Tianqi Lithium Corporation (09696) is expected to make a total provision for asset impairment of approximately RMB 2.163 billion in 2024.

Tianqi Lithium Corporation (09696) announced that it initiated construction-related work for the "annual production of 24,000 tons of battery-grade lithium hydroxide monohydrate project" and "second phase annual production of 24,000 tons of battery-grade lithium hydroxide monohydrate project" in Australia in 2016 and 2017 respectively. Currently, the first-phase lithium hydroxide project is in the capacity climbing phase, while the second-phase project is in a temporary halt phase. In accordance with the relevant regulations of the Chinese Enterprise Accounting Standards and other systems, the company is conducting impairment testing on the above-mentioned lithium hydroxide projects based on the latest situation, and is in continuous communication with the management of its subsidiary, Tianqi Lithium Energy Australia Pty Ltd ("TLEA"). Based on preliminary calculations, the company estimates a total provision of approximately RMB 1.412 billion for impairment of construction in progress and right-of-use assets in 2024 (excluding the first-phase lithium hydroxide project, if any). In accordance with the Chinese Enterprise Accounting Standards, company accounting policies, and other related systems, and based on the principle of prudence, the company and its subsidiaries are conducting a comprehensive and thorough inventory, analysis, and evaluation of relevant assets to accurately reflect the financial condition, asset value, and operating results as of December 31, 2024. After impairment testing on assets that may indicate impairment by December 31, 2024, it is estimated that a total provision of approximately RMB 2.163 billion for asset impairment will be made (excluding the first-phase lithium hydroxide project, if any).