Lithium Mining Giant Rongjie's Net Profit Surges Over Tenfold YoY, Institutions Bullish on Extended High-Profit Cycle
Nashnova编辑部
Rongjie Co. (融捷股份, 002192.SZ) reported H1 net profit of RMB 1.0 billion, up 1,076% year-on-year, driven by lithium carbonate prices surging from ~RMB 120k/t to above RMB 200k/t; multiple brokers argue the supply deficit — and the profit cycle — is not over.
A tenfold profit jump — where did the money come from?
H1 revenue hit RMB 1.524 billion, up 402% YoY; net profit reached RMB 1.002 billion, up 1,076%.
The driver is singular: lithium prices surged. Battery-grade lithium carbonate rose from ~RMB 120k/t in January → broke above RMB 200k/t by mid-May, a cycle high.
This means → Rongjie is an upstream miner that holds the ore directly. Every RMB 10k/t lithium price gain flows almost entirely to its bottom line — downstream battery makers feel the opposite squeeze.
Can the mine keep up with demand?
H1 spodumene concentrate output reached 146,100 tonnes, up 109% YoY; Q2 alone was 86,700 tonnes, up 46% QoQ.
The company holds mining rights to the Jiajika spodumene deposit in Kangding, with 1.05 million t/year open-pit mining capacity and 450,000 t/year ore-processing capacity.
In plain terms = this is one of China's few large-scale spodumene mines that is actively producing and shipping — "has ore, is mining, can sell" all at once.
Why did lithium prices rally so hard?
Demand side: energy storage and EVs form a twin demand floor. SMM estimates China's lithium carbonate consumption will reach 1.7716 million tonnes in 2026, up 44% YoY.
A policy catalyst stacked on top: Beijing announced a phased rollback of lithium-battery export-tax rebates in January, prompting manufacturers to rush shipments before the policy took effect, pushing short-term demand and prices higher.
Supply side: domestic lepidolite mines halted production en masse for licence renewals, while Zimbabwe imposed lithium-ore export controls — fuelling expectations of supply contraction.
This means → demand accelerated and supply tightened at the same time. The lithium rally is not a single-driver story.
What do brokers expect next?
Guotou Securities: China's lithium carbonate supply-demand gap is roughly 46,782 tonnes; structural tightness persists; the high-margin cycle can extend.
Goldman Sachs: this cycle mirrors 2020–2021 closely — 2025 was the tail of the downturn, 2026 brings demand recovery and a price rebound.
Haizheng Futures: Q3 prices range-bound, Q4 trending up — reasoning is that EV sales historically skew to H2, storage stays strong, and the rebate cancellation next year will trigger another export rush.
This reflects a broad consensus that "the price rally story isn't over," though brokers diverge on timing.
How are Hong Kong-listed lithium-chain peers doing?
Lopal Tech (02465): guides H1 net profit of RMB 373–448 million, swinging to profit, driven by LFP business volume growth.
CNGR Advanced Materials (02579): guides net profit of RMB 1.25–1.35 billion, up 71–84% YoY, with combined sales of nickel, cobalt, phosphate, and sodium products exceeding 250,000 tonnes.
Ganfeng Lithium (01772): guides net profit of RMB 3.65–4.6 billion, swinging to profit, as lithium-salt prices rose sharply and capacity ramp-ups improved cost structure.
In plain terms = the entire supply chain is benefiting from higher lithium prices — upstream miners capture the widest margin swing, midstream material processors follow.
What should investors watch in H2?
Key variable one: whether the supply-demand gap keeps widening — if new capacity comes online faster than expected, the gap could narrow and lithium prices face pressure.
Key variable two: resource protectionism — after Zimbabwe, whether more lithium-producing nations impose export controls will determine if supply contraction is a short-term blip or a medium-term trend.
This means → whether the high-margin cycle continues depends less on demand (directionally settled) and more on whether supply "accidentally floods" the market.
Content is for reference only, not financial advice.