There's a mine at home! Rongjie Co., Ltd.: Staying steady on the fishing platform amid lithium price fluctuations

Source: Caizhi Fengyun

The shortcomings are also obvious.

Author | Muyu

Editor | Xiaobai

On March 24, 2026, Rongjie Co., Ltd. (002192.SZ, Company) released its 2025 annual report. This is a “mine-at-home” company—it holds a domestically scarce large lithium mine and makes money by selling battery-grade lithium concentrate.

In 2025, this company turned in a solid set of results. So, what exactly did it get right? We’ll try to break it down in plain terms.

Performance rebound from the bottom: what’s behind it?

In 2025, Rongjie’s revenue reached 840 million yuan, up nearly 50% from the previous year; net profit was 273 million yuan, up more than 35%. And in 2024, both of these figures fell sharply. From the trough to the rebound, the changes mainly came from two areas:

(Source: Caizhi Fengyun APP)

First, the products were sold for higher prices. In 2025, the price of battery-grade lithium carbonate rose from 75k yuan per ton at the beginning of the year to 117k yuan at year-end, an increase of more than 55%.

Rongjie’s main product is lithium concentrate (accounting for 86% of revenue), which is essentially the “raw material” for lithium salts. Since the company owns its own mines, its costs are relatively fixed, so nearly all the benefit from higher product prices converts into profit. In 2025, the company’s overall gross margin reached 51.2%, far ahead of other companies in the lithium battery industry.

(Source: Caizhi Fengyun APP)

Second, it proactively optimized its business structure. You might not have expected that in 2025, Rongjie’s revenue from lithium salt processing dropped sharply by 93%, but its gross margin surged from 8% to 41%. The reason behind this is that the company proactively shrank low-margin, high-risk external processing orders. In simple terms, it stopped “doing everything” and instead focused on the most profitable segments.

Financial soundness

Many people fear stocks will suddenly blow up. From a financial perspective, the company’s “defensive strength” is basically maximized.

Borrowing hardly at all: By the end of 2025, the company’s asset-liability ratio was only 27%, and its interest-bearing liabilities ratio was 4.8%. In other words, the company mainly runs on its own funds and has little repayment pressure.

Abundant cash flow: In 2025, the company’s net operating cash flow was 310 million yuan, roughly the same as its net profit, indicating that the money it makes is real in cash—not “paper wealth.”

However, the company also has shortcomings. As its business expands, inventory turnover slows and accounts receivable increase, suggesting that while the company grows in scale, the efficiency of capital use declines.

It’s like opening a restaurant that’s doing great business: more customers are running up tabs, and more ingredients have to be stocked up. The cash flow may be good, but the turnover needs to be pushed harder.

Industry cycle: when lithium prices rise, it has “plenty of elasticity”

The lithium battery industry is highly cyclical. Big swings in prices are the norm. When lithium prices rebounded in 2025, Rongjie showed remarkable earnings elasticity thanks to its resource self-sufficiency advantage.

You can imagine it as a “multiplier of fixed costs”:

When lithium prices rise, the company’s cost of mining lithium ore stays almost the same, but the selling price goes up, and nearly all the extra money goes into profit. This is especially evident in its lithium salt business.

But the other side of the coin is that 86% of the company’s revenue depends on lithium concentrate sales. If lithium prices fall again, performance will also “dive.” The 2024 double slash in both revenue and profit is the best proof.

Downstream demand: who’s supporting it—new energy vehicles and energy storage?

Demand for lithium mainly comes from two directions: new energy vehicles and energy storage batteries.

In the new energy vehicle segment, in 2025, China’s new energy vehicle sales exceeded 16 million units, with a penetration rate of nearly 60%. That means that for every 10 vehicles sold, 6 are new energy vehicles. Although growth has slowed, the market has entered a “replacement of existing stock” phase, so demand is still large.

The energy storage market is the truly “second growth curve.” In 2025, the world’s incremental installed energy storage capacity increased by 41% year over year, and China accounts for half. Lithium iron phosphate batteries (which require lithium) are the dominant energy storage technology. Rongjie’s subsidiary has already entered the top ten globally in energy storage battery shipment volume. While its current revenue share isn’t large, the upside imagination space is considerable.

Overall, the company’s core competitiveness boils down to two words: has mines.

Its methylcarb lithium spodumene mine is a large spodumene mine among the top tier in domestic production, with high grade and low mining costs. In 2025, the gross margin of the company’s lithium concentrate business reached 53%, far higher than its peers. Even when the industry was broadly losing money in 2024, it still maintained profitability, relying on its cost advantage.

But its shortcomings are also very clear: its business is too single, and its scale is too small. In 2025, revenue was only 840 million yuan, while industry leader Ganfeng Lithium could reach 14.6 billion yuan in just one quarter. The company’s current ore beneficiation capacity is limited—more than half of its mining capacity is idle. The 350k-ton project currently under expansion will be the key to whether it can “grow big” in the future.

Disclaimer: This report (article) is based on the attribute of a publicly listed company, and on the information disclosed by the listed company in accordance with its statutory duties (including but not limited to interim announcements, periodic reports, and official interaction platforms, etc.) as the core basis. Caizhi Fengyun aims to make the contents and viewpoints in the report (article) objective, fair, and just, but does not guarantee its accuracy, completeness, timeliness, etc. The information or opinions expressed in this report (article) does not constitute any investment advice. Caizhi Fengyun shall not be liable for any actions taken based on this report.

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