Lithium battery materials business profits surged significantly, with Tianhua New Energy’s first-quarter net profit anticipated to increase by up to 32,120%.

On April 8, Tianhua New Energy (300390.SZ) disclosed its 2026 first-quarter performance forecast. The company expects to achieve attributable net profit of RMB 900 million to RMB 1.05 billion, a year-over-year increase of 27,517.53% to 32,120.45%. It also expects non-recurring profit and loss (after excluding non-recurring items) net profit of RMB 878 million to RMB 1.03B, a year-over-year increase of 3,307.58% to 3,855.57%.

Regarding the reasons for the changes in performance, Tianhua New Energy stated that during the reporting period, driven by downstream demand growth for energy storage and power batteries, the company’s lithium battery materials business profit increased significantly. The company expects that the amount of non-recurring gains and losses in the first quarter of 2026 will impact net profit attributable to shareholders of the listed company by approximately RMB 22 million.

While delivering an impressive “performance report,” Tianhua New Energy is also advancing a two-market listing in both A-shares and H-shares. On April 2, Tianhua New Energy submitted its prospectus to the Hong Kong Stock Exchange, planning to list on the Main Board in Hong Kong. The funds raised in this Hong Kong IPO will be mainly used for constructing a battery-grade lithium carbonate facility with an annual capacity of 60k tons, strengthening upstream resource development, and continuously enhancing R&D capabilities.

The prospectus shows that Tianhua New Energy is primarily engaged in the R&D, production, and sales of new energy lithium battery materials. According to information from Frost & Sullivan, based on the company’s sales volume and revenue in 2025, Tianhua New Energy is the largest producer of battery-grade lithium hydroxide in China and the world’s third-largest producer of battery-grade lithium hydroxide. As of the end of 2025, the company has established three major production bases in China, with the maximum annual production capacity of lithium compounds reaching 165k tons, and it has already achieved 100% customer coverage among the world’s top ten ternary cathode materials manufacturers.

In the secondary market, as of the close on April 8, Tianhua New Energy traded at RMB 57.02 per share, up 0.07%. Its latest market capitalization is RMB 60k.