Recently, Rongjie Co., Ltd. ("Rongjie Co., Ltd.", 002192.SZ) disclosed its 2025 annual report. During the reporting period, the company achieved total operating income of 840 million yuan, a year-on-year increase of 49.71%; net profit attributable to the parent company was 279 million yuan, a year-on-year increase of 29.52%.
During the reporting period, the growth in production and sales of Rongjie's lithium concentrate products and the increase in net profits of associates became the core driving factors for the company's year-on-year growth in operating income and profits. However, the annual report also disclosed that the production and sales volume of non-ferrous metal processing and smelting industries, which account for a relatively low proportion of the company's revenue, decreased year-on-year. In addition, affected by factors such as reduced government subsidies, the company's net cash flow from operating activities decreased by 31.12% year-on-year.
Lithium concentrate products drive performance growth
The main business of Rongjie Co., Ltd. covers lithium ore mining, lithium salt processing and smelting, and lithium battery equipment manufacturing. Its main products include lithium concentrate, battery-grade lithium salt, and lithium battery equipment. During the reporting period, the company's lithium battery cathode and anode material projects were still in the construction and early planning stages, and no products had been produced yet.
From the perspective of product layout, Rongjie's main business is located in the middle and upper reaches of the new energy lithium battery industry chain, and its terminal application fields include new energy vehicles, energy storage power stations, consumer electronics, etc. Among them, new energy vehicles and energy storage are the most important application areas and sources of increase for lithium batteries.
Against this background, Rongjie's performance changes are generally in line with the development trend of the new energy lithium battery industry. The annual report shows that during the reporting period, the company achieved simultaneous growth in total operating income and net profit. As of the end of the reporting period, the company's total assets reached 4.924 billion yuan, an increase of 13.80% from the beginning of the period; the net assets attributable to shareholders of listed companies were 3.531 billion yuan, an increase of 5.15% from the beginning of the period.
The main driving factors for Rongjie's performance growth were the increase in the production and sales of lithium concentrate products during the reporting period, as well as the increase in the net profit of the associated company Chengdu Rongjie Lithium Industry. During the reporting period, the company's production volume of lithium concentrate (6% grade) reached 185,600 tons, an increase of 174.83% over the previous year. The main product lithium concentrate achieved a breakthrough in output doubling through raw ore transportation. The increase in output drove the company's operating income to increase significantly.
In the company's revenue structure, the non-ferrous metal ore mining and processing industry to which lithium concentrate products belong accounts for 91.25% of revenue, with a year-on-year growth of 92.54%. In contrast, the non-ferrous metal processing and smelting industry to which lithium salt products belong accounted for 0.53%, a year-on-year decrease of 93.10%. Although it accounted for a low proportion of revenue, the output and sales volume of the company's non-ferrous metal processing and smelting industry decreased by 37.68% and 47.18% respectively year-on-year during the reporting period. This was mainly due to the decrease in product production and sales due to the impact of market conditions and production line technical reforms.
In response to the revenue of the non-ferrous metal processing and smelting industry, Rongjie Co., Ltd. stated in its annual report that the lithium salt business within the company's consolidated scope currently has a small production capacity; the joint lithium salt enterprise Chengdu Rongjie Lithium Industry has a planned production capacity of 40,000 tons/year, and has put into production 20,000 tons/year. During the reporting period, due to the significant increase in the company's lithium resource output, the lithium salt output of the joint lithium salt plant was guaranteed to reach full production. If Chengdu Rongjie Lithium Industry's planned production capacity is fully completed, it will help the company further improve its overall market competitiveness and profitability.
Operating cash flow decreased by 31.12% year-on-year
The annual report of Rongjie Shares shows that at the end of the reporting period, the company's asset-liability ratio was 27.10%, an increase of 6.20 percentage points from the end of the previous year. During the reporting period, the company's net cash flow from operating activities per share was 1.20 yuan, a decrease of 0.54 yuan from the previous year; the company's net cash flow from operating activities decreased by 31.12% from the same period last year; the operating cash ratio was 36.94%, a decrease of 43.35 percentage points from the previous year.
In this regard, the company explained that it was mainly due to the year-on-year decrease in government subsidies received and the year-on-year increase in deposits and security deposits. The net cash flow generated from operating activities dropped significantly, resulting in a corresponding sharp decline in the operating cash ratio.
Rongjie Shares also disclosed specific business plans for its main business segments in 2026 in its annual report. Among them, in terms of lithium mining and processing business, the company will continue to promote the implementation of the project to add 350,000 tons/year of mineral processing capacity at the original site of the mine, as well as the site selection and implementation of the remaining production capacity of 2.5 million tons/year of mineral processing. In terms of lithium battery materials business, the company will promote the construction of Guangzhou Rongjie Power Supply Nansha cathode material project in 2026, and plans to achieve mass production in the second half of the year; at the same time, it will invest in the construction of a 50,000-ton/year lithium-ion battery anode material project. In terms of new energy operation business, the company plans to set up a holding subsidiary in 2026 to carry out new energy operation-related business, focusing on large-scale energy storage operations and other fields to cultivate new performance growth points.
Regarding the sources of funds for new projects under construction and investment plans, Rongjie Shares stated that the company has accumulated a lot of cash through continuous profitability for the past six years, and its net operating cash flow has been positive for five consecutive years. The company has the financial strength to maintain current business operations and promote continued project construction. At this stage, the company's operating conditions are stable and its bank financing capabilities are strong. In addition, the board of directors approved the company and its subsidiaries to apply for a comprehensive credit line from banks totaling 1.4 billion yuan, effectively broadening the company's funding channels.
