Chengxin Lithium Group Co.,Ltd. (002240) recently released its financial report, showing that while the company's revenue increased by over 10%, its net loss expanded to 888 million yuan. Financial data reveals that in 2025, the company achieved total operating revenue of 5.064 billion yuan, a year-on-year increase of 10.54%. However, the net profit attributable to shareholders showed a loss of 888 million yuan, compared to a loss of 622 million yuan in the same period last year. The net loss after deducting non-recurring items was 812 million yuan, narrowing from a loss of 897 million yuan in the previous year. Net cash flow from operating activities was 950 million yuan, a decrease of 27.86% year-on-year.
The lithium salt industry experienced a "decline followed by recovery" trend in 2025. In the first half of the year, influenced by the ongoing industry downturn, product prices continued to fall. According to data from Shanghai Nonferrous Metals, the price of battery-grade lithium carbonate dropped from 75,000 yuan per ton at the beginning of the year to 60,000 yuan per ton by the end of June. In the second half, amid an "anti-involution" backdrop, factors such as mining permit issues at some mines in Jiangxi and Qinghai raised concerns about supply. Coupled with stronger-than-expected demand, lithium carbonate prices rebounded continuously, rising to 119,000 yuan per ton by year-end.
Data indicates that the average price of battery-grade lithium carbonate in 2025 was 75,500 yuan per ton, down 16.54% from the previous year's average. Since the significant market recovery was concentrated at the end of the year, the persistently low prices in the first half exerted substantial pressure on full-year production operations and financial performance.
In terms of revenue composition, the company's entire revenue last year came from lithium products. Revenue from forest products was 4.75 million yuan in 2024, but accounted for zero percent of total revenue in 2025. Chengxin Lithium explained that production and sales in its forestry business fell by 100% year-on-year, primarily due to the small scale of the business, inactive trading markets, and low transaction frequency.
In fact, over the past three years, Chengxin Lithium's performance has fully reflected the rapid decline from the industry's peak, characterized by high profitability, rapid decline, and subsequent losses. Specifically, while the company remained profitable in 2023 with a net profit of 702 million yuan, this represented a sharp decrease of 87.35% year-on-year. By 2024, revenue shrank to 4.581 billion yuan, and the company turned from profit to loss, reporting a net loss of 622 million yuan.
Despite consecutive heavy losses, Chengxin Lithium has continued its acquisition activities. On December 30 last year, the company announced that its wholly-owned subsidiary, Sichuan Shengtun Lithium Industry Co., Ltd., plans to acquire a 30% equity stake in Sichuan Qicheng Mining Co., Ltd. for 2.08 billion yuan in cash. Upon completion of this transaction, the company will hold a 100% stake in Qicheng Mining.
According to Chengxin Lithium, Qicheng Mining was established on December 8, 2020. Currently, Qicheng Mining has no substantive production or operational activities. Its primary asset is the mining rights for the Murong lithium mine in Yajiang County, Sichuan Province, held by its controlling subsidiary, Huirong Mining. The Murong lithium mine obtained a mining license from the Ministry of Natural Resources on October 17, 2024, with an annual production capacity of 3 million tons. Development and construction of the mine are currently being actively advanced.
This marks Chengxin Lithium's second acquisition of Qicheng Mining. The previous acquisition occurred in September 2025, when it acquired a 21% stake for 1.456 billion yuan. Combined with the latest transaction, Chengxin Lithium has spent over 3.5 billion yuan on these acquisitions. The primary motivation for these frequent purchases is to gain control of the Murong lithium mine in Yajiang County, Sichuan Province, under Qicheng Mining.
In another announcement on February 4 this year, Shengtun Lithium Industry plans to acquire a 13.93% stake in Yajiang County Huirong Mining Co., Ltd. from Xiamen Chuangyi Shengtun New Energy Industry Investment Partnership for approximately 1.26 billion yuan in cash. After the transaction, Chengxin Lithium will hold a 100% controlling stake in Huirong Mining.
Chengxin Lithium stated that this acquisition aims to address the increasingly competitive market environment in the lithium salt industry and enhance the self-sufficiency rate of lithium ore raw materials. Currently, global lithium salt processing capacity is concentrated in China, but approximately 60% of raw materials rely on imports, posing challenges to supply chain security. By fully controlling Huirong Mining, the company will gain complete control over the Murong lithium mine. Leveraging its experience in high-altitude lithium mine development, it plans to accelerate project construction, establish a stable resource supply system, reduce risks associated with raw material cost fluctuations, and strengthen its ability to withstand geopolitical impacts.
According to disclosures in Chengxin Lithium's 2025 annual report regarding significant equity investments during the reporting period, the acquisition of a 21% stake in Qicheng Mining was completed in October 2025, while the acquisition of the additional 30% stake is currently undergoing industrial and commercial registration changes.
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