.
Target Price: The broker set a target price of $70 for TIANQI LITHIUM, reflecting confidence in the company's future performance amidst favorable market conditions.
