[Today's focus]

Tianqi Lithium (09696.HK) Profit Alert: Expected loss of 3.6 billion to 4.3 billion yuan in the first quarter

Tianqi Lithium (09696.HK) announced that for the three months ended March 31, 2024, the (i) net loss range attributable to the company's shareholders was RMB 3,600 million to RMB 4,300 million (unaudited), while the Group recorded net profit attributable to shareholders of RMB 4,875.23 million during the same period of the previous year; (ii) the net loss range after deducting non-recurring profit and loss was RMB 3,600 million to RMB 4,400 million (unaudited). Net profit was then RMB 4,836.32 million; and (iii) the basic loss range per share was RMB 2.20 to RMB 2.62 (same period last year: basic earnings per share was RMB 2.97).

The board of directors believes that the main reasons for the changes in performance during the reporting period are: 1. Affected by fluctuations in the lithium product market, the sales price of the company's lithium products fell sharply compared to the same period of the previous year, and the gross profit of lithium products fell sharply; 2. As of the date of this announcement, the company's important affiliate Sociedad Química y Minera de Chiles.a. (SQM, Chilean Chemical Mining Company) had not released its performance report for the first quarter of 2024. The company comprehensively considers the reliable information it can obtain, and uses a consistent method to calculate the company's estimated investment income in SQM for the same period based on information such as SQM's earnings per share for the first quarter of 2024 predicted by Bloomberg.

Additionally, SQM announced that the Santiago de Chile court ruled on its tax lawsuit for the 2017 and 2018 tax years in April 2024, reversing the tax and customs court's ruling on the case on November 7, 2022. SQM is re-examining the accounting treatment of all tax dispute amounts based on the latest ruling and is expected to reduce its net profit for the first quarter of 2024 by approximately $1.1 billion. Based on the principle of prudence and repeated arguments, the company believes that the impact of the above SQM tax dispute ruling on confirmation of SQM's investment income in this reporting period is more in line with accounting standards. This matter is expected to reduce the company's net profit attributable to the parent company.

According to the aforementioned Bloomberg forecast data, combined with the impact of the SQM tax dispute ruling, SQM's performance for the first quarter of 2024 is expected to drop sharply year over year, so the company's confirmed return on investment in SQM during this reporting period fell sharply compared to the same period last year.

[Important matters]

Prudential International Development (00372.HK) subsidiary receives arbitration notice

Sanwa Construction Group (03822.HK) was awarded a construction contract with an estimated contract value of over HK$400 million

[Financial results]

Ping An of China (02318.HK)'s operating profit in the first quarter exceeded 38.7 billion yuan, and the three core businesses of life insurance, health insurance, property insurance, and banking resumed growth

China Telecom (00728.HK)'s operating revenue in the first quarter rose steadily to 135.493 billion yuan, and net profit to mother reached 8.597 billion yuan, up 7.7% year-on-year

Lizhu Pharmaceutical (01513.HK)'s net profit of 608 million yuan in the first quarter increased 4.45% year-on-year

Lianyirong Technology-W (09959.HK) The total number of transactions processed by technology solutions surged 45% in the first quarter, and the volume of multi-level circulation cloud transactions nearly doubled

Emperor Entertainment Hotel (00296.HK) Profit: Expected annual net profit of not less than HK$50 million, turning a year-on-year loss into profit

[Operational data]

Minmetals Resources (01208.HK)'s total copper production in the first quarter of 67,000 tons decreased by 3% year-on-year

Deshijia (01846.HK): Total number of eye surgeries increased 6% year-on-year in the first quarter

[Pharmaceutical Innovation]

BeiGene (06160.HK): Tirelizumab approved by the European Commission for the treatment of non-small cell lung cancer

Federal Pharmaceuticals (03933.HK): The company's insulin products are to be selected for centralized drug procurement in the country

Forson Pharmaceutical (01652.HK): Application for marketing license for “Compound Potassium Hydrogen Phosphate Injection” was accepted

Kangzhe Pharmaceutical (00867.HK): The application for permission to market dexidolastat tablets in China has been accepted

Fu Hong Han Lin (02696.HK): Phase 1 clinical study of HLX6018 (recombinant anti-GARP/TGF-beta 1 anthropogenic monoclonal antibody injection) in healthy subjects completed the first patient administration in China

[Acquisition and sale]

Taihe Holdings (00718.HK) plans to sell all of its shares in Wide Flourish Investments for 50 million pounds

[Equity Incentives]

Haosen Fintech (03848.HK) granted a total of 15 million share options

LFG Investment Holdings (03938.HK) granted a total of 6.8 million share options

Corning Hospital (02120.HK): Plans to grant 566,000 award shares to 35 selected participants under the H-share Incentive Trust Program

Corning Jerry Pharmaceutical-B (09966.HK) grants 1.18 million share options

[Issuance of additional shares]

Hengxin Technology (01085.HK) plans to discount about 17.24% and place up to 77.6 million shares to raise HK$72.6 million net

[Repurchase Cancellation]

HSBC Holdings (00005.HK) spent HK$81.247 million to buy back 1.283,200 shares on April 22

Hang Seng Bank (00011.HK) spent HK$59.03 million to repurchase 600,000 shares on April 23

Standard Chartered Group (02888.HK) spent 8.088 million pounds to buy back 1.2086 million shares on April 22

Shell-W (02423.HK) spent 5 million US dollars to buy back 1.66,500 shares on April 22

Gloria Ying (06821.HK) spent 25 million yuan to buy back 327,000 A shares on April 23

Pharmaceutical Biotech (02269.HK) spent HK$24.88 million to buy back 1.905 million shares on April 23

Yao Ming Kangde (02359.HK) spent 2005 million yuan to buy back 475,700 A shares on April 23

Jiangxi Copper Co., Ltd. (00358.HK) spent 17.745 million yuan to buy back 713,000 A shares on April 23

China Software International (00354.HK) spent HK$13.55 million to buy back 3 million shares on April 23

Zhongyu Energy (03633.HK) spent HK$7.39 million to buy back 1.5 million shares on April 23

Jiufang Wealth (09636.HK) spent HK$5.797 million to buy back 546,500 shares on April 23